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Market Report

Thursday, 31-July-2014

NSE

  • The BSE Sensex began on a weak note and continued to lose momentum to touch an intra-day low of 25,853.69. It settled at 25,894.97, down 192.45 points, or -0.74 per cent. It touched the day's high of 26,118.88. In the 30-share Sensex, 24 closed with losses, while six others ended higher. The 50-share NSE index Nifty, after dipping to 7,711.15, finally settled the session down 70.10 points, or -0.90 per cent, at 7,721.30, its biggest fall since July 11.

  • Our markets today slipped as caution prevailed on the expiry of July derivative contracts and capital outflows after US Fed once again tapered its stimulus. Besides, a weakening Rupee that depreciated 46 paise against the dollar to 60.81 intra-day also weighed on the stock market sentiment, brokers said. Good earnings from some bluechips were outweighed by selling in power, banking, consumer durables, capital goods, auto, IT and infrastructure space, they added.

  • Asian stocks ended mixed today after encouraging US growth data in the second quarter was offset by profit-taking. European markets also opened lower. Also, risk aversion was seen due on reports that Argentina has failed to strike a deal to avert its second default in more than 12 years.

  • Meanwhile, Foreign Portfolio Investors sold shares worth about Rs 381.66 crore yesterday, and sold a massive 1654.86 crore today, as per provisional data from the stock exchanges, with very high FPI trading volumes.

  • Expect Nifty to touch 8600 over six to nine months, says Rajesh Cheruvu of RBS Private Banking. 30-35% of the overall index consists of IT, FMCG and healthcare, which have been delivering a decent set of numbers for a couple of quarters. The sectors which have been lagging are the core and cyclicals, which in our belief might see a reasonable amount of pick up in earnings in the coming quarters. This is why we have suggested investors to consider building positions in these sectors, he adds.

  • Market on a positive wicket, corrections a good opportunity to buy, says Jaideep Goswami of ICICI Securities. According to us, the key factors to a sustainable bull market are very much in place with a pro-business government taking decisions and bringing in good governance. The market is in a very positive wicket and any correction would be a good opportunity to enter into quality stocks, he adds.

NIFTY 3-Month

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