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Market Report

Thursday, 10-July-2014

NSE

  • The Indian markets ended a volatile session in the red as investors absorbed details of the Union Budget presented by Finance Minister Arun Jaitley in Parliament today. The 30-share index, Sensex, swung 803 points intraday before closing at 25,372.75, down 72.06 points or -0.28 per cent. It touched intraday high of 25,920.46 and a low of 25,117 in trade today. The Nifty ended at 7,567.75, down 17.25 points or -0.23 per cent. It touched an intraday high of 7,731.05 and a low of 7,479.05 in trade today, confused over the Budget.

  • The Budget was neither an out of the box idea nor there were any bitter pills. The finance minister said he will try to meet the fiscal deficit target of 4.1 per cent and set a target of fiscal deficit of 3.6 per cent for 2015-16 and 3 per cent for 2016-17. The market reacted positively and gained momentum but couldn't hold on. The Sensex fell sharply over 300 points intraday after Jaitley cleared stand on retrospective tax, said dealers. The weakness didn't last long and the Sensex bounced back over 800 points from day's low to touch intraday high of 25,920.46 as the market realized there were no more bad news coming its way. As the market digested the budget after the speech, the excitement fizzled out and the market closed slightly in the red.

  • Point to note today: Very high retail participance. See our 'Market Statistics' page.

  • Even though markets corrected on the Budget Day, experts view that the long term trend remain intact and investors use every decline to enter markets. According to analysts, the current market set up has all the ingredients of structural bull-run in place, and advice investors to remain invested in India Growth Story and increase exposure in fundamentally well researched stocks to achieve their financial goals.

  • We rate the Budget at 8 on a scale of 10, said Sudhakar Ramasubramanian of Aditya Birla Money Ltd. It is expected to spur the next wave of growth getting the Indian economy out of its worst growth in over a decade. Modi government has lived up to the voter's optimism. While the implementation remains the key, Indian markets are set for a good time in the foreseeable future, he added.

  • 7,500 level remains under threat, says Ashwani Gujral. If it was a great budget, Nifty should be up 200 points. If it is not, then probably it is not as great as the market first thought it to be. The budget is over and we have not been able to cross 7680-7700. Right now, 7500 remains under threat. Some sort of budget related stocks like real estate or infrastructure may do well for a bit, but I do not think the budget has been able to turn the mood on the index, he adds.

  • In a significant global development, questions about the health of Portugal's top listed bank triggered a massive slide in Europe. Espirito Santo Financial Group, the largest shareholder in Portugal's Banco Espirito Santo, suspended trading in its shares and bonds, citing "material difficulties" at parent company ESI. Shares of the bank fell 17.2 percent. Portugal's benchmark stock index fell 3.8 percent and Italy's FTSE MIB fell 2 percent, bringing back to markets the specter of a weakened Europe. Later today, with US stocks near record highs, the slide in Europe translated into broad selling on Wall Street. The Dow Jones industrial average fell 0.69 percent, the S&P 500 lost 0.65 percent and the Nasdaq Composite dropped 0.94 percent when last reports came in. This event might have repercussions in our Indian markets tomorrow.

NIFTY 3-Month

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