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Market Report

Friday, 20-Dec-2013

NSE

  • After an over 150-point loss in yesterday's trading, Sensex closed shop 371.10 points, or +1.79% higher at 21,079.72 today. The 30-share index today touched a high of 21,117.99 and a low of 20,745.94, led by gains in oil & gas, realty, technology and auto stocks. The Nifty ended at 6,274.25, up 107.60 points or +1.74 per cent. It touched a high of 6,275.95 and a low of 6,170.35 in trade today.

  • The gains were largely attributed to buying in the half hour of trade. Thanks to experts discounting the impact of US Fed tapering, in fact some saying it is a good news for emerging economies like India. The Sensex now looks set to hit fresh record highs. The current all-time closing high for Sensex is 21,326.42 hit on December 9, 2013. The all-time intraday high is 21,483.74 which the index hit the same day, that is December 9.

  • Rupee stayed weak against dollar as the market continued to adjust with the US Fed's decision to begin tapering from January 2014. At 3:40, it was trading at 62.13 against dollar.

  • The market sentiment was also cheered by data showing that FIIs made substantial purchases of Indian stocks yesterday. Foreign institutional investors (FIIs) bought shares worth a net Rs 2264.11 crore yesterday, and Rs 990.19 crore today, as per provisional data from the stock exchanges. See our "Market Statistics" page.

  • Globally, Chinese stocks stumbled on Friday on concerns over a renewed cash crunch, while Asian shares crept higher as investors reassessed the Federal Reserve's policy outlook after it decided this week to start tapering stimulus.

  • With the two important events - the RBI policy review meet and the US FOMC meet - out of the way, the market will now take cues from earnings and elections for direction, say analysts. Our economy has recovered, largely driven by exports and with some help from rural demand. The GDP forecast for FY14 has inched up to 4.8-5 per cent now. Only three months back, most economists were pointing towards 4 per cent or below. Going forward, the recovery will continue. We are forecasting GDP growth in FY15 to inch up to 5.4-5.5 per cent and once we have a stable government next year, probably the pace of recovery will pick up further in FY16. There is a possibility that the market may witness a sharp rally and hit a new high before the general elections, they say.

  • A post election rally will be the best time to take profits off the table, says Saurabh Mukherjea of Ambit Capital. There could well be an election oriented rally if the BJP does well. It does look likely that the market will have a bounce on the back of that. But if the market runs up very sharply between now and the election and there is sharp rally on the back of BJP victory that might well give the best selling opportunity one will get in the whole of 2014, he said to ET Now.

NIFTY 3-Month

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