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Market Report

Wednesday, 28-May-2014

NSE

  • The BSE Sensex, which had retreated from record closing yesterday, recovered marginally by 6.58 points, or +0.03 per cent, to end at 24,556.09 today. Intraday, it moved between 24,643.33 and 24,488.81 in trade today. Similarly, the 50-scrip National Stock Exchange index Nifty recovered 11.65 points, or +0.16 per cent, to end at 7,329.65 after touching day's high of 7,344.75 and a low of 7,302.60 in intraday, as investors adopted a cautious stance ahead of the monthly settlement in the equity derivatives segment.

  • Brokers said investors who had been buying aggressively in the past few sessions turned cautious at prevailing levels amid tomorrow's monthly expiry in futures and options. There is also a concern that the 10 per cent rally this month so far has made markets a tad expensive, they added.

  • FII were net sellers in Indian equities in the four of the last five previous trading sessions before today. A net FII selling of Rs 286.54 crore was also seen today amid low volumes.

  • Globally, strong economic data in the United States shored up Asian stocks to one-year highs today, while all the major European markets were last seen trading flat with a positive bias.

  • Expect a bull market with corrections in between, going ahead, said Manishi Raychaudhuri of BNP Paribas. In certain sectors valuations as a result of the recent run up have been stretched. So there are investors who are likely to take a breather, reallocate their portfolios, rotate out of certain sectors and into some others. I would think that over the remaining part of this year a 10-15% move on the broader market should be on the cards, he adds.

  • Correction in market is here to stay, says Rakesh Tarway of Motilal Oswal Services. This correction is healthy as far as the overall trend of the market is concerned. There will be some breather, given the huge rally, almost 40%, that has happened over the last eight to nine months in the Nifty and almost 100% rally in the small caps in the last two to three months, he adds.

NIFTY 3-Month

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