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Market Report

Wednesday, 30-Oct-2013

NSE

  • Continuing gains after yesterday's 359-point rally following the RBI policy, the Sensex shot up by 104.96 points, or +0.50 per cent to close at 21,033.97 today -- eclipsing the previous record close of 21,004.96 on November 5, 2010. The 30-share bluechip index's intra-day high of 21,206.77 was hit on January 10, 2008.

  • The wide-based National Stock Exchange index Nifty rose by 30.80 points, or +0.50 per cent, to close at 6,251.70 today, after touching the day's high of 6,269.20, which is a fresh 35-month intraday high, on heavy foreign fund inflows in bluechips, amid speculation that the US Fed would maintain its monetary stimulus when they conclude a meeting today.

  • Brokers said the trading sentiment continued to be bullish on expectations of liquidity enhancement after the Reserve Bank of India cut marginal standing facility (MSF) to 8.75 per cent in its monetary policy review yesterday. Foreign funds have continued to buy domestic stocks for 18 straight sessions till yesterday, encouraging domestic participants to increase bets, experts said.

  • A firming trend in the Asian region and higher opening in Europe before the outcome of US Federal Reserve's meeting where the USD 85 billion a month monetary stimulus is expected to be maintained, also influenced the Indian market sentiment.

  • All markets move up primarily due to liquidity, says Satish Ramanathan, market analyst. Corporate earnings can be any trend, but liquidity is important for markets and stock prices, he says.

  • Some market experts say that markets have rallied ahead of fundamentals as nothing has changed on the economic front in the rising interest rate environment. Its only FIIs that are fuelling the rally, say experts. At a time when our GDP growth is near the lows in last decade, inflation is high and sticky, twin deficits (fiscal & current account) are quite high, corporate earnings growth rate is in low single digits, there is no fundamental reason for stock markets to be at/near the all time highs.

NIFTY 3-Month

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