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Market Report

Thursday, 12-Dec-2013

NSE

  • The Sensex, which lost 155 points in the previous 2 days, fell by 245.80 points, or -1.16 per cent, to end at 20,925.61 as auto, banking and capital goods stocks dropped. This was its sharpest fall since 406-point plunge on November 21, closing below the key psychological level of 21,000. The 50-share NSE index Nifty dropped by 70.85 points, or -1.12 per cent, to close at 6,237.05 hurt by losses in rate-sensitive shares ahead of the release of industrial production and retail inflation data, that is slated for release post market hours today, that may influence the RBI policy next week.

  • Profit-booking continued for the third day in a row as investors continued to churn portfolios after equity barometers hit record highs recently, brokers said. Fears of soft October IIP data and sticky double-digit retail inflation for November triggered selling, analysts said.

  • Weak global markets after fresh jitters that a US budget deal would make it easier for the Federal Reserve to pare its USD 85-billion-a-month economic stimulus, also weighed. Asian shares ended lower today over fears that US Federal Reserve may taper its 85-billion-a-month bond buying program earlier than expected after a provisional budget deal in Washington eased some of the fiscal drag on the US economy.

  • After market hours: Industrial production entered the negative territory after three months, contracting by -1.8 per cent in October this year mainly due to poor performance of the manufacturing sector. Factory output, as measured in terms of the Index of Industrial Production (IIP), grew by +8.4 per cent in October last year. IIP growth for September this year was +1.96 per cent.

  • After market hours: Costlier fruits and vegetables such as onions and tomatoes pushed retail inflation to a nine-month high of +11.24 per cent in November. Inflation as measured by the Consumer Price Index (CPI) for October was at +10.17 per cent. Inflation in the food and beverages segment was +14.72 per cent compared with +12.56 per cent in the previous month. Inflation, which was in double digits for several months until March, declined to +9.39 per cent in April and came back to double digits in October.

  • Expressing disappointment over the contraction in industrial growth in October, India Inc today appealed to the Reserve Bank to cut interest rates to revive the manufacturing sector and ameliorate investments. Unless interest rates are brought down, we are not going to see much improvement in the index in the near term as this is important to stimulate demand and revive investments, said Ficci President Naina Lal Kidwai.

NIFTY 3-Month

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