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Market Report

Thursday, 12-Sept-2013

NSE

  • The 30-share index ended at 19,781.88 today, down 215.57 points or -1.08 per cent. It touched a high of 20,052.05 and a low of 19,676.49 in trade today. The BSE Sensex rallied from levels of 18,619.72 recorded on August 30 to 19,781.88 recorded on 12 September. The 50-share Nifty index slipped 62.45 points or -1.06 per cent to close at 5,850.70 today as investors preferred to book profits after a huge rally so far in the month of September. It has rallied over 370 points since August 30.

  • The stock market rallied on the back of receding tensions on Syria, appreciation in the value of currency supported by recent RBI measures, narrowing trade deficit and pick-up in global economy. Foreign institutional investors who have shied away from markets for some time have made a come back.

  • According to most analysts, the uptrend still remains intact for now and investors can look at buying into the index at every decline as long as index holds 5,780 levels on the Nifty. Considering the fact that the benchmark indices have moved substantially in quick time, the focus is now likely to shift towards mid and small cap stocks, say analysts.

  • On the global front, Asian shares surrendered earlier gains while the dollar remained under pressure today, facing growing expectations that the US Federal Reserve's impending stimulus reduction might be smaller than some had believed.

  • Devang Mehta, of Anand Rathi Securities, is of the view that the rally has been so fast and furious that a lot of participants in the market are taken aback and there is a sense of disbelief and a left-out-feeling among the participants at this point of time. Going forward, the action is likely to shift more towards the underperforming beaten-down mid-cap stocks where there is substantial value on the price as well as on the valuation front, he added.

  • The government has unveiled the country's July factory data and August retail inflation data after market hours today. The factory output or IIP is at +2.6% vs -1.8% in June. The manufacturing sector, which constitutes over 75% of the index, grew by +3% in July compared to zero growth in the month a year earlier. This is totally opposite to what was thought, as the market today had expected IIP to shrink for the third straight month signalling persistent slowdown fears in Asia's third-biggest economy. This will be a big plus tomorrow.

  • In another announcement after market hours today, the retail inflation measured on the Consumer Price Index (CPI) has eased slightly to 9.52 per cent in August over the previous month following softening in prices of almost all commodities, except vegetables. Retail inflation was at 9.64 per cent in July. This will add to tomorrow's plus.

NIFTY 3-Month

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