A bout of volatility was witnessed as key benchmark indices trimmed gains after hitting fresh intraday high in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was up 271.25 points or 1.12%, up 285 points from the day's low and off 13.75 points from the day's high. The market breadth, indicating the overall health of the market, was strong. The BSE Mid-Cap index was up nearly 3.5%. The BSE Small-Cap index was up more than 5%. Both these indices outperformed the Sensex. The market sentiment was upbeat after a clear mandate given by voters the Bharatiya Janata Party (BJP) led National Democratic Alliance (NDA) in the recently concluded Lok Sabha elections. The market sentiment was also boosted by Narendra Modi's comments in his victory speeches in his home state of Gujarat on Friday, 16 May 2014, where he stressed on the country's development and good governance. Modi will become India's next Prime Minister. The market sentiment was also boosted by a statement from global credit rating agency Moody's Investor Service that BJP's resounding election win is credit positive for India as it boosts the prospect that a stable government will address the country's economic challenges. The market sentiment was also boosted by data showing that foreign funds made massive purchases of Indian stocks on Friday, 16 May 2014, the day when Modi-led BJP routed the Congress-led United Progressive Alliance (UPA) across the nation, registering the biggest ever win for any single party since 1984 in Lok Sabha elections.
Indian stocks edged higher today, 19 May 2014, amid growing conviction among investors that Modi can replicate the economic success he enjoyed in Gujarat state when he takes over as the country's Prime Minister. Investors are betting that the incoming government will take steps to revive the economy. India's GDP growth has slowed to a decade low of below 5%. The GDP grew 4.7% in Q3 December 2013.
HDFC Bank gained after the bank during market hours said that its board of directors at its meeting held today, 19 May 2014, has decided to seek an enabling approval of the shareholders at the ensuing Annual General Meeting to raise the equity share capital of up to an aggregate sum of Rs 10000 crore including share premium amount. Shares of state-rum oil exploration major ONGC scaled record high. Capital goods stocks gained on renewed buying with shares of L&T, Bharat Heavy Electricals (Bhel), ABB India and Siemens hitting 52-week high.
Key benchmark indices trimmed gains after a firm opening triggered by data showing that foreign funds made heavy purchases of Indian stocks on Friday, 16 May 2014, the day when Modi-led BJP routed the Congress-led United Progressive Alliance (UPA) across the nation, registering the biggest ever win for any single party since 1984 in Lok Sabha elections. Key benchmark indices further trimmed intraday gains in morning trade. Volatility ruled the roost as the key benchmark indices regained positive zone after reversing intraday gains in mid-morning trade. Key benchmark indices extended intraday gains in afternoon trade. A bout of volatility was witnessed as key benchmark indices trimmed gains after hitting fresh intraday high in mid-afternoon trade.
The market sentiment was boosted by data showing that foreign funds made heavy purchases of Indian stocks on Friday, 16 May 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 3634.82 crore on Friday, 16 May 2014, as per provisional data from the stock exchanges.
At 14:15 IST, the S&P BSE Sensex was up 271.25 points or 1.12% to 24,392.99. The index jumped 326.73 points at the day's high of 24,448.47 in mid-afternoon trade. The index fell 13.75 points at the day's low of 24,107.99 in mid-morning trade.
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The CNX Nifty was up 70.60 points or 0.98% to 7,273.60. The index hit a high of 7,291.10 in intraday trade. The index hit a low of 7,193.55 in intraday trade.
The BSE Mid-Cap index was up 266.08 points or 3.43% at 8,031.80. The BSE Small-Cap index was up 397.89 points or 5.05% at 8,283.65. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,998 shares gained and 731 shares fell. A total of 109 shares were unchanged.
Among the 30-share Sensex pack, 21 stocks gained and rest of them declined.
HDFC Bank gained 2.7%. HDFC Bank during market hours said that the Board of Directors of the bank at its meeting held today, 19 May 2014, has decided to seek an enabling approval of the shareholders at the ensuing Annual General Meeting to raise the equity share capital up to an aggregate sum of Rs 10000 crore including share premium amount. The proposed issue is to be made by creating, issuing, offering in the course of one or more public or private offerings in domestic or one or more international markets, equity shares and/or equity shares through depository receipts and/or securities convertible into equity shares at the option of the Bank and/or the holders of such securities, and/or securities linked to equity shares and/or any instrument or securities representing equity shares and/or convertible securities linked to equity shares, HDFC Bank said. The issue is proposed to be completed within a period of one year from the date of shareholders approval, the bank added.
ONGC surged 8.01% to Rs 415.80 after scaling a record high of Rs 419 in intraday trade. ONGC on Sunday, 18 May 2014, said that the company has scaled its highest-ever market capitalization of Rs 3.56 lakh crore in intra-day trade on 16 May 2014, indicating its hidden potential to its investors. In intra-day trade on 16 May 2014, ONGC scrip logged a new peak of Rs 416.35 (on National Stock Exchange), taking its market capitalization to highest ever value.
ONGC said its market capitalisation is 51% higher than the next highest valuable company among the listed CPSEs. ONGC said that the company remains committed to create more value for all its stakeholders.
Capital goods stocks gained on renewed buying. Punj Lloyd (up 16.69%), BEML (up 16.15%), Bharat Electronics (up 2.02%), Crompton Greaves (up 10.03%) and Thermax (up 6.68%) gained.
Engineering and construction major L&T jumped 6.73% to Rs 1,521.85 after hitting a 52-week high of Rs 1,522.95 in intraday trade today, 16 May 2014.
India's largest power equipment maker by sales Bharat Heavy Electricals (Bhel) galloped 12.25% to Rs 258.10. The stock hit a 52-week high of Rs 268.10 in intraday trade today, 19 May 2014.
ABB India rose 4.97% to Rs 920.05. The stock hit a 52-week high of Rs 930 in intraday trade today, 16 May 2014.
Siemens rose 8.87% to Rs 909.30. The stock hit a 52-week high of Rs 927 in intraday trade today, 16 May 2014.
JK Cement surged 16.31% after net profit surged 35.93% to Rs 76.38 crore on 7.92% growth in total income from operations to Rs 832.71 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced during trading hours today, 19 May 2014
GMR Infrastructure jumped 11.66% after the company said it has achieved commercial operation of the balance highway of 15 KM of Hungund - Hospet road project on National Highway 13. The announcement was made during trading hours today, 19 May 2014
GMR Infrastructure said that the commencement of commercial operation of the balance highway of Hungund - Hospet road project marks the commencement of collection of toll at Toll Plaza 3; the project has earlier achieved commercial operation of two Toll Plazas during November 2012 and has now completed the balance highway after land clearances.
The project commenced collection of Toll at Toll Plaza 3 with effect from 14 May 2014 and it is expected to generate additional revenue of about Rs 10 lakh per day, GMR Infra said in a statement.
Suven Life Sciences gained 4.14% after the company said it secured three product patents in Australia, South Korea and China. The company made the announcement during trading hours today, 19 May 2014.
Suven Life sciences (Suven) announced that its drug discovery portfolio has expanded into several new therapeutic areas such as major depressive disorder (MDD), obesity and pain through neuronal nicotinic receptor modulators which resulted in the grant of one product patent from Australia, one product patent from South Korea and one product patent from China corresponding to the new chemical entities (NCEs) for the treatment of disorders associated with Neurodegenerative diseases and these Patents are valid through 2029, 2029 and 2030 respectively.
The granted claims of the patents include the class of selective alpha-4-beta-2 compounds discovered by Suven and are being developed as therapeutic agents for major depressive disorder (MDD).
Jaiprakash Power Ventures jumped 16.9% after the company said its board approved seeking shareholders' nod for raising funds upto Rs 3000 crore.
Jaiprakash Power Ventures reported a consolidated net loss of Rs 171.98 crore in Q4 March 2014, higher than net loss of Rs 122.26 crore in Q4 March 2013. Total income rose 19.24% to Rs 459.03 crore in Q4 March 2014 over Q4 March 2013. The result was announced before market hours today, 19 May 2014.
Tata Global Beverages gained 3.94%. Tata Global Beverages during market hours said that the company's overseas subsidiary based in UK has acquired a 100% stake in the equity capital of Bronski Eleven Pty, Australia, engaged in coffee business under the MAP brand, with presence in the R&G coffee and coffee in Pods (single service portions) segments in Australia. The investment is in line with the company's strategic vision to become a leader in the "good for you" beverage segment in Australia and it also helps Tata Global Beverages to expand its portfolio to include high growth contemporary single serve business.
In the foreign exchange market, the rupee edged higher against the dollar on expectations of continued robust foreign buying in domestic shares and debt after the Bharatiya Janata Party (BJPL) swept the country's Lok Sabha elections. The partially convertible rupee was hovering at 58.495, compared with its close of 58.79/80 on Friday, 16 May 2014.
Global credit rating agency Moody's Investor Service today, 19 May 2014, said that the Bharatiya Janata Party's resounding election win is credit positive for India as it boosts the prospect that a stable government will address the country's economic challenges. Moody's rates India "Baa3", the lowest investment-grade rating with a "stable" outlook. "The completion of the election will allow stalled policies relating to the corporate and infrastructure sectors to resume, a credit positive for the country's corporates. Closer co-ordination between the central and state governments on clearances for mega projects and land use, two proposals outlined in the BJP's manifesto, would address investment delays," Vikas Halan, vice president and senior credit officer at Moody's, said in a statement.
Global credit rating agency Standard & Poor's Ratings Services on Friday, 16 May 2014, said that the fiscal and economic reforms taken by India's new government in the next two to three months will have significant implications on India's sovereign credit rating. S&P's statement came after Narendra Modi-led Bharatiya Janata Party (BJP) routed the Congress-led United Progressive Alliance (UPA) across the nation, registering the biggest ever win for any single party since 1984 in Lok Sabha elections. Modi is likely to be sworn in as India's Prime Minister on Wednesday, 21 May 2014.
S&P said that the next government would need to regain fiscal prudence in a sustainable way, such as by implementing a goods and services tax to help stabilise government revenues. "What the next government says and does in the coming months is crucial to boosting confidence in the policy settings and the economy. If confidence rises, investment and consumption in India could strengthen, after being held back by the uncertainty surrounding the election," S&P credit analyst Takahira Ogawa was quoted as saying in the statement.
S&P is the only of the three major credit agencies to have India with a "negative outlook" for its "BBB-minus" rating, meaning any downgrade would send the country to below investment grade.
After Bharatiya Janata Party (BJP) led National Democratic Alliance's (NDA) landslide victory in Lok Sabha election, investors' focus has shifted to the likely allocation of key ministerial portfolios in the National Democratic Alliance (NDA) government and the first budget of the new government expected by July 2014. An interim budget was presented by P. Chidambaram in February this year. Essentially, in the nature of a vote on account, the interim budget was intended to get Parliament approval for expenditure to be incurred during the first few months of fiscal year 2014-15 due to Lok Sabha elections.
US President Barack Obama invited Narendra Modi to Washington in a phone call on Friday, 16 May 2014, to congratulate him on his victory in the country's elections, the White House said. "The President noted he looks forward to working closely with Mr. Modi to fulfill the extraordinary promise of the US-India strategic partnership, and they agreed to continue expanding and deepening the wide-ranging cooperation between our two democracies," the White House said in a statement. The White House didn't specify a time frame for Mr. Modi's visit but said it would take place at a mutually agreeable time. US Secretary of State John Kerry also extended his congratulations to Mr. Modi.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 3 June 2014. The RBI left its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review on 1 April 2014, as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar.
AstraZeneca PLC led European stock markets lower on Monday, 19 May 2014, after rejecting a sweetened takeover offer from US pharma giant Pfizer Inc. Key benchmark indices in Germany, France and UK were off 0.24% to 0.84%.
Asian stocks edged lower on Monday, 19 May 2014, after data showed a spreading slowdown in China's housing market. Key benchmark indices in Indonesia, Singapore, Japan, Hong Kong and China were off 0.04% to 1.05%. Key benchmark indices in South Korea and Taiwan were up 0.08% to 0.13%.
China's new-home prices rose in April in the fewest cities in 1-1/2 years as developers offered discounts and the economy slowed, prompting the easing of property curbs in some places. Prices last month climbed in 44 of the 70 cities tracked by the government compared with 56 cities in March. That was the fewest cities with price gains since October 2012, when increases were recorded in only 35 on a monthly basis.
Trading in US index futures indicated that the Dow could fall 39 points at the opening bell on Monday, 19 May 2014. US stocks closed higher on Friday, 16 May 2014, after an abrupt late-day reversal.
In economic data, construction on new US homes surged in April to the fastest pace in five months, with the volatile apartment category leading that jump, according to government data released Friday.
The preliminary May reading of the University of Michigan and Thomson Reuters's gauge of consumer sentiment fell unexpectedly to 81.8 from 84.1 in April.
The Federal Reserve releases minutes from the April 29-30 meeting of Federal Open Market Committee on Wednesday, 21 May 2014. The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 17-18 June 2014. The Fed on 30 April 2014 said after a monetary policy review that it will keep the benchmark interest-rate target at almost zero for a "considerable time" after its bond-buying program ends. The FOMC also reduced monthly debt purchases to $45 billion, its fourth straight $10 billion cut, and said further reductions are likely in "measured steps" if the economy continues to improve.
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