Key benchmark indices further trimmed intraday gains in morning trade. The barometer index, the S&P BSE Sensex, was up 98.96 points or 0.41%, off 206.40 points from the day's high and up 0.15 points from the day's low. The market breadth, indicating the overall health of the market, was strong. The BSE Mid-Cap index was up almost 2%. The BSE Small-Cap index was up more than 2.5%. Both these indices outperformed the Sensex. The market sentiment was upbeat following overwhelming victory by Bharatiya Janata Party (BJP) led National Democratic Alliance (NDA) in the recently concluded Lok Sabha elections. The market sentiment was also boosted by Narendra Modi's comments in his victory speeches in his home state of Gujarat on Friday, 16 May 2014, where he stressed on the country's development and good governance. Modi will become India's next Prime Minister. The market sentiment was also boosted by data showing that foreign funds made massive purchases of Indian stocks on Friday, 16 May 2014, the day when Modi-led BJP routed the Congress-led United Progressive Alliance (UPA) across the nation, registering the biggest ever win for any single party since 1984 in Lok Sabha elections.
Investors expect measures for revival of the economy, business-friendly policies and good governance from Modi-led government after the clear mandate given by voters to the BJP-led NDA. Investors expect policy measures from the new government to put India on a high-growth path on a sustainable basis.
Modi is perceived as being business-friendly and a decisive leader by the business community. As chief minister for the fast-growing state of Gujarat, Modi has built a reputation for getting things done.
Index heavyweight and cigarette major ITC reversed initial gain. IT stocks dropped after the rupee edged higher against the dollar.
Key benchmark indices trimmed gains after a firm opening triggered by data showing that foreign funds made heavy purchases of Indian stocks on Friday, 16 May 2014. Key benchmark indices further trimmed intraday gains in morning trade.
The market sentiment was boosted by data showing that foreign funds made heavy purchases of Indian stocks on Friday, 16 May 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 3634.82 crore on Friday, 16 May 2014, as per provisional data from the stock exchanges.
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At 10:15 IST, the S&P BSE Sensex was up 98.96 points or 0.41% to 24,220.70. The index jumped 305.36 points at the day's high of 24,427.10 in early trade. The index rose 98.81 points at the day's low of 24,220.55 in morning trade.
The CNX Nifty was up 23.60 points or 0.33% to 7,226.60. The index hit a high of 7,290.35 in intraday trade. The index hit a low of 7,225.20 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,466 shares gained and 576 shares fell. A total of 71 shares were unchanged.
The BSE Mid-Cap index was up 146.67 points or 1.89% at 7,912.39. The BSE Small-Cap index was up 198.20 points or 2.51% at 8,083.96. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1185 crore by 10:15 IST, compared with Rs 346 crore by 09:25 IST.
Among the 30-share Sensex pack, 21 stocks gained and rest of them declined.
Coal India (up 6.76%), Tata Power Company (up 5.96%) and Sesa Sterlite (up 3.88%) edged higher from the Sensex pack.
Index heavyweight and cigarette major ITC lost 1.55% to Rs 352, with the stock reversing initial gain. The stock hit high of Rs 360.10 and low of Rs 350.40 so far during the day.
ONGC surged 3.87% to Rs 399.85. ONGC on Sunday, 18 May 2014, said that the company has scaled its highest-ever market capitalization of Rs 3.56 lakh crore in intra-day trade on 16 May 2014, indicating its hidden potential to its investors. In intra-day trade on 16 May 2014, ONGC scrip logged a new peak of Rs 416.35 (on National Stock Exchange), taking its market capitalization to highest ever value.
ONGC said its market capitalisation is 51% higher than the next highest valuable company among the listed CPSEs. ONGC said that the company remains committed to create more value for all its stakeholders.
IT stocks dropped as the rupee edged higher against the dollar. A firm rupee adversely affects operating profit margins of IT firms as the sector derives a lion's share of revenue from exports. Infosys (down 3.87%), Wipro (down 4.16%), TCS (down 4.01%), HCL Technologies (down 4.14%), Hexaware Technologies (down 2.33%), Tech Mahindra (down 1.69%) and Polaris Software Technology (down 2.49%) edged lower.
Oracle Financial Services Software lost 1.47%. On a consolidated basis, Oracle Financial Services Software's net profit rose 10% to Rs 311 crore on 2% increase in revenue to Rs 895 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Friday, 16 May 2014.
Consolidated net profit rose 26% to Rs 1359 crore on 8% rise in revenue to Rs 3741 crore in the year ended March 2014 (FY 2014) over the year ended March 2013 (FY 2013). Operating income rose 15% to Rs 1328 crore in FY 2014 over FY 2013.
The revenue and operating income from the products business was Rs 2900 crore, up 11% and Rs 1256 crore, up 18% respectively, while the revenue and operating income from the services business was Rs 740 crore, down 4% and Rs 152 crores, down 4%, respectively, in FY 2014 over FY 2013, Oracle Financial Services Software said in a statement.
Chet Kamat, managing director and chief executive officer for Oracle Financial Services Software, said, We signed US$ 14.7 million of new license fees in the quarter; while we have a strong pipeline, new license fees for the year were down 18%. We are investing in the sales and marketing infrastructure and processes to grow our core banking and analytics deal flow.
Makarand Padalkar, chief financial officer for Oracle Financial Services Software, said, We posted another solid operating performance with the operating margins for the year at 35%, a 2 percentage point improvement over operating margin in the fiscal year ended March 2013. Our focus on operational excellence has delivered strong operating metrics; the days of sales outstanding at the end of March 2014 were at 61 days as compared to 68 days at the end of March 2013.
In the foreign exchange market, the rupee edged higher against the dollar on expectations of continued robust foreign buying in domestic shares and debt after the Bharatiya Janata Party swept the country's elections. The partially convertible rupee was hovering at 58.49, compared with its close of 58.79/80 on Friday, 16 May 2014.
Global credit rating agency Standard & Poor's Ratings Services on Friday, 16 May 2014, said that the fiscal and economic reforms taken by India's new government in the next two to three months will have significant implications on India's sovereign credit rating. S&P's statement came after Narendra Modi-led Bharatiya Janata Party (BJP) routed the Congress-led United Progressive Alliance (UPA) across the nation, registering the biggest ever win for any single party since 1984 in Lok Sabha elections. Modi is likely to be sworn in as India's Prime Minister on Wednesday, 21 May 2014.
S&P said that the next government would need to regain fiscal prudence in a sustainable way, such as by implementing a goods and services tax to help stabilise government revenues. "What the next government says and does in the coming months is crucial to boosting confidence in the policy settings and the economy. If confidence rises, investment and consumption in India could strengthen, after being held back by the uncertainty surrounding the election," S&P credit analyst Takahira Ogawa was quoted as saying in the statement.
S&P is the only of the three major credit agencies to have India with a "negative outlook" for its "BBB-minus" rating, meaning any downgrade would send the country to below investment grade.
After Bharatiya Janata Party (BJP) led National Democratic Alliance's (NDA) landslide victory in Lok Sabha election, focus has shifted to those who will take up key posts in the next cabinet of the NDA government at the Centre.
US President Barack Obama invited Narendra Modi to Washington in a phone call on Friday, 16 May 2014, to congratulate him on his victory in the country's elections, the White House said. "The President noted he looks forward to working closely with Mr. Modi to fulfill the extraordinary promise of the US-India strategic partnership, and they agreed to continue expanding and deepening the wide-ranging cooperation between our two democracies," the White House said in a statement. The White House didn't specify a time frame for Mr. Modi's visit but said it would take place at a mutually agreeable time. US Secretary of State John Kerry also extended his congratulations to Mr. Modi.
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.
Asian stocks edged lower on Monday, 19 May 2014, after data showed a spreading slowdown in China's housing market. Key benchmark indices in South Korea, Japan and Hong Kong and China were off 0.06% to 1.09%. Key benchmark indices in Singapore, Taiwan and Indonesia were up 0.07% to 0.3%.
China's new-home prices rose in April in the fewest cities in 1-1/2 years as developers offered discounts and the economy slowed, prompting the easing of property curbs in some places. Prices last month climbed in 44 of the 70 cities tracked by the government compared with 56 cities in March. That was the fewest cities with price gains since October 2012, when increases were recorded in only 35 on a monthly basis.
Trading in US index futures indicated that the Dow could fall 5 points at the opening bell on Monday, 19 May 2014. US stocks closed higher on Friday, 16 May 2014, after an abrupt late-day reversal.
In economic data, construction on new US homes surged in April to the fastest pace in five months, with the volatile apartment category leading that jump, according to government data released Friday.
The preliminary May reading of the University of Michigan and Thomson Reuters's gauge of consumer sentiment fell unexpectedly to 81.8 from 84.1 in April.
The Federal Reserve releases minutes from the April 29-30 meeting of Federal Open Market Committee on Wednesday, 21 May 2014. 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.
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