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Market Report

Friday, 31-Jan-2014

NSE

  • Nifty, the 50-share index ended at 6,089.50 today, up 15.80 points or +0.26 per cent. It touched a high of 6,097.30 and a low of 6,067.35 in trade today. The S&P BSE Sensex closed at 20,513.85 today, up 15.60 points or +0.08 per cent. It touched a high of 20,572.32 and a low of 20,448.43 in trade today.

  • The markets snapped their five-day losing streak and ended the last day of the week on a positive note on mild buying and wrapped up the week with its worst performance in six months. Brokers said selective buying after five days of fall, helped improve the trading sentiment. Buying activity was confined to recently beaten down sectors of realty and metal, while a weak global trend capped the gains to some extent, they added.

  • The rupee appreciated due to dollar sale by banks. Bullish equities also helped the rupee. At 14:20 pm, the rupee was trading at Rs 62.50 compared with previous close of Rs 62.58 per dollar.

  • On the global front, Asian stocks slipped on Friday, as fears about the impact of the US Federal Reserve's stimulus withdrawal on emerging markets offset the reassurance of upbeat US growth data. With several countries, including Hong Kong and Singapore, observing the Lunar New Year holiday, volume across the region was expected to be lighter than usual.

  • Indian markets to be spared of emerging markets selloff, aided by strong macros, say experts. As Asian stocks crashed on Thursday, poised for the biggest drop in eight months, the Sensex was little changed -- down only 0.72%. There is a view that India may not suffer as badly as other emerging markets and will be resilient in the face of the tapering, said investment experts.

  • Globally, emerging markets have scrambled to try and ensure they can withstand the slashing of $10 billion in monthly bond buys by the Fed, which means India wasn't the only one to raise interest rates. Turkey more than doubled its benchmark rate, and South Africa also tightened its monetary policy. India has managed to regain control of key macroeconomic aspects such as the current account deficit (CAD) and fiscal deficit while the currency has been able to withstand the emerging market rout. Inflation is also seen to be decelerating.

  • Moreover, fund managers are optimistic that governance will improve after elections and a China slowdown may actually work in favour of India.

NIFTY 3-Month

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