Daily market review and outlook

Even more than enough positive cues could not lift the Indian stock market indices to the expected level. However the BSE Sensex managed to close above the psychologically crucial level of 20,000. The major market indices traded in a narrow range ahead of expiry of derivatives contract tomorrow. Though the Indian stock market opened higher, but “caution” remained the key word. The market participants were seen on the sidelines ahead of US Federal Reserve's monetary policy decision due later in the day.
The benchmark BSE Sensex gained 14.10 points to close at 20,005 by the end of day’s trading. Sensex had earlier touched a day's high of 20,073 and a day's low of 19,964. It opened at 20,014. While the broad based NSE Nifty rose by 5.85 points to settle at 6,055.75. The Nifty earlier touched a day’s high of 6,071 and a day’s low of 6,044. It opened at 6,065.
Realty major DLF was the top gainer from the Nifty pack with a rise of 3.09 %. Other four major gainers were Cipla 2.48 %, HUL 1.90 %, Sesa Goa 1.88 % and RIL 1.87 %. However, top five losers were GAIL India 3.25 %, PNB 2.98 %, Tata Power 2.91 %, L&T 1.93 % and Jindal Steel 1.85 %.
The BSE Midcap index declined 0.03%, while the BSE Smallcap index fell by 0.21% by the end of day’s trading. Among the 13 BSE sectoral indices, five sectors closed in the red zone while remaining eight sectors closed in the green zone. Top gainers were, BSE Realty up by 1.39%, BSE CD up by 1.24%, BSE Oil&Gas up 1.06%. While top losers were, BSE CG down 1.24%, BSE Power down by 0.68% and BSE Auto down by 0.49%.
The market breadth stood in favor of declines. Of the 3016 stocks traded on the BSE, 969 (32.13%) rose, 1219 (40.42%) fell and 828 (27.45%) stocks remained unchanged.

Outlook for tomorrow’s market

All the major Asian markets were up today. Nikkei has gained 2.28%, Hang Seng was up by 0.71%, Strait Times surged by 0.80%, Shanghai Composite gained 1.00%, Taiwan ended higher by 0.40% and Kospi was also up by 0.43%.
However European markets ended lower in spite of a positive start. FTSE, DAX and CAC were all in the red zone. When this report is being prepared, U.S markets were almost flat. DOW is marginally down by 0.13% while NASDAQ is trading lower by 0.03%.
Figures of Foreign Institutional Investors (FIIs) buying interest in Indian stock is reflected in the fact that yesterday also FII picked up shares worth Rs 1,006.20 crore, as per Sebi data.
The Indian market seems to have discounted the derivative expiry tomorrow. Roll over seems to have been completed. So the market may see some positive buying tomorrow which will lift the market indices. Positive talk of the Indian finance minister will also help the market indices to move up.