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Market Report

Tuesday, 05-Nov-2013

NSE

  • The Sensex, which had ended at record closing of 21,239.36 in the special Diwali 'Muhurat' trading on Sunday, fell sharply by 264.57 points, or -1.25 per cent, to close at 20,974.79 led by stocks of FMCG, Healthcare and IT sectors. This is its biggest drop in over a month. In the previous five sessions, the 30-share Sensex rose by 669 points. Today's fall in absolute terms is the worst since September 30 when it had dropped by 347.50 points.

  • On similar lines, the broad-based National Stock Exchange index Nifty also slipped from its record high closeing level by losing 64.20 points, or -1.02 per cent to 6,253.15 today as investors booked profits in bluechips after the recent upsurge took the index to all-time high. On Sunday's special session, it had closed at a record 6,317.35.

  • Brokers said a weakening trend in Asia and lower opening in Europe on growth concerns further fuelled the selling pressure in export-oriented domestic stocks. The market sentiment was also hit adversely after a survey showed that India's vast service sector activity remained weak in the month just gone by.

  • The rupee weakened in trade today due to dollar demand from importers, who are covering up their requirements after the Diwali holiday yesterday. At 15:45 PM, the rupee was trading at Rs 61.61 compared with Friday's close of Rs 61.74 per dollar.

  • The Nifty is on the cusp of a new bull market, having gone through five years of a savage bear phase, which then turned into a slow grinding sideways market, says Ashwini Gujral. Given that participation in the market by domestic investors is at historic lows, it appears we have entered the first phase of a long-term bull market that is likely to gain steam following the 2014 elections, he adds.

  • Although the first day of Samvat 2070 started on the subdued note, analysts at top global brokerage firms are positive on the India story. This is evident from the fact that most of them have placed a target of 6,900 on the Nifty, while for Sensex they see it heading towards 23,000 next year. Goldman Sachs in its latest report raised its investment stance on India to 'Marketweight' and increased their Nifty index target to 6,900, for 2014-end which implies nearly 9 per cent potential upside from current levels.

NIFTY 3-Month

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