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Market Report

Tuesday, 10-Sept-2013

NSE

  • Sensex, the 30-share index, ended at 19,997.10 today, up 727.04 points or +3.77 per cent. It touched a high of 20,012.69 and a low of 19,444.66 in trade today. The Nifty closed at 5,896.75 today, up 216.35 points or +3.81 per cent. It touched a high of 5,904.85 and a low of 5,738.20 in trade today.

  • The stock markets jumped to their biggest single-day gain since May 2009, led by blue chips as receding fears of a US-led military strike on Syria and a sturdier rupee sparked hopes about foreign investor flows. The rupee was at a two-week high following weakness in the dollar index. The partially convertible rupee was at 63.90 in late trade.

  • Shares posted their fourth consecutive session of gains to send the indexes to their highest since late July, after foreign institutional investors (FIIs) bought nearly Rs 2,000 crore ($306.26 million) worth of Indian cash shares in the previous three sessions, and another massive net-buy of 2,564 crore today - the highest this year. See our 'Market Statistics' page.

  • The foreign buying, and subsequent gains in shares as well as the rupee, comes after Raghuram Rajan took over as the new governor of the Reserve Bank of India on Sept. 4 and announced a slew of measures to support the currency and open up markets. One of these, announced late on Friday, made it easier for foreign promoters of domestic listed companies to increase their stakes via share purchases.

  • In India, data showed the trade deficit in August narrowed to $10.9 billion, with exports surging 13 percent and imports remaining flat. Although that was wider than some expectations, the narrowing deficit was still seen boding well for the troubled rupee. Meanwhile, snapping a nine-month streak of decline, domestic passenger car sales grew by 15.37% to 1,33,486 units in August this year, compared to 1,15,705 units in the same month last year.

  • The gains also tracked higher global shares on receding expectations of US-led military action against Syria and better-than-expected industrial output and retail sales data from China.

  • Most technical analysts are of the view that the rally we witnessed so far in the month of September was largely on account of short covering as sentiments turned bullish after the RBI announced measures to stem rupee's fall against the US dollar. The rupee also rose to a two-week high as receding geopolitical risks from Syria and strong exports in August helped lift the sentiment. So, unless we have a longer term trend, the 200-DMA will remain flat and the market will be range-bound. If the index closes above 200-DMA for atleast the next 2-3 days it would end the negativity in the market, they say.

NIFTY 3-Month

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