Key benchmark indices trimmed initial gains in mid-morning trade. The barometer index, the S&P BSE Sensex, was up 46.24 points or 0.21%, off about 80 points from the day's high and up about 15 points from the day's low. The market breadth, indicating the overall health of the market, was strong. The BSE Small-Cap index was up more than 1%. Indian stocks rose today, 31 March 2014, on firm Asian stocks.
Metal and mining stocks extended their recent gains triggered by growing expectations that China will take steps to stimulate its sagging economy. Shares of aluminium major Hindalco Industries hit 52-week high.
The market opened on a firm note after provisional data released by the stock exchanges after trading hours on Friday, 28 March 2014, showed that foreign institutional investors (FIIs) made substantial purchases of Indian stocks on that day. The Sensex, and the 50-unit CNX Nifty, both, hit record high. The Sensex trimmed initial gains in mid-morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1362.87 crore on Friday, 28 March 2014, as per provisional data from the stock exchanges.
At 11:20 IST, the S&P BSE Sensex was up 46.24 points or 0.21% to 22,386.21. The index jumped 127.24 points at the day's high of 22,467.21 in early trade, a record high for the barometer index. The index rose 32.98 points at the day's low of 22,372.95 in mid-morning trade.
The CNX Nifty was up 8 points or 0.12% to 6,703.90. The index hit a high of 6,730.05 in intraday trade, a record high for the index. The index hit a low of 6,699.80 in intraday trade.
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The BSE Mid-Cap index was up 59.21 points or 0.84% at 7,069.50. The BSE Small-Cap index was up 73.60 points or 1.05% at 7,072.66. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,450 shares gained and 754 shares fell. A total of 118 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks gained and rest of them declined. Bajaj Auto (up 1.83%), Bharti Airtel (up 2.39%) and Sun Pharmaceutical Industries (up 1.65%) edged higher from the Sensex pack.
Metal and mining stocks extended recent gains triggered by growing expectations that China will take steps to stimulate its sagging economy. China is the world's largest consumer of copper and aluminum.
Tata Steel (up 1.26%), Steel Authority of India (Sail) (up 2.78%), NMDC (up 1.3%), JSW Steel (up 1.3%), Jindal Steel & Power (up 2.75%), Sesa Sterlite (up 0.98%) and Hindustan Copper (up 2.39%) gained. National Aluminum Company fell 0.65%.
Hindalco Industries rose 1.65% to Rs 132.50 after hitting 52-week high of Rs 133.75 in intraday trade.
Hindustan Zinc rose 0.26%. The company after market hours on Friday, 28 March 2014, said it has commissioned the first sewage treatment plant (STP) in Udaipur. It is the first sustainable development project of its kind in Rajasthan and has been constructed as per a tripartite agreement between Hindustan Zinc, Udaipur Municipal Corporation and Urban Improvement Trust. The STP will treat 20 million litres of sewage per day. The project has been constructed in a record time of 14 months at a cost of over Rs 70 crore, Hindustan Zinc said.
Hindustan Zinc said during market hours today, 31 March 2014, that the board of directors at its meeting held on 29 March 2014 has further extended the tenure of Mr. Akhilesh Joshi as CEO & Whole-time director for a period of 18 months from 1 April 2014 to 30 September 2015.
Suzlon Energy jumped 10.52% on a media report that the company is planning to raise Rs 10000 crore by listing its German subsidiary on the London Stock Exchange. According to the report, Suzlon Energy is planning to sell shares in its German subsidiary Senvion SE (erstwhile RE Power) to raise Rs 10000 crore by listing it on the London Stock Exchange (LSE). The company will have to dilute 25% stake in Senvion to meet the UK listing norms and expects a Rs 40000 crore valuation for the unit. The share sale is likely to be the biggest offering in rupee terms by an Indian firm in the global market in recent years, the report added.
Report suggested that Suzlon, with a debt of Rs 13000 crore, has been making losses for the last three years. It has also been unable to pay its bondholders due to the slowdown in the global markets. However, with a recovery in the global economy and upturn in the wind energy markets, Suzlon wants to cash in on this opportunity to sell Senvion shares, which has surplus cash, to reduce its debt and turn profitable.
Jain Irrigation Systems rose 1.55% after a media report suggested that the company is planning to sell a stake in its food-processing business to private equity funds. According to the report, Jain Irrigation Systems is looking to sell a stake in its food-processing business to private equity funds to raise up to Rs 610 crore as it seeks to cut debt and boost growth. The company plans to divest 30-35% in the 10-year-old food-processing unit to strategic investors for $80-100 million, the report said.
The company has reportedly held preliminary talks with private equity funds, including Warburg Pincus. The money generated from the stake sale may be used to retire part of Jain Irrigation's substantial debt amounting to Rs 2924 crore. The company is likely to transfer its food-processing business to a separate company as part of the exercise, the report added.
The government will raise Rs 3.68 lakh crore ($61.4 billion) through bond sales in the first half of the fiscal beginning 1 April 2014, which is 61.6% of the total borrowing scheduled for fiscal year 2014-15. The borrowing programme for the first half of the fiscal year 2014-15 was announced by economic affairs secretary Arvind Mayaram and later notified by the Reserve Bank of India (RBI) on Friday, 28 March 2014. In the interim budget for the year 2014-2015, finance minister P. Chidambaram had announced that the government plans to borrow Rs 4.65 lakh crore from the market in 2014-15 against the Rs.4.54 lakh crore it borrowed in the current fiscal. The gross borrowing programme for the next fiscal will be Rs 5.97 lakh crore, while bonds worth about Rs.1.40 trillion are to be paid back to investors in the year to March, Chidambaram said. The gross borrowing plan for 2013-14 was at Rs 5.64 lakh crore.
In a separate announcement, RBI on Friday, 28 March 2014, said it will borrow Rs 1.9 lakh crore through issuance of short-term bills in the market in the April-June 2014 quarter.
The Reserve Bank of India will announce the First Bi-monthly Monetary Policy Statement, 2014-15 tomorrow, 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 market is Q4 March 2014 and year ended 31 March 2014 (FY 2014) corporate earnings. Investors and analysts will closely watch the management commentary that would accompany the results to see if there is any revision in their future earnings forecast of the company for the year ending 31 March 2015 (FY 2015) and/or for the year ending 31 March 2016 (FY 2016). Indian companies will start reporting their Q4 and full year results from mid-April 2014. The result season will conclude in end-May 2014.
Another 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 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 higher on Monday, 31 March 2014, with investors holding out hopes that China would take steps to stimulate its economy. Key benchmark indices in Hong Kong, China, Singapore, Japan and Taiwan were up 0.08% to 0.96%. South Korea's Kospi index was off 0.23%.
South Korea reportedly on Monday returned fire into North Korean waters after shells from a North Korean live-fire drill fell south of the rivals' disputed western sea boundary. Residents on one South Korean island near the artillery exchange have been evacuated, according to reports. Reports said North Korean forces had fired into the South's sea territory as part of a live-fire exercise, prompting South Korea to return fire.
Trading in US index futures indicated that the Dow could advance 64 points at the opening bell on Monday, 31 March 2014. US stocks climbed after a two-day slide on Friday, 28 March 2014, as consumer shares rebounded amid data showing household purchases rose the most in three months. Household purchases, which account for almost 70% of the US economy, climbed 0.3% in February 2014 after a 0.2% gain in January 2014 that was smaller than previously estimated, Commerce Department figures showed.
The influential US non-farms payroll data for March 2014 will be released this Friday, 4 April 2014.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 29-30 April 2014. The Federal Reserve on 19 March 2014 said after the conclusion of a monetary policy review that it will trim its monthly bond purchases by $10 billion to $55 billion. The Federal Reserve will end its bond-buying program before the end of the year with an interest-rate increase likely to follow in "around six months," Chair Janet Yellen said on 19 March 2014. Quarterly Fed forecasts on 19 March 2014 showed more officials predicting that the benchmark interest rate, now close to zero, will rise to at least 1% by the end of 2015 and 2.25% a year later.
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