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Market Report

Wednesday, 16-July-2014

NSE

  • The S&P BSE Sensex finally ended 321.07 points higher or +1.27 per cent at 25,549.72 today. It hit a low of 21,246.75 and a high of 25,602.78 in intraday trade. The 50-share Nifty index also rose 114 points in trade to reclaim its crucial psychological level of 7,600 in trade today. The index finally closed 97.75 points higher or +1.30 per cent at 7624.40 today supported by gains in banks, realty, autos and power stocks.

  • Benchmark share indices ended higher today with bank shares leading the gains after the Reserve Bank of India exempted the mandatory reserve requirements on funds raised through bonds for extending credit to housing and infrastructure sectors to boost demand in these sectors.

  • Meanwhile, June trade deficit hit an 11-month high according to government data showed on Wednesday. India's exports in June rose 10.22% from a year earlier, helped by a pick-up in external demand and a weak currency. The Indian Rupee was trading flat Rs 60.12 because of demand for the US dollar from state-owned banks while gains in domestic equities also aided sentiment.

  • Globally, Asian markets ended mixed on Wednesday after China reported economic growth that was just ahead of market expectations, drawing a sigh of relief from investors. Europe is on a high and US stocks have edged up today, buoyed by the latest merger news.

  • Nifty may consolidate between 7600 and 7800, says Sandeep Wagle. Not sure whether we will make a new high again. 7450 has been a very-very strong bottom and it is confirmed over the next few days or weeks. I do not think that will be broken. We may consolidate between 7600 and 7800 and spent some more time there. Bias definitely seems to be upside. But one has to be extremely stock specific, he adds.

  • Markets have priced in a weaker monsoon and internalised it, says Ajay Bodke of Prabhudas Lilladher. Although we need to keep a very close watch on the weekly basis, the sowing data also needs to be very closely watched because there, the concern is mainly on the oilseeds and cereals where the data is particularly worrisome because they have a tendency of feeding into higher inflation. But overall market in my opinion has more or less absorbed it, he adds.

  • After Infosys, all eyes are now on TCS Q1 results, say experts. Tata Consultancy Services Ltd is scheduled to report its results for the quarter ended June 30 post market hours on Thursday. India's largest software exporter is likely to report a revenue growth of 2.2% Q-o-Q while its net profit is expected to be lower by 7.4% to Rs 4,902 crore due to wage hike and strong appreciation in Rupee, according to Street estimates. Infosys, which reported its results for the first quarter of FY15, managed to surprise the Street by reporting better-than-expected net profit while revenues were largely in line. Now all eyes are on TCS, which has a habit of beating Street expectations, say experts.

NIFTY 3-Month

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