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Market Report

Wednesday, 23-July-2014

NSE

  • The markets made record closing high today after a choppy session. The S&P BSE Sensex closed at record high of 26,147.33 up 121.53 points, or +0.47%. It hit high of 26,188.64 and a low of 26,000.40 in trade today. In seven straight days of gains the Sensex has gained 1,140.35 points, including 121.53 points today, to surpass previous record peak of 26,100.08 (July 7). This is its longest string of gains since September 12, 2013, when it saw nine consecutive session of upmove.

  • Tracking the momentum, the 50-share Nifty closed at 7795.75 up 27.90 points, or +0.36%. It hit high of 7,809.20 and a low of 7,752.90 in trade today. For the Nifty we got a new intraday high as well as a new closing high. The Nifty has also extended its rise to the seventh day, its longest run since May 2014. It reclaimed its crucial psychological level of 7800 by hitting its fresh lifetime intraday high, led by strong buying seen in IT, banks, capital goods, realty, power and metal stocks. The 50-share Nifty index has gained over 23 per cent so far in the year 2014, thus making it one of the best performing indexes in the world.

  • Selective buying in index heavyweights and particularly IT sector maintained buying momentum on the bourses. Software giant TCS attained a market valuation of over Rs 5 lakh crore for the first time, helped by a +2.21 per cent rally in the stock. Brokers said expectations of the government accelerating economic reforms also triggered buying by foreign investors.

  • Analysts at top brokerage firms are of the view that investors should not give too much weight to geo-political concerns around the world as the markets will continue to hit fresh record highs. Most analysts are of the view that despite escalating tensions in Iraq and depreciating rupee, Indian markets should be able to scale higher from the current levels, supported by strong FII flows and as most of the oil, which is imported, comes from southern region of Iran which remains unaffected.

  • Expect Nifty to cross 8000; bullish on IT, pharma and consumer, says Manish Sonthalia of Motilal Oswal AMC. I have been travelling throughout the length and breadth of the country, meeting our clients and investors post the budget. Everybody is thinking the same way and that is buying. Going forward, the overall trajectory on the economy is looking better in terms of deficient rains having come down from 45% to something like 27%. It gives a further fillip to the markets. The direction continues to remain positive, he says.

NIFTY 3-Month

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