The Indian stock markets shrugged off the weakness in the global markets and the Nifty hit a fresh all-time high on the back of sustained FII inflows on Monday. The Sensex breached the 22,000 level for the first time.

However, throughout the day, the indices traded in a narrow range.

The Nifty 50 ended the day up 10.60 points or 0.16 per cent at 6,537.25 while the Sensex edged up 15.04 points or 0.07 per cent to 21,934.83.

The S&P BSE Mid-cap index rose 29 points or 0.44 per cent to 6722.74.

Among the sectoral indices, Capital Goods Index was up 2.77 per cent, the S&P BSE Realty Index advanced 2.47 per cent, Bankex rose 1.91 per cent and the S&P Oil & Gas Index gained 1.12 per cent.

The S&P BSE IT Index fell per cent 2.42 per cent, the S&P BSE Healthcare Index was 1.67 per cent lower and the S&P BSE Metal Index declined 1.03 per cent.

Top gainers on the Nifty were IDFC, Kotak Bank, IndusInd Bank, JP Associates and Maruti Suzuki. Top losers in the Nifty basket were TCS, Tata Motors, HCL Tech, Sun Pharma and NMDC.

Of the 1,095 stocks traded on the NSE, 588 advanced, 460 declined and 47 remained unchanged.

Brokers said apart from emergence of profit-booking by funds and retail investors at record levels, a subdued trend in the other Asian bourses impacted the sentiment here.

European indices have opened on a subdued note. FTSE-100 is up 0.44 per cent and DAX is trading flat.

Asian stocks edged lower as weaker-than-estimated Chinese trade and inflation data stoked concern over the outlook for the world’s second-largest economy.

A report by Rahul Bhandawat of Equentis Capital said: “Macroeconomic data, Investment activity of FIIs, USD-INR pair, crude oil price movement and global market trend will dictate near term trend on the domestic bourses. On the macro front, the Government will disclose IIP data for January and CPI data for February on March 12, 2014. Data based on Wholesale price index (WPI) for February will be released on March 14, 2014. Slowing inflation & growth in IIP has increased probability of rate cut from RBI in near term. RBI’s rate cut could lead market and banking sector into a fresh buying zone.

"On the global front, geopolitical developments in Ukraine, price movement of crude oil and precious commodities will dictate the trend. Global markets are likely to react on better US payrolls data.”

On Friday, the Nifty ended at 6,526.65, up 125.50 points or 2 per cent from the previous close. Sensex closed at 21,919.79, up 405.92 points or 1.9 per cent.

Index Outlook: Temper hope with caution

(This article was published on March 10, 2014)
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