Indian stocks may see high intraday volatility today, 16 May 2014, as trends and actual results of wins by candidates/parties are announced during the process of counting of votes for the recently concluded Lok Sabha elections. The counting of votes began at 8:00 IST today, 16 May 2014, and results are expected by today itself. Various exit polls have predicted that the Bharatiya Janata Party (BJP) led National Democratic Alliance (NDA) would win a majority in the Lok Sabha elections which concluded on Monday, 12 May 2014. If exit polls prove correct, NDA's prime ministerial candidate Narendra Modi will become India's next Prime Minister. The term of the current Lok Sabha ends on 1 June and the new House has to be constituted by 31 May. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 44 points at the opening bell.
Modi is perceived as being more business-friendly and decisive by the business community. As chief minister for the fast-growing state of Gujarat, Modi has built a reputation for getting things done. While campaigning for the Lok Sabha elections, Modi has pledged to reinvigorate the country's manufacturing sector, create more jobs and overhaul the country's inadequate infrastructure. Investors are hoping that the BJP-led government will be better at getting things done and more business-friendly than the current Congress-party-led coalition government.
Investors are hoping that when the results of the Lok Sabha elections are out today, 16 May 2014, a stable government which will complete its full term of five years in office comes to power. A party or a pre-poll alliance will need 272 MPs to form government at the Centre, which is a simple majority in 543-member Lok Sabha. Investors are expecting measures for revival of the economy, business-friendly policies and good governance from the new government that comes to power after the elections. Investors expect policy measures from the new government to put India on a high-growth path on a sustainable basis.
The BJP in its Lok Sabha polls manifesto has promised more business-friendly policies if the party comes to power after elections. The BJP has said that measures for the revival of the economy are its priority if the party comes to power after elections. India's GDP growth has slowed to a decade low of below 5%. The GDP grew 4.7% in Q3 December 2013.
Among corporate news, Reliance Industries turns ex-dividend today, 16 May 2014, for dividend of Rs 9.50 per share for the year ended 31 March 2014.
Reliance Industries (RIL) said after market hours on Thursday, 15 May 2014, Reliance Jio Infocomm (Reliance Jio), a subsidiary of RIL and the first telecom operator to hold a Pan-India Unified License, and Tower Vision India, an independent tower company in India, have entered into a MSA (Master Service Agreement) for tower sharing. Under the agreement, Reliance Jio would utilise the telecom tower infrastructure of Tower Vision to launch its services across the country. Tower Vision has a portfolio of 8,400 towers in India.
Sanjay Mashruwala, Managing Director, Reliance Jio said, "We are committed to offer our customers wide coverage of high speed 4G networks. As a consequence, we are continuing to build this through a combination of Towers that we are constructing on our own and those that we are renting from quality tower infrastructure partners. Our partnership with Tower Vision is another step in this direction.
Also Read
We welcome Reliance Jio to our high quality tower infrastructure network. Tower Vision India prides itself on a selective tower portfolio with an unparalleled service level, built to cater for the growing urban and semi-urban voice and data demands. Through partnering with Tower Vision India, Reliance Jio gains access to carefully selected sites, covering strategic locations where data customers today require uninterrupted high speed wireless coverage. said Tower Vision's Chairman, Amit Ganani.
NTPC's net profit declined 29.39% to Rs 3093.54 crore on 18.56% growth in total income to Rs 21637.87 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Thursday, 15 May 2014.
NTPC's net profit declined 13.03% to Rs 10974.74 crore on 8.49% growth in total income to Rs 74707.82 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
On consolidated basis, NTPC's net profit declined 9.42% to Rs 11403.61 crore on 8.52% growth in total income to Rs 81699.10 crore in FY 2014 over FY 2013.
Deepak Fertilisers & Petrochemicals Corporation (DFPCL) after market hours on Thursday, 15 May 2014 said that the supply of domestic gas to the company's plant situated at Raigad district in Maharashtra has been stopped by Gas Authority of India (GAIL) and Reliance Industries (RIL) with effect from 15 May 2014 pursuant to the order by Ministry of Petroleum & Natural Gas (MOPNG). The order of MOPNG to stop supply of natural gas to the company has been taken without any prior notice and is arbitrary, unfair and discriminatory, DFPCL said. The company has approached the High Court of Delhi at New Delhi to seek appropriate remedial measures, the company added.
Videocon Industries said that its board of directors at a meeting held on Thursday, 15 May 2014, taken on record the memorandum put forward by its Mauritius based subsidiary Videocon Mauritius Energy (VMEL), for the quarter ended 31 March 2014, confirming that the VMEL has transferred entire share capital of Videocon Mozambique Rovuma 1 Limited (VMRL) to ONGC Videsh and OIL India (Buyers) and realized the sale consideration in terms of the share sale and purchase agreement (SSPA) entered on June 25, 2013 with Buyers for sale of the entire shareholding in VMRL, which owns 10% participating interest in Oil & Gas Block covering Area 1 Offshore of the Rovuma Block, Republic of Mozambique for a base consideration of $2.475 billion. VMRL, therefore, ceased to be subsidiary of the company, Videocon Industries said.
GM Breweries turns ex-dividend today, 16 May 2014, for dividend of Rs 2.50 per share for the year ended 31 March 2014.
United Spirits said that due to unavoidable circumstances, the consideration of the audited financial results of the company for the year ended 31 March 2014 and recommendation of dividend, if any, will not be taken up at the board meeting scheduled to be held on Friday, 16 May 2014, as advised to the stock exchanges.
Karnataka Bank's net profit rose 20.5% to Rs 81.21 crore on 7.54% growth in total income to Rs 1172.58 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Thursday, 15 May 2014.
Karnataka Bank's ratio of gross non-performing assets (NPAs) to gross advances stood at 2.92% as on 31 March 2014 as against 3.65% as on 31 December 2013 and 2.51% as on 31 March 2013. The ratio of net NPAs to net advances stood at 1.91% as on 31 March 2014 as against 2.23% as on 31 December 2013 and 2.51% as on 31 March 2013.
The bank's provisions and contingencies declined 29.28% to Rs 38.39 crore in Q4 March 2014 over Q4 March 2013.
Karnataka Bank's net profit declined 10.64% to Rs 311.03 crore on 12.79% growth in total income to Rs 4694.41 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
During the year, the bank, pursuant to RBI's circular dated 20 December 2013, has created DTL of Rs 27.01 crore on Special Reserve for the period up to 31 March 2013 and has adjusted the same directly from the Revenue Reserve. Further, the bank has created a DTL of Rs 7.89 crore in respect of the amounts transferred to Special Reserve for the year ended 31 March 2014 by charging of the same to the profit and loss account for the year, Karnataka Bank said.
In terms of RBI circular dated 23 August 2013 on Investment Portfolio of the Bank-Classification, Valuation and Provisioning, the bank has transferred SLR Securities with the face value of Rs 900 crore (book value of Rs 884.65 crore) held under AFS portfolio to HTM Portfolio and loss on such transfers amounting to Rs 16.77 crore has been recognized during the year, Karnataka Bank said.
Pending finalization of wage revision effective 1 November 2012, the bank has made a provision of Rs 33.43 crore during the current year on estimated basis. The cumulative provision held there on of on 31 March 2014 aggregates to Rs 55.93 crore, Karnataka Bank said.
Karnataka Bank's board of directors at its meeting held on Thursday, 15 May 2014, inter alia, has recommended dividend of Rs 4 per share for the year ended 31 March 2014.
The India Meteorological Department (IMD) on Thursday, 15 May 2014, said that the southwest monsoon is likely to set over Kerala on 5 June 2014, with a model error of plus/minus 4 days. The normal date of onset of the southwest monsoon in India is 1 June. Advance of southwest monsoon over Andaman Sea normally takes place around 20 May with a standard deviation of about one week. Low level cross equatorial monsoon flow has started appearing over south of Andaman Sea and adjoining south Bay of Bengal, the IMD said in a statement. The monsoon is likely to advance over Andaman Sea during next three days, the IMD said. Past data suggests absence of any one to one association of the date of monsoon advance over Andaman Sea with the date of monsoon onset over Kerala or that with the seasonal monsoon rainfall over the country, the IMD said.
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.
Key benchmark indices edged higher in choppy trade on Thursday, 15 May 2014 on the eve of the outcome of Lok Sabha elections amid expectations that the Bharatiya Janata Party (BJP) led National Democratic Alliance (NDA) will win a majority in the election which concluded on Monday, 12 May 2014. The S&P BSE Sensex garnered 90.48 points or 0.38% to settle at 23,905.60 on that day, a record closing high for the barometer index.
Foreign institutional investors (FIIs) bought shares worth a net Rs 934.94 crore on Thursday, 15 May 2014, as per provisional data from the stock exchanges.
Asian stocks fell on Friday after a report showed China's bad loans jumped the most since 2005 and the yen strengthened amid concern about global growth. Key benchmark indices in South Korea, Japan, Taiwan, Singapore and Hong Kong were down 0.3% to 1.65%. Key benchmark indices in China and Indonesia rose 0.02% to 0.08%.
Non-performing loans in Asia's biggest economy rose by 54 billion yuan ($8.7 billion) in the three months through March to 646.1 billion yuan, the highest level since September 2008, according to data released by the China Banking Regulatory Commission yesterday. Bad credit accounted for 1.04% of total lending, up from 1% three months earlier.
US stocks fell a second day on Thursday, with the Dow Jones Industrial Average sinking the most in a month, as investors continued to sell small-cap shares and Wal-Mart Stores Inc. forecast profit that missed estimates.
Economic data showed industrial production in the US unexpectedly declined in April, held back by a plunge in utilities as temperatures warmed and a broad-based decrease in manufacturing. Manufacturing, which makes up 75% of total production, decreased 0.4%. That contrasted with a higher-than-forecast reading on the Fed Bank of New York's gauge of regional manufacturing, which climbed to 19.01 this month, from 1.29 in April. Labor Department data showed the fewest Americans in seven years filed applications for unemployment benefits last week, while a separate report indicated the cost of living in the US rose in April by the most in almost a year.
Federal Reserve Chairwoman Janet Yellen yesterday said the US economy has further to go to achieve full health and predicted small businesses will play a vital role in the recovery.
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.
Powered by Capital Market - Live News