A bout of volatility was witnessed as the key benchmark indices recovered from lower level after trimming intraday gains in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was up 80.96 points or 0.39%, off 52.30 points from the day's high and up 78.29 points from the day's low. BJP's prime ministerial candidate for this year's Lok Sabha elections Mr. Narendra Modi's reformist agenda and promised policy implementation in a speech on Thursday, 27 February 2014, and dovish remarks from Federal Reserve Chairwoman Janet Yellen before the Senate Banking Committee on Thursday, 27 February 2014, boosted sentiment on the domestic bourses today, 28 February 2014. The market sentiment was also boosted by data showing that foreign funds remained net buyers of Indian stocks on Wednesday, 26 February 2014. Gains in Asian and European stocks aided the upmove on the domestic bourses.
Among metal stocks, Hindalco Industries surged. Among side counters, Ajanta Pharma, Alembic Pharmaceuticals, Aurobindo Pharma and Tata Elxsi scaled record high. BASF India hit 52-week high. Shares of realty major Unitech hit 52-week low. Venus Remedies rose after the company said it received marketing authorisation for its flagship research product, Elores, from Myanmar.
The market breadth, indicating the overall health of the market was negative.
A bout of volatility was witnessed as key benchmark indices trimmed gains after an initial rally. The Sensex moved past the psychological 21,000 mark. The Sensex and the 50-unit CNX Nifty, both, scaled 5-week high. Key benchmark indices extended initial gains in morning trade. Key benchmark indices retained positive zone in early afternoon trade. Key benchmark indices trimmed intraday gains in early afternoon trade. Key benchmark indices moved in a narrow range in positive zone in afternoon trade. A bout of volatility was witnessed as the key benchmark indices recovered from lower level after trimming intraday gains in mid-afternoon trade as European stocks rose in early trade there.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Wednesday, 26 February 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 511.15 crore on Wednesday, 26 February 2014, as per provisional data from the stock exchanges. The stock market was closed on Thursday, 27 February 2014, on account of Mahashivratri.
At 14:15 IST, the S&P BSE Sensex was up 80.96 points or 0.39% to 21,067.95. The index jumped 133.26 points at the day's high of 21,120.25 in early trade, its highest level since 24 January 2014. The index rose 2.67 points at the day's low of 20,989.66 in early trade.
The CNX Nifty was up 17.15 points or 0.27% to 6,255.95. The index hit a high of 6,274.25 in intraday trade, its highest level since 24 January 2014. The index hit a low of 6,228.10 in intraday trade.
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The BSE Mid-Cap index was up 20.01 points or 0.31% at 6,489.04. The BSE Small-Cap index was up 7.89 points or 0.12% at 6,444.16. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market was negative. On BSE, 1,280 shares dropped and 1,244 shares rose. A total of 161 shares were unchanged.
Metal and mining stocks were mostly higher. Sesa Sterlite (up 1.49%), NMDC (up 0.24%), JSW Steel (up 0.37%), Hindustan Zinc (up 0.65%), National Aluminum Company (up 0.62%) and Hindustan Copper (up 1.11%) edged higher.
Hindalco Industries surged. The stock was up 5.8% at Rs 104.05. The scrip hit high of Rs 105.20 and low of Rs 98.55 so far during the day.
Steel Authority of India (Sail) (down 0.55%), Jindal Steel & Power (JSPL) (down 0.19%) and Tata Steel (down 1.13%) declined.
Ajanta Pharma gained 2.36% to Rs 1,043.05 after hitting record high of Rs 1,064.65 in intraday trade.
Alembic Pharmaceuticals advanced 3.67% to Rs 267.15 after hitting record high of Rs 273 in intraday trade.
Aurobindo Pharma rose 2.93% to Rs 527.45 after hitting record high of Rs 539.70 in intraday trade.
BASF India jumped 8.26% to Rs 704.80 after hitting 52-week high of Rs 708 in intraday trade.
Tata Elxsi gained 3.92% to Rs 539 after hitting record high of Rs 541.50 in intraday trade.
Unitech lost 3.49% to Rs 11.34 after hitting 52-week low of Rs 11.25 in intraday trade.
Venus Remedies rose 4.78% after the company said it received marketing authorisation for its flagship research product, Elores, from Myanmar. The company made the announcement after market hours on Wednesday, 26 February 2014.
In the foreign exchange market, the rupee edged lower against the dollar on dollar demand from oil firms to meet month-end payment commitments. The partially convertible rupee was hovering at 62.085, compared with its close of 61.98/99 on Wednesday, 26 February 2014. The foreign exchange market was closed on Thursday, 27 February 2014, on account of Mahashivratri.
Indian government bond prices rose after dovish remarks from Federal Reserve Chairwoman Janet Yellen before the Senate Banking Committee on Thursday, 27 February 2014. The yield on 10-year benchmark federal paper, 8.83% GS 2023, was hovering at 8.8839%, lower than its close of 8.9158% on Wednesday, 26 February 2014. The bond and money markets were closed on Thursday, 27 February 2014, on account of Mahashivratri. Bond yield and bond prices move in opposite direction.
Narendra Modi, the BJP's prime ministerial candidate, said on Thursday, 27 February 2014, that India's traders and grocery store owners must learn to compete with large modern stores and online retailers. "We should not worry about the challenges from global trade," he told a gathering of the Confederation of All India Traders. Rather, he said, small traders should emphasise on quality of their products to compete better and could enter into contracts with big online retailers to create "virtual malls in small shops".
With the general elections fast approaching, Modi also laid out his economic views separately at a conference on the Indian economy on Thursday, 27 February 2014. "Speedy, yet sustainable economic growth that is inclusive of all is the need of the hour," he told a crowd of businessmen, bankers, economists and diplomats. As India is vast, he said there are no tailor-made solutions for the problems of the entire country. "The government must identify the strengths of each state and devise strategies accordingly," he said. Modi, chief minister of Gujarat, said he also favoured introducing a nationwide goods and services tax (GST), a long-pending reform expected to bring a uniform market, reduce costs of businesses and increase government revenue.
Modi answered only two questions from members of the audience, one of which was related to energy security. He said he preferred using the country's own natural resources such as solar energy and wind energy to energy imports.
Reserve Bank of India (RBI) Governor Raghuram Rajan on Wednesday, 26 February 2014, defended his decision to repeatedly raise interest rates when he said that reducing inflation is the best way to foster stable growth. "We cannot wait until the public's expectations of inflation get more entrenched, and the inflationary spiral gains momentum," Mr. Rajan said in a speech, defending RBI's decision to raise key policy rate three times by a combined 0.75 percentage points since he took over as head of the central bank in September 2013.
Mr. Rajan indicated that he agreed with the recommendations of a central bank panel which had suggested the RBI start using a consumer price inflation target to determine monetary policy. The panel suggested that RBI should bring down the consumer price inflation rate to 8% by January 2015 and to 6% by January 2016. After that it should aim to keep it within two percentage points of 4%, the panel said.
Mr. Rajan said the gradual raising of interest rates now rather than later is the best way to slowly squeeze inflation out of the economy. "Rather than administer shock therapy to a weak economy, the RBI prefers to dis-inflate over time rather than abruptly, while being prepared to do what is necessary if the economy deviates from the projected inflation path," Mr. Rajan said. He said keeping inflation in check will also bolster the rupee and business confidence. "Greater public faith that inflation will be low will add stability to our currency, and prevent the kind of gyrations we saw last summer," he said.
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.
The India government will unveil data on gross domestic product (GDP) for Q3 December 2013 after trading hours today, 28 February 2014. The GDP grew at improved pace of 4.8% in Q2 September 2013, from 4.4% growth recorded in Q1 June 2013.
European stocks edged higher on Friday, 28 February 2014, with investors taking a lead from overnight gains in US stocks triggered by dovish comments from Federal Reserve Chairwoman Janet Yellen. Key benchmark indices in UK, France and Germany were up by 0.13% to 0.34%.
Asian stocks edged higher on Friday, 28 February 2014, after dovish remarks from Federal Reserve Chairwoman Janet Yellen before the Senate Banking Committee on Thursday, 27 February 2014. Key benchmark indices in Singapore, Hong Kong, Indonesia, China and South Korea were up 0.06% to 0.44%. In Japan, the Nikeei 225 was off 0.55%. The stock market in Taiwan was closed for Peace Memorial Day.
A meeting of China's lawmakers to set economic policy and growth targets begins next week in Beijing. The National People's Congress annual gathering begins on 5 March 2014.
Trading in US index futures indicated that the Dow could fall 13 points at the opening bell on Friday, 28 February 2014. US markets edged higher on Thursday, 27 February 2014, with the benchmark S&P 500 closing at a fresh record as investors welcomed dovish remarks from Federal Reserve Chairwoman Janet Yellen before the Senate Banking Committee.
Yellen told senators it was difficult to tell how much of the recent decline in US economic growth was due to weather, adding the central bank might consider a pause in its reduction of bond buying if the weakness persists. 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
In latest US economic news, the number of people applying for unemployment benefits rose last week to match the highest level of 2014, suggesting that progress in a gradually recovering US labor market has slackened off. However, the average of new claims over the past month, usually a more reliable gauge than the up-and-down weekly number, was unchanged at 338,250.
Orders for US durable goods fell 1% in January as demand tapered off for most big-ticket items except military hardware, the government said Thursday.
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