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Market Report

Thursday, 23-May-2013

NSE

  • Extending losses for the fourth straight day, Sensex, the 30-share index nosedived by 387.91 points, or -1.93 per cent, to close at 19,674.33 today, with all the sectoral indices, led by realty and capital goods stocks, in the negative zone. The index had lost nearly 224 points in the previous three sessions. Nifty, the broader NSE index, fell -2.09 percent or 127.45 points, to end at 5,967.05 today, marking its biggest daily percentage fall since May 8, 2012.

  • The NSE index posted its biggest percentage fall in a year today, as the prospect of an end to the US stimulus programme and a weak China manufacturing survey sparked concerns foreign investors would end their recent buying spree.

  • Federal Reserve Chairman Ben Bernanke signalling yesterday that monetary stimulus may be scaled back if the US economy improves further, triggered selling activity in the entire global region, traders said. Also, reports of manufacturing activity in China contracting in May for the first time in seven months further dampened the trading sentiment further, they added.

  • In Asia, Nikkei plunged 7.3%, its biggest one-day percentage drop in two years after weak Chinese factory data rattled investors, prompting them to take profits from a recent rally buoyed by massive Bank of Japan stimulus measures. European markets also crashed over 2%.

  • Expect weakness in the market, says Ashwani Gujral. It is just that those one-way markets, they induce complacency and at the first whip of something, everything collapses like a pack of cards. What is important is to the currency market that rupee after being sideways for the better part of last year has now started breaking out, he says.

  • Investors should use correction as buying opportunity, says Dinesh Thakkar. In the coming months, we expect the Indian markets to relatively outperform other global markets and cross new highs, he says.

  • Not bearish on markets at all, says Rajen Shah. We had similar correction last Monday when we cracked about 450 points on the Sensex and we had said that the market will bounce back, he adds.

NIFTY 3-Month

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