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Market Report

Monday, 28-Jan-2013

NSE

  • The benchmark BSE 30 Index, Sensex closed 0.18 points down at 20,103.35 today. The NSE 50 Index, Nifty ended up 0.15 points at 6074.80 today. The markets ended so flat that one index ended marginally negative while the other ended marginally positive. Indian markets had a lacklustre day ahead of Reserve Bank of India credit policy announcement as investors avoided taking any risk before the macro event.

  • Analysts say markets have already factored in 25 basis points rate cut. However, RBI remains cautious with inflation around 7%. Governor Duvvuri Subbarao said "inflation is still high", a comment that dashed financial market expectations for more aggressive rate cut of 50 basis points.

  • Asian stocks edged higher on Monday after a corporate-results-driven rally on Wall Street on Friday and amid a positive earnings outlook for Chinese firms.

  • If Reserve Bank of India cuts interest rates by 25 basis points, Sensex may rally by 150 points but If RBI don't cut interest rates then there might be a correction of over 150-200 points on the downside, said Jitendra Panda of Future Capital. A section of markets is also anticipating 50 basis points rate cut in that scenario investors then might build fresh positions in rate sensitive sectors like banking, capital goods and Auto, he added.

  • Good time to enter markets if RBI disappoints investors, say experts. In case the RBI disappoints, the Nifty may correct over 100 points and it will be good opportunity to enter the markets, they add.

  • I would definitely be a seller if RBI policy cuts only 25 bps, says Prakash Diwan. Life continues irrespective of RBI policy, for quite a few sectors I am sure it would not make such an impact, adds Prakash.

  • Private sector banks have got into a buy mode on intraday charts, says Mitesh Thacker. Market has been not trending much and we have taken our contours at about 6120-6130 on the higher side, adds Thacker.

  • Kunal Bothra of LKP is of the view that, If market gives a breakout above 6120 levels that is where one can take the chance and take that additional risk of going long on mid-caps.

NIFTY 3-Month

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