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Market Report

Tuesday, 10-June-2014

NSE

  • The broad-based NSE Nifty, after soaring to a new intra-day high of 7,683.20 at opening, succumbed to selling pressure in the first half but recovered in the second half to close flat just 1.80 points, or +0.02 per cent, up at 7,656.40 -- also a new record closing. It surpassed previous intra-day record of 7,673.70 reached yesterday.

  • The 30-scrip BSE Sensex also opened on a strong note, touching a new high of 25,711.11 points in early trade on heavy buying by funds and retail investors. However, profit booking in realty, oil and gas, capital goods, power and metal stocks pulled the index down to the day's low of 25,347.33 points. It saw a mild recovery before ending at a new closing high of 25,583.69, up 3.48 points or +0.01 per cent. This was its fourth successive positive closing. The gauge had gained nearly 775 points in the previous three days. Yesterday, the 30-share benchmark index had hit previous lifetime high of 25,644.77 and ended at record closing high of 25,580.21 on optimism over government's agenda for reforms.

  • Brokers said investors were booking profits after the market climbed to all-time high and adopted a cautious stance ahead of retail inflation for May and April factory output. Besides, some worries over below-normal monsoon forecast, too triggered some selling by participants.

  • India Meteorological Department (IMD), the government's official weather forecaster on Monday said it expected monsoon rainfall this year to be 93 per cent of the 50-year average since 1950 (called long-period average, or LPA), against the 95 per cent it had projected earlier — both levels are considered sub-normal. There are high chances of the emergence of an El Nino weather formation, obstructing the formation of clouds, it said.

  • See a big upside in market in days to come, says Hemang Jani of Sharekhan. We have had a very strong run-up in the past few sessions and we could have some kind of a pause or a mild correction in the market. But the fact is that the overall trend is up, there is a lot of left out feeling and we will have to watch out for the FII flows because during the last couple of days, it has slowed down a bit, but overall we think that there is a big upside in the market in the days to come, he adds.

  • After a sharp run-up seen in benchmark indices, analysts feel that markets it will not be a run-away rally from here on and investors should look at midcap stocks which can deliver 15-20 per cent return going forward. Benchmark indices have rallied over 20 per cent so far in the year 2014, while the BSE Midcap index has surged nearly 40 per cent in the same period. Experts feel that the momentum may just tone down a bit ahead of the Budget, considering the fact markets have already rallied quite a lot. Upside in front line stocks may remain capped, while the real action will be visible in small and midcap stocks, they say.

NIFTY 3-Month

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