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Market Report

Wednesday, 05-Dec-2012

NSE

  • Sensex, the BSE index gained +0.23% or 43.74 points, to end at 19391.86, its highest close since April 27, 2011. The broader NSE index, Nifty, rose +0.19% or 11.25 points, to end at 5900.50 for the first time since April 13 2011, clearing the psychologically important 5900 level.

  • Our markets closed higher on buying support on optimism that the government would succeed in getting Parliament approval to its decision to allow foreign direct investment in multi-brand retail.

  • Traders said optimism ahead of the parliament vote, that will pave the way for more reforms, have triggered a rally in mid-cap and small-cap spaces and is a sign of structural bullishness in the market.

  • Meanwhile, India's services Purchasing Managers' Index fell to 13-month low of 52.1 in November from October's 53.8, data showed today.

  • Asia's risk appetite was firm after China's Communist Party's new leaders said it would actively promote urbanization amid hopes of resolution in US budget talks. Japan's Nikkei average rose to a seven-month closing high today, lifted by sharp gains in Chinese equities. European shares continued their recent rally today after comments from China's new leader boosted global growth expectations.

  • Good time for investors to buy quality stocks, says P Phani Sekhar of Angel Broking. This is neither a bull market nor a bear market. It is important for us to recognise that liquidity conditions for the moment are good, he adds.

  • Markets could see some large upsides next week, says Ashwani Gujral. It is not the best time to go long. This week could remain sideways. Even after today's vote, tomorrow morning we will not open gap up. From here, we will probably keep doing a 15-20 point jig, he adds.

NIFTY 3-Month

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