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Market Report

Thursday, 15-Nov-2012

NSE

  • The Bombay Stock Exchange 30-share Sensex remained in the negative terrain throughout before ending at 18471.37 -- a loss of 147.50 points or -0.79%. This was the lowest closing for Sensex since 18430.85 on October 30 this year. On similar lines, the National Stock Exchange index Nifty lost 35.95 points or -0.63% to close at 5631.00 today.

  • Extending losses for the fifth straight day, the Sensex, which had lost 284 points in the last four trading sessions alone, opened weak and continued to slide lower in line with Asian markets that mirrored a fall in US stocks yesterday on rising concern about the budget debate in the US.

  • The sentiments were further weighed down by the concerns over global growth recovery coupled with US fiscal cliff tensions and bailout uncertainty of Spain and Greece.

  • Investors also appeared to ignore the Wholesale Price Index (WPI) declining marginally to 7.45% in October. Traders said investor confidence was also hit after the lukewarm response to the 2G telecom spectrum auction raised concerns over the country's widening fiscal deficit. The much awaited 1800-MHz 2G spectrum auction ended on the second day on Wednesday, with the government managing to rake in a dismal Rs 9407 crore as against the expected Rs 40000 crore.

  • In Asia, barring Japan that closed higher, all other country indices finished with 0.22-1.55% losses. European shares fell for a second day running on Thursday, hit by evidence that the debt crisis has slowed euro zone economic activity and by persistent concerns about fiscal problems in the United States.

  • Markets may witness profit booking tomorrow, says Ashwani Gujral. I believe that there is no trend right now in the market. This is a downswing, so chances are 5580-5600 may not get breech. The next rally we have will probably not be able to reach the previous high of about 5770-5780, so you will have these rallies happening from 5600 which are declining in their amplitude and finally 5600 will go, he asserts.

  • Nifty might break below 5600, says Mitesh Thacker. Last couple of days we have been maintaining that we have got some signals and we should re-test the lows. After the next few days of bouncing back from around 5710-5720 levels, good chance that we might break below 5600 and head towards sub-5500 which would be very critical medium term support level, he adds.

  • RBI chief won't cut rates before January, says Gaurang Shah of Geojit BNP Paribas Financial Services in a chat with ET Now. Just one down take on inflation number is not enough. We need consistency over there and in case if we are going closer to may be 7-7.25 on the inflation front, then there might be a re-think. But I do not think the RBI governor will oblige us before the next review that is in Jan 2013. But yes a sizable amount of improvement on the inflation numbers would definitely warrant for a rate cut, he adds.

  • US fiscal cliff won't have direct impact on Indian markets, says K Ramanathan of ING Investment Management. There is an indirect impact of consumer demand slow down in US. But apart from that, over the next few months, market is going to driven by Reserve Bank of India. So we are overweight in these rate sensitive sectors, especially financials, he adds.

NIFTY 3-Month

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