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Market Report

Monday, 13-Jan-2014

NSE

  • After losing 93 points last week, stocks were off to a flying start and the BSE Sensex consolidated gains as the day progressed to end higher by 375.72 points, or +1.81 per cent, at 21,134.21. This is the best gain since 387.69-point rise on November 25, 2013. The Sensex regained its crucial psychological level of 21,000, led by gains in IT, banking, capital goods and oil & gas.

  • The 50-share NSE Nifty rose 101.30 points, or +1.64 per cent, to end at to 6,272.75 today. It hit a high of 6,288.20 in intraday. Markets bounced back with strong momentum led by aggressive buying seen in frontline technology stocks after Infosys' results on Friday for the quarter ended December 31 which was above analysts' forecast.

  • The rupee continued to trade near one-month highs after the US dollar remained under pressure on the back of weak US jobs data. Strong gains in equities also boosted sentiment. The rupee was trading at Rs 61.55 to the US dollar compared with its previous close of Rs 61.89.

  • Besides, a firming overseas trend boosted trading sentiments here as soft US jobs related data cemented hopes that the Federal Reserve would not again trim its economic stimulus anytime soon, traders said. Asian markets were trading mixed even as the Tokyo Stock Exchange was closed for trading. The Shanghai Composite ended down 0.2% after China pegged its currency to a record high. European shares firmed up after some corporates announced robust fourth quarter earnings.

  • In an announcement after market hours, inflation as measured by the Consumer Price Index (CPI) for December has come down to three-month low of 9.87 per cent, giving the Reserve Bank of India more leeway to manage interest rates. The retail inflation was in double digits in October and November. Some moderation in vegetable and fruit prices has brought down CPI. Data on inflation based on the wholesale price index (WPI) is scheduled for release tomorrow.

  • The Reserve Bank, scheduled to announce its monetary policy review on January 28, has kept policy rates unchanged last time expecting that inflation, both consumer and retail, would ease. The key policy rate (repo) was hiked twice between September and November to check inflation. With industrial growth slowing to six-month low in November, there has been a strong demand from the industry for a reduction in policy rates.

  • The year 2014 is likely to witness significant face-lift on all fronts - political, economical and social. Being the election year, politics will drive markets in the first half of the year and then the fundamentals will take the centre stage, say analysts.

NIFTY 3-Month

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