Key benchmark indices moved in a narrow range in positive zone in early afternoon trade. The market breadth, indicating the overall health of the market turned negative from positive. The barometer index, the S&P BSE Sensex, was up 88.64 points or 0.41%, up about 150 points from the day's low and off close to 50 points from the day's high.
Infosys edged lower in choppy trade. Realty stocks edged lower on profit taking after recent strong gains. PSU OMCs dropped.
Key benchmark indices edged lower amid initial volatility on weak Asian stocks. Key benchmark indices languished in the negative terrain in morning trade. A bout of volatility was witnessed as key benchmark indices moved into positive zone from negative zone in mid-morning trade. Key benchmark indices moved in a narrow range in positive zone in early afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1,471.23 crore on Tuesday, 11 March 2014, as per provisional data from the stock exchanges.
At 12:20 IST, the S&P BSE Sensex was up 88.64 points or 0.41% to 21,915.06. The index jumped 139.53 points at the day's high of 21,965.95 in mid-morning trade. The index shed 58.28 points at the day's low of 21,768.14 in early trade, its lowest level since 7 March 2014.
The CNX Nifty was up 19.40 points or 0.3% to 6,531.30. The index hit a high of 6,546.15 in intraday trade. The index hit a low of 6,487.30 in intraday trade, its lowest level since 7 March 2014.
The BSE Mid-Cap index was up 32.75 points or 0.49% at 6,736.16, outperforming the Sensex. The BSE Small-Cap index was up 21.55 points or 0.32% at 6,686.24, underperforming the Sensex.
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The market breadth, indicating the overall health of the market turned negative from positive in early afternoon trade. On BSE, 1,248 shares dropped and 1,191 shares rose. A total of 148 shares were unchanged.
Sun Pharmaceutical Industries (up 3.85%), ITC (up 2.55%) and Hero MotoCorp (up 1.83%) edged higher from the Sensex pack.
Realty stocks edged lower on profit taking after recent strong gains. HDIL (down 0.1%) and D B Realty (down 1.16%) declined.
DLF edged lower in choppy trade. The stock was off 0.45% at Rs 177.60. The scrip hit high of Rs 182.80 and low of Rs 176.60 so far during the day. DLF announced after market hours on Tuesday, 11 March 2014, that DLF Home Developers (DHDL) -- a wholly owned subsidiary of the company -- has received its final tranche of payment of Rs 93.5 crore on the sale of balance shares of Galaxy Mercantile (GML), a joint venture company of DHDL, IDFC and others. In November 2011, IDFC had contracted to acquire 100% stake in the joint venture company owning 1.3 million square feet IT Park located in Sector 62, Noida, Uttar Pradesh. This transaction is in line with DLF's objective of divesting its non-core assets, the realty major said in a statement.
PSU OMCs declined. BPCL (down 0.55%), HPCL (down 1.5%), and Indian Oil Corporation (down 1.89%) dropped.
Tech Mahindra rose 1.2%. The company today, 12 March 2014, announced the launch of its Global Development Center with Alstom Transport, a world leading manufacturer of Rail Technology, on the occasion of signing of a 3-year partnership with Alstom. The relationship comes on the context of growing need for mature regional partners capable of providing efficient vertical integration capabilities from Engineering to Manufacturing on Rolling Stock interior field, Tech Mahindra said in a statement.
Tech Mahindra said that the partnership is a result of months of progressive demonstration from the company on the ability and motivation to engage in high value added engineering activities. The development center will cover primarily engineering activities focused on concept to prototype build, the company said. Mahindra group brings in the necessary ecosystem to provide the sourcing and manufacturing support so as to integrate various life cycle functions as a one stop solution, Tech Mahindra said in a statement.
Karthikeyan Natarajan, Global Head, Integrated Engineering Solutions, Tech Mahindra said: "We are delighted to collaborate with Alstom to offer end-to-end Engineering Services from design to manufacturing. The global development center enables us to accelerate joint development of integrated engineering solutions that deliver unique value to our customers".
Pierre Gosset, Engineering Vice President, Rolling Stock and Components, at Alstom Transport said: "Tech Mahindra is primarily partnering with our newly created Interiors Centre of Excellence to provide us with innovative, end-to-end integrated engineering solutions on Interiors commodity. This partnership shall further increase our flexibility and competitiveness on this key area. This is also a further step of our Engineering ramp-up in India".
Infosys edged lower in choppy trade. The stock was off 0.28% at Rs 3,662.65. The scrip hit high of Rs 3,698.40 and low of Rs 3,656.95. The company said during market hours that Mauritius Post and Cooperative Bank has successfully upgraded its core banking solution to Finacle 10. The enhanced technology framework delivered by Fiancle 10 is geared to support the bank's ambitious growth plans. It also allows MPCB to develop and launch products faster, to meet rapidly changing customer needs. The new version of the core banking solution was deployed in 10 months, five weeks ahead of schedule, with no budget overruns, Infosys said in a statement.
Vardhman Textiles advanced 3.2% to Rs 340 after a private equity fund hiked its stake in the company on Tuesday, 11 March 2014. Baring India Private Equity Fund III Listed Investments bought 7.62 lakh shares or 1.19% stake in Vardhman Textiles at Rs 327.92 per share in a bulk deal on NSE on Tuesday, 11 March 2014.
Prior to the latest acquisition, Baring India Private Equity Fund III Listed Investments already owned 1.95% stake in Vardhman Textiles (as per shareholding pattern as on 31 December 2013).
SKS Microfinance rose 2.01% after the company said it has completed a securitization transaction worth Rs 80.30 crore during the current financial year. The announcement was made before market hours today, 12 March 2014.
SKS Microfinance (SKS) said that with the latest securitization transaction, the total sum of securitizations completed for FY 2014 (YTD) is Rs 1351.21 crore.
SKS said it has downloaded the receivables from micro loans extended to 87,500 rural women entrepreneurs to a Special Purpose Vehicle (SPV), and Pass Through Certificates (PTCs) have been purchased by a leading private sector bank. The entire pool comprises receivables from women entrepreneurs belonging to weaker sections, and qualifies for priority sector treatment as per RBI's priority sector lending guidelines, SKS said in a statement.
The pool is rated AA (SO) by a leading rating agency signifying a 'high degree of safety regarding timely servicing of financial obligations', SKS said. Such instruments carry a very low credit risk, it added.
SKS said that the pool is structured with geographical diversity and comprises receivables from 10 non-Andhra Pradesh states. It has been subjected to a seasoning of three months, the company said in a statement.
Garden Silk Mills rose 1.74% to Rs 35 after the company said its board will meet on 19 March 2014, inter alia, to consider and approve the proposal of conversion of share warrants into equity shares by promoters. The announcement was made after market hours on Tuesday, 11 March 2014.
Garden Silk Mills said that a meeting of its board of directors will be held on 19 March 2014, inter alia, to consider and approve the proposal of conversion of share warrants into equity shares consequent to the right of conversion exercised by the warrant holder in terms of SEBI (ICDR) Regulations 2009.
Garden Silk Mills had earlier issued and allotted 13.70 lakh share warrants of Rs 10 each at Rs 51.07 per warrant for an aggregate amount of Rs 7 crore in favour of promoters on preferential basis. The aforesaid warrants were issued on preferential basis pursuant to the provisions of Section 81(1A) of the Companies Act 1956 and in accordance with the provisions of Chapter VII of SEBI (ICDR) Regulation 2009.
As per the terms of issue and conversion, the warrants shall be converted in one or more tranches, at the sole option of the warrant holder but not in any case more than eighteen months from the date of allotment, Garden Silk Mills said. The relevant date, as per the SEBI (ICDR) Regulation 2009, as amended up to date, for the determination of price of equity shares to be issued and allotted upon exercise of the right of conversion attached to the warrant will be 30 days prior to the date on which the holders of warrants exercise their rights to apply for the equity shares, the company said.
In the foreign exchange market, the rupee edged lower against the dollar on global risk-off sentiment. The partially convertible rupee was hovering at 61.095, compared with its close of 60.94/95 on Tuesday, 11 March 2014.
The Reserve Bank of India on Tuesday, 11 March 2014, said it will conduct a 21-day term repo variable rate auction for a notified amount of Rs 50000 crore on Friday, 14 March 2014, so as to address the anticipated tightening in liquidity conditions in the banking system on account of advance tax payments by corporates commencing mid-March 2014 and with a view to providing flexibility to the banking system in its liquidity management towards March-end 2014. The reversal will be on 4 April 2014, the central bank said. The auction will be conducted as per the revised guidelines issued on 13 February 2014, the RBI said. There will be no term repo auction on 18 March 2014 when the existing 28-day term repo of Rs 30004 crore matures, the RBI said.
Industrial production is expected to remain in contraction mode in January 2014. Industrial production is seen contracting 0.5% in January 2014, as per the median estimate of a poll of economists carried out by Capital Market. Industrial output fell 0.6% in December 2013, after contracting a revised 1.3% in November 2013. The government will unveil industrial production data for January 2014 after market hours today, 12 March 2014.
Inflation based on the combined consumer price index (CPI) of urban and rural India is projected at 8.2% in February 2014, further easing from 8.79% in January 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil data on inflation based on the combined consumer price index (CPI) for urban and rural India for February 2014 after market hours today, 12 March 2014.
Inflation based on the wholesale price index (WPI) is seen easing at 4.9% in February 2014, from 5.05% in January 2014, as per the median estimate of a poll of economists carried out by Capital Market. The data on inflation based on the wholesale price index (WPI) for February 2014 is due at 12:00 IST on Friday, 14 March 2014.
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 fell on Wednesday, 12 March 2014, on concerns that China's economy may be faltering. Key benchmark indices in China, Indonesia, South Korea, Hong Kong, Taiwan, Singapore and Japan were off 0.2% to 2.59%.
Aggregate financing in China dropped to 938.7 billion yuan ($153 billion) last month amid a crackdown on shadow lending, a government report this week showed. That compares with January's record 2.58 trillion yuan. Chinese exports slid the most since 2009 last month, a separate report over the weekend showed.
China's central bank governor said on Tuesday that the country's deposit rates are likely to liberalised in one to two years - the most explicit timeframe to date for what would be the final step in freeing up banks to set their own interest rates. The move will let financial markets decide the price of loans, which economists say will go a long way to prevent the wasteful investment funded by artificially cheap credit that has led to a massive buildup in debt. "Deposit rate liberalisation is on our agenda. Personally I think it's very likely to be realised within one to two years," said Zhou Xiaochuan, the head of the People's Bank of China.
Trading in US index futures indicated that the Dow could drop 17 points at the opening bell on Wednesday, 12 March 2014. US stocks edged lower for the second day in a row on Tuesday without any big economic news or blowout company earnings to respond to. The Labor Department said Tuesday that employers posted 3.9 million job openings in January, up 1.5% from December, a sign that hiring should remain steady in coming months. However, the increase fell short of what the market was expecting.
US wholesale inventories rose in January while wholesale sales fell, the Commerce Department reported on Tuesday.
Small-business sentiment, released before the market open, slumped in February. According to the National Federation of Independent Business, its small-business index dropped by more than expected, on concerns over sales, the economy and employment driving the downturn.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review on 18-19 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.
The recovery in developed economies is on track although slowing activity in big emerging markets means global growth will be only moderate at best in the near term, the OECD said on Tuesday. Exceptionally bad winter weather in North America and a sales tax hike in Japan are also disrupting the pace of recovery, the Paris-based Organisation for Economic Cooperation and Development said. Against that backdrop, the OECD urged the European Central Bank and the Bank of Japan to keep up their monetary stimulus, if not increase it, while it said the US Federal Reserve was right to begin winding down its bond-buying programme.
The stand off between the West and Russia over Ukraine crisis continues. Germany told Russia it must switch course in Crimea by next week or risk more sanctions as Ukraine's deposed president warned of a possible civil war. The European Union will discuss harsher penalties on March 17 barring "obvious changes in Russia's actions," German Foreign Minister Frank-Walter Steinmeier said in Estonia. A planned March 16 referendum in Crimea on whether to join Russia should be halted, he said. Toppled President Viktor Yanukovych told reporters in Russia that lawlessness is spreading in Ukraine, fomented by the "fascists and ultranationalists" who are in charge in Kiev.
Russia stood by deposed Ukrainian President Viktor Yanukovych and called possible US aid to the new government in Kiev illegal. Ukraine's interim prime minister Arseniy Yatsenyuk meets US President Barack Obama in Washington today, 12 March 2014, as the US House of Representatives passed a resolution seeking sanctions against Russia.
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