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Last Updated : May 28 2014 | 11:54 PM IST

Key benchmark indices alternately moved between positive and negative zone near the flat line in afternoon trade. The barometer index, the S&P BSE Sensex, was currently up 3.80 points or 0.02%, up 64.50 points from the day's low and off 90.02 points from the day's high. The market breadth, indicating the overall health of the market was strong. The BSE Small-Cap index was up more than 1.5%.

Cement stocks surged on renewed buying. Index heavyweight Reliance Industries edged higher in volatile trade. Oil India fell after weak Q4 result announced after market hours on Tuesday, 27 May 2014. IT stocks rose on good US economic data. Credit rating agencies were in demand with shares of ICRA scaling record high after Moody's revised upward its conditional open offer for ICRA.

The Sensex edged higher amid initial volatility on firm Asian stocks. Volatility continued as key benchmark indices trimmed initial gains in morning trade. The Sensex regained positive terrain after slipping into the red from green in mid-morning trade. Key benchmark indices alternately moved between positive and negative zone near the flat line in afternoon trade.

Foreign institutional investors (FIIs) sold shares worth a net Rs 202.61 crore on Tuesday, 27 May 2014, as per provisional data from the stock exchanges.

The market may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near month May 2014 series to June 2014 series. The near month May 2014 derivatives contract expire tomorrow, 29 May 2014.

At 13:15 IST, the S&P BSE Sensex was up 3.80 points or 0.02% to 24,553.31. The index rose 93.82 points at the day's high of 24,643.33 in early trade. The index fell 60.70 points at the day's low of 24,488.81 in mid-morning trade.

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The CNX Nifty was up 9.15 points or 0.13% at 7,327.15. The index hit a high of 7,344.75 in intraday trade. The index hit a low of 7,302.60 in intraday trade.

The BSE Mid-Cap index was up 55.89 points or 0.66% at 8,485.09. The BSE Small-Cap index was up 137.67 points or 1.55% at 9,021.32. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1,740 shares rose and 1,006 shares fell. A total of 98 shares were unchanged.

The total turnover on BSE amounted to Rs 2439 crore by 13:15 IST.

Among the 30-share Sensex pack, 16 stocks rose and rest of them fell. Bharat Heavy Electricals (Bhel) (up 2.99%), Hero MotoCorp (up 2.86%) and Tata Power Company (up 2.81%) edged higher from the Sensex pack.

Index heavyweight Reliance Industries rose 0.12% to Rs 1,089.05. The stock was volatile. The stock hit high of Rs 1,106 and low of Rs 1,084.95 so far during the day.

Oil India fell 2.29% after net profit declined 26% to Rs 565.62 crore on 23.2% fall in net sales to Rs 1825.22 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Tuesday, 27 May 2014

Cement stocks rose on renewed buying. Ambuja Cements (up 4.68%), ACC (up 3.95%), UltraTech Cement (up 4.53%) and Shree Cement (up 1%) gained.

IT stocks rose on good US economic data. US is the biggest outsourcing market for the Indian IT firms. TCS (up 0.99%), Wipro (up 1.03%), Infosys (up 1.17%) and HCL Technologies (up 2.72%) gained.

Tech Mahindra rose 1.6%. Tech Mahindra said after market hours on Tuesday, 27 May 2014, announced that Premium Credit, the No.1 Insurance Premium Finance Company in the UK and Ireland, has selected Tech Mahindra to deliver front and back office application services.

Tech Mahindra will provide operational support and maintenance services, as well as development and implementation. Tech Mahindra said that the company was selected because of its domain expertise in the insurance and financial services, and a strong local footprint.

ICRA surged 17.5% to Rs 2,350 after hitting a record high of Rs 2,400 in intraday trade. Moody's Singapore Pte has revised upward its conditional open offer price from Rs 2,000 per share to Rs 2,400 per share for acquisition of up to 26.50 lakh equity shares from shareholders of ICRA. The announcement was made during market hours today, 28 May 2014.

It may be recalled that Moody's Singapore Pte had on 21 February 2014 announced a conditional open offer for acquisition of up to 26.50 lakh equity shares at Rs 2,000 per share from the shareholders of ICRA.

Moody's intends to raise its shareholding in ICRA by way of acquisition of up to 26.5% of voting share capital in ICRA through the voluntary open offer (which together with the present shareholding of Moody's Singapore Pte and the PAC in ICRA, would result in Moody's Singapore Pte and the PAC holding up to 55% of voting share capital in ICRA).

Shares of other credit rating agencies were also in demand after Moody's revised upward its conditional open offer for ICRA. CRISIL (up 2.31%) and Credit Analysis and Research (CARE) (up 3.55%) edged higher.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 59.02, compared with its close of 59.04/05 on Tuesday, 27 May 2014.

The Reserve Bank of India (RBI) on Tuesday, 27 May 2014, doubled the amount of forward contracts importers can book to 50% of their average three years import turnover, or previous year's actual import turnover, whichever is higher. The earlier limit for such contracts was 25%. "Importers who have already booked contracts up to previous limit of 25% in the current financial year, shall be eligible for difference arising out of the enhanced limits," RBI said.

Reserve Bank of India Governor Raghuram Rajan reiterated on Wednesday what he said is the need for global central banks to be mindful of the impact of their unconventional monetary policy measures on other economies. Rajan proposed that central banks of advanced nations "internalise" the spillover effects from such policies to minimise volatility and disruptions in financial markets elsewhere. "The current non-system in international monetary policy is, in my view, a source of substantial risk, both to sustainable growth as well as to the financial sector," Rajan said in the text of a speech to be delivered at the Bank of Japan in Tokyo. "It is not an industrial country problem, nor an emerging market problem, it is a problem of collective action. The sooner we recognize that, the more sustainable world growth we will have," he said, reiterating comments he made earlier this month.

The Union Cabinet on Tuesday approved constitution of Special Investigating Team (SIT) to implement the decision of the Supreme Court on large amounts of money stashed abroad by evading taxes or generated through unlawful activities.

The SIT will be headed by Mr. Justice M.B. Shah, former Judge of the Supreme Court as Chairman and Mr. Justice Arijit Pasayat, former Judge as Vice Chairman. The SIT has been charged with the responsibility and duties of investigation, initiation of proceedings and prosecution in cases of Hasan Ali and other matters involving unaccounted money. SIT shall have jurisdiction in the cases where investigations have already commenced or are pending or awaiting to be initiated or have been completed. SIT will prepare a comprehensive action plan including creation of necessary institutional structure that could enable the country to fight the battle against unaccounted money. The SIT should report to the court the status of work from time to time.

Meanwhile, Prime Minister Narendra Modi delivered a blunt warning to old adversary Pakistan on his first day in the job on Tuesday, telling his counterpart in a rare meeting that Islamabad must prevent militants on its territory from attacking India. Despite the directness of his message, both sides said Modi's meeting with Pakistani Prime Minister Nawaz Sharif in New Delhi was cordial and they agreed to try to restart peace talks between the nuclear-armed rivals. They also agreed to pursue normalising trade ties, which have been held hostage to distrust between their countries after fighting three wars since independence from Britain in 1947. Modi, 63, invited Sharif and several other South Asian leaders for his swearing-in ceremony on Monday.

Modi was sworn in India's 15th Prime Minister on Monday, 26 May 2014.

Finance Minister Arun Jaitely is expected to table Union Budget for 2014-15 in Lok Sabha 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.

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.

European stocks drifted lower on Wednesday, 28 May 2014. Key benchmark indices in UK, Germany and France were off 0.01% to 0.18%.

Switzerland's economic growth quickened in the first quarter, driven by higher exports of goods and services and investments in the building industry, data released Wednesday showed. Gross domestic product in the three months through March grew 0.5% from the previous quarter and 2% on year, the State Secretariat for Economic Affairs said.

Asian stocks edged higher on Wednesday, 28 May 2014. Key benchmark indices in Hong Kong, Indonesia, South Korea, Taiwan, China, Singapore and Japan were up 0.05% to 0.97%.

Chinese industrial profit increased 10% this year through April from the same period in 2013, a report showed today, compared with 10.1% growth in the three months through March.

Bank of Japan Governor Haruhiko Kuroda said in a speech today, 28 May 2014, that it is possible to implement monetary policy even under situations where the policy rate is around zero.

Trading in US index futures indicated that the Dow could gain 15 points at the opening bell on Wednesday, 28 May 2014. US stocks rose on Tuesday as the S&P 500 index scored a second straight record close, buoyed by the latest round of merger activity and as expectations for rate cuts by the European Central Bank stoked investors' appetite for equities.

US data showed bookings for goods meant to last at least three years rose 0.8% in April after a 3.6% gain in the previous month that was revised up by one percentage point. The Conference Board's index of US consumer confidence increased to 83 in May from 81.7 a month earlier, the New York-based private research group said, while a Markit Economics preliminary index for services unexpectedly rose to 58.4 this month from 55.

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.

Ukrainian aircraft and paratroopers killed more than 50 pro-Russian rebels in an assault that raged into a second day on Tuesday after a newly elected president vowed to crush the revolt in the east once and for all.

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First Published: May 28 2014 | 1:15 PM IST

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