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Market Report

Wednesday, 04-June-2014

NSE

  • Sensex, the 30-share barometer, had opened on a positive note and touched day's high of 24,925.90 points. However, profit booking emerged later and the index fell to day's low of 24,773.93 points before settling at 24,805.83, a fall of 52.76 points, or -0.21 per cent, over previous close. Investors booked profits after strong 641-point rally in the previous two sessions, brokers said.

  • The broad-based NSE 50-issue CNX Nifty also slipped from record high closing by losing 13.60 points, or -0.18 per cent to end at 7,402.25 today. Yesterday, Nifty closed at all-time high of 7,415.85, while Sensex had ended at record 24,898.59 after the RBI unlocked about Rs 40,000 crore of banking funds by cutting the statutory liquidity ratio (SLR) by 50 bps.

  • Weak global cues as investors awaited data on US jobs and a decision from the European Central Bank on monetary policy amid some selling by foreign funds also impacted the market, a broker said. Asian markets ended lower with the exception of Nikkei, which touched 2-month closing highs on Tuesday as investors remained cautious ahead of the ECB meet on Thursday. European markets were also trading lower ahead of the European Central Bank's meet tomorrrow.

  • The rupee has rebounded from its early lows and is trading higher at 59.33 versus its previous close of 59.38. Traders adopted a wait-and-watch stance on trends of foreign fund inflows in the domestic stock market.

  • While Sensex & Nifty companies have crossed their 2008 peaks, midcaps yet to scale up. the BSE Midcap index still trades nearly 14% below this, point out analysts. As a result, a number of market pundits are recommending mid-cap companies for investment.

  • At the moment, everything looks positive in the market, says Deepak Shenoy of Capital Mind. The new government has not announced its policies yet and there is the budget coming up. So, looking at it from a fundamental perspective, there is nothing to stop the Nifty from going higher. There are price pressures because a lot of people have bought in anticipation and such buyers might move out in the short term. But it looks like it will keep going places, he adds.

NIFTY 3-Month

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