A bout of volatility was witnessed as key benchmark indices trimmed initial gains in morning trade. The barometer index, the S&P BSE Sensex, was up 27.52 points or 0.12%, off close to 60 points from the day's high and up about 20 points from the day's low. The market breadth, indicating the overall health of the market, was positive. Metal and mining stocks rose after latest data showed China's exports and imports unexpectedly rose in April.
The Sensex edged higher in early trade. A bout of volatility was witnessed as key benchmark indices trimmed initial gains in morning trade.
Asian stocks rose on Thursday, 8 May 2014, after Federal Reserve Chairwoman Janet Yellen said a testimony to US lawmakers on Wednesday, 7 May 2014, that the Federal Reserve will continue to support the US economy.
Foreign institutional investors (FIIs) bought shares worth a net Rs 119.11 crore on Wednesday, 7 May 2014, as per provisional data from the stock exchanges.
At 10:20 IST, the S&P BSE Sensex was up 27.52 points or 0.12% to 22,351.42. The index rose 89.92 points at the day's high of 22,413.82 in early trade. The index gained 5.49 points at the day's low of 22,329.39 in morning trade.
The CNX Nifty was up 9.40 points or 0.14% to 6,691.95. The index hit a high of 6,680.85 in intraday trade. The index hit a low of 6,656.05 in intraday trade.
More From This Section
The BSE Mid-Cap index was up 16.87 points or 0.23% to 7,376.95. The BSE Small-Cap index was up 40.12 points or 0.53% to 7,567.11. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,098 shares gained and 761 shares fell. A total of 104 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks gained and rest of them fell. Cipla (up 1.96%), Tata Motors (up 1.16%) and Bharti Airtel (up 0.88%) edged higher from the Sensex pack.
Metal and mining stocks rose after latest data showed China's exports and imports unexpectedly rose in April. China is the World's largest consumer of copper and aluminum. Sesa Sterlite (up 0.59%), Hindalco Industries (up 2.33%), Hindustan Zinc (up 0.33%), Bhushan Steel (up 0.31%), NMDC (up 0.2%), Steel Authority of India (Sail) (up 0.97%), Tata Steel (up 1.38%), and Hindustan Copper (up 0.53%) gained. JSW Steel (down 0.51%) and National Aluminum Company (down 0.51%) dropped.
Procter & Gamble Hygiene and Health Care jumped 4.93% after net profit rose 55.04% to Rs 80.76 crore on 20.09% rise in net sales to Rs 500.35 crore in Q3 March 2014 over Q3 March 2013. The company announced the result after market hours on Wednesday, 8 May 2014.
Procter & Gamble Hygiene and Health Care (P&G Hygiene) said growth in net sales was driven by strong consumer-centric brand initiatives. Profit was driven by strong focus on costs.
The company said that both feminine care and health care businesses continued to deliver robust double-digit growth in a competitive market environment behind superior consumer propositions, strong initiatives and the strength of their portfolio. The launch of Oil Spice is delivering in-line with expectations, adding incremental sales and share growth. Strong margin growth was the result of focus on productivity across the major cost pools, the company said.
In the foreign exchange market, the rupee edged higher against the dollar after Federal Reserve Chair Janet Yellen signaled the US still needs monetary stimulus and as China's exports beat forecasts. The partially convertible rupee was hovering at 60.045, compared with its close of 60.135/145 on Wednesday, 7 May 2014.
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.
A major near term trigger for the stock market is the outcome of the ongoing Lok Sabha elections. The 36 days long voting process began on 7 April 2014 and will conclude on 12 May 2014. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.
Investors are hoping that a stable government which will complete its full term of five years in office comes to power after the elections. 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.
Investors are betting that the Bharatiya Janata Party (BJP) led National Democratic Alliance (NDA) will be able to form the next government at the centre with support from some regional parties after Lok Sabha elections which conclude next week. Various opinion polls have forecast that the NDA with Narendra Modi as its prime ministerial candidate is leading the race to Parliament. Most opinion polls have forecast that the NDA will be unable to form the government on its own and that it will have to rely on support from smaller regional parties to form the government. For the first time in mid-April, an opinion poll for a television news channel showed the NDA winning a narrow majority of 275 seats.
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%.
Narendra Modi, the prime ministerial candidate from the NDA, 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.
Asian stocks rose on Thursday as Federal Reserve Chairwoman Janet Yellen said the Federal Reserve will continue to support the US economy. Key benchmark indices in Japan, Hong Kong, China, Singapore, South Korea and Taiwan were up 0.17% to 1.35%. Indonesia's Jakarta Composite fell 0.28%.
China's exports and imports unexpectedly rose in April, helping leaders put a floor under a slowdown in the world's second-biggest economy. Overseas shipments increased 0.9% from a year earlier, when figures were inflated by fraudulent invoicing, data from the Beijing-based customs administration showed today. Imports gained 0.8%, leaving a trade surplus of $18.46 billion.
Australian employers boosted payrolls in April, underscoring an improving economic outlook that prompted the central bank to adopt a neutral policy stance. The number of people employed rose by 14,200 from a month earlier, the statistics bureau said in Sydney. The jobless rate held at 5.8%.
Trading in US index futures indicated that the Dow could gain 9 points at the opening bell on Thursday, 8 May 2014. Most US stocks rose on Wednesday after comments from Federal Reserve Chair Janet Yellen signaled continued support for the US economy.
Yellen told US lawmakers the economic stimulus that has fueled global asset gains is still required because employment and inflation are well short of the central bank's goals.
The Labor Department said that US nonfarm productivity fell at its fastest pace in a year in the first quarter because of severe weather. That led to the largest gain in unit labor costs in more than a year. Productivity fell at a 1.7% annual rate in the quarter, the Labor Department said.
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.
In Europe, a monthly meeting of the Monetary Policy Committee of the Bank of England's (BoE) for monetary policy review is scheduled today, 8 May 2014.
The European Central Bank (ECB) will hold monetary policy meeting today, 8 May 2014, in Brussels, Belgium.
Powered by Capital Market - Live News