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Market Report

Thursday, 18-Sept-2014

NSE

  • The 30-share Sensex closed at 27,112.21 up by 480.92 points, or +1.81%, after touching an intra-day high of 27,092 whereas the 50-share Nifty ended higher by 139.25 points or +1.75% at 8,114.75 after touching an intra-day high of 8,120.85 today. Sensex and Nifty gained the most since June 2, 2014, as FIIs pumped funds on Fed's pledge to retain rates at low levels for a considerable time and rising optimism over India's trade ties with China.

  • Markets extended gains for the second consecutive trading session and closed on a spectacular note after the US Federal Reserve decided to keep US interest rates near zero for a "considerable time". Further, Chinese President Xi Jinping pledged to invest $20 billion in India in the next five years. The two sides signed 12 agreements, including a 5-year commerce and trade pact.

  • With Dow Jones surging to record overnight, most Asian and European markets rose after the US central bank stuck to a plan to begin raising near-zero interest rates only in 2015. Key benchmark indices in China, Singapore, Taiwan and Japan rose, while Europe was also trading higher as indices in France, Germany and the UK moved up.

  • Expect Nifty to go above 8150, says Avinnash Gorakssakar. The Fed chief saying that the tapering will happen only by October next year gave a lot of sentiment boost to the market. We could see some small corrections, but the secular trend is up and even in this expiry, my sense is the Nifty going above 8150 looks possible, he says.

  • Global bull markets will continue for next 2-3 years, says Steve Brice of StanChart Bank. The Fed is getting a little bit more hawkish. They are still getting more biased towards stronger data. But overall for now, the Goldilocks scenario continues. Inflation remains benign amongst strong economies and that is pretty healthy for the market risk appetite. We believe that the bull markets globally, and still in the US, are likely to continue for another two to three years from here, he says.

NIFTY 3-Month

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