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Market Report

Wednesday, 16-Jan-2013

NSE

  • Sensex, the benchmark BSE index, fell -0.85 percent, or 169.19 points, to end at 19,817.63 today, marking its biggest single day fall since Dec. 21, 2012. The broader NSE index fell -0.9 percent, or 54.75 points, to end at 6,001.85 today, closing marginally above the psychologically important 6,000 level.

  • After a flat opening, the markets continued to trade weak through the day as weakness in rate sensitives weighed on the indices. Interest rate-sensitive fell as the Reserve Bank of India Governor D Subbarao stated that India's inflation has come off a peak but is still high, a comment that is likely to cool expectations for a 50 basis points rate cut later this month.

  • Traders said the central bank's policy review on Jan. 29 would take precedence over earning season as the key driver for Indian shares, especially after the RBI dampened rate cut euphoria. Expectations for a rate cut had gathered momentum this week after headline inflation slowed to its lowest level in three years.

  • In Asia, shares fell on Wednesday as cautious investors waited for crucial economic data from China later this week.

  • Morgan Stanley sees Sensex to top 23,000 by Dec 2013, reports The Economic Times. Morgan Stanley says growth in corporate earnings, rise in global liquidity and attractive valuations are likely to support markets.

  • Nifty may slide to 5925-5850 levels, once it starts trading below 5990, says Mitesh Thacker. You need to have some kind of trend changing signals or price singling that the trend or the up move has been broken, Mitesh said.

  • Wait till market rebuilds momentum at lower levels before taking long positions, says Ashwani Gujral. Market is in a correction mode and some stocks will correct more. Some large cap will stem the fall in a bull market, Gujral said.

NIFTY 3-Month

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