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Market Report

Monday, 09-June-2014

NSE

  • The 50-share index ended at record-closing high of 7,654.60, up 71.20 points or +0.94 per cent. It touched an all-time intraday high of 7,673.70 and a low of 7,580.25 in trade today. The S&P BSE Sensex ended at record closing high of 25,580.21, up 183.75 points or +0.72 per cent. It touched an all-time intraday high of 25,644.77 and a low of 25,496.84 in trade today. Tracking the momentum, as much as 902 stocks rose to their fresh 52-week high on the Bombay Stock Exchange. As many as 528 stocks rose to their fresh 52-week high on the National Stock Exchange.

  • The Nifty extended gains and ended at record closing-high above 7,600 led by gains in realty, capital goods, power and metals. Following President Pranab Mukherjee's address to the joint house of parliament, analysts are expecting a reformist and growth oriented budget with subsidy cuts from Finance Minister Arun Jaitley next month.

  • This year is turning to be one of the best for Indian equity investors. The benchmark S&P BSE Sensex is up by a fifth since the year began and expected to go even higher. Bulls on Dalal Street are now talking of a new rally, triggered by a growth-oriented government at the Centre under Narendra Modi. The Centre is expected to quicken the pace of growth of gross domestic product (GDP) and corporate earnings, supporting the higher stock valuations. At Friday's close, the Sensex is trading at nearly 19 times the underlying combined earnings of its 30 constituent companies in the past 12 months.

  • We will see sector rotation and slowly, one sector or the other will perform everyday and we will get towards 8,000-8,100, said Ashwani Gujral. Till the budget, I do not think there is much to worry. Yes, sometimes Bank Nifty will be down, sometimes oil and gas will be down but overall, the market should keep moving higher through the next few weeks till we have the budget and only then, any sort of serious correction may set in, he says. Most of the gains in any market tend to happen in a very short span of time. Lots of things tend to get discounted and we are in that phase where everything is getting discounted, he adds.

  • We will see the continuation of this rally with intermittent profit taking, said Sudip Bandyopadhyay. Overall the trend will be positive and I would not be surprised if we cross 8,000 on Nifty even before the budget is announced on the floor of the house by the Finance Minister, he adds.

NIFTY 3-Month

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