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Market Report

Monday, 04-Aug-2014

NSE

  • Snapping a two-session losing trend, Indian stock markets today ended on a positive note on buying in banking, consumer durables and auto stocks ahead of the RBI monetary policy review. The 50-share NSE Nifty rose by 81.05 points, or +1.07 per cent, to close the session at 7,683.65 after shuttling between 7,694.80 and 7,622.05 intra-day. It had slipped 189 points in past two days.

  • Sensex, the 30-share barometer, which had lost 606.58 points in the previous two sessions, commenced on a strong footing to touch the day's high of 25,754.42. It settled with a gain of 242.32 points, or +0.95 per cent, at 25,723.16. Intra-day, it had fallen to a low of 25,531.38 but recovered smartly.

  • The weakness in the rupee, which is trading at over 3-month low at 61.08 (intra-day) against the dollar, helped IT stocks, which get a large chunk of sales in dollars. Global cues also helped as China was buoyed by recent data indicating recovery and reported intervention by Portugal's central bank to rescue crisis-hit Banco Espirito Santo, boosted confidence. Asian shares were initially trading mixed on concerns over geopolitical tensions and Argentina's debt default.

  • Expectations that the Reserve Bank of India (RBI) in its monetary policy review tomorrow will give some relief supported the bullish market sentiment, brokers said. However, consensus is of the view that RBI will not cut rates tomorrow.

  • Indian markets likely to get re-rated; Nifty may touch 8500 by December, says Sudhakar Ramasubramanian of Aditya Birla Money Ltd. The Nifty touched record high and we expect the strong up move to continue, barring a few intermittent corrections as is normal in any bull market. Earnings growth, which is currently estimated at 16 per cent, is likely to be upgraded to 18-20 per cent in a quarter or two as the investment and capex cycle picks up. We believe our markets will continue to get re-rated as good news keeps coming in. We expect the Nifty to touch 8,500 by December, he adds.

NIFTY 3-Month

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