Key benchmark indices trimmed gains after a firm opening triggered by higher Asian stocks. The barometer index, the S&P BSE Sensex, was up 45.36 points or 0.21%, off close to 80 points from the day's high and up about 30 points from the day's low. The market breadth, indicating the overall health of the market, was strong.
GAIL (India) reversed direction after hitting 52-week high in early trade. IT stocks gained across the board after the Obama administration on predicted that US gross domestic product will expand 3.1% in 2014 after rising 1.9% last year. TCS rose after the company announced a new partnership with Microsoft Business Solutions (MBS) at the annual Microsoft Dynamics Convergence Conference.
The market edged higher in early trade on firm Asian stocks. The Sensex and the 50-unit CNX Nifty, both, hit their highest level in nearly six weeks. A bout of volatility was witnessed as key benchmark indices trimmed gains in morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 185.61 crore on Tuesday, 4 March 2014, as per provisional data from the stock exchanges.
Asian stocks edged higher on Wednesday, 5 March 2014, after comments from Russian President Vladimir Putin on Tuesday, 4 March 2014, signaled the Ukraine crisis won't immediately escalate and as China's leaders retained an economic growth target for this year. Putin said on Tuesday, 4 March 2014, that he's not considering taking control of the Black Sea region of Crimea and would send troops into Ukraine only in extreme circumstances. Ukraine, a former Soviet republic, has been plunged into turmoil since protesters forced the ouster of the president last month. Russia keeps its Black Sea fleet in Crimea, where the majority language is Russian. Troops in the region have only been securing their bases and gunmen who have seized crucial infrastructure and surrounded military installations in the Crimea are acting independently, Putin said on Tuesday.
At 10:20 IST, the S&P BSE Sensex was up 45.36 points or 0.21% to 21,255.09. The index jumped 123.47 points at the day's high of 21,333.20 in early trade, its highest level since 24 January 2014. The index rose 12.14 points at the day's low of 21,221.87 in morning trade.
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The CNX Nifty was up 19.60 points or 0.31% to 6,317.55. The index hit a high of 6,333.90 in intraday trade, its highest level since 23 January 2014. The index hit a low of 6,299.75 in intraday trade.
The BSE Mid-Cap index was up 52.98 points or 0.81% at 6,618.57. The BSE Small-Cap index was up 37.34 points or 0.57% at 6,553.13. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,237 shares gained and 643 shares fell. A total of 82 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks rose and rest of them fell. Tata Steel (up 2.23%), Dr. Reddy's Laboratories (up 1.52%) and Coal India (up 1.43%) edged higher from the Sensex pack.
IT stocks gained across the board after the Obama administration on predicted that US gross domestic product will expand 3.1% in 2014 after rising 1.9% last year. The US is the biggest outsourcing market for the Indian IT firms. HCL Technologies (up 0.32%), Infosys (up 0.9%), Tech Mahindra (up 0.3%) and Wipro (up 0.97%) gained.
TCS rose 1.38% after the company announced after market hours on Tuesday, 4 March 2014, a new partnership with Microsoft Business Solutions (MBS) at the annual Microsoft Dynamics Convergence Conference. Through this strategic partnership, TCS and MBS will collaborate on the development of online and on premise versions of Microsoft Dynamics CRM. TCS is one of a select group of systems integrator to be involved in this development, which is a testament to the company's technical capabilities and deep, working knowledge of Microsoft Dynamics CRM, TCS said in a statement.
As part of this partnership, TCS has developed a state of-the-art development center that will support the upcoming releases and updates to the Microsoft Dynamics CRM Roadmap, namely Mira and Leo. The development center is focused on enhancing the roadmap platform through the development of innovative marketing business applications and enhancements to core technology and mobility platforms. TCS has also invested in a test center which comprises of a team of more than 150 highly-skilled engineers. The team is working to identify and create solutions that will improve the user experience, drive process agility and automation, and deliver 'CRM On The Go' capabilities.
GAIL (India) fell 0.87% to Rs 376.65, with the stock reversing direction after hitting 52-week high of Rs 383.95 in early trade.
In the foreign exchange market, the rupee was almost unchanged against the dollar. The partially convertible rupee was hovering at 61.86, compared with its close of 61.845/855 on Tuesday, 4 March 2014.
On political front, the schedule for the 2014 Lok Sabha elections will be announced by the Election Commission at 10:30 IST on today. With the announcement of poll dates, the Model Code of Conduct for governments and political parties will come into force with immediate effect. Therefore, once elections are announced, the Cabinet will no longer be able to take key decisions. The schedule will be announced at a press conference by Chief Election Commissioner VS Sampath along with two Election Commissioners HS Brahma and SNA Zaidi.
Markit Economics will unveil the result of a monthly survey on the performance of India's services sector for February 2014 today, 5 March 2014. The HSBC Services Business Activity Index increased from December's 46.7 to 48.3 in January 2014.
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 higher on Wednesday, 5 March 2014, after comments from Russian President Vladimir Putin on Tuesday, 4 March 2014, signaled the Ukraine crisis won't immediately escalate and as China's leaders retained an economic growth target for this year. Key benchmark indices in Indonesia, Singapore, Japan, Hong Kong, Taiwan and South Korea were up 0.2% to 1.44%. China's Shanghai Composite fell 0.2%.
China provided its strongest signal yet that it will shift toward balanced and clean economic growth, promising to reduce the pace of investment to the lowest in a decade and wage a "war on pollution". In a State of the Union style address to China's annual parliament meeting that began today, 5 March 2014, Premier Li Keqiang said Beijing aims to grow the world's second-largest economy by 7.5% this year. Li said enacting reforms was his first priority even as he keeps an eye on growth. Idle factories will be shut, and work on a new environmental protection tax will be sped up to create a greener and more balanced economy powered by consumption rather than investment, he said. "Reform is the top priority for the government this year," Li told around 3,000 hand-picked delegates in a cavernous meeting hall in central Beijing.
Australia's economy expanded faster than analysts forecast last quarter on rising household spending and lower savings, as the central bank's bid to spur consumption-led growth bears fruit. Fourth-quarter gross domestic product rose 0.8% from the previous three months.
Trading in US index futures indicated that the Dow could fall 9 points at the opening bell on Wednesday, 5 March 2014. US stocks rose surged on Tuesday, 4 March 2014, as fears of a confrontation between Russia and Ukraine eased and Russian President Vladimir Putin said there was no need to use military force in the Crimea region for now.
The US economy will grow this year at its fastest pace since 2005, helping reduce the annual average unemployment rate for a fourth straight year even as market borrowing costs rise, the President Barack Obama administration predicted. Gross domestic product will expand 3.1% in 2014 after rising 1.9% last year, the administration said in forecasts accompanying its 2015 budget plan released in Washington. The jobless rate will average 6.9% this year, compared with 7.4% last year, and average 6.4% in 2015, according to estimates based on information as of mid-November.
The $3.9 trillion spending request anticipates an accelerating economy that's boosting employment while moving up inflation to levels unlikely to concern Federal Reserve policy makers. The proposal says fixing the immigration system, investing in infrastructure, simplifying the tax code and improving job training would reduce the ranks of the unemployed even more.
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 Europe, a monthly meeting of the Governing Council of the European Central Bank (ECB) is scheduled tomorrow, 6 March 2014, in Frankfurt to decide euro zone interest rates.
A two-day meeting of Bank of England's Monetary Policy Committee (MPC) begins today, 5 March 2014, to decide interest rates in UK. Policy rates are expected to remain unchanged at record low. The UK's central bank slashed interest rates to record low of 0.5% at the height of the financial crisis in 2009.
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