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Market Report

Friday, 16-May-2014

NSE

  • Sensex, the 30-share index, ended at 24,121.74 today, up 216.14 points or +0.90 per cent. The index pared over 1,253.89 points after touching an all-time high of 25,375.63 in intraday trade today. The Nifty closed at 7,203.00 today, up 79.85 points or +1.12 per cent. It gave up 360.50 points from an all-time high of 7,563.50 in trade today.

  • It was a classical case of buy on rumours and sell on news on Dalal Street today. The Sensex witnessed sharp profit booking in the afternoon and corrected more than 1,250 points from day's high even as the BJP emerged as the single largest party in the Lok Sabha elections.

  • According to analysts, the bull-run in the Indian market has just begun. With the clear majority, the central government will face not pressure in amending constitutional laws push crucial bills in the Lok Sabha. It is likely to have a positive impact on the economy and the Indian equities are likely to be re-rated.

  • The benchmark sensitive indices Sensex and Nifty are expected to touch 28,000 and 8,000, respectively by this year end as the "historic verdict" of elections 2014 will unleash a new bull run on the Dalal Street, say foreign brokerages. Most of the global financial services majors believe that Narendra Modi, the prime ministerial candidate of the BJP, is business friendly and the Modi-led government will be ready to take tough decisions, given the strong mandate it has received.

  • The market saw fantastic volumes today, specially from FIIs. See our 'Market Statistics' page. The total market turnover was Rs 4.83 lakh crore, the third highest ever. The cumulative market capitalisation of all the 5,373-odd companies listed on the Bombay Stock Exchange (BSE), had soared to a new peak of Rs 82,02,907 crore in intra-day trades.

  • Ashwani Gujral, Fund Manager, is of the view despite of the good news, the market is showing signs of fatigue. He is advising traders to book profits as the market has run-up nearly 25 per cent lately. He is of the view that with the event over, the market is at peak in the near-term and there are chances it might correct nearly 8-9 per cent in next few days.

  • We have raised December 2014 target for the S&P BSE Sensex to 28,000. While the budget will now emerge as the next key milestone for the market, investors should begin to assess what the next government is likely to do. With the economic turnaround and revival of manufacturing taking centre-stage, we advised investors to intensify focus on domestic cyclicals and policy improvement plays, says Abhay Laijawala of Deutsche Equities.

NIFTY 3-Month

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