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Market Report

Friday, 05-Sept-2014

NSE

  • Domestic stock markets opened on a better note with the 30-scrip BSE Sensex touching the day's high of 27,178.80 points in early trade. It later slipped below the 27,000-mark and touched day's low of 26,920.56 before ending at 27,026.70, registering a drop of 59.23 points or -0.22 per cent. On Thursday, the Sensex had lost 54.01 points. It had hit life high of 27,225.85 and closed at record peak of 27,139.94 both on Wednesday.

  • The 50-share Nifty of the National Stock Exchange also shed 9.10 points, or -0.11 per cent, to end at 8,086.85 today. During the session, the Nifty shuttled between 8,122.70 and 8,049.85. Yesterday, it had fallen by 18.65 points.

  • Brokers said emergence of selling in stocks that had recently witnessed gains and a weak trend in global markets, led to the fall in major indices today with HDFC Group shares leading the decline even as IT majors gained after huge overseas orders.

  • Globally, Asian shares and the euro slipped Friday after European Central Bank unveiled fresh measures. Eyes are now on the release of US jobs data later today, which could have a bearing on Fed policy. Europe's main stock markets also dipped in late morning trades today after data showed the 18-nation eurozone economy stagnated in the second quarter with zero growth.

  • Markets likely to be choppy over next few days, says Ashwani Gujral. I do not think there is any great directional movement on the index. It will not fall sharply because we are in a bull market. But it will not go up also. Chances are that we will hang around within this 8000-8200 type of band. Within that you will have intra-day rallies and declines. So, there is nothing much to do overall, he adds.

  • Don't expect a lasting correction in Indian markets, says Prabhat Awasthi of Nomura Financial Advisories & Securities Pvt Ltd. India's fundamentals are much better, because our current account deficit is much more manageable. Our forex reserves have gone up quite strongly. The Indian central bank has a much higher credibility today and that also gives comfort to the markets. Moreover, we have a much more stable government in place. So in India's case, there could be a correction for sure, but there will not be a lasting correction, he says.

  • Expect current bull market rally to sustain for several years, says Dipen Sheth of HDFC Securities. We are seeing a confluence of positives, whether it is in terms of factors within the country such as signs of the inflation easing, bottoming out the economic cycle, or a little bit of cure in the twin deficits. There is some scepticism there, but directionally things are positive, he asserts.

NIFTY 3-Month

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