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Market Report

Thursday, 03-Jan-2013


  • The Sensex rose by 50.54 points, or +0.26 per cent, to 19764.78, a level last seen in January 2011. The index had gained 288 points in last two sessions. Similarly, the broad-based National Stock Exchange index Nifty ended 16.25 points up, or +0.27 per cent, to 6009.50, for the first time in two years.

  • The upsurge was led by stocks of software exporting companies as our country gets over 60 per cent of their export revenue from the US and European markets. However, throughout the day, profit-booking was visible in banking stocks and momentum shifted to mid cap and small cap counters. Our market also surged on hopes of better-than-expected third quarter corporate earnings starting next week.

  • Brokers said trading sentiment bolstered after the US Congress passed the "fiscal cliff" deal besides a better US manufacturing data boosting investor confidence. They said the market was further supported by Asian stock rising to 17 months high and European market opening firm following reports of expansion in China's services industries raising hopes of faster global economic recovery.

  • BSE index Sensex, which started the New Year on a strong note, is likely to extend the bull-run and touch all time high of 21,700 by this year-end, says a research report by HSBC. The Sensex had scaled all time high of 21,206.77 on January 10, 2008. With FIIs appearing to be already overweight on India, the scope for a further boost could be limited. It will, therefore, be important for the government to continue to open India up to greater FDI, the report said.

  • Sensex may gain 15-20% in 2013, current P/E below 10-year average, as per Analysts. Even after attracting $25 bn in foreign flows in 2012, the Sensex is trading at a lower multiple compared to its 10-year average, say analysts.

  • Bias and the trade direction remains on the upside,says Mitesh Thacker. Nothing much changed today. It has been a non-trading day. We did not have any kind of directional call happening barring IT and couple of midcap stocks bouncing their way. We are holding on to the long position which we have been carrying forward for last two to three to four trading sessions, he adds.

  • Markets can rally another 10-12% from current levels, says Sangeeta Purushottam. The rally does have some more steam left. When we look at levels of 6000 it is really more psychological, says Purushottam.

NIFTY 3-Month

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