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Market Report

Tuesday, 29-Apr-2014

NSE

  • The Sensex closed the day at 22,466.19; down 165.42 points, or -0.73%. The 30-stock index hit a low of 22,443.56 and a high of 22,681.89 in today's trade. The broader 50-share Nifty ended the day at 6,715.25; down 46.00 points, or -0.68%.

  • Markets closed in red for the third consecutive day with the benchmark indices losing slightly in today's trade. The Nifty was able to hold its Support of 6710. Weakness in banks, metals and FMCG heavyweights weighed on the indices. Broader markets which were resilient yesterday, and in the first half today, turned weak in closing deals. The midcap index gave off 0.4% while the smallcap index closed flat with a negative bias.

  • The rupee fell to a high of 60.42/43, compared with its close of 60.645 on Monday, reversing earlier losses due to large dollar sales from corporates, including some exporters. Globally, Asian share markets put in an indecisive performance on Tuesday as caution ahead of some major events this week overshadowed a late rally on Wall Street. European stocks rose today, as optimism surrounding corporate earnings and merger moves eclipsed the crisis in Ukraine.

  • FIIs have been less aggressive in the month of April. After heavy buying in the beginning of the month, they were seen booking profits in Indian equities between 15-17 April. So far, in the month of April their inflows have been Rs 9018 crore while they booked profits worth Rs 570 crore. This indicates they are cautious on the market at current levels.

  • Call it profit-booking, end of 'Modi rally' before poll results or the tensions simmering between the West and Russia over Ukraine, the Indian markets took a big hit today. India's benchmark indices have been seen consolidating with a positive bias in the month of April. The Nifty hit an all-time high last Friday, but the zing is missing now. The rise has been sluggish this month with bouts of profit-booking threatening to reverse the gains. Marketmen have been attributing the recent run-up in equities to the anticipation of a Modi-led government at the Centre.

  • Markets could correct 10 -15% if election results fall below expectations, says Jyotivardhan Jaipuria of BofA Merrill Lynch. Historically, the current valuations of 14 times (price to earnings or PE ratio) are where the market has tended to converge. Even if the election results are adverse, markets will converge towards this point over a longer period of time. Initially, markets could fall to a PE (price to earnings) of 12 times. That would translate into 10-15 percent correction from current levels. Historically, the low for the markets has been 10 times, which has happened three times, he adds.

NIFTY 3-Month

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