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Market Report

Monday, 27-Jan-2014

NSE

  • The 50-share index dropped for the second straight session and slipped below its 50-DMA on emerging markets currency problems. The Nifty closed at 6,135.85, down 130 points, or -2.09 per cent. It touched a high of 6,188.55 and a low of 6,130.25 in trade today. The S&P BSE Sensex ended at 20,707.45, down 426.28 points, or -2.02 per cent. It touched a high of 20,899.03 and a low of 20,688.03 in trade today, just ahead of the Reserve Bank of India (RBI) policy review tomorrow.

  • The indexes crashed to their biggest daily loss since September 3, as concerns over slowdown in China, further tapering by US Federal Reserve and selling seen in emerging market currencies dampened mood. There was also heavy selling by FIIs today. See our 'Market Statistics' page.

  • Reports suggest that the Reserve Bank of India, at its third quarter monetary policy review tomorrow, is likely to maintain status-quo for the second straight month because consumer price inflation continues to remain at elevated levels.

  • Globally, Asian markets ended with steep losses today. Japan's benchmark index Nikkei ended down 2.5% with major exporters leading the fall after the local currency yen firmed up against the US dollar. China's Shanghai Composite, Hang Seng and Straits Times ended down. European shares also turned weak after a flat opening tracking sharp losses in Asia.

  • Meanwhile, the rupee dropped for the third day in a row in line with other emerging market currencies. The partially convertible rupee slipped below 63 levels against the US dollar. The currencies of developing markets are facing a rout today, thanks to the resurfacing of fears over America's QE programme. The rupee may slip to 64-65 levels against the US dollar if this contagion continues to spread. The fact the rupee has traded abroad tends to impact the value of rupee in India, say experts.

  • According to analysts, traders should brace themselves for further volatility in equity as well as currency markets and investors should not try and catch the falling knife and look for quality stocks.

NIFTY 3-Month

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