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Market Report

Thursday, 24-Jan-2013

NSE

  • Sensex, the benchmark BSE index, fell -0.51 per cent, or 102.83 points, to end at 19,923.78 today. The broader NSE index fell -0.58 per cent, or 34.95 points, to end at 6,019.35 today.

  • Markets ended lower today as investors booked profits in rate sensitive shares after recent gains, after misleading news corporate giants. First Tata Motors raised concerns of JLR sales, while RIL retreated saying an expected increase in gas prices may be less favourable to private companies. Later, HDIL tumbled on speculation the property developer was facing financial trouble. However, L&T provided some positive news as its shares rose after its Q3 earnings showed order inflows above expectations.

  • Risk appetite was frail on geopolitical concerns after North Korea threatened a nuclear test on US and after Apple Inc reported below-estimate results in the fourth quarter. Adding to the concerns was euro-zone woes after preliminary composite purchasing managers' index (PMI) for France, showed a big reduction. On paper, Asian shares ended mixed and European markets recovered after a fall.

  • The benchmark index Sensex found tough resistance to stay above 20,000 mark, said experts. Mid-caps and small-caps have corrected more steeply than the large-caps. This is not a healthy sign for markets. Overall markets are in correction mode and we expect this trend to continue in the short term, added experts.

  • The way market has gone up, a correction is due anyway, says Sonam Udasi of IDBI Capital. Even if there is a 50 bps cut on that particular day, I do not think market momentum will be sustained beyond a point, adds Udasi.

  • Index has been choppy and volatile, says Mitesh Thacker. The index is settling with buying emerging at lower levels while rallies are able to sustain at higher levels, the breadth is of course the worry, he adds.

  • The earnings season so far is fairly in line, but budget, RBI policy are the next big cues, said Nilesh Shetty, Fund Manager at Quantum Asset Management Company.

NIFTY 3-Month

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