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Market Report

Tuesday, 18-Feb-2014

NSE

  • The Sensex, which had gained 271 points in the previous two sessions, rose further by 170.15 points, or +0.83 per cent, to close at 20,634.21 -- the highest level since January 29. The 50-scrip National Stock Exchange index Nifty rose 53.80 points, or +0.89 per cent, to close at 6,127.10 today, driven by gains in banking, capital goods and auto shares as investors continued to cheer the interim budget proposals.

  • Banking stocks lead the upsurge on rising hopes that improving economic growth would boost lending business, brokers said. Global rating agency Moody's has said India's interim budget is in line with the policy assumptions that underpin its 'Baa3' rating with a stable outlook.

  • Globally, Japanese shares surged and the yen sagged after the Bank of Japan doubled loan programs aimed at stimulating bank lending and economic growth, while most other Asian shares were softer after solid gains in recent sessions.

  • The Rupee was trading lower at 62.15 vs previous close of 61.84/85, tracking negative regional stocks and FX cues. The upticks will be sold near 62.30. I am looking at a 61.70-62.30 range for the day, says a dealer with a forex firm.

  • While announcing the Interim Budget, the Finance Minister stated government will contain the fiscal deficit at 4.6 per cent of GDP. This has boosted investor confidence and buying interest was seen. Excise duty cuts in sectors such as Auto and Capital Goods also led to renewed buying, said Rakesh Goyal of Bonanza Portfolio.

  • Expect 7% upside for Nifty ahead of elections, says Tirthankar Patnaik of Religare Capital. Best case scenario for the Nifty could be another 5 per cent to 7 per cent upside from current levels at which point the markets would basically have factored in pretty much a BJP victory. Worst case scenario could be a figure of about 5800-5750 levels or so if the emerging markets crisis does get exacerbated, he adds.

NIFTY 3-Month

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