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Market Report

Tuesday, 20-May-2014

NSE

  • The Sensex resumed well and shot up to day's high of 24,587.16 on firm Asian cues and heavy buying by foreign funds yesterday. However, the buoyancy was short-lived as it fell back to trade almost flat till afternoon trade. It rebounded marginally to settle at a new closing peak of 24,376.88, clocking a net rise of 13.83 points or +0.06 per cent. In straight four sessions, the index has flared up by 561.76 points, or +2.36 per cent, on hopes that the incoming Narendra Modi-led government will boost the economy. The Sensex previous closing peak was 24,363.05 made on Monday.

  • Similarly, the broader 50-issue CNX Nifty of the NSE moved in a range of 7,247.70 and 7,353.65, before closing at yet another closing peak of 7,275.50 today. It gained 11.95 points or +0.16 per cent over Monday's closing of 7,263.55.

  • Our markets have remained more or less static in the last 2 sessions. FII buying has turned negative today as they have been net sellers to the tune of Rs. 104 crores. Total volumes are still very high. Experts feel that if the Nifty manages to hold 7300-level in the next few sessions, then towards the expiry week, short covering moves may take it to higher levels.

  • Globally, Asian shares slipped today despite a solid performance on Wall Street. European shares which had earlier opened higher on expectation of easy monetary policies from the European Central Bank pared gains and were trading with marginal losses at our closing time.

  • The Rupee today fell to 58.70 versus its previous close of 58.59/60, en route to snapping a four-session winning streak, as a large state-owned bank is said to be buying dollars to meet demand for oil companies.

  • The Indian markets have had a stellar rally in the run-up to election results, say analysts. However, with the election event out of the way, the rally in benchmarks is likely to slow down as investors wait for the formation of the new Cabinet and Budget presentation in the Lok Sabha. Experts are of the view that we are in a multi-year bull run and India is at the cusp of an upswing in the business cycle and therefore an upswing in corporate earnings going into 2015 is expected. However, the pick-up in economic growth will be a gradual affair and depend upon the new government's decisions to revive it.

NIFTY 3-Month

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