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Market Report

Thursday, 17-Dec-2015

NSE

  • The S&P BSE Sensex rallied smartly to close the day at 25,803.78 today, gaining 309.41 points, or +1.21 per cent while the 50-stocks barometer Nifty50 ended the day 93.45 points, or +1.21 per cent, higher at 7,844.35 today. Tata Steel and Vedanta, were the top gainers on the BSE benchmark. The overall market breadth remained upbeat with 25 of the BSE30 stocks closing the day in the black.

  • Benchmark share indices surged smartly through the day and gained for the fourth straight session tracking a rally in global stocks after the US Federal Reserve on Wednesday raised its Federal Funds Rate by 25 basis points signalling that the world's largest economy is picking up pace. Investors at home breathed a sigh of relief over the passing of this most-awaited financial event of the year. With the uncertainty around the Fed interest rate hike out of the path, markets participants would keenly watch out for developments in the ongoing winter session of the Parliament particularly the passage of the crucial GST bill.

  • Janet Yellen's rate move has ushered in some acche din for emerging markets, and more so for India, feel experts. This is positive especially for India IT, as IT budgets of US companies will expand now and demand will grow. It is favourable also for other exporting sectors. India will continue to be and become the most favoured nation within the emerging markets basket. The S&P BSE Sensex has plunged over -7 per cent so far in the year 2015, largely weighed down by relentless selling by foreign institutional investors (FIIs) ahead of the Fed event. FIIs have pulled out more than Rs 2,000 crore from the stock markets in the first week of December alone. This trend will now reverse, hopefully. The process has already started - see today's figures in our 'Market Statistics' page. We now have to see if this trend continues.

  • Meanwhile, traders suspect RBI intervened to support rupee, bonds, ahead of Fed action yesterday. The central bank has been suspected of intervening in rupee markets more frequently since November as foreign investors have turned net sellers, making markets more volatile and sending the rupee to two-year lows. Traders interpreted the intervention as a signal from the RBI that it will continue to tackle acute currency volatility.

  • Technical experts suggest that the index is currently entering a crucial supply zone and advising being stock-specific in the market. 7,830-7,850 on the Nifty or 25,750 on the Sensex is an important supply zone, said Mitesh Thacker. I do not expect the Nifty to cross the level of 7,850 easily and maybe some consolidation between 7,720 to about 7,850 is required before we make the break in the upside. Though the bias still remains on the upside, I would be inclined to take some profit, at least 50-60 per cent, and you can tighten your stop loss on the long side, adds Thacker.

NIFTY 3-Month

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