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Market Report

Monday, 19-May-2014

NSE

  • The 50-share Nifty index ended at all-time closing high of 7,263.55, up 60.55 points or +0.84 per cent. It hit a high of 7,291.10 and a low of 7,193.55 in intraday trade today. The Nifty extended its post-election rally as institutional investors bought cyclical and rate sensitives sectors on hopes of pick-up in economic growth once the new government starts functioning.

  • The S&P BSE Sensex closed at 24,363.05, up 241.31 points or +1.00 per cent. It touched a high of 24,448.47 and a low of 24,107.99 in trade today. The S&P BSE Midcap Index surged +4.19 per cent and the S&P BSE Smallcap Index rallied +5.82 per cent.

  • Very good volumes and continued support of FII buying has helped our market go higher. Foreign institutional investors were net buyers in Indian equities to the tune of Rs 3,634 crore on Friday, when the BJP-led NDA won the general elections by an absolute majority, and net buyers of Rs. 1,350 crore today. See our 'Market Statistics' page.

  • The rupee surged to its highest level in 11 months against the dollar on expectations of continued robust foreign buying in domestic shares and debt following the historic win by the BJP-led NDA in the general elections. The rupee was trading higher at Rs 58.56 against the US dollar compared to its previous close of Rs 58.79.

  • Globally, Asian markets ended lower with China's Shanghai Composite down over -1% amid growth concerns in the world's second largest economy. Japanese shares ended lower amid a stronger yen and tracking weakness in Chinese shares. European markets were trading lower as investors booked profits after recent gains, adopting a wait-and-watch stance ahead of the European Central Bank's policy meet in June.

  • Post Modi win many brokerages revised their Sensex and Nifty targets within hours of the election results on Friday. Most of them see Sensex hitting 27000-28,000 by December-end and for Nifty they see the index rallying over 8000 in the same period. But the market is not expecting any miracle from Mr Modi from day one. This is more of a structural change that we are going to see, say experts. They are of the view that the outgoing government has already in the last 15 months put in a lot of ground work which gives us a lot of tailwind on economy to recover and our GDP target for FY16 has just been raised to 6.5 per cent. Analysts at top brokerage firm also see GDP growth rate rising to 6.5-7 per cent in 2015-16 supported by policy initiatives by the incoming government and over 8 per cent in next three year. Modi's inherent strength is his administrative management and implementation of reforms will be the icing on the cake and will further strengthen the medium-term growth trajectory, they say.

NIFTY 3-Month

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