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Market Report

Thursday, 04-Sept-2014

NSE

  • The 30-share Sensex, which had gained over 825 points in the previous nine sessions, dipped below the 27,000-mark to hit the day's low of 26,972.39 after oil, banking, metal and IT stocks fell. However, the barometer trimmed some of the losses due to late buying and it settled at 27,085.93, a decline of 54.01 points, or -0.20 per cent over the last close. Yesterday, the BSE benchmark index had ended at all-time closing high of 27,139.94 and had also hit intra-day high of 27,225.85 on sustained foreign funds inflows.

  • The 50-scrip NSE Nifty finally took a breather and slipped below the 8,100-mark to touch a low of 8,060.90 in intra-day. It ended 18.65 points, or -0.23 per cent lower at 8,095.95 today due to profit booking by investors in bluechips after a nine-day strong rally. The gauge yesterday concluded at record 8,114.60 after scaling a life-time (intra-day) high of 8,141.90.

  • Brokers said the market was in an 'over-bought' position and participants adopted a cautious approach and preferred to lighten some positions by booking profits. Selling was more pronounced in realty, metal, capital goods and oil and gas sector stocks, which pulled down the key indices - Sensex and Nifty - from record highs. A weakening trend on other Asian markets and a lower opening on the European markets as investors awaited the European Central Bank's next steps on interest rates and quantitative easing, also triggered selling, brokers said.

  • Don't expect market to correct sharply, says Devang Mehta. This phase of consolidation or a short-term correction of around 1% or 2% could be good for the health of the markets going forward, as it has been largely a seven-eight days' of straight gains for the market. There would still be a lot of quality stocks doing well, even in today's trade, and we would put our money on them, he adds.

  • Prefer stock-specific approach currently, says Sandeep Wagle. As far as the Nifty is concerned, we may see some choppiness there. However, broadly, 8000 to 8200-8250 should be the range, and that should hold. I would prefer to take a stock-specific approach and play the market both sides. There will be stocks which will correct and make new highs. I would prefer to be on the long side though, he adds.

  • Developments after market hours today: (1) The European Central Bank surprised markets by cutting its key interest rate to a record low today, in a bid to help Europe's recovery from going into reverse gear. European share markets have soared high on this news. (2) Government today approved 7 per cent hike in dearness allowance (DA), taking it to 107 per cent of basic pay, a move that will benefit around 30 lakh central employees and 50 lakh pensioners including dependents.

NIFTY 3-Month

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