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Market Report

Wednesday, 31-Dec-2014

NSE

  • Markets ended the last trading day of 2014 on a firm note led by index heavyweight Reliance Industries and select bank shares. The 30-share index closed at 27,499.42, up 95.88 points or +0.35 per cent. It touched a high of 27,527.24 and a low of 27,346.00 in trade today on Wednesday. The Nifty was at 8282.70 up 34.45 points or +0.42 per cent. It touched a high of 8291 and a low of 8243.75 in intraday trade today.

  • The S&P BSE Sensex closed 30 per cent higher for the year 2014, to post its best gain since 2009 in a year marked by a series of record highs. The 50-share Nifty index rose 32 per cent, posting its best gain in the past five years. The S&P BSE Sensex rallied as much as 80 per cent in the year 2009, but gave negative returns to the tune of 25 per cent for the year 2011. According to analysts at top brokerage firms, 2015 would be another year of bull-run for investors, supported by the roll out of additional pro-growth reforms by the government and ease in monetary policy by the RBI.

  • The hope-rally, which began in early 2014 on the hopes that the Narendra Modi government will change India's fortunes, continued throughout the year. The fall in oil prices couldn't have come at a more opportune time for India. The inflation has come down and the fiscal deficit is in a better shape. Central banks from Japan and European Union are actively providing stimulus to their respective economies. This has resulted in dollar inflows from around the globe coming thick and fast to India. The FIIs have pumped in over $42 billion in India's debt and equity market.

  • Optimism remains intact going into 2015. The government needs to deliver on reforms and focus on development, say analysts. According to them, for the markets to deliver in 2015, it's crucial that the reforms such as GST timeline & ease of doing business continue. The government should keep its focus on 'Make in India' campaign to boost the manufacturing sector.

  • Remain bullish on banks, Nifty may cross 8300, says Ashwani Gujral. Today the breakouts have worked out much better. It appears that there is more money coming in today then yesterday. Yesterday was better than day before since we saw FII money coming in. It appears that slowly but surely the market is likely to move above 8300. Banks continue to look strong and that should remain the story even for the next year mainly, he adds.

  • Nifty could get past 8300 in the first week of 2015, says Mitesh Thacker. First day would be tricky to call. We are now at the higher end of the range. The breadth was very impressive today. If we can see the market scale 8300 on the first day of January, then you might see the first week entirely pan out very nicely. With some kind of positive and upside traction, we will look at targets of 8450-8550 on the upside. The key now is to whether the Nifty manages to get past a very significant hurdle at 8300, he adds.

NIFTY 3-Month

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