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Market Report

Thursday, 15-May-2014

NSE

  • The BSE 30-share Sensex resumed almost stable but immediately bounced up to a high of 23,971.78, up almost 157 points, on sustained capital inflows and on hopes that new government will prop up growth and quicken economic recovery. However, participants appeared to turn jittery and Sensex fell to a low of 23,742.75. Some late buying helped Sensex rebound to a new closing peak of 23,905.60, showing a day-to-day rise of 90.48 points or +0.38 per cent. Yesterday, it had declined 56.11 points from its previous closing peak of 23,871.23.

  • Similarly, the 50-issue CNX Nifty of the NSE also moved erratically in a range of 7,152.55 and 7,082.55 before recording a new closing high of 7,123.15 today. It gained 14.40 points or +0.20 per cent today over Wednesday's closing of 7,108.75 when it had ended flat.

  • After a day's breather, Indian stock markets today continued to rise with both Sensex and Nifty logging fresh closing highs on fag-end buying in an otherwise choppy session ahead of the Lok Sabha poll outcome.

  • A fall in April wholesale inflation also provided some succor. Wholesale Price Index (WPI) based inflation fell to two-month low of 5.25% in April from 5.7% in March, as all three major components of the index - food, fuel and manufactured goods - recorded moderation in prices. In March, WPI inflation was at a three-month high. It had stood at 4.77% in April last year. The Rupee was last trading strong at 59.25 against dollar compared to the previous close of Rs 59.68.

  • Elsewhere in Asia, stock markets closed mixed. Key indices from China, Japan and South Korea finished weak while from Hong Kong, Singapore and Taiwan settled better. European stocks, however, trading lower in their late morning deals.

  • Counting of votes, the grand finale in the nine-phased Lok Sabha elections, will be taken up tomorrow across the country and final results will be available by 4 PM. Election Commission said the counting exercise to be held at 989 counting centres is will begin at 8 AM with Postal Ballots getting counted first. Counting of votes on EVM voting machines will begin at 8:30 AM and is likely to be completed by 4 PM. First trends will start emerging by 9.30 AM. By noon, a final picture could emerge on who would be the major players in the 16th Lok Sabha.

  • Since the counting of votes and trading will be on simultaneously, there may not be a gap-up or a gap-down move on counting day tomorrow, say experts. But once the election result trends are known, later in the day, circuit breakers could be breached on an intraday basis. On Monday, 19th May, the markets may open with a gap as the election results will be known in completeness and initial response and comments of all political parties, especially the small regional parties, will be available to the public to analyze and deduce the impact thereof.

  • To ring fence the capital market from possible manipulations against the backdrop of election results tomorrow, Sebi as well as bourses and other market entities have prepared an elaborate vigil mechanism. Besides, RBI Governor Raghuram Rajan has said that RBI will infuse liquidity tomorrow, if needed. RBI has discussed contingency plans with Finance Ministry and Sebi to deal with market volatility tomorrow, he added.

NIFTY 3-Month

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