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Market Report

Thursday, 24-July-2014

NSE

  • After moving in a narrow range for most part of the trading session, our market picked up momentum in the last one hour of trade. The S&B BSE Sensex finally closed 137.02 points, or +0.48 per cent higher at 26,271.85. It hit a low of 26,077.70 and a lifetime high of 26,292.66 in trade today.

  • Tracking the momentum, the 50-share Nifty index also hit a fresh lifetime high of 7,835.65 in trade today. The 50-scrip NSE Nifty closed above the 7,800-mark for the first time at 7,830.60, rising 34.85 points, or +0.85 per cent. The broader index touched intra-trade record high of 7,835.65, surpassing previous record of 7,809.20 (July 23).

  • The S&P BSE Sensex has already rallied over 24 per cent so far in the year 2014 and has become the top performing index in the world on a year-to-date basis. Today was the eighth consecutive session of gains as investors cheered Modi government's steps to attract higher overseas investments.

  • The Cabinet today gave go-ahead to FDI cap hike in insurance to 49 per cent, paving way for inflow of as much as Rs 25,000 crore foreign funds. Yesterday, the RBI said the FII limit for investment in government securities has been hiked by USD 5 billion within the total cap of USD 30 billion. Besides, encouraging June quarter earnings by several blue-chip companies and positive global cues tracking strong Chinese economic data, also bolstered domestic sentiments.

  • According to analysts, the momentum is fairly strong in the markets and small corrections, which may happen, should be used to enter the markets or build positions. Most market experts are of the view that foreign investors have been betting big on the Indian market mainly on reform agenda of the new government at the Centre.

  • Most foreign investors are 'overweight' on India and our sense is that they are not fully positioned for an economic upturn, BofA-ML said in a report. They spoke to nearly 60 global investors over the past two weeks, and each was overweight on India. We have been highlighting since the late last year that the earnings downgrade phase is behind us and the upgrade phase should start from mid-2015, added the global investment bank which has a year-end target for the Sensex at 27,000.

  • Expect market to maintain upward momentum, says Dilip Bhat of Prabhudas Lilladher. I am not too worried about the corrections. There is bound to be correction the way the markets have gone up one way, but the channel is one of upwards. I would not even like to take a guess on how much it would be - it will continue to be shallow. It could go sideways at best, he says.

NIFTY 3-Month

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