Volatility continued as key benchmark indices trimmed gains after hitting fresh intraday high in mid-morning trade. The barometer index, the S&P BSE Sensex, was up 36.02 points or 0.16%, off close to 30 points from the day's high and up about 75 points from the day's low. The market breadth, indicating the overall health of the market was positive.
Bank stocks rose for the second day in a row as data released by the government last week showed that inflation based on both the consumer price index and the wholesale price index eased last month. Interest rate sensitive realty stocks also gained. JSW Steel rose after the company said its crude steel production rose 10% to 9.63 lakh tonnes in February 2014 over February 2013.
A bout of volatility was witnessed in early trade as key benchmark indices regained strength after slipping into the red for the brief period after opening higher. Intraday volatility continued as key benchmark indices alternately swung between positive and negative zone in morning trade. Volatility continued as key benchmark indices trimmed gains after hitting fresh intraday high in mid-morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1011.95 crore on Tuesday, 18 March 2014, as per provisional data from the stock exchanges.
At 11:20 IST, the S&P BSE Sensex was up 36.02 points or 0.16% to 21,868.63. The index gained 63.22 points at the day's high of 21,895.83 in mid-morning trade. The index fell 36.67 points at the day's low of 21,795.94 in morning trade.
The CNX Nifty was up 15.70 points or 0.24% to 6,532.35. The index hit a high of 6,541.20 in intraday trade. The index hit a low of 6,506 in intraday trade.
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The BSE Mid-Cap index was up 21.34 points or 0.32% at 6,740.71. The BSE Small-Cap index was up 25.75 points or 0.38% at 6,717.43. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,221 shares rose and 984 shares fell. A total of 139 shares were unchanged.
Hindalco Industries (up 4.03%), Tata Steel (up 3.46%) and Sesa Sterlite (up 1.68%) edged higher from the Sensex pack.
Bank stocks rose for the second day in a row as data released by the government last week showed that inflation based on both the consumer price index and the wholesale price index eased last month. Among private sector banks, ICICI Bank (up 0.81%), HDFC Bank (up 0.84%), Yes Bank (up 0.53%), and Federal Bank (up 0.23%), gained. But, Kotak Mahindra Bank declined 0.21%.
Among PSU bank stocks, Punjab National Bank (up 0.67%), State Bank of India (SBI) (up 0.55%), Canara Bank (up 1.44%), Bank of India (up 0.66%), Union Bank of India (up 0.93%) and Bank of Baroda (up 0.16%) gained.
Realty stocks also edged higher as data released by the government last week showed that inflation based on both the consumer price index and the wholesale price index eased last month. Purchases of both residential and commercial property are largely driven by finance. DLF (up 0.92%), Sobha Developers (up 0.06%), D B Realty (up 0.54%), Housing Development & Infrastructure (HDIL) (up 0.52%) and Unitech (up 0.75%) gained.
JSW Steel rose 2.29% after the company said its crude steel production rose 10% to 9.63 lakh tonnes in February 2014 over February 2013. Production of flat rolled products rose 12% to 7.99 lakh tonnes in February 2014 over February 2013. Production of long rolled products rose 16% to 1.53 lakh tonnes in February 2014 over February 2013. The figures for the corresponding period in the previous year are on a pro forma basis after giving effect to the scheme of amalgamation and arrangement between JSW Steel, JSW ISPAT Steel and others.
In the foreign exchange market, the rupee edged higher against the dollar as foreign banks sell dollars, likely for FII clients. The partially convertible rupee was hovering at 61.095, compared with its close of 61.19/20 on Tuesday, 18 March 2014.
The Reserve Bank of India will announce the First Bi-monthly Monetary Policy Statement, 2014-15 on 1 April 2014. Citing price pressures, the Reserve Bank of India raised its key lending rates by 25 basis points after Third Quarter Review of Monetary Policy for 2013-14 on 28 January 2014.
The next major trigger for the stock market is the outcome of the upcoming Lok Sabha elections. Lok Sabha elections will be held between 7 April 2014 and 12 May 2014 in nine phases. The counting of votes will be take place on 16 May 2014. The term of the current Lok Sabha expires on June 1 and the new House has to be constituted by May 31. Along with the Lok Sabha election, Andhra Pradesh (AP), including the regions comprising Telangana, Odisha and Sikkim will go to polls to elect new assemblies. AP, Odisha and Sikkim assemblies come to end on June 2, June 7 and May 7 respectively.
Asian stocks edged lower on Wednesday, 19 March 2014, as investors weighed the prospect of further sanctions against Russia and awaited the Federal Reserve's policy statement. Key benchmark indices in China, Hong Kong, Taiwan, Singapore and South Korea were off 0.06% to 0.7%. Key benchmark indices in Indonesia and Japan were up 0.28% to 0.87%.
Japan's trade deficit exceeded estimates in February, underscoring drags on the nation's recovery ahead of a sales-tax increase in April that will weigh on domestic demand. The 800 billion yen ($7.9 billion) shortfall reported by the finance ministry in Tokyo today. Imports expanded 9% from a year earlier, and exports rose 9.8%.
Trading in US index futures indicated a flat opening of US stocks on Wednesday, 19 March 2014. US stocks edged higher on Tuesday, 18 March 2014, as housing data bolstered confidence in the economy.
A Commerce Department report showed housing starts were little changed in February after declining less than previously estimated a month earlier, indicating the home-building industry is stabilizing after bad winter weather curbed construction. Permits filed for future projects increased 7.7% to a 1.02 million pace in February, the most since October.
Consumer prices in the US rose slightly in February because of higher food and housing costs, but overall inflation remained quiet, according to the latest government figures.
The Federal Reserve's two-day policy-setting meeting concludes today, 19 March 2014. After a monetary policy review, the FOMC on 29 January 2014 announced it will reduce monthly bond purchases by another $10 billion to $65 billion.
The US and Europe pledged more sanctions against Russia while Russian President Vladimir Putin, pushing to annex Crimea, said his country didn't intend to further split Ukraine. Russia cemented its claim to Crimea as Putin showed no sign of backing down in the standoff over Ukraine's breakaway Black Sea region, prompting Western leaders to vow further sanctions this week.
Putin on Tuesday, 18 March 2014, signed a treaty to annex Crimea after an overwhelming majority of its citizens on Sunday, 16 March 2014, voted to leave Ukraine. In his prepared remarks, Putin also said he does not want to partition Ukraine.
Leaders of Poland and Estonia, two of the countries on the front line of turmoil in Ukraine, told US Vice President Joe Biden they want a more aggressive stance toward Russia. Biden is on a two-day trip to the region aimed at assuring North Atlantic Treaty Organization allies that the US will support them against any attempt by Russia to encroach on their territory.
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