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Market Report

Monday, 02-Feb-2015

NSE

  • The Sensex managed to enter the positive terrain briefly to touch the day's high of 29,268.13 but late-selling again pushed it back to close at 29,122.27, down 60.68 points, or -0.21 per cent. This is its weakest closing level since 29,006.02 on January 22, 2015. The Sensex had tumbled 498.82 points last Friday, logging its second biggest single-day fall this year.

  • On similar lines, the 50-share NSE index Nifty, after moving both ways, slipped below the crucial 8,800-mark and settled down 11.50 points, or -0.13 per cent, at 8,797.40 today as the pull-back attempt on the index, following media reports that the government may defer GAAR by two years, did not last long. The Nifty touched a high of 8,840.80 and a low of 8,751.10 in trade today.

  • In volatile trade, domestic markets slipped for the second successive session with the benchmark indexes today falling on caution ahead of the RBI policy review tomorrow. Further, slower growth in Indian factory activity dampened market sentiment.

  • Globally, Asian shares languished on Monday, after the latest gauge of China's factory sector activity raised concerns about the world's second-largest economy. On the other hand, European equities were higher in morning trade on Monday as a brief rally in the price of oil and some corporate earnings managed to boost investor sentiment.

  • Foreign brokerage firms expect an upside to India's growth estimates after a revision in the base year, but they expect the RBI to hold rates in its sixth bi-monthly monetary policy review tomorrow, according to Citigroup, BofA-ML and HSBC. We do not expect it to cut policy rates on the February 3 meeting, said HSBC Chief India Economist Pranjul Bhandari. Looking ahead, we expect the RBI to cut rates in mid-March and finally in June, making it a total of 75 bp in rate cuts in 2015, he adds.

  • Going into Budget 2015, expect one final flourish, says Ashwani Gujral. It is possible that we remain in a range between say 8600-8650 on the downside and 8900 on the upside. People should keep in mind that this correction seems to be limited to the large caps and broader markets are going about their business. Closer to the budget, you will have one final flourish going into the budget. So next couple of weeks could be quite range bound, he feels.

NIFTY 3-Month

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