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Market Report

Tuesday, 15-July-2014

NSE

  • Snapping five-session losing streak, the benchmark BSE Sensex today surged by 221.67 points, or +0.89 per cent, to end the day at 25,228.65 today. The surge comes for index comes after losing 1,093 points in the previous five sessions. The broad-based National Stock Exchange index Nifty reclaimed the 7,500-mark by jumping 72.50 points, or +0.97 per cent, in late trade to close at 7,526.65 today with rate sensitive stocks attracting buying support in the aftermath of retail inflation easing to 30-month low.

  • While retail inflation in June touched its lowest mark at 7.31 per cent since January 2012, the wholesale price based index slid to four-month low of 5.43 per cent mainly because of easing prices of vegetables.

  • Brokers said softening of inflation has sparked off hope that the Reserve Bank will cut interest rate at its policy review next month. Value-based buying in many blue-chip stocks, which became attractive after recent losses, also helped the the barometer to close higher, brokers said.

  • The Indian rupee trimmed early losses and was trading marginally lower at Rs 60.12 against the US dollar compared to the previous close of Rs 60.07 as gains in domestic equities aided sentiment. Globally, firm Asian markets, mixed European opening and record closing on US markets yesterday on better-than-expected earnings by Citigroup also helped boost investor sentiment in domestic market.

  • Short-term corrections a great opportunity for raising equity allocation, said Harsha Upadhyaya of Kotak AMC. The market has really shown some amount of correction in the past couple of days. But the long-term equity investors need not worry about this correction. The market has been going up for the last about 9-10 months, and we have seen a very moderate correction as of now. We believe that any short-term correction that you may see in the market is a good opportunity to actually go and increase equity allocation, he adds.

  • Markets may remain range-bound between 7200 & 7700 for now, says Hemang Jani of Sharekhan. The market has run up quite a bit during the past two months and it needed some kind of a pause. It has now been provided by some global events. The budget is an event that is past. But this is a time where you can actually look at picking up some interesting stocks where the correction has been anywhere from about 15% to 20%. Therefore, this is a good correction. It will probably lead to a broader participation in the market, he says.

NIFTY 3-Month

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