Immense volatility was witnessed in initial trade as key indices after opening lower surged to hit fresh record highs only to slip into the red shortly after that. Weakness in Asian stocks dampened sentiment. The S&P BSE Sensex hit a fresh record high, with the index crossing the psychological 22,000 mark for the first time in history. But, the Sensex slipped below that mark shortly later. The 50-unit CNX Nifty also scaled fresh record high in early trade. The Sensex was down 28.62 points or 0.13%, up about 85 points from the day's low and off close to 105 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
Indian Oil Corporation (IOCL) rose after the company said that the company through its wholly owned affiliate IndOil Montney, Canada have signed transaction agreements with Progress Energy Canada, PETRONAS Carigali Canada BV (PCC BV) wholly owned affiliates of Petroliam Nasional Berhad (PETRONAS) for the acquisition of a 10% interest in Progress Energy Canada's LNG-destined natural gas reserves in northeast British Columbia and in the proposed Pacific Northwest LNG (PNW LNG) export facility on Canada's West Coast. Tata Power Company dropped after setting the right issue price at a discount to the ruling market price.
Foreign institutional investors (FIIs) bought shares worth a net Rs 2,577.44 crore on Friday, 7 March 2014, as per provisional data from the stock exchanges.
Asian stocks edged lower on Monday as weaker-than-estimated Chinese trade and inflation data stoked concern over the outlook for the world's second-largest economy.
At 9:29 IST, the S&P BSE Sensex was down 28.62 points or 0.13% to 21,981.17. The index gained 85.75 points at the day's high of 22,005.54 in early trade, a record high. The index shed 114.57 points at the day's low of 21,805.22 in early trade.
The CNX Nifty was down 3.50 points or 0.05% to 6,523.15. The index hit a high of 6,545.10 in intraday trade, a new record high. The index hit a low of 6,487.35 in intraday trade.
The BSE Mid-Cap index rose 8.33 points or 0.12% to 6,701.77. The BSE Small-Cap index rose 11.85 points or 0.18% to 6,624.30. Both these indices outperformed the Sensex.
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The market breadth, indicating the overall health of the market, was positive. On BSE, 596 shares gained and 576 shares fell. A total of 71 shares were unchanged.
Hindalco Industries (down 2.27%), Coal India (down 2.14%) and TCS (down 1.94%) edged lower from the Sensex pack.
Tata Power Company shed 0.38% to Rs 78.85 after setting the right issue price at a discount to the ruling market price. The company said that the Committee for Rights Issue, at its meeting held on 8 March 2014 has decided to issue 33.22 crore shares on rights basis at Rs 60 per share, which is proposed to open on or prior to 31 March 2014. Rights entitlement ratio is 7:50, i.e. an eligible shareholder will be entitled to apply for 7 rights shares for every 50 shares held.
The entire rights issue price, that is Rs 60, shall be payable on application, of which Rs 1 shall be applied towards the face value of each share and Rs 59 shall be applied towards the share premium.
The issue opening date for the rights issue shall be no later than 31 March 2014. The issue shall remain open for a minimum period of 15 days; provided that the Committee for Rights Issue in consultation with the Lead Managers may extend the period of the issue for such further period as may be deemed fit, subject however that in no event would the issue remain open for a period exceeding 30 days.
Index heavyweight Reliance Industries gained 1.04%. ONGC fell 0.21%. Aam Admi Party (AAP) leader and activist lawyer Prashant Bhushan sought the Supreme Court's urgent intervention to stop the increase in natural gas prices, saying that the new rates would enrich Reliance Industries (RIL) and hurt the people of the country, on whose behalf the state is a trustee of natural resources, as ruled earlier by the top judicial authority. Bhushan, representing NGO Common Cause, said the government's decision should be stayed at least for a few months so that the new regime after the elections, which will bear the consequences of higher gas prices, can look at the matter afresh. Bhushan had earlier filed a petition challenging higher gas rates. It was listed for 4 March 2014 but it could not be taken up.
The NGO said RIL had written to the directorate general of hydrocarbons on 22 May 2009 giving its cost calculations which show that the cost of production is less than $1 per mmbtu. It had also offered natural gas to NTPC and the Anil Ambani group for $2.34 per unit for 17 years. "Evidently, the demand for an increase in gas price was motivated by RIL's greed and not by any considerations," the NGO said. The government and the oil industry have argued that no company would explore India's deep-water regions if they are not allowed market-linked prices. This would only encourage the import of LNG that costs double the new domestic price, they say.
RIL, its partner BP that holds 30% in Reliance-operated blocks, and ONGC have argued that many fields will be unviable at the current price. RIL has argued in its affidavit that since it produces only 15% of the country's gas, it cannot be said to be the major beneficiary of the price increase. RIL says gas output fell because of geological reasons and has initiated arbitration against the government's decision to penalise the company for the fall in output. RIL and BP say that initial estimates of output are not binding commitments and the actual production has turned out to be different in many fields across the world.
Meanwhile, Reliance Industries said after market hours on Friday, 7 March 2014, it is planning to shut down one of its four crude distillation units, for Maintenance & Inspection (M&I) activities from 20th March 2014 for about 3.5 weeks. As a normal practice, opportunity would be utilized to carry out necessary modifications to improve the reliability and performance of the unit.
This planned shutdown period will also be utilized for catalyst replacement of VGO and Naphtha hydrotreater. The rest of the Refinery will continue at normal levels of operations.
Mahindra & Mahindra (M&M) rose 0.18% after the company after market hours on Friday, 7 March 2014 said that the High Court of Judicature at Bombay on 7 March 2014 has approved a Scheme of Arrangement between Mahindra Trucks and Buses (MTBL), a wholly owned subsidiary of the company and its shareholders and creditors and M&M [the Scheme] which, inter alia, envisages demerger of the Trucks Undertaking of MTBL and transfer and vesting thereof into the company and other consequential matters under the provisions of Sections 391 to 394 read with Sections 78 and 100 to 104 of the Companies Act, 1956. The certified copy of this Order is yet to be received, M&M said.
Indian Oil Corporation (IOCL) rose 1.05% to Rs 269.40 after the company after market hours on Friday, 7 March 2014 said that the company through its wholly owned affiliate IndOil Montney, Canada have signed transaction agreements with Progress Energy Canada, PETRONAS Carigali Canada BV (PCC BV) wholly owned affiliates of Petroliam Nasional Berhad (PETRONAS) for the acquisition of a 10% interest in Progress Energy Canada's LNG-destined natural gas reserves in northeast British Columbia and in the proposed Pacific Northwest LNG (PNW LNG) export facility on Canada's West Coast. As part of the transaction, IOCL shall also offtake 1.2 million tons of liquefied natural gas (LNG) per annum, which represents 10% of the LNG facility's production, for a minimum period of 20 years. JAPEX Montney with 10% and Petroleum BRUNEI with 3% are the other partners who acquired their interest in the project in 2013. PETRONAS will hold the remaining 77% of the integrated project, IOCL said.
IOCL said that the project holds 2P reserves at year end 2013 of 8.35 Tcfe and best case contingent resources of 24.7 Tcfe. The total reserves and resource potential is in excess of 50 Tcfe in which, IOCL share will be over 5 Tcfe, the company said. Progress Energy Canada is currently producing approximately 400 million cubic feet equivalent of natural gas per day in North East British Colombia which is currently supplying the Canadian market, IOCL said.
Pacific NorthWest LNG is working towards a world-scale LNG export facility on Canada's West Coast at Lelu Island near Prince Rupert, British Columbia. The proposed facility would liquefy and export natural gas produced by Progress Energy Canada and partners in northeastern British Columbia, IOCL said.
IOCL said that the acquisition of this interest in PNW LNG integrated project gives IOCL the opportunity to be part of a world class large-scale resource play and greenfield LNG development in a stable Canadian regime, providing IOCL access to significant upstream gas resources and securing LNG volumes for the domestic market.
Tech Mahindra dropped 0.56%. The company on Friday, 7 March 2014 announced partnership to help develop the spring customer care update of Microsoft Dynamics CRM. Tech Mahindra's expert engineers helped Microsoft to develop key features which include - Mobile device support, cross browser support and enhanced user experience. The announcement was made after market hours on Friday, 7 March 2014.
Tech Mahindra is a Global SI and Consulting organization with strategic partnership with Microsoft. This collaboration with Microsoft Dynamics Product Development team leverages the company's experience and Microsoft's product strengths to offer significant value to customers. Tech Mahindra was a Microsoft partner on Polaris and Orion as well, the last two product releases of Dynamics CRM.
"Tech Mahindra has contributed to the spring customer care update release of Dynamics CRM. Tech Mahindra's practice capabilities will enable its customers to experience cutting edge solutions on Dynamics CRM for competitive advantage," said Jujhar Singh, General Manager, MS CRM Program Management.
"It is a proud moment for us to partner with Microsoft. Our large global expert base enabling build, deploy and automate coupled with Microsoft's global exposure on products helped us come up with a cutting edge version of Dynamics CRM." said Venkat Paturi, Head - Technology, Media and Entertainment, Tech Mahindra.
This partnership with Microsoft and hands-on experience on MS CRM product enables Tech Mahindra to provide its Global customers with best of solution and implementation experiences to compete successfully in the marketplace, the company said. With the ever increasing form factors and trend towards BYOD, the key features co-developed by Tech Mahindra and Microsoft will ensure CRM Dynamics is equipped with rich user interface and enhanced user experience. Tech Mahindra and Microsoft announced the new version of the product at Microsoft Dynamics Convergence 2014 in Atlanta, it added.
The 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.
With the election code of conduct coming into force, government authorities will not be able to announce any major policy initiatives. However, they can announce routine or unavoidable policy measures after taking the approval of the election commission.
The Reserve Bank of India next undertakes monetary policy review 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.
Asian stocks edged lower on Monday as weaker-than-estimated Chinese trade and inflation data stoked concern over the outlook for the world's second-largest economy. Key benchmark indices in South Korea, China, Hong Kong, Taiwan, Singapore and Japan were down 0.37% to 1.68%. Indonesia's Jakarta Composite rose 0.02%.
Overseas shipments from China dropped 18.1% in February from a year earlier. Producer prices slid 2%, the most since July, while the inflation rate was 2% for February, reports at the weekend showed. The National People's Congress, an annual meeting of China's lawmakers, continues this week,, with People's Bank of China Governor Zhou Xiaochuan speaking tomorrow.
Japan's economy expanded less than estimated in the fourth quarter and the current-account deficit widened to a record in January, highlighting risks to Abenomics as a sales-tax increase looms. Gross domestic product grew an annualized 0.7% from the previous quarter, the Cabinet Office said today in Tokyo, less than estimates. The current-account deficit widened to 1.59 trillion yen ($15.4 billion), a record in data back to 1985, the finance ministry said.
US stocks rose on Friday, with the Standard & Poor's 500 Index closing at a record, as data showing stronger-than-forecast jobs growth overshadowed concern the situation in Ukraine could worsen.
Employers added more workers than projected in February, indicating the US economy is starting to shake off the effects of the severe winter weather that slowed growth at the start of 2014. The 175,000 gain in employment followed a 129,000 increase the prior month that was bigger than initially estimated, Labor Department figures showed in Washington. The jobless rate rose to 6.7% from 6.6% as the number of people joining the workforce swamped the quantity of jobs available. The pickup following the weakest two-month hiring gain in more than a year shows employers remain confident the economic expansion will recover after winter storms slowed consumer spending.
Fed Bank of New York President William C. Dudley said he sees a reasonably favorable outlook for the US economy. even as elevated joblessness and too-low inflation warrant a high level of stimulus for a considerable time.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review on 18-19 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.
Germany's Angela Merkel delivered a rebuke to President Vladimir Putin on Sunday, telling him that a planned Moscow-backed referendum on whether Crimea should join Russia was illegal and violated Ukraine's constitution.
Putin defended breakaway moves by pro-Russian leaders in Crimea, where Russian forces tightened their grip on the Ukrainian region by seizing another border post.
Russian forces' seizure of the Black Sea peninsula has been bloodless but tensions are mounting following the decision by pro-Russian groups there to make Crimea part of Russia. Putin declared a week ago that Russia had the right to invade Ukraine to protect Russian citizens, and his parliament has voted to change the law to make it easier to annex territory inhabited by Russian speakers.
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