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Market Report

Friday, 27-June-2014

NSE

  • The Sensex, which had lost 306.23 points in the past two sessions, recovered 37.25 points, or +0.15 per cent, to end at 25,099.92 during the session. It had touched the day's high of 25,209.61 at the outset. On similar lines, the NSE index Nifty rose by 15.60 points, or +0.21 per cent, to end at 7,508.80 after moving between 7,538.75 and 7,482.30 on buying support from funds and retail investors amid easing global crude oil prices.

  • Brokers said the beginning of new settlement in the derivatives segment also helped the index to end the day in the positive terrain. The sentiment got further boost with the rise in the rupee which was last trading higher at 60.11 against the US dollar. Brokers further said market sentiments turned better on broad-based buying by funds and retail investors after crude oil prices in the global markets eased and beginning of new settlement of July series in the derivatives segment. Besides, a mixed trend on other Asian markets and higher opening of the European markets as investors awaited data on US consumer confidence buoyed the sentiments, they said.

  • Monsoons remained inadequate (31% below average) till 25th of June. The shortage of rainfall is bound to hurt farm output and spur inflation, thus reducing the scope for monetary easing by the central bank, say experts. However, late today evening reports came in that India may be lucky enough to escape the worst that can be caused by a severe El Nino. The World Meteorological Organisation (WMO) on Thursday said the weather phenomenon's intensity may be moderate rather than strong or weak. The India Meteorological Organisation is already expecting better rainfall in July that in June.

  • The markets are expected to rally about 2,000 points ahead of the Union Budget, some analysts have been saying. But till date, there is no sign of a sharp upmove on Dalal Street. If you go by history, India's bechmark BSE index fell for 14 out of 23 times since a month before budget presentation from 1991. There is not even a single positive observation of the same since 2007. The index has fallen 18 out of 23 times a month after budget. The Modi government has so far pushed ahead UPA's policy decisions and it will take some time to chart out long-term plans for economy. The market is expected to turn volatile in the near term.

NIFTY 3-Month

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