Weakness continued on the bourses in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was down 99.68 points or 0.45%, off close to 170 points from the day's high and up about 25 points from the day's low. The market breadth, indicating the overall health of the market was negative. The market sentiment was hit adversely after the latest data showed that India's merchandise exports fell 3.67% year-on-year in February 2014.
Realty stocks reversed intraday losses in volatile trade.
The market edged higher in early trade on firm Asian stocks. The Sensex fell below the psychological 22,000 mark after regaining that level in early trade. Volatility ruled the roost as key benchmark indices regained positive terrain in morning trade. The Sensex regained the psychological 22,000 mark. The 50-unit CNX Nifty scaled a record high. High intraday volatility was witnessed as key benchmark indices once again slipped into the red in mid-morning trade. The Sensex fell below the psychological 22,000 mark. Key benchmark indices languished in the negative terrain in early afternoon trade. A bout of volatility was witnessed as key benchmark indices trimmed losses after hitting fresh intraday low in afternoon trade. Key benchmark indices languished in the negative terrain in mid-afternoon trade..
At 14:20 IST, the S&P BSE Sensex was down 99.68 points or 0.45% to 21,835.15. The index lost 123.25 points at the day's low of 21,811.58 in afternoon trade. The index jumped 83.69 points at the day's high of 22,018.52 in morning trade.
The CNX Nifty was down 25.25 points or 0.39% to 6,512. The index hit a low of 6,504.65 in intraday trade. The index hit a high of 6,562.85 in intraday trade, a record high.
The BSE Small-Cap index was up 6.41 points or 0.1% at 6,669.51. The BSE Mid-Cap index was off 1.63 points or 0.02% at 6,721.11. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market was negative. On BSE, 1,533 shares dropped and 1,158 shares rose. A total of 163 shares were unchanged.
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Tata Steel (down 4.24%), Hindalco Industries (down 4.18%), and Sun Pharmaceutical Industries (down 2.73%), edged lower from the Sensex pack.
BPCL rose 0.14%. The company said during market hours that Bharat PetroResources (BPRL), a wholly owned subsidiary of BPCL, advises that Anadarko Mocambique Area 1 Limitada, the operator of the exploration block in Rovuma Basin Area 1, offshore Mozambique announced on 4 March in its 2014 Capital Program and Guidance Statement, that the appraisal and exploration activities carried out in the block increased the estimated recoverable natural gas resources in the block to a range of 45 to 70 plus trillion cubic feet (Tcf), up from the previous range of 35 to 65 plus Tcf. The consortium's 2014 program in Mozambique is focused on advancing the development towards first LNG cargo in 2018.
BPRL Ventures Mozambique B.V has 10% participatory interest in the block.
Realty stocks reversed intraday losses in volatile trade. Shares of realty major DLF were up 4.28% at Rs 179. The scrip hit high of Rs 186.60 and low of Rs 167.65 so far during the day.
Shares of Housing Development & Infrastructure were up 1.2% at Rs 50.15. The scrip hit high of Rs 51.95 and low of Rs 48.50 so far during the day.
Shares of Sobha Developers were up 3.3% at Rs 360.05. The scrip hit high of Rs 372 and low of Rs 345.60 so far during the day.
Shares of Unitech were up 0.48% at Rs 12.47. The scrip hit high of Rs 12.79 and low of Rs 12.08 so far during the day. As per media reports, Life Insurance Corporation of India is close to seizing the company's 350-acre land parcel in Noida. According to a report, Life Insurance Corporation of India (LIC) has taken notional possession of a slice of Unitech's 350-acre land parcel in Noida after the company failed to repay a part of its nearly Rs 150-crore loan from LIC. In a 'Notional Possession Notice' LIC cautioned the public against dealing with the land parcels in sectors 96, 97 and 98 in Noida, which is prime property along the expressway that connects the Delhi suburb with Greater Noida, the report said.
Notional possession is a step short of taking physical control of an asset, although the property remains under the company's charge. The property can be handed back to the company once the accounts are settled, report added.
As per the report, the company has not cleared a part of the dues, prompting LIC to issue a demand notice on 26 November 2013, asking the company and its guarantors - including the promoters, Ramesh Chandra, Sanjay Chandra and Ajay Chandra, and group companies - to repay the dues within 60 days. But, with the amount remaining overdue, the insurance company took possession of the property on 7 March 2014 as part of the land had been offered to it as a collateral when the company took the loan, the report said.
HMT rose 2.86% after the company said the government has approved revival plans of the company. The company made the announcement during trading hours today, 11 March 2014.
HMT announced that the government has issued formal sanction for non-cash assistance in the form of conversion of Government of India (GoI) loans into equity to the extent of Rs 443.74 crore for which the company has to issue equity share of equivalent amount to the GoI on the face value of Rs 10 per share.
Further, the GoI has also conveyed the formal sanction of Rs 201.88 crore towards waiver of interest upto 31 March 2012 and Rs 3.76 crore towards wavier of Gol guarantee fee respectively. The company said it will take further steps in the matter as per procedure.
In the foreign exchange market, the rupee pared intraday gains against the dollar. The partially convertible rupee was hovering at 60.835, compared with its close of 60.85/86 on Monday, 10 March 2014.
India's trade deficit narrowed to $8.13 billion in February 2014, from $14.12 billion in February 2013. Total imports declined 17.09% year-on-year at $33.81 billion in February 2014. Merchandise exports fell 3.67% year-on-year at $25.68 billion in February 2014. The trade deficit for the 11-month period April 2013 to February 2014 narrowed to $128.08 billion, from $179.92 billion during the period from April 2012 to February 2013. The government unveiled the trade data for February 2014 during trading hours today, 11 March 2014.
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 tomorrow, 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 tomorrow, 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.
With the election code of conduct coming into force, government authorities will not be able to announce any major policy initiatives. However, they can announce routine or unavoidable policy measures after taking the approval of the election commission.
The Dravida Munnettra Kazhagam (DMK) in its Lok Sabha election manifesto released in Chennai today, 11 March 2014, said that the party is opposed to foreign direction investment (FDI) in retail and education. The manifesto also talks about the Tamils in Sri Lanka. Abolition of death sentence, statehood to Puducherry, implementation of Sethusamudhram project and making Tamil the local official language are some of the other promises made by the DMK in its Lok Sabha election manifesto. The M Karunanidhi-led DMK has been opposed to the death sentence to the killers of former Prime Minister Rajiv Gandhi. The DMK has also been backing the demand for the killers to be released from jail.
European stocks edged higher on Tuesday, 11 March 2014, as German exports increased more than estimated, fueling bets the euro-area economy is on the mend. Key benchmark indices in France, Germany and UK were up 0.2% to 0.23%.
Data today showed German exports rose 2.2% in January 2014. That was the biggest month-on-month growth since May 2012. Imports jumped 4.1% in the period, also exceeding estimates.
Asian stocks edged higher on Tuesday, 11 March 2014, after the Bank of Japan kept monetary policy unchanged. Key benchmark indices in China, Indonesia, South Korea, Hong Kong, Taiwan, Singapore and Japan were up 0.02% to 0.69%.
The Bank of Japan (BoJ) maintained record easing, keeping ammunition as an April sales-tax bump threatens to trigger the deepest one-quarter contraction since the March 2011 earthquake. The BoJ kept a pledge to expand the monetary base at a pace of 60 trillion to 70 trillion yen ($677 billion) per year, the central bank said in a statement in Tokyo today, 11 March 2014, after a monetary policy review. The BoJ said that Japan's economy has continued to recover moderately and a front-loaded increase in demand prior to the consumption tax hike (scheduled in April) has recently been observed.
A report yesterday, 10 March 2014, showed aggregate financing in China dropped to 938.7 billion yuan ($153 billion) last month amid a crackdown on shadow lending, down from January's record 2.58 trillion yuan. Central Bank Governor Zhou Xiaochuan said today, 11 March 2014, that China's deposit rates will be liberalized in one to two years. Zhou commented at a press briefing in Beijing as part of sessions of the annual meeting of the National People's Congress. He also said that interest rates will initially rise as controls are removed.
Trading in US index futures indicated a flat opening of US stocks on Tuesday, 11 March 2014. US stocks slid on Monday, pulling the Standard & Poor's 500 Index down from a record, as a slowdown in Chinese exports fueled concern about global economic growth.
The Federal Reserve will continue to trim its monthly asset purchases at a $10 billion pace, Charles Evans, president of the Chicago Fed and among the most dovish US policymakers said on Monday as he also detailed how the US central bank might rewrite its plan for keeping interest rates low. "We're at a point now where we're, moving away from purchasing assets, we're tapering, and our balance sheet continues to be very large but we're not going to add to it as much," Evans told a gathering at Columbus State University. "The last two meetings we reduced the purchase flow rate by $10 billion and we're going to continue to do that," he said flatly.
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.
Ukraine began military drills as Russian forces tightened their hold on the Crimean peninsula and the Foreign Ministry in Moscow warned of "lawlessness" in the former Soviet republic's eastern provinces.
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