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Market Report

Tuesday, 12-Feb-2013

NSE

  • The benchmark Sensex bounced back by notching up a gain of 100.47 points, or +0.52 per cent, to end the day at 19,561.04 today. The index had lost 545 points in last eight sessions to mark its longest losing streak since May 2011. The 30-share barometer resumed the day better but fell to a low of 19,438.53 after the news of fall in industrial output growth and rise in retail inflation trickled in.

  • The broad-based National Stock Exchange index Nifty rose by 24.65 points, or +0.42 per cent, to close at 5,922.50 today.

  • Shrugging off poor IIP and inflation numbers, the Indian stock market today rose handsomely in late trading to snap its eight-day losing streak, on value-buying in select scrips. Brokers said investors bought fundamentally strong stocks available at attractive lower levels and ignored the lower industrial data and higher retail inflation.

  • In Asia, the yen recovered from lows against the dollar and Tokyo stocks jumped closer to a 33-month high today after markets took comments from a US official as approval for Japan to pursue anti-deflation policies that weaken the yen. European shares were trading flat with a mixed bias on the back of discouraging earnings outlook by select corporates.

  • While IIP shows a poor performance on the industrial front, markets actually gathered an upward momentum. This suggests that the bad numbers are now factored in, said Nagzi K Rita, CMD, Inventure Growth and Securities.

  • ICICI Securities is of the opinion that equity markets could correct 3-4% during February, in the run-up to the Budget 2013. This, the brokerage feels provides a 'window of opportunity to buy into the dip'. The brokerage said that it expects a 'non-populist' investor friendly budget.

  • Budget 2013 should be non-expansionary and progressive in nature, said Vivek Mahajan, Head of Research at Aditya Birla Money. It should aim for a contained fiscal deficit and take the economy back on the accelerated growth path. A budget aimed at economic growth could lead to a market rally in March, said Mahajan.

  • Sustainability on higher side looks difficult, said Gaurang Shah. Pullback possibly may last for today by the time we wind up the day and even for tomorrow when we come back for trading, but then sustainability on the higher side looks very very difficult as it was visible at 6050-6100 on the Nifty spot, says Shah.

NIFTY 3-Month

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