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Market Report

Monday, 05-Nov-2012

NSE

  • Sensex, India's BSE index, rose +0.04% or 7.42 points to end at 18762.87 points, bringing its gains to 1.8% over the past four sessions. Nifty, the 50-share NSE index rose +0.11% or 6.50 points to 5704.20 today, closing above the psychologically important 5700 level for the first time since Oct. 25, and has gained 1.9% over the previous four sessions.

  • Defensive stocks gained, with some consumer good companies favoured since they are seen as offering steadier returns and potential for growth. Global shares fell, while the dollar strengthened to two-month highs today as investors were unwilling to hold too much risk, as the US poll on Tuesday will be followed by a Greek vote on austerity measures on Wednesday.

  • The political uncertainty in the world's largest economy made investors wary of holdings riskier assets. US President Barack Obama and Republican challenger Mitt Romney were neck-and-neck in opinion polls in the final 48 hours before Tuesday's vote. Obama's re-election is perceived as negative for equities, while markets see Romney as stock-friendly, analysts have said.

  • Going forward, markets may see stock-specific action this week in view of earnings from many blue chips, including Bharti, Tata Motors and SBI, analysts say.

  • We need another burst of reforms for FII interest to continue and to give encouragement and hope to those who believe in Indian equities, says Saurabh Mukherjea of Ambit Capital.

  • 5600-5630 is holding on and people need to maintain long position both on the index as well as stocks, says Ashwani Gujral in a chat with ET Now. This is because when the big move happens, we will not get onboard and four days will be 300 points higher. Therefore, when markets are flat, that is the time to build positions rather than avoiding getting into things, he adds.

NIFTY 3-Month

(Data/Charts courtesy NSEI/Yahoo!/iCharts/The Economic Times)