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Market Report

Monday, 04-Feb-2013

NSE

  • The Sensex closed with a loss of 30 points, or -0.15 per cent, to 19,751.19 points on weak earnings by Banks. The gauge had lost nearly 224 points in last two trading sessions. Similarly, the broad-based National Stock Exchange index Nifty fell by 11.65 points, or 0.19 per cent, to close at 5,987.25 today.

  • Brokers said investors adopted a cautious approach and refrained from enlarging their positions after reports of a fall in quarter earnings by Bank of India and IDFC Ltd. They said the firming global trend failed to influence the market sentiment as some stocks led by ONGC surrendered fresh ground on profit-booking after the recent upsurge.

  • The government is looking to raise about $2 billion through a stake sale, likely on Thursday, in state-run power producer NTPC Ltd, with dealers expecting foreign fund inflows between $300 million and $500 million for the transaction. Upcoming government share sales in February and March will include state trading company MMTC Ltd and steel maker Steel Authority of India Ltd. The government has already raised $585 million by selling shares in Oil India Ltd. The disinvestment programme will be critical if the government is to meet its fiscal deficit target of 5.3 percent of gross domestic product for the year ending in March and reduce concerns about India's current account deficit.

  • The markets may not experience a big-bang rally ahead of the Budget 2013 as analysts feel that most of the good news is already factored in and valuations are no longer at attractive levels. We have historically seen that the markets tend to be a little choppy and we have often seen tops happen just before the budget. There has been a long gap between the budget and the rate cut. So people are worried whether there would be any further triggers, they say.

  • Markets are likely to pause until the budget, says Taher Badshah of Motilal Oswal Asset Management. While the Nifty on a more optical basis appears range bound but it has been fair, it has gained quite well in the space over the last 4-5 months. I would think we are in for a breather, he adds.

  • Decline is happening in the mid-cap and high beta segment, says Mitesh Thacker. We are possibly looking at somewhere a test of around 5950-5930, says Thacker.

NIFTY 3-Month

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