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Market Report

Friday, 16-Aug-2013

NSE

  • It was bloodbath in markets today with Sensex crashing 769.41 points, the biggest fall in 4 years, to end at 18,598.18 on fresh concerns about US stimulus withdrawal and rupee plunging to record low of 62, draining investor wealth by Rs 2 lakh crore.

  • After gaining 703 points in the last four sessions, the Sensex plunged 769.41 points, or -3.97 per cent, to 18,598.18 on all-round selling. Consumer durables, realty, banks and metal sector took major beating. The broad-based National Stock Exchange index Nifty nosedived by 234.45 points, or -4.08 per cent to 5,507.85, after touching day's low of 5,496.05 today.

  • Brokers said a weak trend in Asian and European markets on speculation that US Federal Reserve might roll back monetary stimulus after jobless claims in US declined to lowest level since 2007, further influenced the market.

  • The RBI on Wednesday announced additional measures to support the Indian rupee by stemming foreign exchange outflows by Indian residents. But today, the Rupee plunged to lifetime low of 62.03 before recovering to close at a record low of 61.65 against the dollar.

  • RBI data shows that even after dollar sales to the extent of $2.25 billion in June, the rupee weakened by almost 5% during the month. The sale made by RBI in June was the highest in almost one-and-a-half years. Meanwhile, the Government has clarified that it has no intention to impose capital controls and denied market rumours of a proposal to increase margin money on short-selling of shares.

  • For the week, the Nifty opened on a buoyant note and traded with an upward bias in the initial part of the week, registering a high of 5,754.55. However, it could not sustain at higher levels and witnessed selling pressure which led Nifty to register an intra-week low of 5,496.05. In the end, Nifty closed at 5,507, with a loss of 57.80 points for the week ended August 16. With Friday's terrible fall, Nifty has closed near the crucial support of 5,500 levels. Trading below 5,470, Nifty is likely to witness heavy selling which can lead it to head towards 5,350/5,260/5,200 levels, say analysts.

  • After a free fall on Fryday, investors can still make hay, say experts. Traders who are willing to take risk can buy into the 5700 call option for the September series at a premium of around Rs 60-70/lot, they say.

NIFTY 3-Month

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