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Market Report

Tuesday, 01-Oct-2013

NSE

  • The 30-share Sensex, which fell by over 100 points in early trade, reversed losses to end at 19,517.15 today, a gain of 137.38 points or +0.71 per cent. The rise comes after the benchmark lost 514 points in the previous two sessions. Today's Sensex rise is the best daily gain since September 19 when it soared by 684.48 points or +3.43 per cent.

  • On similar lines, the broad-based National Stock Exchange index Nifty shuttled between 5,786.45 and 5,700.95, before ending 44.70 points higher, or +0.78 per cent at 5,780.05 today as investors cheered the lower-than-expected June quarter CAD number and encouraging September sales for automobile firms.

  • The stock markets were also supported by a strengthening rupee that gained 28 paise to trade at 62.34 versus dollar, which was under pressure after the US government shutdown - for the first time in nearly 18 years - as political deadlock over 'Obamacare' led to a budget impasse.

  • The upsurge in shares was mostly led by the recent losers like stocks of banking, realty, capital goods and auto stocks on heavy purchased at current attractive levels, brokers said. They also said a higher trend in the Asian region and good opening in Europe, further influenced the sentiment. The market also took a positive view of the easing retail inflation that eased marginally to 10.75 per cent in August compared to 10.85 per cent in the previous month.

  • In Asia, most markets ended higher, with the Nikkei ended up +0.2%. Japan's Prime Minister Shinzo Abe took a historic step today that none of his predecessors had managed in more than 15 years by raising the national sales tax to 8% in April from 5%. European markets continue to trade firm on expectations that the issues encompassing the US federal government shutdown would be resolved soon.

  • Going forward, most of the return in the market will be led by earnings growth, say experts. The good thing is that valuations are still holding up. According to analysts, what is preventing the markets from heading lower is the hope that we are close to a bottom on the earnings and the GDP side. Moreover, a lot of people are building hopes of an interest rate cut going forward to kick-start growth in Asia's third-largest economy, they add.

NIFTY 3-Month

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