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Market Report

Monday, 14-July-2014

NSE

  • Our market today saw the BSE Sensex dip below 25,000 mark to touch the day's low of 24,892.00 points. The barometer closed with a loss of 17.37 points, or -0.07 per cent, at 25,006.98 today. The gauge has lost over 1,093 points in 5 sessions. The 30-share index had risen to a day's high of 25,095.76 in early trade after government data gave two good news inputs: the Wholesale Price Index inflation dipped to 5.43 per cent in June and Factory output (FII) grew at 19-month high of 4.7 per cent in May.

  • The broad-based Nifty of the National Stock Exchange lost 5.45 points, or -0.07 per cent, to settle at 7,454.15 today extending the string of declines to the fifth straight session. Intra-day, the Nifty shuttled between 7,478.45 and 7,422.15 today.

  • Brokers said sentiment was also dampened on reports of foreign institutional investors turning sellers. They offloaded shares worth Rs 723.48 crore shares on Friday, and were net sellers for Rs 558.25 crore today, after remaining major buyers in six straight sessions that had helped indices scale new highs in the run-up to the Budget.

  • Meanwhile, the wholesale price index (WPI)-based inflation fell to a four-month low of 5.43% in June against 6.01% in the previous month as the rate of food price rise declined and ironically onions turned cheaper. However, this may not dissuade RBI from maintaining a status quo on its policy rates next month since sub-normal monsoon threatened to result in a drought in parts of the country.

  • Globally, a better trend on the other Asian markets and higher opening in Europe failed to lift Indian shares. Stock markets in Europe and Asia rose on Monday as investors put aside concern about euro zone banks and looked forward to corporate earnings and a raft of global economic events, including testimony from the head of the US Federal Reserve.

  • There is volatility, there is some correction happening. But I do not see too much of a sell-off in the market, says Neeraj Deewan of Quantum Securities. This is a good time to accumulate. You have the opportunity. Midcaps are correcting more than the normal. So, it is a good opportunity. But let us accumulate slowly. We have now entered the result season. So, you will get results and you can even see where improvement is already visible, or where people are talking about a good order book. Therefore, be selective now, he adds.

  • We are witnessing some bit of profit booking post the Budget and we could move sideways in near future, said Mehraboon Irani of Nirmal Bang Securities. Monsoon may spook the market, bond yields, global events, anything can spook the market from here on. I personally feel that we could move a little bit further down may be by another 100-200 points on the Nifty, consolidate and move sideways before the next leg of the bull-run starts, he added.

NIFTY 3-Month

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