Key benchmark indices extended gains and hit fresh intraday high in late trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit 3-week high. The Sensex was provisionally up 106.77 points or 0.52%, off close to 10 points from the day's high and up about 110 points from the day's low. The market breadth, indicating the overall health of the market was positive. The market sentiment was boosted by the Reserve Bank of India's announcement after trading hours on Tuesday, 18 February 2014, that it will conduct term repo auctions in March 2014 to address the liquidity tightness in the banking system. The market sentiment was also boosted by data showing that foreign funds remained buyers of Indian stocks on Tuesday, 18 February 2014.
Indian stocks edged higher for the fourth day in a row today, 19 February 2014.
Pharma stocks rose on renewed buying. Sun Pharmaceutical Industries rose on reports the company has received approval from the US Food and Drug Administration to sell a drug to treat Osteoporosis. IT stocks rose on renewed buying.
The market edged higher amid initial volatility. The Sensex pared gains after hitting fresh intraday high in morning trade. The Sensex and the 50-unit CNX Nifty, both, hit 3-week high. Key benchmark indices moved in a narrow range in positive zone in early afternoon trade. A bout of volatility was witnessed as key benchmark indices trimmed gains after hitting fresh intraday high in afternoon trade. Key benchmark indices retained positive zone in mid-afternoon trade. The Sensex surged and hit fresh intraday high in late trade.
The market sentiment was boosted by data showing that foreign funds remained buyers of Indian stocks on Tuesday, 18 February 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 292.23 crore on Tuesday, 18 February 2014, as per provisional data from the stock exchanges.
As per provisional figures, the S&P BSE Sensex was up 106.77 points or 0.52% to 20,740.98. The index jumped 116.31 points at the day's high of 20,750.52 in late trade, its highest level since 29 January 2014. The index fell 4.65 points at the day's low of 20,629.56 in early trade.
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The CNX Nifty was up 31.35 points or 0.51% to 6,159.45, as per provisional figures. The index hit a high of 6,160.35 in intraday trade, its highest level since 29 January 2014. The index hit a low of 6,125.75 in intraday trade.
The BSE Mid-Cap index rose 31.77 points or 0.5% at 6,377.23 and underperformed the Sensex. The BSE Small-Cap index rose 40.81 points or 0.64% at 6,371.53 and outperformed the Sensex.
The total turnover on BSE amounted to Rs 1668 crore, lower than Rs 1936.97 crore on Tuesday, 18 February 2014.
The market breadth, indicating the overall health of the market was positive. On BSE, 1,462 shares rose and 1,209 shares fell. A total of 158 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks rose and rest fell. HDFC Bank (up 1.51%), L&T (up 0.87%) and GAIL (India) (up 0.8%) edged higher from the Sensex pack.
Pharma stocks rose on renewed buying. Cipla (up 0.44%), Dr. Reddy's Laboratories (up 1.02%), and Lupin (up 2.41%), gained.
Ranbaxy Laboratories rose 2.69%. The New York Attorney General and the US units of Ranbaxy Laboratories and Teva Pharmaceutical Industries have reportedly settled claims that an agreement between the two drugmakers unlawfully restricted competition. Under the terms of the settlement, the two generic drug makers will end a 2010 agreement of not challenging each other's rights to sell certain drugs exclusively in the United States. Teva and Ranbaxy will pay the New York state $300,000 and have agreed to refrain from similar agreements in the future.
Sun Pharmaceutical Industries rose 2.21% on reports the company received US Food and Drug Administration approval to sell a drug to treat Osteoporosis. Currently the drug, Ibandronate Sodium, is marketed by Roche under the brand name Bovina. Ibandronate Sodium is indicated in the treatment of osteoporosis, a bone-weakening disease, in postmenopausal women.
According to reports, Sun Pharmaceutical Industries (Sun Pharma) is currently the only generic player to have final approval for this product. Bovina generated an annual sales of $82 million in 2012, reports said. More players would be able to sell the drug after its patent expiry on 2 September 2014, reports added.
IT stocks rose on renewed buying. Wipro (up 1.97%), TCS (up 2.01%), HCL Technologies (up 0.56%) and Infosys (up 2.12%) edged higher.
Financial Technologies (India) rose by maximum permissible 5% upper limit on BSE on a media report that Tech Mahindra has shown interest in buying a sizeable equity stake in the company. According to the media report, Tech Mahindra has hired consultants to carry out a due diligence of Financial Technologies (India) (FTIL). However, the report suggested that it is uncertain whether the ongoing negotiations will translate into a deal. Shares of Tech Mahindra rose 1.19%.
According to preliminary discussions, Tech Mahindra will subscribe to preferential shares issued by FTIL as well as buy a part of the equity stake controlled by its promoters, the report added.
As on 31 December 2013, promoters held 45.63% stake in FTIL.
Bharti Airtel rose 0.26%. The company said during market hours that it has crossed the 200 million mobile subscribers mark in India, further consolidating its leadership position in the world's second largest mobile market. Airtel is the largest telecom operator in India, both in terms of customers and revenues. The company ranks as the fourth largest mobile operator in the world in terms of subscribers.
Gopal Vittal, Joint MD & CEO (India), Bharti Airtel said: "We are delighted to have reached this major milestone. It is gratifying to see the trust our customers have reposed in our brand and it will be our endeavor to continue delighting them with innovative and world-class services. We will also continue to invest towards building a robust data network of the future and be at the forefront of India's mobile broadband revolution".
Airtel has the largest bouquet of mobile services for customers in India, including 2G, 3G, 4G, Mobile Commerce and other Value Added Services. Its distribution channel is spread across 1.5 million outlets, with network presence in 5,121 census and 460,655 non-census towns and villages in India covering approximately 86.7% of the country's population. Airtel has the largest rural mobile customer base in India with over 88 million mobile customers (from rural markets).
Airtel has India's widest 3G footprint, offering customers high-speed internet access and a host of innovative services like Mobile TV, video calls, live-streaming videos and gaming. Airtel is the only mobile operator in India to offer 4G services using TD-LTE technology, providing customers the fastest wireless services with buffer-less HD video streaming and multi-tasking capabilities.
Airtel launched its mobile operations in India in 1995. Since then it has been at the forefront of India's mobile revolution that has empowered millions across the length and breadth of the country, Bharti Airtel said in a statement.
HMT spurted 10.26% after the company said that the Government of India has approved its revival and restructuring plans which envisages financial support of Rs 1083.48 crore. The announcement was made after market hours on Tuesday, 18 February 2014.
HMT said that the revival and restructuring plans of the company was approved by the Government of India which envisages financial support of Rs 1083.48 crore which includes cash infusion of Rs 425 crore against which the company has to issue of 8% Redeemable Preferential Share Capital for Rs 425 crore. In the phase I, the Government of India has released the sanctioned funds amounting to Rs 217 crore. Further, HMT informed that the company's board of directors at their 305th meeting held on 25 January 2014 approved the allotment of fully paid-up 8% Redeemable Preference Shares of Rs 100 each for a face value of Rs 217 crore in favour of President of India which is redeemable within two years as per the terms of sanction of the investment by Government.
The Reserve Bank of India on Tuesday, 18 February 2014, said it will conduct term repo auctions of appropriate amount and tenor during March 2014 to address liquidity tightness. In order to address the anticipated tightening in liquidity conditions 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 Reserve Bank of India (RBI) will conduct term repo auctions of appropriate amount and tenor during March 2014, the RBI said in a press release issued on Tuesday. The details of the term repo auctions will be announced in due course, the RBI said.
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.
On political front, the Lok Sabha passed a contentious proposal to split Andhra Pradesh and create the new state of Telangana on Tuesday amid chaotic scenes and uproar in parliament from opponents of the bill. The state capital Hyderabad will remain the common capital for the two states for a period of 10 years if the bill is passed in the upper house.
The decision to break up the state was made ahead of elections due by May 2014. The Bharatiya Janata Party, which is the frontrunner in the national election race, voted in favor of the bill, allowing it to pass. It still needs approval in the upper house by Friday, when parliament's final session before the election ends. The new state would account for 17 seats in parliament.
European stocks were mostly lower on Wednesday, 19 February 2014, as investors awaited a report on US housing starts. Key benchmark indices in France and Germany was off 0.04% to 0.15%. UK's FTSE 100 rose 0.03%.
Asian stocks edged higher on Wednesday, 19 February 2014, after China's overnight money-market rate dropped to a nine-month low as an ample supply of cash offset the impact of the central bank draining funds. Key benchmark indices in Indonesia, Taiwan, Hong Kong, China and Singapore were up 0.24% to 1.11%. Key benchmark indices in Japan and South Korea were off 0.2% to 0.52%.
The People's Bank of China withdrew 48 billion yuan ($7.9 billion) by selling 14-day repurchase contracts at 3.8 percent yesterday, 18 February 2014. That was the first repo auction since June. The central bank said it will sell 50 billion yuan of nine-month treasury deposits on behalf of the Ministry of Finance tomorrow, 20 February 2014.
A preliminary report on China's manufacturing is due tomorrow, 20 February 2014.
Trading in US index futures indicated that the Dow could drop 12 points at the opening bell on Wednesday, 19 February 2014. US stocks settled mostly higher on Tuesday with the Nasdaq Composite recording its eighth consecutive session of gains, the longest since July 2013.
Manufacturing activity in the New York region gave up most of the strong gains made during the prior month although it remained in positive territory, according to data released Tuesday. The report fits a picture of a manufacturing sector struggling with severe winter weather. The ISM index for the US showed manufacturers suffered from the January chill last month.
A gauge of confidence among home builders plunged in February, dropping to the lowest level in nine months, led by weaker views on present sales of single-family homes, according to data released Tuesday. The housing-market index dropped to 46 this month from 56 in January 2014.
Minutes of the Federal Reserve's January meeting will be released later in the global day today, 19 February 2014. Federal Reserve Chairwoman Janet Yellen said last week that US growth has strengthened and that only a "notable change in the outlook" for the economy would prompt policy makers to slow the pace of cuts to the monthly bond-buying program.
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 Fed also signaled that it is likely to keep reducing bond purchases in the coming months, citing a pickup in US economic activity and improvement in the US labor market.
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