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Market Report

Tuesday, 31-Dec-2013

NSE

  • The S&P BSE Sensex rose +8.98 per cent in 2013 to close at 21170.68 in trade today, which is a rise of 27.67 points or +0.13%. The 30-share index touched lifetime high of 21,483.74 and a 52-week low of 17,448.71 during the year. The Nifty ended at 6,304.00 today which is a rise of 12.90 points, or +0.21% for the day, and up +6.74 per cent in 2013. The index touched an all-time high of 6,415.25 and a 52-week low of 5,118.85 during the year.

  • The benchmark indices ended the calendar year 2013 on a positive note as investors rushed to export oriented defensives such as technology and healthcare sectors following sharp deterioration in rupee against the US dollar. The lack of participation from retail investors and redemptions from domestic institutions led to underperformance from the broader markets. The BSE Midcap Index shed 5.8 per cent and the BSE Smallcap Index fell 11 per cent in 2013.

  • The rupee ended with gains today, but posted a 11 per cent fall in 2013, ending a tough year marked by a descent to a record low and suffering from continued concerns about its outlook next year. Although the rupee closes well above a record low of 68.85 per dollar hit in late August, thanks in part to emergency measures taken by policy makers, the rupee still ends 2013 as Asia's third worst performer and with a third consecutive annual decline. Currency dealers expect the rupee to trade firm for the rest of the session due to lack of significant dollar demand.

  • Asian markets witnessed range bound trades amid thin volumes because of lacklustre participation from investors as most markets in the region were closed. European shares were marginally up amid low volumes with some markets closed while others will have half-day trading session.

  • The indication of a clear mandate to a new decisive government at the Centre in May general elections is another sentiment booster for investors and is an important event for sustaining the rally, say analysts. However, on the flip side, a hung Parliament, uncertainty over the government's fiscal performance, inflation scare and the RBI's monetary tightening could downplay the otherwise positive sentiment in the market over the near term. Analysts do not rule out volatility in the markets ahead of the general elections in May, and seasonal weakness in the April-June (Q1FY2015) quarter.

  • Analysts also warn India is still too dependant on foreign flows, and needs structural reforms beyond measures such as curbs on gold imports to have a more sustained impact on the current account.

NIFTY 3-Month

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