Key benchmark indices retained positive zone in early afternoon trade. The barometer index, the S&P BSE Sensex, was up 139.07 points or 0.64%, off close to 90 points from the day's high and up about 100 points from the day's low. The market breadth, indicating the overall health of the market, was positive. The BSE Mid-Cap index was up more than 1%. The market sentiment was boosted by data showing that foreign institutional investors (FIIs) remained net buyers of Indian stocks on Friday, 14 March 2014. Gains in Asian stocks also boosted sentiment on the domestic bourses.
Index heavyweight Reliance Industries (RIL) extended intraday gains 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. Realty stocks edged higher 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.
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 mark in early trade. The Sensex further trimmed gains in mid-morning trade. The Sensex retained positive zone in early afternoon trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Friday, 14 March 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 982.19 crore on Friday, 14 March 2014, as per provisional data from the stock exchanges. The stock market was closed on Monday, 17 March 2014, on account of Holi.
Asian stocks edged higher on Tuesday, 18 March 2014, as an improvement in US factory output boosted optimism for the world's biggest economy.
At 12:20 IST, the S&P BSE Sensex was up 139.07 points or 0.64% to 21,948.87. 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 rose 39.85 points at the day's low of 21,849.65 in opening trade.
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The CNX Nifty was up 43.25 points or 0.66% to 6,547.45. The index hit a high of 6,574.95 in intraday trade, a new record high. The index hit a low of 6,531.90 in intraday trade.
The BSE Mid-Cap index was up 68.24 points or 1.03% at 6724.42. The BSE Small-Cap index was up 57.33 points or 0.87% at 6,685.01. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,392 shares rose and 1,049 shares fell. A total of 160 shares were unchanged.
Maruti Suzuki India (up 7.77%), ONGC (up 2.53%) and State Bank of India (up 2.75%) edged higher from the Sensex pack.
Index heavyweight Reliance Industries (RIL) rose 2.34%, with the stock extending intraday gains. 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.
Realty stocks gained 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. Purchases of both residential and commercial property are largely driven by finance. DLF (up 0.63%), D B Realty (up 0.81%), Housing Development & Infrastructure (up 1.33%) and Unitech (up 0.33%) gained.
Orchid Chemicals & Pharmaceuticals hit an upper circuit limit of 10% at Rs 53.60 on BSE 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.
Amtek India jumped 15.25% 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.
In the foreign exchange market, the rupee edged higher against the dollar as equities rose. The partially convertible rupee was hovering at 61.015, compared with its close of 61.19/20 on Friday, 14 March 2014. Indian financial markets were closed on Monday, 17 March 2014, on account of Holi.
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.
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, Japan and China rose 0.12% to 0.94%. Key benchmark indices in Singapore and Indonesia fell 0.14% to 0.91%.
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 advance 5 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.
European Union foreign ministers on Monday, 17 March 2014, agreed to freeze assets and impose visa bans on 21 Russian and Crimean political figures, while the US put similar sanctions on seven Russian government officials and four Ukrainians, including former President Viktor Yanukovych, who was ousted after protests last month. Russian President Vladimir Putin responded by recognizing Crimea as a sovereign state.
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