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Market Report

Tuesday, 28-Jan-2014

NSE

  • The 30-share Sensex concluded the day at 20,683.51, down 23.94 points, or -0.12 per cent. The gauge has now lost 690 points in three straight sessions. Also, the 50-share National Stock Exchange Nifty index declined 9.60 points, or -0.16 per cent, to end at 6,126.25 today, after touching a low of 6,085.95 after the RBI surprised investors with a rate hike and Maruti Suzuki shares tanked -8 per cent on lower-than-expected earnings.

  • After a higher start, the market plunged to the day's low soon after RBI Governor Raghuram Rajan hiked the repo rate by 0.25 per cent in a bid to curb inflation. After the Sensex tumbled over 153 points intra-day, markets digested the rate hike and most rate-sensitive banking and auto stocks gained on value-buying and on comments that RBI may pause rates going forward, said traders.

  • Even if the market recovered after the rate hike, it was unable to cover the losses due to heavy selling by FIIs that started on Friday and was quite heavy in the last two days. See our 'Market Statistics' page.

  • A weakening Asian trend further influenced the domestic market sentiment. Yesterday, global markets had fallen amid a rout in emerging-markets on fears the US Fed would dial back its monthly bond purchases by another USD 10 billion. Investors avoided heavy bets ahead of the 2-day Federal Open Market Committee meet, which starts later today.

  • The RBI rate cut was a positive for the Rupee which recovered significantly today.

  • Nifty futures has seen sustained selling pressure from the upper band of 6150-6360 towards the lower zone in two consecutive sessions, says Chetan Jain of Anand Rathi. Now, it is at crucial juncture at the lower band of the range. Traders have shifted their downside base to 6000 zone and now it should act as major support area for the markets, which may give directional move of 150-200 points on either side of 6150, he adds.

NIFTY 3-Month

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