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Market Report

Tuesday, 11-Mar-2014

NSE

  • Sensex, the 30-share index settled at 21,826.42 points, down by 108.41 points, or -0.49 per cent, from the previous close. Buoyed by nearly 1,000-point rally in the previous five sessions, the Sensex breached the 22,000 level for the first time yesterday but closed at 21,934.83, still an all-time high. It hit a low of 21,772.11 and a high of 22,018.52 in trade today.

  • Similarly, the Nifty of National Stock Exchange rose to a high of 6,562.85 points during the day, but later closed down by 25.35 points, or -0.39 per cent, at 6,511.90 today on profit booking by investors after a five-day rally amid weak trade data. It touched a record all-time high of 6,562.85 and a low of 6,494.25 in trade today.

  • After recording positive growth for seven consecutive months, exports contracted by 3.67 per cent in February although the trade deficit showed a marked improvement mainly on account of a significant decline in gold imports. Trade deficit for February narrowed to $8.13 billion compared to $9.92 billion recorded in January. It was $14.12 bn in the same period last year.

  • The USD-INR pair was last seen trading at 60.91 versus its close of 60.85/86 on Monday after hitting a seven-month high of 60.5925 earlier in the session, on back of sustained FII buying. Traders say foreign fund flows into debt and equities continue to boost sentiment for the local currency. According to analysts, the markets are witnessing a pre-election rally supported by strong inflows by the foreign institutional investors (FIIs).

  • World stocks stabilised on Tuesday as traders remained cautious of the developments in Ukraine and Russia and on the trade pace of growth in China. Asian markets remained range bound with positive bias but concerns over China's economy following the fall in exports during February weighed on investor sentiment.

  • This is part of the usual pre-election rally and that is not a surprise, says Gautam Trivedi of Religare Capital Markets Ltd. Only that this time around the fundamentals obviously are very different from what is happening in the equity market, he added. Trivedi is of the view that the markets have run way ahead of the fundamentals, undoubtedly, but there is momentum at this point of time. Upcoming elections are an event risk and a Third Front government or a fractured mandate may stem the rally and also dent the rupee, fear experts.

  • I do not really think there is any need to be bearish, says Sandeep Wagle. If we go below 6350, we can talk of bearishness. Even today, if you see the Nifty bar, it is still making a higher top-higher bottom. So at best this can be described as some kind of profit booking which may extend by another 50, 70 to 100 points. I still believe that 6700-6750 should come. We will see a shifting of stocks and sectors, but I think that the pre-election rally will take the Nifty to somewhere around 6750, he adds.

NIFTY 3-Month

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