Key benchmark indices eked out small gains in volatile trade. The barometer index, S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their highest closing level in almost a week. Earlier during the day, strong initial gains took the Sensex and Nifty to fresh record high. The Sensex garnered 22.81 points or 0.1%, off 208.11 points from the day's high and up 47.23 points from the day's low. The market breadth, indicating the overall health of the market, was positive.
Indian stocks edged higher for the second day in a row today, 18 March 2014. The Sensex has risen 58 points or 0.26% in two trading days from its recent low of 21,774.61 on 13 March 2014. The Sensex has risen 712.49 points or 3.37% in this month so far (till 18 March 2014). The Sensex has risen 661.93 points or 3.12% so far in calendar 2014 (till 18 March 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 4,383.90 points or 25.12%.
Coming back to today's trade, index heavyweight and cigarette major ITC gained. Most metal and mining stocks edged higher. Index heavyweight Reliance Industries (RIL) edged higher in choppy trade after the company said that its telecom unit -- Reliance Jio Infocomm -- (Reliance Jio) will launch its services across India using telecom-tower infrastructure provided by Viom Networks.
In auto pack, Mahindra & Mahindra (M&M) reversed direction after hitting record high in early trade. 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. Among two-wheeler makers, TVS Motor Company hit 52-week high. Tyre stocks edged higher, with shares of MRF and Apollo Tyres hitting record high.
Engineering and construction major L&T reversed direction after hitting a 52-week high. Shares of fast moving electrical goods (FMEG) company Havells India hit record high. IndusInd Bank gained after a bulk deal was executed in the counter in opening trade on BSE. Shares of Polaris Financial Technology jumped after the company announced the demerger of its products business into an independent entity.
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 level in early trade. The Sensex further trimmed gains in mid-morning trade. The Sensex retained positive zone in early afternoon trade. A bout of volatility was witnessed as key benchmark indices regained positive terrain after slipping into the red in mid-afternoon trade.
The S&P BSE Sensex garnered 22.81 points or 0.1% to settle at 21,832.61, its highest closing level since 12 March 2014. 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 lost 24.42 points at the day's low of 21,785.38 in mid-afternoon trade.
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The CNX Nifty garnered 12.45 points or 0.19% to settle at 6,516.65, its highest closing level since 12 March 2014. The index hit a high of 6,574.95 in intraday trade, a new record high. The index hit a low of 6,497.65 in intraday trade.
The BSE Mid-Cap index garnered 63.19 points or 0.95% to settle at 6,719.37. The BSE Small-Cap index garnered 64 points or 0.97% to settle at 6,691.68. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2545 crore, higher than Rs 2252.51 crore on Friday, 14 March 2014.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,545 shares rose and 1,255 shares fell. A total of 176 shares were unchanged.
The S&P BSE FMCG index (up 1.84%), the S&P BSE Power index (up 1.27%), the S&P BSE Consumer Durables index (up 0.89%), the S&P BSE Oil & Gas index (up 0.87%), the S&P BSE Metal index (up 0.6%), the S&P BSE Bankex (up 0.54%), the S&P BSE Healthcare index (up 0.22%) outperformed the Sensex.
The S&P BSE Auto index (down 0.17%), the S&P BSE Capital Goods index (down 0.35%), the S&P BSE Teck index (down 0.47%), the S&P BSE Realty index (down 0.52%), the S&P BSE IT index (down 0.82%) underperformed the Sensex.
Coal India (up 2.48%), Tata Power Company (up 1.5%) and Dr. Reddy's Laboratories (up 0.87%) edged higher from the Sensex pack.
Index heavyweight Reliance Industries (RIL) rose 0.82% to Rs 893.40. The stock hit high of Rs 908.80 and low of Rs 888.80. The company today, 18 March 2014, said that its telecom unit -- Reliance Jio Infocomm (Reliance Jio) -- will launch its services across India using telecom-tower infrastructure provided by Viom Networks. Under the Master Services Agreement, Reliance Jio will use Viom Networks' Pan India passive telecom infrastructure having a footprint of over 42,000 telecom towers. Reliance Jio holds a pan-India unified license and is currently building a network to offer next generation high speed data services. The company believes that the Indian market is highly underserviced. There's thus a deep demand undercurrent for reliable (4th generation) high speed internet connectivity, rich communication services, and various digital services on pan India basis in key domain such as education, healthcare, security, financial services, government citizen interfaces and entertainment, Reliance Jio said in a statement. The mission therefore is to provide anytime, anywhere access to innovative and empowering digital content, applications and services, thereby propelling India into a global leadership league in the digital economy, the company said.
Cairn India rose 1.56%. Cairn Energy PLC today, 18 March 2014, said it has suspended a share buyback program until the position regarding its interest in Cairn India is resolved. In January 2014, Cairn Energy received a request from the Indian income tax department for information relating to its 2006 reorganization, which was compliant with tax legislation in place at the time. The Indian income tax department has cited legislation introduced in 2012 as the reason for these enquiries. About 10% residual shareholding in Cairn India (CIL) valued at about $1 billion as on 31 December 2013 which, while interactions are ongoing with the Indian Income Tax Department, Cairn is not able to sell, Cairn Energy PLC said.
Index heavyweight and cigarette major ITC advanced 2.48% to Rs 355.60. The stock hit high of Rs 356.50 and low of Rs 348.
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 jumped 7.58% at Rs 1,868.85. 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.
M&M shed 1.23% to Rs 1,013.15, with the stock reversing direction after hitting a record high of Rs 1,054 in intraday trade.
Tata Motors lost 3.11%.
Ashok Leyland rose 0.29%. Ashok Leyland after market hours today, 18 March 2014, said that the company has sold 50 lakh shares of IndusInd Bank today, 18 March 2014, through a combination of bulk deal and normal trading.
IndusInd Bank gained 3.02% to Rs 482 after 0.23% equity changed hands in a bulk deal on BSE today, 18 March 2014. A bulk deal of 12.50 lakh shares was executed on the IndusInd Bank scrip at Rs 471.70 per share in opening trade on BSE today, 18 March 2014.
Shares of two-wheeler makers rose. Bajaj Auto rose 1.12%. Hero MotoCorp rose 0.5%.
TVS Motor Company gained 2.77% to Rs 88.90 after hitting a 52-week high of Rs 91.25 in intraday trade.
Amtek Auto gained by maximum permissible level of 20% to Rs 138.65, also its 52-week high.
Amtek India jumped by maximum permissible level of 20% at Rs 77.50 after the company said that it has successfully completed the acquisition of substantial interest of Germany-based Kuepper Group. The announcement was made after market hours on Friday, 14 March 2014. The stock market was closed on Monday, 17 March 2014, on account of Holi.
Amtek India after market hours on Friday, 14 March 2014 said that it has successfully completed the acquisition of substantial interest of Germany-based Kuepper Group through its 100% step down subsidiary Amtek Kuepper GmBH. Kuepper Group is engaged in the business of iron, aluminium casting and integrated machining having 5 manufacturing facilities across Germany and Hungary.
On 24 December 2013, Amtek India said it has entered into an agreement to acquire substantial business interests of Germany based Kuepper Group through its 100% subsidiary.
Most metal and mining stocks edged higher. Sesa Sterlite (up 0.28%), Hindustan Zinc (up 1.03%), Bhushan Steel (up 0.55%), National Aluminum Company (up 0.86%), JSW Steel (up 0.33%), NMDC (up 0.23%), and Jindal Steel & Power (up 2.13%) gained. Hindalco Industries (down 0.86%), Hindustan Copper (down 0.08%), Tata Steel (down 0.31%), and Steel Authority of India (SAIL) (down 0.63%) declined.
IT stocks edged lower as rupee edged higher against the dollar. A firm rupee adversely affects operating profit margins of IT firms as the sector derives a lion's share of revenue from exports. Tata Consultancy Services (TCS) (down 1.13%), Wipro (down 1.26%) and HCL Technologies (down 0.39%) declined.
Infosys dropped 1.25%, with the stock reversing intraday gains. The company announced on Monday, 17 March 2014, that it has been selected by Volvo Cars as a strategic supplier to provide application development services for its global operations. This agreement builds on the long-standing relationship as Infosys has been supporting Volvo Cars since 2010 to rationalize and integrate its enterprise systems.
As part of the new agreement, Infosys will bring its proven global service delivery experience and ability to drive innovation and transformation- efficiently and effectively. It will develop applications to support multiple domains, including marketing and sales, customer service, manufacturing, product development, and corporate functions and deploy best practices specifically related to business process harmonization and delivery excellence, across transformation projects.
Nitesh Bansal, Vice President Manufacturing Europe, Infosys said, "we will be a strategic supplier for Volvo Cars to deliver excellence and innovation to transform their IT landscape to a modern architecture. We are very pleased to collaborate with Volvo Cars in their strategic journey. We have an industry heritage, deep automotive expertise, and established track record of delivering that leaves us well positioned to be a strategic supplier to Volvo Cars. This agreement also reflects our strategic focus on the Nordic market and strengthens our presence in Sweden."
Separately, Infosys said after market hours on Friday, 14 March 2014, that the US District of Columbia has extended its contract with Infosys Public Services, a US-based subsidiary of Infosys. Earlier, the District signed a $49.5 million agreement with Infosys Public Services in January 2013 to develop its Health Insurance Marketplace, the DC Health Link. One of the first state-based marketplaces to be operational as scheduled on 1 October 2013, DC Health Link offers health insurance options to over half a million residents and small businesses.
Under the new agreement, Infosys Public Services will modernize the legacy eligibility system and additional federal and local health and social programs for the US District of Columbia. Infosys Public Services will leverage the foundational capabilities developed in 2013 to enable the District's agencies to collaborate with their constituents to achieve sustainable health and social benefit outcomes.
Eric Paternoster, President and Chief Executive Officer, Infosys Public Services, Inc. said, The District is a leader in implementing the new healthcare insurance mandates and insurance marketplace. We're excited to continue our partnership with the District on this important healthcare program.
Tech Mahindra gained 0.53%. The company today, 18 March 2014, announced that Volvo Car Group has selected it to provide end to end IT infrastructure support and services in key countries globally including Sweden, China and Belgium. The scope of the partnership which was signed in February covers 2,800 servers across Volvo Cars' regional offices, global factories, global datacenter, R&D and manufacturing IT. The service also covers 4,000 factory devices in Sweden, Belgium, China and 30,000 end users and their work devices, including parts of the Volvo Cars dealer network. The partnership also encompasses application maintenance and development, including the introduction and management of a hybrid cloud strategy, viewed as transformational by those close to the project, Tech Mahindra said. Key business objectives for Volvo Cars include operational excellence, delivering key products successfully to support growth and business value realization.
Polaris Financial Technology jumped 15.22% after the company announced the demerger of its products business into a separately listed company. The company made the announcement during trading hours today, 18 March 2014.
The board of Polaris Financial Technology at its meeting today, 18 March 2014, gave an in-principle approval for demerging the products business undertaking of the company into a separate listed firm.
After demerger, the product company will be known as Intellect Design Arena (Intellect) and comprise of four distinct businesses: global universal banking; risk and treasury management; global transaction banking and insurance. As consideration for the demerger (technically called a vertical split), every shareholder of Polaris Financial Technology, will receive one share of Intellect.
The product business is significantly different from the services stream, in terms of investments into product development, talent and sales & distribution. Given this, the Polaris board, taking into consideration the recommendations made by the Special Committee comprising of independent directors of the Board as well as the Audit Committee, has decided to offer a special option to the shareholders of Intellect to exchange the shares (should they wish to) allotted pursuant to the demerger against fully secured non-convertible debentures (NCD). These NCDs shall have a face value of Rs 42, with a coupon of 7.75% per annum, redeemable at par after 90 days.
Polaris Financial Technology said it will continue to run the services business with a strong vertical and solution focus.
Arun Jain, Executive Chairman, Polaris Financial Technology said, "This is a decisive step towards unlocking the potential of the company to respond to emerging opportunities in Financial Technologies in the coming decade. In fact, it is a win-win for customers, employees and investors alike. From a customer perspective, this new structure aligns investments, competencies, decision making and processes to drive the next level of value creation. On one side, the customer will be able to enjoy deeper focus for his specific needs, say Services, while he would be able to accelerate his change-the-business agenda with truly next-gen Products. From an employee perspective, alignment to their individual talent and interests will become a lot sharper, opening up clear streams for career advancement. From an investor perspective, on one hand, the shareholder will get an additional share of Intellect, a new horizon business. On the other hand, expanded leadership capacity, greater customer centricity and sharper focus will drive higher value in each of the businesses."
Financial Technologies (India) rose by maximum permissible level of 5% at Rs 378.95 after the company said it sold its entire stake in National Bulk Handling Corporation to IVF Trustee Company for Rs 241.74 crore. The company made the announcement after market hours on Friday, 14 March 2014.
NTPC rose 0.94% after the company said after market hours on Friday, 14 March 2014 that the board of directors of the company has accorded the investment approval for North Karanpura Super Thermal Power Project (3x660 megawatts) to be implemented in the State of Jharkhand at an appraised current estimated cost of Rs 14366.58 crore.
Engineering and construction major L&T fell 1.27% to Rs 1,239.50, with the stock reversing direction after hitting a 52-week high of Rs 1,267 in intraday trade.
Cummins India advanced 3.57% to Rs 565 after hitting a record high of Rs 592 in intraday trade.
Crompton Greaves surged 4.15% to Rs 154.25 after hitting a 52-week high of Rs 159.25 in intraday trade. The stock edged higher for the second day in a row. Shares of Crompton Greaves had gained 4.62% to settle at Rs 148.10 on Friday, 14 March 2014.
Shares of fast moving electrical goods (FMEG) company Havells India gained 3.67% to Rs 870.75 after hitting a record high of Rs 870.80 in intraday trade.
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 0.12%), Yes Bank (up 2.22%), Federal Bank (up 3.12%), and Kotak Mahindra Bank (up 1.01%) gained.
ICICI Bank fell 0.93% to Rs 1,202.50 in volatile trade. The stock hit high of Rs 1,231 and low of Rs 1,199.80.
Among PSU bank stocks, Punjab National Bank (up 1.62%), State Bank of India (up 2.67%), Canara Bank (up 3.56%), Bank of India (up 3.64%), Union Bank of India (up 4.88%) and Bank of Baroda (up 0.29%) gained.
United Bank of India rose 3.15% 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.
Astrazeneca Pharma India rose 1.83% 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.
Orchid Chemicals & Pharmaceuticals rose by maximum permissible level of 10% at Rs 53.60 after the company said the corporate debt restructuring empowered group approved the debt restructuring package. The company made the announcement after market hours on Friday, 14 March 2014.
As per the terms of the Corporate Debt Restructuring (CDR) scheme, Orchid Chemicals & Pharmaceuticals (Orchid) will sell and transfer its Penicillin and Penems (including Carbapenems) API (active pharmaceutical ingredient) business together with its manufacturing facilities at Aurangabad, Maharashtra and Associated Research and Development (R&D) facility at Sholinganallur, Chennai.
Orchid will repay Rs 681 crore to lenders, which is a portion of the total debt to lenders out of the sale proceeds. The balance debt of Rs 2866 crore will be restructured. The company will carve out a portion of sale proceeds for meeting the working capital requirements of the company.
The company will get interest funding for the first two years from the cut-off date (1 April 2013) for interest on term debts and one year for interest on working capital borrowings.
The restructured debt together with funded loans would have to be repaid over a period of 8 years starting from April 2015 subject to regulatory approvals.
The restructuring process would be implemented by an appointed Monitoring Committee (MC) of CDR lenders, the company said in a statement.
"The approval of the Corporate Debt Restructuring Package would facilitate completion of the Penicillin and Carbapenem API Business Transfer to Hospira and also bring in working capital availability from the deal proceeds besides deleveraging the debt profile. With this the Company would be on a better platform to achieve improved performance going forward," said Mr K Raghavendra Rao, Chairman & Managing Director, Orchid Chemicals and Pharmaceuticals.
Realty stocks reversed intraday gains in choppy trade. DLF (down 1.2%), Sobha Developers (down 2.78%), Housing Development & Infrastructure (down 1.43%) and Unitech (down 1.97%) declined.
Shares of tyre companies edged higher. JK Tyre & Industries (up 1.35%), Goodyear India (up 1.03%), and CEAT (up 1.32%) gained.
MRF gained 2.96% to Rs 21,526.90 after hitting a record high of Rs 21,579 in intraday trade.
Apollo Tyres gained 2.37% to Rs 136.05 after hitting a record high of Rs 136.70 in intraday trade.
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.
European stocks edged lower on Tuesday, 18 March 2014, as investors watched the developments of the situation in Ukraine. Key benchmark indices in Germany and UK shed by 0.04% to 0.36%. In France, the CAC 40 index rose 0.01%
In Germany, a report showed that investor confidence fell for a third month in March. The ZEW Center for European Economic Research's index of investor and analyst expectations, which aims to predict economic developments six months in advance, dropped to 46.6 from 55.7 in February.
UK Foreign Secretary William Hague urged Russia to begin talks with Ukraine to resolve the issue over Crimea and said "continuing to ignore those calls will bring serious consequences for Russia." The EU and the US on Monday, 17 March 2014, imposed visa bans and asset freezes on Russian and Crimean officials linked to the unrest in the region.
Russian President Vladimir Putin said he supported a request from Ukraine's Crimean region to join Russia. He will address Russian lawmakers and regional leaders at 3 p.m. in Moscow today, 18 March 2014. Crimea voted on 16 March 2014 to join Russia.
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, Singapore, Japan and China rose 0.05% to 0.94%. Indonesia's Jakarta Composite fell 1.45%.
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 rise 6 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.
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