Key benchmark indices edged higher on first trading day of the week today, 5 May 2014. Data showing that foreign funds remained net buyers of Indian stocks on Friday, 2 May 2014 offset weakness in European stocks and lower US index futures. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, settled at their highest closing level in almost a week. The barometer index, the S&P BSE Sensex, was up 41.23 points or 0.18%, off 146.91 points from the day's high and up 90.67 points from the day's low. The market breadth, indicating the overall health of the market, was negative.
Indian stocks snapped five-day losing streak today, 5 May 2014. The Sensex has declined 472.65 points, or 2.06% in five trading sessions to 22,403.89 on 2 May 2014 from a recent high of 22,876.54 on 23 April 2014. The Sensex had risen 31.53 points or 0.14% in April 2014. The Sensex has gained 1,274.44 points or 6.01% in calendar year 2014 so far (till 5 May 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 4,996.41 points or 28.63%. From a record high of 22,939.31 on 25 April 2014, the Sensex has fallen 494.19 points or 2.15%.
Coming back to today's trade, index heavyweights, Reliance Industries (RIL) and ITC, both, rose. Canara Bank jumped as the bank's gross non-performing assets to gross advances declined. Most auto stocks rose.
Key indices hovered between gains and losses near the flat line in early trade. It regained strength after trimming gains after hitting fresh intraday high in morning trade. It trimmed gains in mid-morning trade. It regained strength in early afternoon trade. Key benchmark indices firmed up to hit fresh intraday high in afternoon trade. It pared gains in mid-afternoon trade. It further trimmed gains in late trade as weakness in European stocks weighed on sentiment.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Friday, 2 May 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 407.70 crore from the secondary equity markets on Friday, 2 May 2014 as per the data from the Securities & Exchange Board of India (Sebi).
The S&P BSE Sensex was up 41.23 points or 0.18% to 22,445.12, its highest closing level since 29 April 2014. The index rose 188.14 points at the day's high of 22,592.03 in mid-afternoon trade, its highest level since 30 April 2014. The index shed 49.44 points at the day's low of 22,354.45 in early trade, its lowest level since 30 April 2014.
The CNX Nifty was up 4.55 points or 0.07% to 6,699.35, its highest closing level since 29 April 2014. The index hit a high of 6,741.05 in intraday trade, its highest level since 30 April 2014. The index hit a low of 6,680.45 in intraday trade, its lowest level since 30 April 2014.
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The BSE Mid-Cap index fell 9.40 points or 0.13% to 7,348.06. The BSE Small-Cap index dropped 34.72 points or 0.46% to 7,498.09. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 2417 crore, higher than Rs 2313.62 crore on Friday, 2 May 2014.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,489 shares fell and 1,255 shares rose. A total of 127 shares were unchanged.
The S&P BSE Oil & Gas index (up 1.53%), the S&P BSE Metal index (up 1.21%), the S&P BSE Capital Goods index (up 0.91%), the S&P BSE FMCG index (up 0.5%), the S&P BSE Consumer Durables index (up 0.45%), the S&P BSE Bankex (up 0.4%) and the S&P BSE Auto index (up 0.33%) outperformed the Sensex.
The S&P BSE Power index (down 0.47%), the S&P BSE Healthcare index (down 0.72%), the S&P BSE Realty index (down 0.75%), the S&P BSE IT index (down 0.96%) and the S&P BSE Teck index (down 1.16%) underperformed the Sensex.
Among the 30-share Sensex pack, 16 stocks gained and rest of them fell.
Hindalco Industries (up 4.54%), L&T (up 1.73%) and Tata Steel (up 1.47%) edged higher from the Sensex pack.
Cipla (down 2.34%), HDFC (down 2.15%) and Tata Power Company (down 1.94%) edged lower from the Sensex pack.
Oil & gas stocks gained. ONGC (up 2.1%), BPCL (up 0.92%), GAIL (India) (up 1.04%) and Indian Oil Corporation (up 0.65%) gained. Cairn India shed 0.03%.
HPCL gained 1.85% to Rs 335.50 after hitting 52-week high of Rs 339.10 in intraday trade.
Indraprastha Gas rose 2.15% on reports the company on Friday, 5 May 2014, raised prices of CNG and PNG, citing rise in input costs. After Friday's revision, CNG (gas used as automotive fuel) would cost Rs 38.15 per kg against Rs 35.20 in Delhi. Due to difference in the tax rate, the fuel would cost Rs 43.50 in Noida, Greater Noida and Ghaziabad.
In Delhi, PNG (piped gas in kitchens) would now cost Rs 25.50 per scm (standard cubic metre) against Rs 24.50 per scm up to consumption of 36 scm in two months. Beyond 36 scm in two months, the applicable rate in Delhi would be Rs 48 per scm.
In Noida, Greater Noida and Ghaziabad, PNG would cost Rs 27.30 per scm for consumption of 36 scm in two months, up from Rs 26.20 per scm. Beyond this limit, the rate applicable in these cities would be Rs 48.75 per scm.
Index heavyweight Reliance Industries (RIL) rose 1.58% to Rs 943. The stock hit high of Rs 957.65 and low of Rs 925.
Index heavyweight and cigarette maker ITC gained 1.28%.
Emami shed 0.65%. Emami after market hours reported 18.26% rise in consolidated net profit to Rs 111.15 crore on 1.32% fall in total income to Rs 464.14 crore in Q4 March 2014 over Q4 March 2013.
Most Auto stocks gained. Mahindra & Mahindra (M&M) (up 0.23%), Maruti Suzuki India (up 0.77%), Bajaj Auto (up 0.75%) and Hero MotoCorp (up 1.16%) gained. TVS Motor Company fell 1.09%.
Ashok Leyland was flat after the company reported weak sales in April. The company reported 21% decline in total sales to 5,897 units in April 2014 over April 2013. Total sales of medium and heavy commercial vehicle (M&HCV) fell 14% to 4,523 units in April 2014 over April 2013. Total sales of light commercial vehicles (LCV) declined 39% to 1,374 units in April 2014 over April 2013.
Tata Motors rose 0.15% in volatile trade after the company reported dismal sales figures in April. The company's total sales (including exports) of Tata commercial and passenger vehicles fell 34% to 33,892 vehicles in April 2014 over April 2013. The company's domestic sales of Tata commercial and passenger vehicles declined 36% to 30,670 units in April 2014 over April 2013. The company's sales of commercial vehicles in the domestic market fell 36% to 23,229 units in April 2014 over April 2013. LCV sales fell 43% to 14,804 units in April 2014 over April 2013, while M&HCV sales declined 16% to 8,425 units in April 2014 over April 2013. Sales of passenger vehicles were lower by 36% to 7,441 units in April 2014 over April 2013. Sales of the Nano/ Indica/ Indigo range were down 37% to 5,653 units in April 2014 over April 2013. The Sumo/ Safari/ Aria/ Venture range sales fell 33% to 1,788 units in April 2014 over April 2013. The company's sales from exports registered a decline of 10% to 3,222 units in April 2014 over April 2013. Tata Motors announced sales figures after market hours on Friday, 2 May 2014.
Canara Bank jumped 6.49% as the bank's gross non-performing assets to gross advances declined to Rs 7570.21 crore as on 31 March 2014, from Rs 8073.92 crore as on 31 December 2013. Canara Bank's gross non-performing assets (NPAs) to gross advances declined to Rs 7570.21 crore as on 31 March 2014, from Rs 8073.92 crore as on 31 December 2013 but increased from Rs 6260.16 crore as on 31 March 2013. The ratio of gross NPAs to gross advances stood at 2.49% as on 31 March 2014 as against 2.79% as on 31 December 2013 and 2.57% as on 31 March 2013.
The bank's net NPAs to net advances declined to Rs 5965.46 crore as on 31 March 2014, from Rs 6869.87 crore as on 31 December 2013 but increased from Rs 5278.07 crore as on 31 March 2013. The ratio of net NPAs to net advances stood at 1.98% as on 31 March 2014 as against 2.39% as on 31 December 2013 and 2.18% as on 31 March 2013.
Canara Bank's net profit declined 15.79% to Rs 610.83 crore on 22.57% growth in total income to Rs 11609.72 crore in Q4 March 2014 over Q4 March 2013. The result was announced during market hours today, 5 May 2014.
Canara Bank's provisions and contingencies surged 45.04% to Rs 1091.27 crore in Q4 March 2014 over Q4 March 2013.
The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 10.63% as on 31 March 2014 as against 9.83% as on 31 December 2013.
Canara Bank's net profit declined 15.1% to Rs 2438.19 crore on 16.78% growth in total income to Rs 43480.37 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
A sum of Rs 370.72 crore has been charged to profit & loss account during the year ended March 2014 on proportionate basis towards unamortized liability of Rs 1853.57 crore (being amortized over 5 years beginning from 31 March 2011) on account of reopening of pension option for existing employees who had not opted for pension earlier. The balance amount of Rs 370.72 crore will be dealt with as per guidelines of Reserve Bank of India, Canara Bank said.
A sum of Rs 135.91 crore has been charged to profit & loss account during the year ended March 2014 on proportionate basis towards unamortized liability of Rs 679.52 crore (being amortized over 5 years beginning from 31 March 2011) on account of the enhancement of gratuity limit. The balance amount of Rs 135.91 crore will be dealt with as per guidelines of Reserve Bank of India, Canara Bank said.
Canara Bank's board of directors at its meeting held today, 5 May 2014, recommended final dividend of Rs 4.50 per share for FY 2014, subject to the approval of shareholders at the Annual General Meeting.
Grasim Industries rose 0.69%. The company's consolidated net profit after minority interest (before exceptional item) rose 11% to Rs 679 crore on 10% growth in revenue to Rs 8419 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced after market hours on Friday, 2 May 2014.
There was an exceptional gain of Rs 204 crore on the sale of Grasim's stake in Alexandria Carbon Black and Thai Carbon Black in Q4 March 2013.
Grasim Industries' consolidated net profit (before exceptional item) declined 17.12% to Rs 2072 crore on 5% growth in revenue to Rs 29324 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
Despite the prevailing economic slowdown during the year, volumes have been augmented in all the businesses viz. VSF, Chemical and Cement, driven by the commissioning of new capacities, Grasim Industries said. An overcapacity in the VSF business globally and Cement business in India has impacted the realisations and profitability, the company said in a statement.
With regard to its future business outlook, Grasim Industries said that in the VSF sector, margins are likely to remain under pressure in the near term due to overcapacity in China. The slowdown of new capacity additions in China should lead to improvement in industry utilization, the company said. With additional capacity coming on stream, the company is well equipped to further consolidate its leadership position in the industry, it added. In Cement, the demand growth for the industry should gradually recover to 8% on improvement in the economic environment, Grasim Industries said in a statement.
Grasim Industries' board of directors at its meeting held on Friday, 2 May 2014, recommended dividend of Rs 21 per share for FY 2014.
NMDC declined 1.87%. The company said during market hours that company's production on provisional basis remained unchanged at 2.44 million tonnes in April 2014 over April 2013. The company's despatches on provisional basis rose 22.22% to 2.97 million tonnes in April 2014 over April 2013. Prices of lump ore for the month of May 2014 is Rs 4300/WMT. Prices of fines for the month of May 2014 is Rs 2910/WMT.
Sun Pharmaceutical Industries (Sun Pharma) declined 0.48%. The company after market hours on Friday, 2 May 2014, announced that, as a part of its manufacturing consolidation in the US, it has notified the Workforce Development Agency for the State of Michigan regarding its decision to cease manufacturing operations and close the Detroit (Caraco Pharmaceutical Laboratories,Ltd.) facility located at Elijah McCoy Detroit, Ml, USA. The company has provided the requisite advance written notice of the facility closure to the employee union and all affected employees, Sun Pharma said in a statement.
Sun Pharma said it has ensured that the impacted employees get compensated with more than their regular entitlement under the severance package. They will also receive other support services including outplacement assistance, the company added. The rest of the employees are continuing through mutually consented arrangements, Sun Pharma said in a statement.
Sun Pharma said it has undertaken necessary measures to ensure business continuity of the products being manufactured at this facility. The manufacturing of these products is being transferred to other units and all necessary steps have been taken to avoid market shortage, the company said. Sun Pharma said it expects a negligible impact of this development on its FY 2015 consolidated revenues.
Separately, Sun Pharma after market hours on Friday, 2 May 2014 in a clarification with regard to news item titled "Sun-Ranbaxy merger runs into legal wrangle" said that it was neither served the notice of the hearing nor it was aware of such hearing being held nor it is served with the copy of the court order, so the question of submission of court order to the exchanges doe not arise, Sun Pharma said.
Ranbaxy Laboratories slipped 0.54%. Ranbaxy Laboratories after market hours on Friday, 2 May 2014 in a clarification with regard to news item "Sun-Ranbaxy merger runs into legal wrangle" said that the company has neither received any Notice nor appeared/represented before the Hon'ble High Court in regard to aforesaid Court case. Further, the company has also not been served the Order of the Hon'ble Court, Ranbaxy Laboratories said.
Lupin fell 1.24% to Rs 997.40, with the stock reversing direction after hitting record high of Rs 1,019.80 in intraday trade.
Pfizer fell 1.27% after net profit fell 3.66% to Rs 56.03 crore on 2.46% decline in total income from operations to Rs 274.48 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced on Saturday, 3 May 2014.
Pfizer's net profit declined 56.11% to Rs 220.85 crore on 6% growth in total income from operations to Rs 1111.80 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
Pfizer's revenue for the quarter was Rs 251.69 crore as compared to Rs 252.19 crore in the same period last year. The revenue for the year was Rs 1004.27 crore as compared to Rs 947.98 crore last year.
Excluding the transitional support for sales of certain animal health products, the pharmaceutical revenue for the quarter registered a growth of 6% to Rs 251.69 crore as compared to Rs 237.24 crore in the same period last year. Similarly the revenue for the year registered a growth of 5% to Rs 961.80 crore as compare to Rs 915.06 crore last year.
The profit before tax and exceptional items for the year grew by 21% to Rs 339.58 crore from Rs 279.65 crore last year, the company said in a statement.
Ajanta Pharma spurted 8.53%after profit after tax jumped 159% to Rs 70 crore on 25% growth in revenue from operations to Rs 311 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced during trading hours today, 5 May 2014.
Ajanta Pharma's EBITDA (earnings before interest, taxation, depreciation and amortization) surged 63% to Rs 112 crore in Q4 March 2014 over Q4 March 2013.
Exports contributed 66% of the total operating income in Q4 March 2014, Ajanta Pharma said.
Ajanta Pharma's profit after tax surged 118% to Rs 221 crore on 32% growth in revenue from operations to Rs 1110 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
EBITDA jumped 65% to Rs 346 crore in FY 2014 over FY 2013.
Exports contributed 63% of the total operating income for FY 2014, Ajanta Pharma said.
On consolidated basis, Ajanta Pharma's profit after tax jumped 109% to Rs 234 crore on 30% growth in revenue from operations to Rs 1208 crore in FY 2014 over FY 2013.
EBITDA jumped 64% to Rs 369 crore in FY 2014 over FY 2013.
Mr. Yogesh Agrawal, MD, Ajanta Pharma said, "We are pleased with the execution of our strategy during the year which is reflected in healthy results. All our geographies have performed inline with our expectations. Our India speciality business continues to post robust growth much above the industry growth. We continue to build branded generic business in select overseas markets and lay foundation for sustained growth in coming years".
Ajanta Pharma's board of directors at its meeting held today, 5 May 2014, recommended dividend of Rs 10 per share, subject to approval of shareholders at the ensuing Annual General Meeting to be held in 2014.
Shasun Pharmaceuticals was unchanged. The company said it acquired global rights of Ibuprofen 12 hour extended release OTC tablets and Nuprin brand. The company made the announcement during trading hours today, 5 May 2014.
Shasun Pharmaceuticals, through its wholly-owned subsidiary, SVADS Holdings, Switzerland (SVADS) acquired the global rights from ScolrPharma, USA (Scolr), to develop and commercialize Ibuprofen 12 hour Extended Release OTC tablets (Asset) as well as the associated Controlled Release Technology (CDT) along with global rights of Nuprin trademark, a well known brand in analgesics. The Asset, having completed a successful Phase III in the US is a differentiated long acting NSAIDS in the multi billion dollar global OTC analgesic market.
Commenting on the acquisition Mr. S Abhaya Kumar, MD, Shasun Pharmaceuticals said: "The acquisition is the first among a series of strategic initiatives in our guest to continue to enhance our global leadership in the NSAIDS category. Our commitment to reliable and affordable innovation across Ibuprofen franchise is not only focused on providing safer products which can enhance patient compliance but also provide a differentiated Launch pad for Shasun's partnership in the OTC and Rx markets worldwide."
ABB India fell 1.64%. The company's net profit rose 20% to Rs 52 crore on 8% decline in revenues to Rs 1810 crore in Q1 March 2014 over Q1 March 2013. The company announced the result on Sunday, 4 April 2014.
ABB India said that solid execution and continuous cost optimization helped improve profitability. Revenue for the corresponding period in 2013 was higher at Rs 1964 crore supported by the execution of one large order from renewable sector.
Operational EBITDA (earnings before interest, taxes, depreciation and amortization) margins were reported at 7.6% in Q1 March 2014, higher than 6.6% in Q1 March 2013.
"We had a satisfactory first quarter despite an indecisive investment climate. A balanced portfolio of customer offerings and relentless execution has helped us deliver profitable growth. Our new and upgraded production facilities, coupled with cost efficient technologies will further strengthen our position as the market revives," said Bazmi Husain, Managing Director, ABB India.
The company received orders worth Rs 1982 crore during the quarter ended 31 March 2014, compared to an order intake of Rs 1540 crore for the same period last year. During the quarter the company received large orders for transformers, substations as well as medium voltage drives and traction converters. The company continued its progress towards localisation and value chain optimisation to remain competitive.
The company's order backlog remain strong at Rs 7876 crore at the end of the quarter as against Rs 8257 crore for the corresponding period in 2013.
Suzlon Energy spurted 5.61% to Rs 14.13 after the company announced on Saturday, 3 May 2014, that its board approved cashless restructuring of its foreign currency convertible bonds (FCCBs).
Reliance Communications' (RCom) dropped 3.85% on weak Q4 results. The company's consolidated net profit fell 48.51% to Rs 156 crore on 4.78% decline in total income to Rs 5671 crore in Q4 March 2014 over Q4 March 2013. The company's consolidated net profit rose 55.8% to Rs 1047 crore on 2.5% rise in revenues to Rs 22321 crore in the year ended 31 March 2014 (FY 2014) over FY 2013. The company announced Q4 result after market hours on Friday, 2 May 2014.
The company's consolidated net profit rose 43.9% to Rs 156 crore on 5% rise in revenue at Rs 5671 crore in Q4 March 2014 over Q3 December 2013. Earnings before interest, tax, depreciation and amortization (EBITDA) gained 0.4% to Rs 1852 crore in Q4 March 2014 over Q3 December 2013. EBITDA margin stood at 32.7% in Q4 March 2014, amongst the highest in the industry, with strong contribution from both India and Global businesses.
Revenue of India operations rose 0.3% to Rs 4649 crore in Q4 March 2014 over Q3 December 2013. EBITDA of India operations rose 3.2% to Rs 1659 crore in Q4 March 2014 over Q3 December 2013
Revenue of global operations rose 15.7% to Rs 1261 crore in Q4 March 2014 over Q3 December 2013. EBIDTA of global operations stood at Rs193 crore in Q4 March 2014, EBIDTA margin stood at 15.3% in Q4 March 2014.
RCom generated operational cash flow (EBITDA) of Rs. 1852 crore in Q4 March 2014, paid net finance charges of Rs 907 crore and invested Rs 467 crore on capex during the quarter. It remains free cash flow (FCF) positive and this is expected to continue, company said.
Among its key performance indicators (KPIs), revenue per minute (RPM) was stable at 43.2 paisa. Voice RPM at 33.0 paisa. During the year, the company has significantly improved RPM with tariff hikes and strong focus on paid and profitable Minutes.
Average revenue per user (ARPU) rose 2.4% at Rs 128 in Q4 March 2014 over Q3 December 2013. The total MOUs was up by 0.4% at 102.3 billion in Q4 March 2014 over Q3 December 2013.
The total data traffic was up 20.5% to 50,251 million MB in Q4 March 2014 over Q3 December 2013. The traffic has increased due to increase in data subscribers and higher data usage per customer
The total data customer base has grown 3.3% to 37.4 million in Q4 March 2014 over Q3 December 2013, including 12.9 million 3G customers in Q4
Reliance Capital lost 3.05%. Reliance Capital's consolidated net profit rose 1% to Rs 267 crore on 9% growth in total income to Rs 1848 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced after market hours on Friday, 2 May 2014.
Reliance Capital's consolidated net profit rose 59% to Rs 747 crore on 14% growth in total income to Rs 7544 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (excluding one-time capital gains on stake sale in RCAM in FY 2013).
Reliance Capital's net worth rose 4% year-on-year (YoY) to Rs 12483 crore as of 31 March 2014.
The company had a net debt equity ratio of 1.82 as on 31 March 2014. It continues to enjoy the highest ratings of 'A1+' by ICRA and CRISIL, for its short term borrowings program and 'CARE AAA' by CARE for its long term borrowing program, Reliance Capital said in a statement.
As on 31 March 2014, the total assets of the company stood at Rs 45528 crore, an increase of 12%.
Reliance Capital said the company has not raised any fixed deposits from the public.
Century Textiles & Industries jumped 7.30% to Rs 381.50. The stock hit a 52-week high of Rs 411 in intraday trade. Century Textiles & Industries reported a net loss of Rs 4.9 crore in Q4 March 2014 as compared to net profit of Rs 17.95 crore in Q4 March 2013. Total income rose 15.03% to Rs 1856.96 crore in Q4 March 2014 over Q4 March 2013. The result was announced during trading hours.
V-Guard Industries surged 6.82% after net profit surged 129.08% to Rs 20.48 crore on 12.80% rise in net sales to Rs 418.99 crore in Q4 March 2014 over Q4 March 2013. The company announced the result after market hours on Friday, 2 May 2014. V-Guard Industries' net profit rose 11.46% to Rs 70.13 crore on 11.66% rise in net sales to Rs 1505.88 crore in the year ended March 2014 over the year ended March 2013.
Deepak Nitrite jumped 5.86% after the company said its board approved stock split and bonus issue. The company made the announcement after market hours on Friday, 2 May 2014. Deepak Nitrite said that its board of directors at its meeting held on Friday, 2 May 2014, approved 5-for-1 stock split. The board also approved issue of bonus shares in the ratio of 1:1.
Deepak Nitrite's net profit surged 68.25% to Rs 15.85 crore on 16.13% growth in total income from operations to Rs 360.61 crore in Q4 March 2014 over Q4 March 2013.
Net profit rose 1.32% to Rs 38.32 crore on 24.54% growth in total income from operations to Rs 1269.62 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013). The result was announced after market hours on Friday, 2 May 2014.
The board approved payment of dividend of Rs 10 per share for FY 2014.
In the foreign exchange market, the rupee edged lower against the dollar in choppy trade. The partially convertible rupee was hovering at 60.19, compared with its close of 60.16 on Friday, 2 May 2014.
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.
A major near term trigger for the stock market is the outcome of the upcoming Lok Sabha elections. The 36 days long voting process began on 7 April 2014 and will conclude on 12 May 2014. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.
European shares were lower on Monday as the European Commission trimmed its economic growth forecast for the euro area in 2015. Key benchmark indices in France and Germany fell 1.12% to 1.39%. Stock markets in UK were closed for a public holiday.
The European Commission trimmed its economic growth forecast for the euro area and predicted low inflation to remain a threat to expansion for at least the next two years. The 18-nation euro zone's gross domestic product will rise 1.7% in 2015, compared with a February prediction of 1.8%, the Brussels-based commission said today. The inflation rate will be 0.8% this year and 1.2% in 2015, both lower than previously forecast and well below the European Central Bank's target of just below 2%.
A monthly meeting of the Monetary Policy Committee of the Bank of England's (BoE) for monetary policy review is scheduled on Thursday, 8 May 2014.
The European Central Bank (ECB) will hold monetary policy meeting on Thursday, 8 May 2014, in Brussels, Belgium.
Most Asian stocks rose on Monday in choppy trade. Key benchmark indices in China, Indonesia and Taiwan were up 0.04% to 0.08%. Key benchmark indices in Singapore and Hong Kong declined 0.34% to 1.28%. Markets in Japan and South Korea are closed today and tomorrow for holidays.
China's manufacturing contracted in April for a fourth month, according to a private survey, signaling the risk of a deeper slowdown in an economy already projected to expand this year at the slowest pace since 1990. A purchasing managers' index was at 48.1, HSBC Holdings Plc and Markit Economics said in a statement today. That compared with 48 the previous month. Numbers below 50 indicate contractions.
Growth in China's services sector accelerated slightly in April as new orders held steady, an official survey showed, an encouraging sign of strength in an economy that otherwise faces a cloudy outlook. The purchasing manufacturing index (PMI) for the services industry edged up to 54.8 last month, the National Bureau of Statistics said on Saturday, up marginally from 54.5 in March. A reading above 50 in PMI surveys indicates growth on a monthly basis, while a number below that threshold points to a contraction in activity.
Indonesia's economic growth missed economists' estimates in the first quarter after interest-rate increases last year curbed lending and foreign investment. Gross domestic product rose 5.21% in the three months ended March 31 from a year earlier, the Central Bureau of Statistics said in Jakarta today.
Trading in US index futures indicated that the Dow could fall 60 points at the opening bell on Monday, 5 May 2014. US stocks eased on Friday as concerns about more violence in Ukraine prompted profit-taking ahead of the weekend and offset optimism about the fastest job growth in more than two years.
The labor market shifted into a higher gear in April with payroll gains showing the most widespread advance in two years, a sign the US economic expansion is on the verge of speeding up. The 288,000 increase in employment marked the biggest upside surprise since February 2012 and followed a 203,000 rise the prior month, Labor Department figures showed in Washington. An index measuring the share of industries hiring climbed to 67, the highest level since January 2012. The jobless rate dropped to 6.3%, the lowest since September 2008.
The Federal Reserve will likely bring its massive bond-buying program to an end in October, and only after that will it consider when to raise rates, a top Fed official said on Sunday. "I personally expect us to end that program in October," Dallas Federal Reserve Bank President Richard Fisher said in an interview on Fox News. "Then we have to see how the economy is doing, including these broader measures of unemployment and where we stand before we can talk about how we might move the short-term rate," he added.
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