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Market Report

Wednesday, 18-Mar-2015

NSE

  • The Sensex of the S&P Bombay Stock Exchange (BSE), which opened at 28,766.87 points, closed at 28,622.12 points, down 114.26 points or -0.40 percent from the previous day's close at 28,736.38 points. The Sensex touched a high of 28,806.97 points and a low of 28,546.76 points in intra-day trade. The wider 50-scrip Nifty of the National Stock Exchange (NSE) also closed the day's trade in red. It was down 37.40 points or -0.43 percent down at 8,685.90 points.

  • According to analysts, markets were cautious ahead of the outcome of the US Fed's Federal Open Market Committee (FOMC) meet which is being held on March 17 and 18. This meeting will provide the trajectory of the US economy, which will also reveal as to when the rate hike might take place. With higher interest rates, the foreign portfolio investors (FPIs) are expected to be led away from the emerging markets such as India.

  • Apart from anxiety over FOMC meet, there were also concerns regarding the marginal increase in the retail inflation for February which belied expectations of a rate cut at home next month. The Reserve Bank of India is scheduled to announce its first bi-monthly policy review for 2015 on April 7.

  • There are concerns among the investors that if the US Fed hints at a rate hike in June, it can lead to a sharp correction in global markets, including India. However, according to experts, it may not have a significant impact on our markets. The Nifty has already corrected -5.36 per cent from all-time high of 9119.20 on March 04 to recent low of 8,630.80 in trade on Tuesday, in just 8 sessions. Analysts expect the Nifty to consolidate with a fall of up to 100 points maximum from current levels.

  • Market falling more on profit taking than on Fed fears; Nifty may slip to 8,100 before earnings kicks in, says Prakash Diwan. The correction we are seeing at present is more of a profit booking move. I feel that this is quite healthy. It is valid as well, because I do not think the earnings are going to be living up to these valuations. Therefore, the event has been an excuse to take some profits off the table, he reasons.

NIFTY 3-Month

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