Key benchmark indices trimmed initial gains in mid-morning trade. The barometer index, the S&P BSE Sensex, was up 164.49 points or 0.75%, off close to 65 points from the day's high and up about 125 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 more than 1%. The market sentiment was boosted by data showing that foreign institutional investors (FIIs) remained net buyers of Indian stocks on Friday, 14 March 2014. Gains in Asian stocks also boosted sentiment on the domestic bourses.
Shares of Maruti Suzuki India surged after the company and its Japanese parent Suzuki Motor Corporation modified terms of the Gujarat manufacturing plant to address Maruti shareholders' concerns. Bank stocks rose as data released by the government last week showed that inflation based on both the consumer price index and the wholesale price index eased last month. United Bank of India rose after the state-run bank announced reduction in base rate by 25 basis points. Shares of tyre companies edged higher.
The market edged higher in early trade on firm Asian stocks. The Sensex and the 50-unit CNX Nifty, both, hit new record high. Key benchmark indices trimmed gains in morning trade. The Sensex fell below the psychological 22,000 mark after hitting record high above that mark in early trade. The Sensex further trimmed gains in mid-morning trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Friday, 14 March 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 982.19 crore on Friday, 14 March 2014, as per provisional data from the stock exchanges. The stock market was closed on Monday, 17 March 2014, on account of Holi.
Asian stocks edged higher on Tuesday, 18 March 2014, as an improvement in US factory output boosted optimism for the world's biggest economy.
At 11:20 IST, the S&P BSE Sensex was up 164.49 points or 0.75% to 21,974.29. The index jumped 230.92 points at the day's high of 22,040.72 in early trade, a new record high for the barometer index. The index rose 39.85 points at the day's low of 21,849.65 in opening trade.
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The CNX Nifty was up 50.10 points or 0.77% to 6,554.30. The index hit a high of 6,574.95 in intraday trade, a new record high. The index hit a low of 6,531.90 in intraday trade.
The BSE Mid-Cap index was up 72.54 points or 1.09% at 6,728.72, outperforming the Sensex. The BSE Small-Cap index was up 49.18 points or 0.74% at 6,576.86, underperforming the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,357 shares rose and 849 shares fell. A total of 140 shares were unchanged.
ONGC (up 2.54%), Coal India (up 2.43%) and State Bank of India (up 2.41%) edged higher from the Sensex pack.
Shares of Maruti Suzuki India surged after the company and its Japanese parent Suzuki Motor Corporation modified the terms of the Gujarat manufacturing plant to address Maruti shareholders' concerns. The stock was up 8.09% at Rs 1,877.55. The scrip hit record high of Rs 1,899.90 in intraday trade. Maruti announced on Saturday, 15 March 2014, that the board of directors of the company reviewed the Gujarat project in the context of the views and opinions expressed and decided that the entire capex for the Gujarat project would be funded by depreciation and equity brought in by Suzuki Motor Corporation. In the event that both parties mutually agree to terminate the contract manufacturing agreement, the facilities of Suzuki's Gujarat subsidiary would be transferred to Maruti Suzuki India at book value. The impact of any direct or indirect taxes on account of the contract manufacturing agreement would be assessed before finalizing the agreement, Maruti said in a statement. As earlier stated, the Gujarat subsidiary would function on the basis that it would neither generate surpluses nor make losses, Maruti said. Further, the board of Maruti has decided to seek minority shareholders' approval as stipulated in Section 188 of the Companies Act 2013 for implementing the Gujarat project through a 100% subsidiary of Suzuki Motor Corporation.
Bank stocks rose as data released by the government last week showed that inflation based on both the consumer price index and the wholesale price index eased last month. Among private sector banks, HDFC Bank (up 1.18%), ICICI Bank (up 0.79%), Yes Bank (up 2.58%), Federal Bank (up 1.8%), and Kotak Mahindra Bank (up 1.57%) gained.
Among PSU bank stocks, Punjab National Bank (up 2.19%), State Bank of India (up 2.42%), Canara Bank (up 2.11%), Bank of India (up 2.5%), Union Bank of India (up 3.11%) and Bank of Baroda (up 2.12%) gained.
United Bank of India rose 3.32% after the bank announced before market hours that it has decided to reduce the base rate of the bank from 10.50% to 10.25% from 24 March 2014.
Shares of tyre companies edged higher. Apollo Tyres (up 1.66%), JK Tyre & Industries (up 2.5%), Goodyear India (up 1.52%), MRF (up 1.35%) and CEAT (up 2.91%) gained.
Astrazeneca Pharma India surged 4.02% after the company's board approved the delisting proposal received from the promoter of the company. The announcement was made before market hours today, 18 March 2014. AstraZeneca Pharma India before market hours today, 18 March 2014 said its board at its meeting held on Saturday, 15 March 2014 approved the delisting proposal received from AstraZeneca Pharmaceuticals AB, Sweden (AZP AB), the promoter of the company.
In the foreign exchange market, the rupee edged higher against the dollar as equities rose. The partially convertible rupee was hovering at 60.96, compared with its close of 61.19/20 on Friday, 14 March 2014. Indian financial markets were closed on Monday, 17 March 2014, on account of Holi.
The government has extended the last date for payment of final installment of advance tax for financial year 2013-14 to 18 March from 15 March earlier. "To facilitate payment of final installment of advance tax for the financial year 2013-14, the Central Board of Direct taxes (CBDT) has issued an order to extend the time limit to make such payments of advance tax, from 15 March to 18 March," the finance ministry said in a statement.
The Reserve Bank of India on Friday, 14 March 2014, said it has completed a switch operation of Government of India securities, wherein swapping of securities from 2014-15 and 2015-16 maturity buckets for a face value of about Rs 4400 crore to a longer tenor security, was conducted with an institutional investor on 13 March 2014. It may be recalled that a similar switch operation for a face value of about Rs 27000 crore was conducted with another institutional investor in the last week of January 2014 and hence, the aggregate face value of securities swapped to a longer tenor security in these two operations amounted to about Rs 31000 crore in 2013-14 so far, the RBI said. The Union Budget 2013-14 has provided Rs 50000 crore for buyback/switching.
The 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.
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 Tuesday, 18 March 2014, as an improvement in US factory output boosted optimism for the world's biggest economy. Key benchmark indices in South Korea, Taiwan, Hong Kong, Japan and China rose 0.48% to 1.56%. Key benchmark indices in Singapore and Indonesia fell 0.04% to 0.91%.
New-home price growth in China slowed last month, led by the four Chinese cities the government defines as first tier, amid tighter credit to rein in excessive borrowing and individual city measures to curb property prices.
Trading in US index futures indicated that the Dow could advance 22 points at the opening bell on Tuesday, 18 March 2014. US stocks surged on Monday, 17 March 2014, as investors shrugged off the narrow scope of EU and US sanctions following the vote in Crimea in favor of leaving Ukraine. Industrials and technology stocks lead broad-based gains after better-than-expected economic data, including industrial production and manufacturing activity in the New York region. However, stocks rose amid the lowest trading volumes this year.
Factory production in the US rose in February by the most in six months, indicating the industry started to recover from severe winter weather. The 0.8% gain at manufacturers followed a revised 0.9% slump in the prior month that was the biggest since May 2009, figures from the Federal Reserve showed. A separate gauge of manufacturing in the New York area rose less than forecast last month, climbing to 5.61 from 4.48. Separately, a gauge of confidence among home builders ticked up in March, but remained close to the lowest level since May and signaled that builders, generally, are pessimistic about sales trends.
A two-day meeting of the Federal Open Market Committee (FOMC) for monetary policy review begins today, 18 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.
European Union foreign ministers on Monday, 17 March 2014, agreed to freeze assets and impose visa bans on 21 Russian and Crimean political figures, while the US put similar sanctions on seven Russian government officials and four Ukrainians, including former President Viktor Yanukovych, who was ousted after protests last month. Russian President Vladimir Putin responded by recognizing Crimea as a sovereign state.
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