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Market Report

Tuesday, 20-Aug-2013

NSE

  • Sensex, the 30-share index slumped to a low of 17970.98, down nearly 337 points, after Rupee breached the 64-level against dollar, However, buying by funds in beaten down shares helped the Sensex end at 18,246.04 today, down 61.48 points or -0.34 per cent. In three days, the index has lost over 1,100 points. On similar lines, the National Stock Exchange index Nifty ended 13.30 points, or -0.25 per cent lower to close at 5,401.45 today, after dipping to 5,306.35 in intraday.

  • The rupee hit yet another all-time low of 64.11/12 per dollar in intra-day trade. It later strengthened against the US dollar on the back of Reserve Bank of India's intervention and closed at 63.56, down 43 paise, against its previous close of 63.13 per dollar.

  • Market fell for the fourth consecutive session as dollar outflows continued on macro economic concerns. Fag-end buying in banking, realty and metal sector stocks helped the market to minimise losses and recoup intraday losses on the back of short-coverings, whereas rupee falling to record low levels and weakening global markets continued to influence the trading sentiment, said brokers.

  • Global financial firm JP Morgan in its latest report today, called "Too much CAD pain", has downgraded India to neutral on rising worries over widening current account deficit.

  • Market sentiment was further hurt on weakening Asia and lower opening in Europe on speculation that the US Federal Reserve will soon start to scale back stimulus programme. Emerging-market stocks fell the most in six weeks as Indonesia's record current-account gap and Thailand's recession heightened fears that capital outflows will rise.

  • There is one good point and one bad point to note in today's market. The good part is that the quantum of the fall today has narrowed for both the indexes and the Indian rupee indicating that a temporary bottom is being formed. The bad news is the quantum of investments the FIIs have taken out of our system today. See our 'Market Statistics' page. If such withdrawls continue for a few more sessions, we will be in deep irreversible trouble.

  • Analysts are of the view that after falling over 450 points in last three sessions, the Nifty is likely to witness a pull-back rally. However, the upmove may be temporary in nature and would not last. The benchmark may continue with its downfall later, as investors would want to exit the market to limit losses.

NIFTY 3-Month

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