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Market Report

Tuesday, 17-June-2014

NSE

  • The 30-share Sensex ended the day at 25,521.19 today, up 330.71 points, or +1.31 per cent. It touched intraday high of 25,545.88 and a low of 25,104.50 in trade today. The Nifty closed at 7,631.70 today, up 98.15 points or +1.30 per cent. It touched intraday high of 7,637.60 and a low of 7,509.25 in trade today, as Indian equities and commodities such as gold and crude oil seem to have temporarily stopped reacting to the ongoing violence in Iraq.

  • The stunning emergence of ISIS has led the US government to send about 275 troops equipped for 'direct fighting' to the US embassy, say reports. After capturing Mosul and Tal Afar, fighters of the Islamic State of Iraq and Syria (ISIS) are marching towards Baghdad. Analysts say that the market is not perturbed as the insurgency may not last long and so the oil supply would not be disrupted. The active oil fields are in Southern Iraq which is unaffected and the violence is taking place in northern Iraq.

  • Indian equities are likely to tide over Iraq crisis and the consolidation is expected to be a brief one, say analysts. The crisis will force the government to come out with an aggressive budget and that will be good for the market, they say. According to analysts, while the market may react to rising oil prices in the short term, the medium to long term outlook is positive.

  • Globally, most Asian stock markets fell at the beginning today as the deepening conflict in Iraq and a gas dispute between Ukraine and Russia sapped investors' appetite for riskier assets. Things improved as real implications on oil flow became clear. Firm opening of European markets during late noon trading session also boosted the local investors' sentiment.

  • The rupee continued to remain under pressure and was below 60 per dollar mark. The US currency has strengthened ahead of the US Federal Reserve policy meet. The rupee also came under pressure following rise in global crude oil prices and demand for more dollars from oil importers.

  • It seems that we are currently in the second stage of bull market, says Ramesh Damani. This is probably the longest and most productive stage of the bull market. Gains would not be as rapid as in the first or the third stage, but it is a good time to stock picks, good time to stay invested, he says.

  • Don't see bull market rally of 2008 being repeated, says Nilesh Shah of Envision Capital. We are in a multi-year bull market. There is really no doubt about that, and in bull markets, corrections are sharp. They do not last for a very long time and these corrections are relatively small. I do not see a repeat of 2008 and 2009 happening, but I am just trying to indicate the kind of price move which has happened, the velocity with which it has happened, he adds.

  • After market hours: India's GDP is likely to rise to US$3 trillion by 2020 and US$5tn by 2025 and the financial sector will be an important part of this growth pickup, Morgan Stanley's macro team has outlined the case in a report.

NIFTY 3-Month

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