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Market Report

Tuesday, 12-May-2015

NSE

  • The Sensex ended the day at 26,877.48, down 629.82 points, or -2.29 per cent. The Nifty closed at 8,126.95 today, down 198.30 points, or -2.38 per cent.

  • About Rs 2 lakh crore of investor wealth was wiped off following a crash in the stock market today over concerns that key reform bills may get delayed. The S&P BSE Sensex slipped over 669 points in intraday to hit its intraday low of 26,837.39 (200-DMA placed around 27559), while the Nifty dropped over 200 points to hit its intraday low of 8115.20 (200-DMA placed around 8289.74).

  • After a swift relief rally on Friday, and then on Monday largely due to lending rate cut by Chinese central bank, the market opened on Tuesday with a gap down, tracking weakness in other Asian markets. Investors dumped Indian equities on worries that the government's decision to refer the key bills on land acquisition and the goods and services tax to select committee of Parliament will further delay their implementation. Also, the rupee trading below the key 64 per US dollar level is raising worries that foreign portfolio outflows may create a vicious cycle between rupee and domestic shares, fund managers said.

  • Benchmark indices snapped the gaining streak witnessed during the last two sessions dragged primarily by the heavy selling pressure seen on metals, fincancials and capital goods stocks as traders exercised caution ahead of the release of IIP and CPI data and global cues turned weak on concerns over lack of a clear progress in the talks between Greece and its creditors.

  • Brace for further fall; Nifty likely to slip below recent lows of 7,997, says Mitesh Thacker. Nifty has already met with the immediate low targets of around 8,120-8,080. I think that the index might get a throwback from here. But, if the 50-pack index fails to get pass 8,230 - which I do believe it will not, then the index should start breaking below 8,120. The downfall can happen without this throwback itself, possibly on Wednesday. Overall, I believe that this is a market which should see further downside, he says.

  • Selling stocks when Nifty at 8,100 is no fun, says Ashwani Gujral. There is no more positivity. There is no follow through. Hence, traders scamper to cover sometimes and you see reversals. Once you get this sort of a move, everything gets cleaned out. No retail investor is now long on the futures side. It is very difficult to sell in this kind of a market. We will find a bottom on one of these bad days, he adds.

  • After market hours: The Index of Industrial Production (IIP) for the month of March was reported at 2.1% versus a Street estimate of 3.1%. IIP had grown at 5% in February. The Consumer Price Indiex (CPI) inflation for the month of April declined to a four-month low of to 4.87% versus 5.25% in March. Inflation has certainly declined from its record highs a couple of years ago.

NIFTY 3-Month

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