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Market Report

Tuesday, 11-Feb-2014

NSE

  • The BSE Sensex, which had lost 42.29 points on Monday, recovered by 29.10 points, or +0.14 per cent, to close at 20,363.37 today. Intra-day, it moved between 20,443.35 and 20,349.51 today. The 50-scrip National Stock Exchange index Nifty added 9.25 points, or +0.15 per cent, to close at 6,062.70 today, after touching a high of 6,081.85 on buying in IT and auto shares, amid export growth in January helping trim surging trade gap.

  • Brokers said trading sentiment was bolstered after data showed Indian exports increased 3.79 per cent to USD 26.75 billion dollar in January, helping the trade deficit to narrow to USD 9.92 billion dollar. They said the market sentiment improved further following an upsurge in Tata Motors counter after the company posted a near three-fold spike in its December quarter net profit. Tata Motors scrip was a star performer as it surged 2.83 per cent.

  • In step with the stock markets, the Indian rupee strengthened to 62.26 versus yesterday's closing of 62.43. A firming trend in the Asian region and higher opening in Europe before Federal Reserve Chairman addresses the US Congress, aided sentiments.

  • Most investors remained cautious today ahead of key economic data due for release tomorrow. On Wednesday, February 12, the government will release inflation based on the consumer price index for January and the industrial production for December. Further, the interim railway budget will be presented by Railway Minister Mallikarjun Kharge.

  • The Indian markets have been under stress after a sharp correction in the last week of January, say experts. In absence of any buying activity by foreign institutional investors, the benchmarks are moving in a narrow range. The Nifty, after breaching 200-DMA last week, has bounced back but it has lacked strength. According to analysts, if the dollar outflows continue then there are chances of narrow trading range breaking on the lower side and the Nifty may breach 6,000 levels. However, it will be a good buying opportunity for investors as the breach will be transient.

  • According to Gaurav Mehta of Ambit Capital, the downsides to Indian equities appear modest from hereon as we near an end to the corrective consolidation of the last six years. He expects the Nifty to stage a 6,350 breakout over the next few months and embark upon a fresh upmove. While another leg lower cannot be ruled out, we maintain that any move below 6000 on the Nifty is going to be transient and that 19,300 on the Sensex should be the absolute worst case scenario for Indian markets, he adds.

NIFTY 3-Month

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