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Market Report

Friday, 08-Nov-2013

NSE

  • The Sensex, which had lost 417 points in the past three sessions, fell further by 156.62 points, or -0.75 per cent to 20,666.15 today, after touching the day's low of 20,600.90. The broad-based National Stock Exchange index Nifty fell by 46.50 points, or -0.75 per cent, to end at 6,140.75 led by banking and interest-sensitive stocks after rupee slid further amid a downtrend in global markets.

  • Brokers said the market, which is worried about economic slowdown, remained under pressure as the rupee dropped to a six-week low of 62.75 versus dollar, raising concerns about inflation which may force RBI to look at hiking rates again. Indian stocks were also weighed down by a weakening trend in the Asian region and lower opening in Europe after faster-than-expected US economic growth fuelled concerns that the US Fed may taper its stimulus quicker than most estimates.

  • For the week ended November 8, Sensex fell by 531 points or -2.5 per cent -- the biggest such drop since the week ended September 27 when it slid down 567 points or -2.65 per cent. Benchmark indices failed to keep the momentum alive after Diwali when both Sensex and Nifty touched their respective record highs. On Diwali day, the S&P BSE Sensex recorded a fresh intraday high of 21,321.53, while Nifty surged to 6,317.35, its fresh closing high. However, things have reversed for the markets post muhurat trading.

  • According to analysts, markets are consolidating after a sharp run-up seen in the month of October where benchmark indices managed to rally over 9 per cent. However, analysts feel that once the consolidation phase is over benchmark indices should be able to bounce back from support levels. No need to panic, say experts. Market witnessing healthy profit-booking.

  • Any amount of rally say from 5,700 to 6,200 odd will start profit taking for many of these FIIs who have been buying continuously, said said Sonam Udasi, Head of Research, IDBI Capital in an interview with ET Now. Domestic investors if you see have not been very-very consistent buyers. That said, this is a normal course of correction. In all fairness, I do not see any negativity on sentiment at least on India in the near term so I suspect after little bit of more correction, you will continue to see green shoots, added Udasi.

NIFTY 3-Month

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