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Market Report

Friday, 24-Jan-2014

NSE

  • Sensex, the 30-share index closed at 21,133.56 points, down by 240.10, or -1.12 per cent -- the biggest loss since January 2. The barometer had closed at record high levels in the previous two sessions on the back of strong corporate earnings. The broad-based National Stock Exchange index Nifty fell by 78.90 points, or -1.24 per cent, to settle at 6,266.75 today posting its second biggest drop this year due to profit booking by investors and concerns that RBI may keep its policy rates high to control inflation.

  • Profit booking was triggered by RBI Governor Raghuram Rajan comments that inflation was a "destructive disease" that was forcing the bank to keep interest rates high, brokers said. Trading sentiment also dampened as drugmaker Ranbaxy Laboratories tumbled by -19.33 per cent after the US regulators banned it from producing or selling drug ingredients for the American market from a fourth plant in India.

  • Weak global trends following poor economic data in the US and China also impacted the market sentiment. China's manufacturing contracted in January for the first time in six months, putting a question mark on the much vaunted economic potential of the world's second largest economy.

  • The rupee is trading lower with local stocks extending losses. The pair is at 62.20/21 after hitting 62.27 intraday. It had closed at 61.9275/9375 on Thursday.

  • A Reuters poll today indicated that emerging economies would contribute less to global growth in 2014 than earlier expected also weighed on market sentiment. India is expected to grow at a lacklustre pace of 5.4% in fiscal 2015, as a result of the weak investment cycle gripping the country, which goes to elections this year, the report said.

  • The immediate trigger for the stock market is the January 28 policy meet, but the big event that investors are waiting for is general elections, say experts. The elections this time assume more importance than ever for an investor as in the last two general elections, the stock market saw gap moves. In 2009 and 2004 the market was up 18% and down 19%, respectively.

NIFTY 3-Month

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