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Market Report

Friday, 15-Mar-2013

NSE

  • Sensex, the benchmark BSE index fell -0.73 per cent, or 142.88 points, to close at 19,427.56 today. The index fell -1.3 per cent for the week, marking its sixth weekly drop in last seven. The broader NSE index, Nifty, fell -0.62 per cent, or 36.35 points, to 5,872.60 today, closing below the psychologically important 5,900 level and down -1.22 per cent for the week.

  • Markets fell today as private sector lenders were hit after the government and the RBI said they would investigate allegations of money laundering practices.

  • Broader sentiment was also hit after an analyst at Standard and Poor's said the slowdown in India's economic growth was less supportive for the country's sovereign credit ratings. S&P's senior director Kim Eng Tan said the government may find it challenging to meet the revenue projections in its 2013/14 budget.

  • Investors are now gearing up for the Reserve Bank of India's policy review on Tuesday amid expectations that the central bank will lower interest rates by 25 basis points.

  • On the global front, European stocks advanced to a four-and-a-half-year high as the region's policy makers gathered for a two- day summit in Brussels. Japan's Nikkei share average closed at a fresh 4-1/2-year high above the 12,500-mark today on growing expectations the central bank will ease monetary policy aggressively under its new leadership.

  • Expect Nifty to go to 6650-6700 levels by 2013-end, says Sanjoy Datta of JM Financial. Our expectation is that the RBI will continue gradual reduction in interest rates. It will be phased out and we do not expect to see any sudden drop. The market is pricing in a 25 bps cut in the repo rate on March 19. So, my personal feeling is that we should not be disappointed if it does not happen and if it happens, then that will be good, he adds.

  • Market may move sideways, witness volatility in the coming week, says Ashwani Gujral. Well, it is going to be news flow heavy and chances are that we could head down again, Gujral said.

  • Nifty may consolidate further from the current range, says Mitesh Thacker. On the index, it will be difficult for the market to take further advances unless and until 5950-5970 is crossed, Thacker said.

NIFTY 3-Month

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