Key benchmark indices hovered in the positive zone near the flat line in afternoon trade. The barometer index, the S&P BSE Sensex, was currently up 15.60 points or 0.07%, off 47.62 points from the day's high and up 52.27 points from the day's low. The market breadth, indicating the overall health of the market was positive.
Coal India slipped in volatile trade after a bulk deal was executed on the scrip on BSE today, 19 March 2014. Among auto shares, Eicher Motors scaled record high. PSU OMC stocks were mostly higher as the under-recovery on High Speed Diesel (HSD) applicable for second fortnight of March declined from the under-recovery during first fortnight of March 2014 from 1 March 2014. Polaris Financial Technology was locked at 20% upper circuit to hit a 52-week high, with the stock extending Tuesday's rally triggered by the company announcing the demerger of its products business into a separately listed company. Max India fell on profit booking after logging gains in preceding five trading sessions.
A bout of volatility was witnessed in early trade as key benchmark indices regained strength after slipping into the red for the brief period after opening higher. Intraday volatility continued as key benchmark indices alternately swung between positive and negative zone in morning trade. Volatility continued as key benchmark indices trimmed gains after hitting fresh intraday high in mid-morning trade. Key benchmark indices alternately swung between positive and negative zone near the flat line in early afternoon trade. Key benchmark indices hovered in the positive zone near the flat line in afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1011.95 crore on Tuesday, 18 March 2014, as per provisional data from the stock exchanges.
At 13:15 IST, the S&P BSE Sensex was up 15.60 points or 0.07% to 21,848.21. The index gained 63.22 points at the day's high of 21,895.83 in mid-morning trade. The index fell 36.67 points at the day's low of 21,795.94 in morning trade.
The CNX Nifty was up 11 points or 0.17% to 6,527.65. The index hit a high of 6,541.20 in intraday trade. The index hit a low of 6,506 in intraday trade.
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The BSE Mid-Cap index was up 32.25 points or 0.48% at 6,751.62. The BSE Small-Cap index was up 35.32 points or 0.53% at 6,727. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,347 shares rose and 1,203 shares fell. A total of 179 shares were unchanged.
The total turnover on BSE amounted to Rs 1596 crore by 13:15 IST.
Hindalco Industries (up 4.83%), Tata Steel (up 4.24%) and Sesa Sterlite (up 2.76%) edged higher from the Sensex pack.
TCS (down 4.49%), Infosys (down 2.25%) and ONGC (down 1.99%) edged lower from the Sensex pack.
Coal India fell 0.89% to Rs 268 after a bulk deal of 14.67 lakh shares was executed on the scrip at Rs 270.20 per share at 11:30 IST on BSE today, 19 March 2014. The bulk deal saw 0.02% of Coal India's equity stake changing hands. The stock saw high intraday volatility. It rose as much as 1.88% at the day's high of Rs 275.50 so far during the day. It fell as much as 1.29% at the day's low of Rs 266.90 so far during the day.
Auto stocks saw mixed trend. Maruti Suzuki India rose 0.14% to Rs 1,871.50 in volatile trade. The stock hit high of Rs 1,878.40 and low of Rs 1,850.30 so far during the day.
Shares of Maruti Suzuki India had surged 7.58% in a single trading session to Rs 1,868.85 after scaling a record high of Rs 1,899.90 in intraday trade on Tuesday, 18 March 2014 after the company and its Japanese parent Suzuki Motor Corporation modified the terms of the Gujarat manufacturing plant to address Maruti shareholders' concerns. 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 fell 1.32% to Rs 996.90. The stock had hit a record high of Rs 1,054 in intraday trade on Tuesday, 18 March 2014.
Tata Motors rose 0.66%.
Ashok Leyland rose 0.86%. The company after market hours on Tuesday, 18 March 2014, said that the company has sold 50 lakh shares of IndusInd Bank on Tuesday, 18 March 2014, through a combination of bulk deal and normal trading.
Shares of IndusInd Bank fell 0.76%.
Eicher Motors rose 3.47% to Rs 5,740.10 after hitting record high of Rs 5,809.95 in intraday trade.
Bajaj Auto rose 0.79%. Hero MotoCorp declined 0.64%.
TVS Motor Company gained 1.97% to Rs 90.50. The stock had hit a 52-week high of Rs 91.25 in intraday trade on Tuesday, 18 March 2014.
PSU OMC stocks were mostly higher as the under-recovery on High Speed Diesel (HSD) applicable for second fortnight of March declined from the under-recovery during first fortnight of March 2014 from 1 March 2014.
BPCL (up 1.69%) and HPCL (up 0.9%) gained. Indian Oil Corporation fell 0.35%.
The under-recovery on High Speed Diesel (HSD) applicable for second fortnight of March effective 16 March 2014 fell to Rs 7.16 per litre. The under-recovery was Rs 8.37 per litre during first fortnight of March 2014 from 1 March 2014. In the case of PDS Kerosene and Domestic LPG the under-recoveries for the month of March 2014 remains unchanged at Rs 36.34 per litre and Rs 605.80 per cylinder respectively as their refinery gate prices are determined on monthly basis. The Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas has reviewed international prices of crude oil and petroleum products during the first fortnight of March 2014. Oil Marketing Companies (OMCs), effective 16 March 2014, are now incurring combined daily under-recovery of about Rs 399 crore on the sale of Diesel, PDS Kerosene and Domestic LPG. This is lower than Rs 411 crore daily under-recoveries during previous fortnight effective 1 March 2014.
Polaris Financial Technology was locked at 20% upper circuit at Rs 183.35, also its 52-week high. Shares of Polaris Financial Technology jumped 11.57% in a single trading session to settle at Rs 152.80 on Tuesday, 18 March 2014 triggered by the company announcing the demerger of its products business into a separately listed company.
The scheme/structure is subject to the approval by the various regulatory authorities like stock exchanges, Securities and Exchange Board of India (Sebi), Madras High Court, Registrar of Companies, shareholders and creditors, Polaris Financial Technology said in a statement.
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, the company said in a statement.
Polaris Financial Technology said it will continue to run the services business with a strong vertical and solution focus. 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.
Max India fell 2.15% to Rs 199.80 on profit booking after the stock rose 7.22% in the preceding five trading sessions to Rs 204.20 on 18 March 2014, from a recent low of Rs 190.45 on 10 March 2014.
In the foreign exchange market, the rupee edged higher against the dollar as foreign banks sell dollars, likely for FII clients. The partially convertible rupee was hovering at 61.0150, compared with its close of 61.19/20 on Tuesday, 18 March 2014.
Global credit rating agency Standard & Poor's Ratings Services today, 19 March 2014, said that Indian companies are improving their credit profile by selling equity and assets, or using free operating cash flows to reduce debt. The quest to improve credit profiles comes after a weak economy and high interest rates have adversely impacted their cash flows, while companies are also refocusing on cutting debt after years of fast expansion. S&P also said that infrastructure companies with high leverage are also considering selling assets or stakes in subsidiaries to cut down on their debt levels.
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 lower on Wednesday, 19 March 2014, as investors weighed the prospect of further sanctions against Russia and awaited the Federal Reserve's policy statement. Key benchmark indices in China, Taiwan, Singapore and South Korea were off 0.13% to 0.62%. Key benchmark indices in Hong Kong, Indonesia and Japan were up 0.01% to 0.57%.
Japan's trade deficit exceeded estimates in February, underscoring drags on the nation's recovery ahead of a sales-tax increase in April that will weigh on domestic demand. The 800 billion yen ($7.9 billion) shortfall reported by the finance ministry in Tokyo today. Imports expanded 9% from a year earlier, and exports rose 9.8%.
Trading in US index futures indicated a flat opening of US stocks on Wednesday, 19 March 2014. US stocks edged higher on Tuesday, 18 March 2014, as housing data bolstered confidence in the economy.
A Commerce Department report showed housing starts were little changed in February after declining less than previously estimated a month earlier, indicating the home-building industry is stabilizing after bad winter weather curbed construction. Permits filed for future projects increased 7.7% to a 1.02 million pace in February, the most since October.
Consumer prices in the US rose slightly in February because of higher food and housing costs, but overall inflation remained quiet, according to the latest government figures.
The Federal Reserve's two-day policy-setting meeting concludes today, 19 March 2014. The central bank is expected to reduce its bond-buying program by another $10 billion and change its 6.5% unemployment threshold to keep its fund rate near zero into 2015. 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.
The US and Europe pledged more sanctions against Russia while Russian President Vladimir Putin, pushing to annex Crimea, said his country didn't intend to further split Ukraine. Russia cemented its claim to Crimea as Putin showed no sign of backing down in the standoff over Ukraine's breakaway Black Sea region, prompting Western leaders to vow further sanctions this week.
Putin on Tuesday, 18 March 2014, signed a treaty to annex Crimea after an overwhelming majority of its citizens on Sunday, 16 March 2014, voted to leave Ukraine. In his prepared remarks, Putin also said he does not want to partition Ukraine.
Leaders of Poland and Estonia, two of the countries on the front line of turmoil in Ukraine, told US Vice President Joe Biden they want a more aggressive stance toward Russia. Biden is on a two-day trip to the region aimed at assuring North Atlantic Treaty Organization allies that the US will support them against any attempt by Russia to encroach on their territory.
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