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Market Report

Tuesday, 08-Dec-2015

NSE

  • The S&P BSE Sensex shed 219.78 points, or -0.86 per cent, to close the day at 25,310.33 today while the 50-stock Nifty50 ended the day at 7,701.70 today, down 63.70 points, or -0.82 per cent. GAIL and Vedanta contributed most of the losses in the BSE benchmark.

  • Markets have closed lower for fifth straight session and hit near 3-month low due to sell off among oil exploration companies like Reliance Inds and ONGC after OPEC policy meeting on Friday ended without an agreement to lower production.

  • Plus, fears of a slowdown in China and uncertainty over the passage of GST Bill led the equity benchmarks to their 10-week lows today. Extending its fall also for the fifth straight session, the rupee pared some of its losses to trade 1 paise lower at 66.74 against the US dollar, tracking a weak trend in other Asian currencies.

  • Crude oil prices have plunged to near seven-year low on Monday, raising the possibility of a further drop. A drop in crude price is good for the domestic economy, considering the fact that crude is a major component of India's import bill, and a drop will help reduce the current account deficit. However, one of the reactions would be withdrawal by sovereign funds from equity markets because they need money as oil prices have plummeted so much. Any withdrawal by sovereign funds or emerging market funds will impact India in the short term, say experts.

  • Expect 30-40 points gap-down opening on Wednesday, says Mitesh Thacker. In case the index bounces back to around 7,750-7,780, that should be sold into. I do not even think 7,800 on the index will be crossed on the upside. On the downside, it would be a matter of time when we should test 7,550, he says.

NIFTY 3-Month

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