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Market Report

Thursday, 07-Mar-2013

NSE

  • After a lower start, the Sensex spurted by 160.93 points, or +0.84 per cent to close at 19,413.54 today, wiping off initial losses. The gauge has now gained 536 points in three sessions. The broad-based National Stock Exchange index Nifty rose by 44.70 points, or +0.77 per cent to close at 5,863.30 today, after opening lower at 5,801.30.

  • Brokers said besides momentum in interest-rate sensitive stocks ahead of the RBI's policy review this month on hopes of a rate cut, stocks of software companies surged on hopes of a recovery in the US growth and a better Europan trend before central bank policy meetings in the region.

  • On the global front, the Dow Jones Industrial Average hit a new high yesterday as the US service industry grew at the fastest pace in a year amid optimism the Federal Reserve will maintain stimulus measures to support the economy. Japan's Nikkei average rose to a 4-1/2-year high for a second day in a row today, boosted by expectations of more aggressive monetary policy. European shares edged up in early trade today, leaving key indexes hovering around multi-year highs and with investors forecasting more market gains in the medium term.

  • Expect Nifty to reach 5970 in a few days, says Ashwani Gujral. Today in the last one hour, we have gained momentum, chances are this momentum could continue even tomorrow. Short covering has just started. I believe now you will have that faster short covering or bigger positional short covering that will come into the market and you can easily do 100-150 points, he adds.

  • Meaningful flow of FII money will make market strong, says Sonam Udasi of IDBI Capital. There is still bouts of selling in midcap that keeps happening. So, unless there are meaningful flow of liquidity of FII money, that has also come down to a trickle over the last two-three days, I do not think market will find much support maybe a 100 points from here on. This may be short term but right now the mood is not overtly bullish on the broader market, he adds.

  • Expect RBI to cut interest rate to boost growth, said DK Joshi of CRISIL. Industry and services are currently very weak and there will be some upside because the global environment is slightly better. So, somewhat positive for exports. The RBI will cut interest rates. That is again mildly positive for the manufacturing and industrial sector, he adds.

NIFTY 3-Month

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