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Market Report

Friday, 13-May-2016

NSE

  • The 30-share Sensex closed at 25,489.57 today, down 300.65 points or -1.17 per cent while the broader Nifty50 ended at 7,814.90 today, with a gain of 85.50 points or -1.08 per cent. The bulls failed to continue the momentum today as the S&P BSE Sensex slipped over 300 points in afternoon trade and the broader Nifty50 went on a downward trend, falling below the crucial level of 7,850. Weak global cues also weighed on market sentiment.

  • Benchmark indices ended lower by over -1% reacting to a spike in retail inflation in April, which picked up unexpectedly to 5.39 per cent after falling to 4.83 per cent in March, and a major slump in industrial production growth, which slipped to 0.1 per cent in March. At the beginning itself, the benchmark Sensex opened 100 points lower while NSE's Nifty50 lost its key resistance level of 7,900.

  • Going by the latest macro data, it does not look like the Reserve Bank of India (RBI) is going for any fresh rate cut at its June money policy review. However, a rate cut in August could still be a possibility, analysts said. The RBI next undertakes monetary policy review on June 7, 2016.

  • HSBC global research in a note said: The stress in the banking sector is likely to pull down growth. We expect growth to remain flat at a below-consensus 7.4 per cent in FY17. On the other hand, normal rains could revive rural demand, offsetting the slowdown. This, we believe, warrants a policy rate cut, which we expect will materialise in August. We expect RBI to cut repo rate by an additional 25bp at its August meeting, taking the policy repo rate to 6.25 per cent, said the note.

  • Point to note in today's trading: Foreign investors have invested a massive Rs 1493.88 crore nett in our markets today. This indicates that Mauritius treaty or not, PI note change or not, RBI rate cut or not, FIIs have not lost trust in the Indian market. See our 'Market Statistics' page.

NIFTY 3-Month

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