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Market Report

Friday, 20-June-2014

NSE

  • After touching the day's high at 25,276.31 at the outset, the BSE Sensex fell back to end with a fall of 96.29 points, or -0.38 per cent, at 25,105.51 today. It touched a low of 25,056.18 during the day. The gauge had lost 319.39 points in the previous two sessions. This is its weakest close since 25,019.51 on June 5. For the week, the Sensex fell 122.66 points after it shed 168.29 points in the previous period.

  • On the similar lines, the broad-based NSE index Nifty ended 29.25 points, or -0.39 per cent, down at 7,511.45 today triggered by selling in the last hour of trade after wary investors appeared reluctant to hold onto positions as violence continued unabated in Iraq. The index shuttled between 7,560.55 and 7,497.30 intra-day.

  • Sentiments remained somewhat subdued as cautious investors cut positions on renewed concerns over violence in Iraq, which sent global crude prices to a nine-month high levels, brokers said. Besides, tepid monsoon forecast and slowdown in buying by foreign funds, who have been major buyers on the domestic bourses, have dampened sentiments, they said.

  • After a strong rally seen so far in the month of June, our market came under a bit of pressure this week, largely weighed down by escalating tensions in Iraq and growing worries over the impact of El Nino on Indian monsoon. Most analysts remain positive on the prospects of economy and markets despite geopolitical headwinds and depreciating rupee, since they expect the new government to unveil steps in the upcoming Budget to kick start the investment cycle.

  • Meanwhile, Foreign Portfolio Investors (FPIs) -- as FIIs are now called -- sold shares worth a net Rs 420.51 crore yesterday and also sold a net Rs 220.65 crore today, as per NSE data. Total volumes and Retail participation are also declining. See our 'Market Statistics' page.

  • Brent crude held near $115 a barrel on Friday, close to a nine-month high, and was headed for its second weekly gain on increased risks of disruption to supply from Iraq. The Rupee was weaker at 60.2900/2950 versus its previous close of 60.08/09, tracking high global crude prices as crisis in Iraq continues. Globally, Japanese shares were flat today as investors booked profits after the rally to 4-1/2-month highs the previous day.

  • Iraq crisis will compound our monsoon related concerns, says Aditi Nayar of ICRA. The duration and the intensity of the conflict is going to be paramount in this case. Particularly in the case of India, the fact that this is going to compound our monsoon related concerns. Demand for crude oil particularly for diesel is likely to pick up in the months ahead if the monsoon does end up being substantially below normal, he said.

  • After market hours: Railway passenger fare was today increased by 14.2 per cent in all classes while freight charge was hiked by 6.5 per cent with effect from June 25. The Railways had earlier issued a notification on May 16 effecting the same hike in passenger fare and freight charges from May 20. The May 16 fare hike decision, had raised eyebrows as it came in the midst of Lok Sabha election results. Soon after, the red-faced Railway Ministry had put the decision on hold, saying the matter related to the revision will be left to the next government. The same order has been ratified today.

NIFTY 3-Month

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