IT stocks in demand

Key benchmark indices hovered in positive zone in afternoon trade. The barometer index, the S&P BSE Sensex, was up 41.80 points or 0.19%, up 43.51 points from the day's low and off 88.22 points from the day's high. The market breadth, indicating the overall health of the market was positive. Gains in Asian stocks aided upmove on the domestic bourses.

Index heavyweight Reliance Industries (RIL) extended intraday fall in volatile trade. Index heavyweight and cigarette maker ITC fell in volatile trade. IT stocks gained after reports on leading indicators and regional manufacturing fueled optimism in the US economy. In auto stocks, TVS Motor Company scaled a record high. Among tyre stocks, Apollo Tyres and MRF hit record high. Symphony also scaled record high.

The market edged higher in early trade on firm Asian stocks. The Sensex trimmed initial gains in morning trade. The Sensex regained positive zone soon after sliding into the red for a brief period in mid-morning trade. Key benchmark indices moved in a narrow range in positive zone in early afternoon trade. Key benchmark indices hovered in positive zone in afternoon trade.

Foreign institutional investors (FIIs) bought shares worth a net Rs 722.02 crore on Thursday, 20 March 2014, as per provisional data from the stock exchanges.

Stock exchanges are conducting a special live trading session tomorrow, 22 March 2014, as the National Stock Exchange (NSE) is testing its software. Trading will take place from 11:15 IST to 12:45 IST.

At 13:15 IST, the S&P BSE Sensex was up 41.80 points or 0.19% to 21,781.89. The index jumped 130.02 points at the day's high of 21,870.11 in early trade, its highest level since 19 March 2014. The index fell 1.71 points at the day's low of 21,738.38 in mid-morning trade.

The CNX Nifty was up 17 points or 0.26% to 6,500.10. The index hit a high of 6,522.90 in intraday trade. The index hit a low of 6,485.70 in intraday trade.

The BSE Mid-Cap index was up 54.76 points or 0.82% at 6,770.06. The BSE Small-Cap index was up 55.64 points or 0.83% at 6,782.31. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market was positive. On BSE, 1,473 shares rose and 1,127 shares fell. A total of 147 shares were unchanged.

The total turnover on BSE amounted to Rs 8391 crore by 13:15 IST.

Tata Steel (up 3.49%), Sesa Sterlite (up 3.29%) and Hindalco Industries (up 2.89%) edged higher from the Sensex pack.

ONGC (down 1.47%), NTPC (down 0.99%) and Hero MotoCorp (down 0.88%) edged lower from the Sensex pack.

Index heavyweight Reliance Industries (RIL) lost 1.81% to Rs 889.30, with the stock extending intraday fall in volatile trade. The stock hit high of Rs 913.70 and low of Rs 886.95 so far during the day. RIL in video recorded Hindi transcript uploaded on YouTube has denied allegations of benefits from the Gujarat government.

Index heavyweight and cigarette maker ITC lost 0.73% to Rs 353.30 in volatile trade. The stock hit high of Rs 358.70 and low of Rs 352.70 so far during the day.

IT stocks gained after reports on leading indicators and regional manufacturing fueled optimism in the US economy. US is the biggest outsourcing market for the Indian IT firms.

Wipro surged 3.82% at Rs 572. The scrip hit high of Rs 577.10 and low of Rs 554.45 so far during the day.

IT major Infosys rose 0.06%. The company said after market hours on Thursday, 20 March 2014 that Mr. Chandra Shekar Kakal, Senior Vice President & Member of the Executive Council has conveyed his intention to resign from the services of the Company.

TCS rose 1.39%, with the stock extending Thursday's 3.28% gain. The company after market hours on Wednesday, 19 March 2014, announced the go-live of a new maintenance, repair and overhaul (MRO) application programme with PT Garuda Indonesia (Persero) Tbk. (Garuda Indonesia Airlines), Indonesia's national airline, via its aircraft maintenance subsidiary GMF Aeroasia.

HCL Technologies (up 2.5%), Tech Mahindra (up 1.37%), Oracle Financial Services Software (up 1.31%), Hexaware Technologies (up 0.57%) and Geometric (up 5.09%) edged higher.

TVS Motor Company jumped 4.66% to Rs 97.75 after scaling a record high of Rs 100.65 in intraday trade.

Apollo Tyres gained 2.29% to Rs 140.60 after hitting a record high of Rs 141.15 in intraday trade.

MRF gained 2.63% to Rs 22,000 after hitting a record high of Rs 22,119.95 in intraday trade.

Symphony gained 3.4% to Rs 711 after hitting a record high of Rs 747.50 in intraday trade.

SJVN rose 1.23% after the company said that Rampur Hydro Electric Project, located on river Satluj in Himachal Pradesh, commenced power generation on Thursday, 20 March 2014. The announcement was made during trading hours today, 21 March 2014.

SJVN during trading hours today, 21 March 2014 said that the company's 412 megawatt (MW) Rampur Hydro Electric Project, located on river Satluj in Himachal Pradesh, commenced power generation on Thursday, 20 March 2014 with the synchronization of its first 68.67 MW unit with the northern grid. The mechanical wet spinning of Unit-I and Unit-II of the Project had been successfully achieved on 4 and 5th March 2014 respectively, SJVN said.

It is expected that all the six vertical axis Francis turbine units each of 68.67 MW will be progressively commissioned within the next three months, the company said.

On completion the project will generate 1770 million units of electricity per annum, 30% of which will be supplied to home state Himachal Pradesh, which is the company's equity partner, in addition to 12% free power. The balance power, will be supplied to the northern grid states namely Haryana, Himachal Pradesh, J&K, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand, Chandigarh & Delhi, SJVN said in a statement.

Dewan Housing Finance Corporation jumped 6.21% to Rs 219.05 after 1.3% equity changed hands in a bulk deal today, 21 March 2014. A bulk deal of 16.79 lakh shares was executed on the Dewan Housing Finance Corporation counter at Rs 215.05 per share in opening trade on BSE today, 21 March 2014.

Shares of Mukand edged lower in choppy trade as shares allotted in company's rights issue were admitted for trading on the bourses today, 21 March 2014. The stock was off 1% to Rs 24.70. The stock was volatile. It hit high of Rs 26.70 and low of Rs 23.75 so far during the day. A total of 6.82 crore shares allotted in the rights issue were admitted for trading on the bourses. The company had raised about Rs 143.41 crore from the rights issue recently. The rights issue was priced at Rs 21 per share. The rights issue was in the ratio 1:1.

In the foreign exchange market, the rupee edged higher against the dollar on optimism a recovering economy will lure inflows even as the US Federal Reserve keeps cutting stimulus. The partially convertible rupee was hovering at 61.1350, compared with its close of 61.34/35 on Thursday, 20 March 2014.

Government bond prices rose after Reserve Bank of India Governor Raghuram Rajan said that the central bank has not yet moved to an inflation target, and was still exploring the suggestions on the subject drafted by a panel with the government. A panel headed by Reserve Bank of India deputy governor Urjit Patel recommended in January moving to an inflation target, with an aim to eventually bring down consumer-price based inflation to 4% with a 2% band on either side. "We haven't moved to inflation targeting as yet," Rajan said at an event in Mumbai today, 21 March 2014. The yield on 10-year benchmark federal paper, 8.83% GS 2023, was hovering at 8.7917%, lower than its close of 8.8188% on Thursday, 20 March 2014. Bond yields and bond prices move in opposite direction.

The Reserve Bank of India will announce the First Bi-monthly Monetary Policy Statement, 2014-15 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 next 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 be 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 Friday, 21 March 2014, with investor sentiment boosted by overnight gains in US stocks. Key benchmark indices in China, Hong Kong, Singapore, Indonesia and South Korea were up 0.08% to 2.72%. In Taiwan, the Taiwan Weighted index fell 0.23%. The Japanese stock market was closed for a holiday.

China equity funds had a record outflow of $1.5 billion for the week ended 19 March 2014, of which $1.3 billion came from exchange-traded funds, according to reports.

The China Beige Book survey, published by New York-based CBB International, signaled the nation's economy slowed this quarter, with industries including retail and mining showing weaker revenue growth. Loans through non-traditional channels became more expensive, it said.

China's cabinet said this week it will speed up construction projects and other measures to support the economy after data showed moderating growth in industrial production and investment. The government is targeting 7.5% growth this year, which would be the slowest pace since 1990.

Trading in US index futures indicated that the Dow could advance 29 points at the opening bell on Friday, 21 March 2014. US stocks rose on Thursday, 20 March 2014, as reports on leading indicators and regional manufacturing fueled optimism in the economy, overshadowing concern that interest rates may rise in the middle of next year.

The Conference Board's gauge of the US economic outlook for the next three to six months climbed 0.5% in February, the biggest gain since November, data showed. The Philadelphia Fed's manufacturing gauge rose to 9.0 in March from minus 6.3 the prior month. Separate data showed purchases of previously owned homes declined in February to the lowest level since July 2012.

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.

Fitch Ratings today, 21 March 2014, affirmed the United States' credit ratings at "AAA" with a stable outlook, removing the distant danger that it might downgrade the world's largest economy. The action resolves the negative watch that Fitch had placed on the United States back in October, when political wrangling over the debt ceiling had raised the risk of default. "Fitch's sensitivity analysis does not currently anticipate developments with a material likelihood, individually or collectively, of leading to a rating downgrade," it said in a statement. Fitch said the latest crisis over the debt limit had not adversely affected US Treasury yields or the appetite of foreign investors for the debt. "Therefore Fitch does not believe the role of the US dollar, sovereign financing flexibility or debt tolerance has been materially damaged," it said.

Fitch noted the United States had greater debt tolerance than other triple-A peers owing to the unparalleled financing flexibility provided by being the issuer of the world's reserve currency and benchmark fixed-income asset. "Strong fiscal consolidation has been achieved," the agency added. It expected the US budget deficit to decline to 2.9% of gross domestic product (GDP) in the 2014 fiscal year, from 4% in fiscal 2013 and 6.7% in 2012. But Fitch cautioned there were still risks to the ratings outlook, including if authorities failed to address rising expenditure pressures from an ageing population and higher interest rates later in the decade.

US President Barack Obama raised the stakes in an East-West confrontation over Crimea on Thursday by targeting some of Russian President Vladimir Putin's closest long-time political and business allies with personal sanctions. The extension of visa bans and asset freezes into Putin's inner circle came as Moscow rushed to consolidate the annexation of the Black Sea peninsula, seized from Ukraine last month, and to boost its military presence in the region.

Russian troops took over three Ukrainian warships in Crimea on Thursday, using stun grenades in one incident. Kiev also said it had begun withdrawing its border guards, surrounded and outnumbered by Russian forces, from Crimea to the mainland.

Successful legal challenges against European Union (EU) sanctions over the past year have made the bloc wary of taking aggressive actions against Russian businessmen and companies as it works to contain Moscow's ambitions in Ukraine. EU leaders meeting in Brussels on Thursday, 20 March 2014, agreed to apply asset freezes and visa bans on 12 more Russian officials, but stopped short of penalizing any powerful oligarchs or companies. German Chancellor Angela Merkel said legal concerns were the main reason leaders had avoided targeting people outside Russia's political and military circles. "We in Europe are bound to having an obvious connection to Crimea-i.e. the offense that is at the base of the sanctions. That's a different legal situation from the US," she told journalists after the meeting. Concerns over legal challenges to EU sanctions have increased over the past year after the bloc's courts struck down financial sanctions against several individuals and companies.

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