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Market Report

Monday, 02-June-2014

NSE

  • Sensex, the 30-share index, ended at 24,684.85, up 467.51 points or +1.93 per cent. It touched a high of 24,709.09 and a low of 24,270.20 in intraday trade today. The Nifty closed at 7,362.50 today, up 132.55 points or +1.83 per cent. It touched a high of 7,368.60 and a low of 7,239.50 in trade today, as sentiment turned bullish ahead of the Reserve Bank of India's policy meet tomorrow.

  • Markets ended on a strong note on account of strength in the capital goods space and a bounce back in the banking counters ahead of the RBI policy meeting. According to analysts, the central bank is likely to keep the interest rates steady to bring inflation under control. A firming trend in global markets also buoyed the sentiments, they added.

  • On the economic front, manufacturing activity inched up in May compared to the previous month, according to the widely-tracked HSBC Purchasing Managers' Index (PMI). The index for manufacturing rose marginally to 51.4 points in May from 51.3 points in April.

  • Our markets saw a good rally today in spite of drastcally low volumes. Compared to the last few days, total FII volume was significantly low today, lowest since 7th May. See our 'Market Statistic' page. We should get good progress if FII volume and total volumes return to normal.

  • According to analysts, the movement of benchmark indices in the last couple of weeks is a sign of a classical bull market. The bulls took a breather and have come back strong to take the market higher. A classical bull market phenomenon is that rallies keep getting larger while secondary corrections remain shallow affairs. Active participation of broader markets forms the cornerstone of a sustainable rally in the long run, says a ICICI Securities report. The brokerage expects the current up-move to extend towards 25,950/7,730 (Sensex/Nifty) levels in the month of June.

  • The correction experienced over the last two weeks gave the market a lot of strength, said Devang Mehta, Senior VP & Head Equities Sales, Anand Rathi Securities. It was typically very good for the health of the market. It is the sign of a classical bull market where the market corrects, intermittent corrections are observed for a period of three-four days and again one day the entire buying spree emerges again, he said.

NIFTY 3-Month

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