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Market Report

Monday, 19-Aug-2013

NSE

  • The Sensex ended today at 18,307.52, a drop of 290.66 points or -1.56 per cent. Investors remained rattled after RBI on August 14 unveiled stern measures, including curbs on Indian firms investing abroad. Sensex last Friday crashed by 769 points -- the worst fall in 4 years -- on fears that more steps will be announced to control capital outflows to shore up the unit.

  • Similarly, the 50-issue NSE CNX Nifty also dipped by 93.10 points, or 1.69 per cent, to end at 5,414.75 -- the lowest since September 2012. The Sensex and the Nifty touched an intra-day low of 18,139 mark and 5,361 levels, respectively.

  • Stock markets today continued to wilt under heavy selling on rupee plummeting to new lows. Investors sentiment took a hit with rupee racing towards 63-level. The domestic currency was trading at its all-time of low of 62.8 in the late afternoon trade. Later, it breached 63-mark after stock markets closed for the day. FII selling in shares of banks, auto, pharma and FMCG eroded Rs 1 lakh crore in investor wealth.

  • Derivatives analysts say the rise in outstanding positions in index futures, coupled with a fall in cash share indexes, indicates the formation of short positions.

  • Weakness in global markets and speculation over the US rolling back its economic stimulus package as early as next month also affected the sentiment. Japan's Nikkei share average rose today as investors found buying opportunities in oil companies on rising oil futures, but trading was subdued as the market was focused on the minutes of the US Federal Reserve's July policy meeting this week for more cues on when it will likely start tapering the stimulus. European markets too are trading weak with CAC, DAX and FTSE down by upto 1%.

  • This is the best time to buy quality stocks and go for value-buying, say Experts. More than half of the companies traded on the BSE are quoting at huge discounts below their book value, thanks to the sharp correction in most non-index stocks. Many experts also believe stocks in select sectors like pharma and IT are attractive at the moment because of the depreciation of the domestic currency.

NIFTY 3-Month

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