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Market Report

Thursday, 13-June-2013

NSE

  • Extending losses for the third straight session, Sensex, the 30-share index commenced the day on a weak note at 18,815.57 and plunged further to close down by 213.97 points, or -1.12 per cent, at 18,827.16 today. This is the first time since April 17 that the Sensex has closed below 19,000 level at 18,731.16. Similarly, broad-based National Stock Exchange Nifty settled lower by 61.10 points, or -1.06 per cent, at 5,699.10 today on sustained selling by foreign funds, mainly in the auto sector, even as Finance Minister P Chidambaram said more reforms are on the anvil.

  • Brokers said the market sentiment was hampered by reports of a weakening trend in all global markets as investors speculated this year's rally has overshot the earnings outlook amid concern that central banks may pare stimulus measures. Meanwhile, Finance Minister P Chidambaram today said the government will announce host of decisions, including relaxation of FDI caps and resolution of gas and coal prices, in the next few days.

  • The rupee extended fall on Thursday following comments from the finance minister as he failed to announce any clear and strong measures to arrest the sharp decline in the rupee seen in recent weeks.

  • Investors will now focus on Friday's wholesale price inflation (WPI) data which is expected to remain in the central bank's comfort level of 5 per cent. An easing inflation will provide RBI more elbow-room to reduce interest rates in the June 17 monetary policy review.

  • On the global front, the Nikkei average tumbled 6.4% today, hitting its lowest close since April 3 - the day before the Bank of Japan unveiled sweeping stimulus to revive the economy - as investors further cut their long Japanese equities and short yen positions. European shares sold off again today with banks and commodity stocks as the top fallers on concerns about stimulus unwinding and Greek political turbulence.

  • Bank Nifty is holding on for policy but I do not think it would matter, says Sandeep Wagle. Now is the time to be extremely stock specific but yes there will be opportunities, he adds.

  • Bank Nifty will catch up once RBI policy is out, says Ashwani Gujral. We are hardly able to go up another 15-20 points which means there is some amount of selling at lower levels, he adds.

  • Market mayhem: Nifty is likely to slip below 5,600 in near term, says the Economic Times. FIIs have also turned net sellers in Indian equities and debt market. In the month of June, they sold close to $1 billion on both the equity and debt side, says thier website.

NIFTY 3-Month

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