Key benchmark indices jumped after government bond prices surged after the Reserve Bank of India (RBI) today, 17 April 2014, fully sold the Rs 20000-crore worth of debt on offer, accomplishing the country's biggest-ever auction. The barometer index, the S&P BSE Sensex, was provisionally up 349.67 points or 1.57%, up close to 315 points from the day's low and off about 20 points from the day's high. The market breadth, indicating the overall health of the market was strong. The BSE Mid-Cap and BSE Small-Cap indices were up more than 1% each. All thirteen sectoral indices on BSE rose.
The Sensex snapped a three-day losing streak today, 17 April 2014.
Auto stocks edged higher. Interest rate sensitive realty stocks also edged higher. Cairn India, ICICI Bank, Reliance Infrastructure, Rural Electrification Corporation and Crompton Greaves hit 52-week high.
The market edged higher in early trade on firm Asian stocks. Key benchmark indices retained positive terrain in morning trade. The Sensex extended gains and hit fresh intraday high in mid-morning trade. Firmness continued on the bourses in early afternoon trade. Key benchmark indices retained positive zone in afternoon trade. Key benchmark indices extended intraday gains and hit fresh intraday high in mid-afternoon trade after government bond prices rose on reports that the Reserve Bank of India fully sold the Rs 20000-crore worth of bonds on offer at its biggest auction ever held today, 17 April 2014. The Sensex hit fresh intraday high in late trade.
The stock market remains closed tomorrow, 18 April 2014, on account of Good Friday.
As per provisional figures, the S&P BSE Sensex was up 349.67 points or 1.57% to 22,626.90. The index jumped 371.46 points at the day's high of 22,648.69 in late trade, its highest level since 15 April 2014. The index rose 34.96 points at the day's low of 22,312.19 in early trade.
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The CNX Nifty was up 103.25 points or 1.55% to 6,778.55, as per provisional figures. The index hit a high of 6,783.05 in intraday trade, its highest level since 15 April 2014. The index hit a low of 6,684.40 in intraday trade.
The BSE Mid-Cap index was up 106.53 points or 1.47% at 7,339.29. The BSE Small-Cap index was up 105.79 points or 1.43% at 7,524.01. Both the indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 2948 crore, higher than Rs 2666.76 crore on Wednesday, 16 April 2014.
The market breadth, indicating the overall health of the market was strong. On BSE, 1,728 shares gained and 1,047 shares fell. A total of 143 shares were unchanged.
State Bank of India (SBI) (up 2.89%), Hindalco Industries (up 4.54%) and Bharat Heavy Electricals (Bhel) (up 3.25%) edged higher from the Sensex pack.
Auto stocks edged higher. Tata Motors (up 4.57%), Maruti Suzuki India (up 0.8%), Mahindra & Mahindra (M&M) (up 1.87%) and Ashok Leyland (up 1.32%) gained.
Shares of two wheeler makers also gained. TVS Motor Company (up 2.77%), Hero MotoCorp (up 1.87%) and Bajaj Auto (up 0.73%) gained.
Interest rate sensitive realty stocks edged higher. D B Realty (up 13.37%), Anant Raj (up 2.71%), DLF (up 0.85%), Housing Development and Infrastructure (HDIL) (up 4.03%), Sobha Developers (up 1.32%) and Unitech (up 5.63%) gained.
ICICI Bank rose 3.3% to Rs 1,263.05. The stock hit 52-week high of Rs 1,273 in intraday trade.
Cairn India rose 1.3% to Rs 366.75. The scrip hit 52-week high of Rs 371.65 in intraday trade.
Crompton Greaves jumped 6.88% to Rs 189.40 after hitting 52-week high of Rs 191.70 in intraday trade.
Rural Electrification Corporation gained 3.97% to Rs 247.55 after hitting 52-week high of Rs 249 in intraday trade.
Reliance Infrastructure gained 3.33% to Rs 522.20 after hitting 52-week high of Rs 524.45 in intraday trade.
GlaxoSmithkline Pharmaceuticals lost 0.43% after net profit fell 42.87% to Rs 96.54 crore on 8.28% decline in total income to Rs 654.73 crore in Q1 March 2014 over Q1 March 2013. The Q1 result was announced during trading hours today, 17 April 2014. GlaxoSmithkline Pharmaceuticals said that Q1 March 2014 continued to see the impact of the revamped price control order, extending coverage to the National List of Essential Medicines (NLEM).
CRISIL rose 1.98% after consolidated net profit surged 38.6% to Rs 68.71 crore on 21.4% growth in income from operations to Rs 308.98 crore in Q1 March 2014 over Q1 March 2013. The Q1 result was announced during trading hours today, 17 April 2014.
During the quarter, revenue from Ratings grew strongly by 16% over the corresponding quarter of 2013. Bank Loan Ratings and SME Ratings were the drivers of the ratings business. However, there was limited activity in the bond and securitisation markets, CRISIL said in a statement.
Growth at CRISIL Research was impacted by not-so-favourable macro factors in India, CRISIL said. During the quarter, CRISIL Research focused on enhancing existing offerings, launching new products and increasing client engagement, the company said in a statement.
CRISIL said that the global economy continues to be sluggish; the much-anticipated growth in the revenue and profitability of investment banks did not come about. Despite this, the CRISIL Global Research & Analytics (GR&A) business added marquee clients in financial research, analytics and model validation, the company said. Coalition delivered a strong performance by growing its key client accounts and expanding product offerings, CRISIL said in a statement.
CRISIL Risk and Infrastructure Solutions (CRIS), a wholly owned subsidiary of CRISIL, built a strong order book during the quarter, the company said. Both the infrastructure advisory and risk solutions businesses won their largest-ever mandates, it added. However, the uncertain investment climate and delayed decision-making continue to weigh on the businesses, CRISIL said in a statement.
CRISIL's board of directors at its meeting held on Thursday, 17 April 2014, declared interim dividend of Rs 3 per share for the year ending 31 December 2014.
Hindustan Construction Company rose 5.26% after the company said it has been awarded an Rs 300 crore contract by Delhi Metro Rail Corporation. The announcement was made at the fag end of trading hours on Wednesday, 16 April 2014.
Hindustan Construction Company (HCC) said it has been awarded an Rs 300 crore contract by Delhi Metro Rail Corporation (DMRC). This contract is for design and construction of 1.54 KM long twin tunnel on Dwarka-Najafgarh metro corridor of phase Ill of Delhi Metro. This is the third contract for underground metro received by HCC since October 2012 under the phase Ill development of Delhi Metro aggregating Rs 1539 crore, HCC said. The construction work would be completed in 36 months, it added.
On winning contracts, Arun Karambeklar, President and Whole Time Director, HCC said, "HCC has been undertaking challenging assignments in underground metro development and repeat order from DMRC reflects our ability to execute complex assignments. Last month, HCC completed the 'up-line tunnel' of CC30 package well ahead of all peers working on phase III development".
Indian government bond prices surged after the Reserve Bank of India (RBI) today, 17 April 2014, fully sold the Rs 20000-crore worth of debt on offer, accomplishing the country's biggest-ever auction. The cut-offs for the auction were also better than expected, indicating healthy demand. The yield on 10-year benchmark federal paper, 8.83% GS 2023, was hovering at 8.8748%, lower than its close of 8.9644% on Wednesday, 16 April 2014. Bond yields and bond prices move in opposite direction.
Global credit rating agency Standard & Poor's (S&P) today, 17 April 2014, said it may upgrade India's rating outlook if the government that is elected next month address some of the country's fiscal and economic challenges through steps such as passing a goods and services tax. "If in the future they implement policies that effectively addresses some of the credit weaknesses that I have highlighted, we could revise the outlook to stable again," said S&P senior director Kim Eng Tan in a webcast. "In the absence of effective policy action, we could lower the ratings on the sovereign," he added. S&P rates India at "BBB-minus" and is the only of the three major credit agencies to have a "negative" outlook.
The United States on Wednesday, 16 April 2014, urged the Indian government that emerges from ongoing elections to follow economic policies that encourage investment, saying Washington would like to see bilateral trade grow to $500 billion a year. Nisha Biswal, US assistant secretary of state for South and Central Asia, said future economic growth in South Asia hinged on India as the region's growth engine. However, Biswal said that while Indian leaders had targeted $1 trillion in infrastructure investment over five years to close gaps preventing growth in manufacturing, policies still inhibited foreign investment. She said India ranked a poor 134 out of 189 countries as a place to invest and start a business.
Biswal said India had the potential to exceed all expectations economically, but needed to adopt investment and tax policies designed to lure, not deter, capital flows and a system of timely regulatory approvals and contract enforcement. It also needed to protect intellectual property rights, she said. "The more integrated India is into global markets and into the economic architecture of Asia, the more India's economy will grow and benefit the entire global economic system," she said. Biswal said the United States wanted to see bilateral trade grow to $500 billion a year. It is about $100 billion currently.
Biswal also said an improved climate between India and Pakistan could "pay enormous economic dividends."
The United Nations' World Meteorological Organization early this week said its weather model forecasts show a fairly large potential for the occurrence of a weather phenomenon known as El Ni by mid-year, threatening to hinder production of various food crops around the globe. An El Ni phenomenon is associated with above-average water temperatures in the central and eastern Pacific and can in its worst form bring drought to West Africa (the world's largest cocoa producing region), less rainfall to India during its vital monsoon season and drier conditions for the cultivations crops such as sugar and cotton in major grower Australia.
"Model forecasts indicate a fairly large potential for an El Ni, most likely by the end of the second quarter of 2014," the World Meteorological Organization said on 15 April 2014. "For the June to August period, approximately two-thirds of the models surveyed predict that El Ni thresholds will be reached, while the remaining models predict a continuation of neutral conditions. A few models predict an earlier El Ni onset, such as in May. No model suggests a La Ni in 2014," said the weather body.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 3 June 2014. The RBI left its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review on 1 April 2014, as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar.
A major near term trigger for the stock market is the outcome of the upcoming Lok Sabha elections. Voting in Maharashtra in the crucial fifth phase of the Lok Sabha elections takes place today, 17 April 2014. Nineteen seats are going for elections in this phase. Voting has also begun in Madhya Pradesh with 142 candidates in the fray in 10 Lok Sabha constituencies. The 36 days long voting process began on 7 April 2014 and will conclude on 12 May 2014. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.
European stocks edged lower on Thursday, 17 April 2014, with investors assessing a crop of quarterly corporate updates and monitoring diplomatic talks in Geneva about the crisis in Ukraine. Key benchmark indices in France, UK and Germany were off 0.13% to 0.24%.
Investors were keeping tabs on any developments from diplomatic talks between Ukraine, Russia, the European Union and the US as they discuss Ukraine's growing political crisis and tensions with Russia.
Three pro-Russian protesters were killed and 13 wounded in an overnight clash with Ukrainian authorities at a military installation in the southeastern city of Mariupol, the country's Interior Ministry said today, 17 April 2014. The violence marked the bloodiest altercation yet since the start of an "antiterrorist" military operation by the Ukrainian government to drive out pro-Russian militants who have seized control of 10 cities in the largely Russian-speaking east.
Pro-Russian partisans took control of the Mariupol city council over the weekend as part of a wave of government building seizures in 10 eastern cities where armed militants demanded a referendum on granting the region greater independence.
Asian stocks edged higher in choppy trade on Thursday, 17 April 2014, after US industrial production increased more than forecast in March and Federal Reserve Chair Janet Yellen said the central bank remains committed to supporting the economic recovery. Key benchmark indices in Indonesia, Singapore, Hong Kong and Taiwan were up 0.02% to 0.49%. Key benchmark indices in China and South Korea were off 0.01% to 0.3%. In Japan, the Nikkei 225 average lost 0.15 points to settle at 14,417.53.
Japan's consumer confidence fell to the lowest level since August 2011, and the government cut its economic assessment for the first time in 17 months, as a sales- tax increase on April 1 sapped the public's spending power.
China's Premier Li Keqiang said China isn't considering strong stimulus, and reiterated that economic growth a bit higher or lower than 7.5% is a reasonable range, according to a statement posted on the central government's website. The government said it will lower reserve ratios at some rural lenders.
Trading in US index futures indicated that the Dow could drop 39 points at the opening bell on Thursday, 17 April 2014. US stocks rose to their highest level in a week on Wednesday, 16 April 2014, encouraged by a crop of corporate earnings and reassuring US and Chinese economic data.
The US economy continued to expand in most regions as businesses benefited from a rebound from harsh winter weather earlier in the year. Eight of 12 Fed districts characterized growth as modest or moderate, the Fed said in its Beige Book business survey, based on reports gathered before April 7. Industrial production rose more than forecast in March after a February gain that was twice as big as previously estimated. A Commerce Department report showed the pace of US home construction rebounded less than forecast in March.
In her first major speech on her policy framework as Fed chair, Janet Yellen said US central bankers must be mindful of how short the Fed is of its goals of full employment and price stability. The larger the shortfall of employment or inflation from their respective objectives, and the slower the projected progress toward those objectives, the longer the current target range for the federal funds rate is likely to be maintained, Yellen said to the Economic Club of New York.
The gap, in both cases, is large, with a jobless rate of 6.7% more than a percentage point higher than the top end of the Federal Open Market Committee's estimate of full employment. Inflation, by the Fed's preferred measure, is more than a percentage point below its 2% goal. It will take more than two years for the economy to close in on the Fed's goals, she said, adding that the Fed's forecasts in the past were disrupted by negative surprises, not positive ones.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 29-30 April 2014. The Federal Reserve on 19 March 2014 decided after the conclusion of a monetary policy review to trim its monthly bond purchases by $10 billion to $55 billion.
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