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Market Report

Wednesday, 08-Oct-2014


  • The 30-share index ended at 26,246.79, down 25.18 points or -0.10 per cent. It touched a high of 26,338.31 and a low of 26,150.09 in trade today. The Nifty closed at 7,842.70, down 9.70 points or -0.12 per cent. It touched a high of 7,869.90 and a low of 7,815.75 in trade today.

  • Benchmark shares indices ended lower, amid choppy trades, for the third straight session with IT shares declining the most led by Infosys amid reports of downgrade by global financial services major Citigroup. Global markets remained under pressure on concerns of global economic growth. The International Monetary Fund has cut global growth forecast and that for emerging market economies as a whole. The IMF expects global economy to grow by 3.8 per cent next year, lower than its July forecast of 4 per cent.

  • Globally, Asian markets ended weak amid growth concerns in China. Shares in Japan witnessed a sell-off dropping to a five-week low amid global growth concerns. European shares were trading lower amid global growth concerns after IMF cut global growth forecasts and weak industrial production data from Germany. Outflows of dollars from emerging markets including India also added to the woes. Foreign investors continue to be net sellers in our equity markets. See our 'Market Statistics' page.

  • Meanwhile, the oil marketing companies (OMCs) are in demand following a sharp correction in global crude oil prices. The Brent crude oil has plunged to a 27-month low on concerns of a slowdown in global economic growth and oil glut. According to analysts, the falling global crude oil prices are a boon for the OMCs and the Indian economy. The under-recoveries due to diesel subsidies are nil and if the crude oil prices continue to slip lower, the OMCs are expected to make some profits as well. Media reports suggest the government may deregulate diesel prices by the end of October.

  • Some correction has started in IT and pharma, since that is where people have the most amount of profits, says Ashwani Gujral. While it remains only a correction, chances are it will continue. What is unknown is that how these low crude prices will impact inflation and maybe that could lead to some rate cut hope because the Bank Nifty has closed up 175 points today, so some sort of buying did happen in the end. So if we can get follow through above today's high on Bank Nifty, we could see 15,500-15,600 type of zones, he adds.

  • I am looking at possibilities of Nifty declining to levels of 7700 in case we started closing below 7820 on a regular basis, says Mitesh Thacker. So the bias remains on the downside though on the individual basis some stocks are doing well. It is good time to take profits and exit CNX IT and pharma. Most of the stocks are going through some kind of minor intraday breakdowns to about short term breakdowns, he adds.

NIFTY 3-Month

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