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Market Report

Monday, 21-July-2014

NSE

  • The S&P BSE Sensex, which rallied nearly 220 points in intraday trade today, ended in the positive terrain for the fifth straight session with modest gains at a two-week high level. The Sensex finally ended 73.61 points or +0.29 per cent higher at 25,715.17. It hit a low of 25,677.71 and a high of 25,861.15 in trade today.

  • The 50-share Nifty index also rose 20.30 points in trade, but ended below its crucial psychological level of 7,700 in trade today. The index finally closed +0.26 per cent higher at 7684.20 today. Tracking the momentum, as much as 100 stocks rose to their fresh 52-week high on the National Stock Exchange on sustained capital inflows and encouraging first quarter earnings from bluechips including RIL and HDFC.

  • Brokers said the market remained in bullish mood ever since the market leaders -- Infosys and TCS -- posted better earnings, which exceeded estimates. Besides, improving macro-economic data amid government exuding confidence that tax collection in the current fiscal would exceed target of Rs 13.64 lakh crore, helped markets.

  • A firming trend at the other Asian markets further supported the uptrend, brokers added. Analysts at top brokerage firms are of the view that investors should not give too much weight to geo-political concerns as markets are on track to hit fresh record highs probably in the next 8 sessions in July, including today's session.

  • The trend remains largely on the upside and as long as the index does not start breaking below 7640-7635, investors should maintain a long bias and use any kind of dips to buy into the markets, said Mitesh Thacker. The breadth is positive, which is a good sign, though the indices or the banking index are not doing much today, despite the fact that a couple of banking names are showing some kind of traction on the upside, he added.

  • Broader markets can rise in a healthy way going ahead, says Neelkanth Mishra of Credit Suisse. The emerging market space is not really the best benchmark. We have to look at the market with respect to other economies the world over which have done well. There is still enough room for PE multiples to keep going up. The current numbers are too high and there will be downgrades, but we will still see 8 to 10 per cent growth in the index earnings. The broader market will move up very healthily even from here, he concludes.

NIFTY 3-Month

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