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Market Report

Tuesday, 15-Mar-2016

NSE

  • The BSE Sensex closed at 24,551.17 today, down 253.11 points or -1.02 per cent, while the NSE's Nifty50 index fell below its crucial support level of 7,500 to settle at 7,460.60 today, after dropping 78.15 points or -1.04 per cent. On Monday, the 30-share Sensex had closed at 24,804.28, up +0.35 per cent or 86.29 points, while the broader Nifty had settled at 7,538.75, up 28.55 points or +0.38 per cent.

  • Benchmark indices closed lower dragged by pharma shares after the government notified a ban on about 300 fixed dose combination (FDC) drugs. Further, investors are keenly awaiting the outcome of the two-day US Federal Reserve policy meet which begins later today.

  • Global cues played spoiler and caused the benchmark Sensex retreat from its six-week high, as the 30-pack Sensex tanked 253 points. Weakness in Asian equities after the Bank of Japan offered a bleak view of the country's economy also had a rub-off on Dalal Street, as did a fresh crash in crude oil prices and weak opening of the European markets.

  • Market participants are building high expectations about an interest rate cut by the RBI, after the Union Budget aimed at fiscal deficit of 3.5% of GDP, and consumer inflation numbers eased in February. The Bank Nifty outperformed the Nifty today, the banking gained +0.32% or 49 points to close at 15,326, whereas Nifty dropped -1.04%.

  • Some analysts are hoping for a recovery on Wednesday. For aggressive traders on the Nifty50, perhaps there could be a short rally till about 7,500 or 7,510, said Dr CK Narayan. If you look at it from a global market performance - Dow Jones and a couple of these US indices - are now trading above their 200-day moving averages. For Nifty50, that average lies somewhere closer to 7,900. That way there is a very strong underperformance from the Indian market, said Kunal Bothra of LKP Securities.

NIFTY 3-Month

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