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Market Report

Tuesday, 11-June-2013

NSE

  • Sensex, the 30-share index, started the day on a weak note and continued its downward march throughout the day as rupee kept tumbling. It settled 298.07 points lower, or -1.53 per cent, at 19,143.00 today, a level last seen on April 22. Similarly, the broad-based National Stock Exchange index Nifty plunged below the crucial 5,800 level by falling 89.20 points, or -1.52 per cent, to close at 5,788.80 today mainly led by drop in interest rate sensitive stocks as rupee slumped to new lows dashing hopes of a rate cut by RBI next week.

  • Brokers said the steepest two-day fall in rupee's value to all-time low of 58.96 may limit the Reserve Bank's scope to lower interest rates at its policy review on June 17. They said the currency debacle might put pressure to hike essential item prices such as crude oil and further widen the fiscal deficit.

  • Govt of India Central Statistics Office will release data on industrial output for April 2013 and consumer price index for May 2013 on Wednesday. Industrial output and inflation data assumes significance in wake of the rupee dropping to a record low which would direct the central bank's policy stance on Monday next.

  • The trading sentiment was further dampened on weakening global trend, after Bank of Japan refrained from expending stimulus and treasury yields, added Brokers. Major European indices were trading over 1% down ahead of a two-day public hearing by Germany's constitutional court over the legality of European Central Bank's bond-buying programme.

  • Expect Nifty to trade in 5680-5650 levels, says Sandeep Wagle. Not expecting an upward move beyond 20-30 points at any point in time and on the downside, 5700-5680, probably 5650 is in the offing, he adds.

  • Profit booking in rupee is unlikely to sustain for more than a day, says Ashwani Gujral. So chances are that we have pressure even from global markets as Europe, etc, is down. So, if you global markets also pitch in, 5500 should happen fairly easily, he says.

NIFTY 3-Month

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