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Market Report

Thursday, 03-Oct-2013

NSE

  • Sensex, the 30-share index, which had gained over 137 points in the previous session, shot up further by 384.92 points, or +1.97 per cent to close at 19,902.07 today -- the highest level since September 24 (19,920.21).

  • Similarly, the broad-based National Stock Exchange index Nifty gained 129.65 points, or +2.24 per cent, to end at 5,909.70 today helped by rise in metal, banking and capital goods shares on firming hopes that the partial US government shutdown will force the Fed to avoid tapering its stimulus programme soon. Nifty regaining the psychologically important level of 5900.

  • Domestic stock markets were also supported by heavy purchases in IT stocks like Infosys and TCS as some foreign brokerages turned bullish ahead of September quarter earnings. A look at our 'Market Statistics' page will show that FII participation was the highest in recent times, while retail exposure was low today.

  • Trading sentiment also strengthened after rupee gained against dollar and was last trading at 61.85 levels compared to 62.46 on Tuesday, as the US government entered the third day of its partial shutdown.

  • Meanwhile, the Indian government plans to increase capital infusion in PSU banks to help them enhance exposure to auto and consumer durables sectors. Besides, ahead of the RBI's central board meet, the central bank chief Raghuram Rajan today met Finance Minister P Chidambaram and is understood to have discussed economic issues.

  • Globally, Asian stocks ended mixed today on robust China data but investors watched for progress on ending a budget impasse that has shut down the US government. European markets traded mixed. Risk appetite got a boost after a gauge of China's services industries jumped to a six-month high raising hopes that the world's second-biggest economy will sustain a rebound after a two-quarter slowdown. China's non-manufacturing Purchasing Managers Index climbed in September to 55.4 from 53.9 in August, government data showed.

  • The 50-share Nifty index, which rallied as much as 4.8 per cent in September, may see some volatility in October and may drift lower towards its key psychological support level of 5,500, said Laurence Balanco, Asian Technical Research of CLSA, in a note. Most analysts share Balanco's views on Indian markets. The Sensex is trading at a PE multiple of about 14 times, and most analysts feel that given the current economic environment, its valuations look expensive.

NIFTY 3-Month

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