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Market Report

Wednesday, 02-July-2014

NSE

  • It looks like the much talked-about pre-Budget rally is finally here in anticipation of a strong pragmatic Budget. Both the Sensex and the Nifty rose to their fresh lifetime highs in trade today.

  • The 30-share index ended at record closing high of 25,841.21 today, up 324.86 points or +1.27 per cent. It hit an all-time high of 25,864.53 and a low of 25,660.16 in trade today. The Nifty ended at record closing high of 7,725.15 today, up 90.45 points or +1.18 per cent. It touched an all-time high of 7,732.40 and a low of 7,677.30 in intraday trade today.

  • The indexes extended their rally for the nfourth consecutive session as institutional investors bought stocks across the board on hopes that the Finance Minister would announce reforms to boost the economy. All the sectoral indices closed in the green with metals, capital goods and pharmaceuticals leading the upmove. The market breadth was positive on the BSE with 1905 gainers against 1160 losers.

  • The government looks to have made all the right noises and consequently expectations for its maiden budget are high. Finance Minister Arun Jaitley on Tuesday hinted at taking bold measures by discarding populism to curtail wasteful expenditure and making "reasonable" tax policies for reviving economic growth, say experts.

  • From Monday, this bout of buying and global cues have also been supportive, says Devang Mehta. Statements made by the Finance Minister yesterday about fiscal prudence have also excited the market and this rally is not going to stop. So overall, there is good strength in the market, good participation, good inquiries. So this market would continue to trend going forward, he adds.

  • We have had a very nice pre-budget rally. But there are some dark clouds, said R Venkataraman of IIFL. So till the budget, we expect a rally and then we will wait and watch and see what actually the Finance Minister delivers on July 10th, before taking a fresh call on the markets. I personally think the odds of a blockbuster dream budget are unlikely, he added.

  • We continue to expect reforms to drive the markets to our year-end target of 27,000 points, though we could see near-term consolidation as it absorbs worries on a poor monsoon and the strife in Iraq, Bank of America Merrill Lynch (BofAML) said in its India strategy report.

NIFTY 3-Month

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