Key benchmark indices surged on speculation the Bharatiya Janata Party (BJP) led National Democratic Alliance (NDA) will be able to form the next government at the centre and that Narendra Modi will become the next Prime Minister of India after the final phase of Lok Sabha elections which conclude today, 12 May 2014. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, hit record high on intraday basis as well as on closing basis. The 50-unit CNX Nifty settled at record high above 7,000 level. The Sensex attained record closing high above 23,000 mark. Speculation is rife that exit-poll results will show a victory by the NDA in Lok Sabha elections. Exit poll results can be telecast after 18:30 IST today, 12 May 2014, according to the Election Commission. The counting of votes will take place on Friday, 16 May 2014, and the results are expected on the same day. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May. The market sentiment was boosted by data showing that foreign institutional investors (FIIs) made substantial purchases of Indian stocks on Friday, 9 May 2014. Gains in Asian and European stocks also aided the rally on the domestic bourses. The Sensex garnered 556.77 points or 2.42%, up 542.35 points from the day's low and off 21.88 points from the day's high. Today's rally came on the top of a near 3% surge in the key benchmark indices during the previous trading session on Friday, 9 May 2014.
Modi, the prime ministerial candidate from the NDA, is perceived as being more business-friendly and decisive by the business community. As chief minister for the fast-growing state of Gujarat, Modi has built a reputation for getting things done. Investors are hoping that the BJP-led government will be better at getting things done and more business-friendly than the current Congress-party-led coalition government.
Indian stocks gained for the third day in a row today, 12 May 2014. The Sensex has risen 1,227.10 points or 5.49% in three trading days from a recent low of 22,323.90 on 7 May 2014. The Sensex has gained 1,133.20 points or 5.05% in this month so far (till 12 May 2014). The Sensex has gained 2,380.32 points or 11.24% in calendar year 2014 so far (till 12 May 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 6,102.29 points or 34.97%.
Coming back to today's trade, auto stocks rose, with shares of Tata Motors, Mahindra & Mahindra, Maruti Suzuki India and TVS Motor Company scaling record high. Ashok Leyland hit 52-week high. L&T, JSW Steel and Coal India scaled 52-week high. Index heavyweight and cigarette major ITC edged higher. Among power finance companies, Rural Electrification Corporation (REC) and Power Finance Corporation (PFC), both, hit 52-week high.
The market breadth, indicating the overall health of the market was negative.
The market surged in early trade on speculation exit-poll results will show a victory by the NDA in Lok Sabha elections. The Sensex and the 50-unit CNX Nifty, both, scaled record high. Firmness continued on the bourses in mid-morning trade. Key benchmark indices extended intraday gains and scaled fresh lifetime high in early afternoon trade. Firmness continued on the bourses in afternoon trade. Key benchmark indices extended intraday gains and scaled fresh lifetime high in mid-afternoon trade. The Nifty hit record high above the 7,000 mark. Firmness continued on the bourses in late trade.
The market sentiment was boosted by data showing that foreign institutional investors (FIIs) made substantial purchases of Indian stocks on Friday, 9 May 2014. FIIs bought shares worth a net Rs 1260.60 crore from the secondary equity markets on Friday, 9 May 2014, as per data from Securities & Exchange Board of India (Sebi).
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The S&P BSE Sensex garnered 556.77 points or 2.42% to settle at 23,551, a record closing high for the barometer index. The index jumped 578.65 points at the day's high of 23,572.88 in late trade, a lifetime high for the index. The index rose 14.42 points at the day's low of 23,008.65 in early trade.
The CNX Nifty garnered 155.45 points or 2.27% to settle at 7,014.25, a record closing high for the index. The index hit a high of 7,020.05 in intraday trade, a lifetime high for the index. The index hit a low of 6,862.90 in intraday trade.
The BSE Mid-Cap index garnered 54.64 points or 0.73% to settle at 7,510.73. The BSE Small-Cap index garnered 38.61 points or 0.51% to settle at 7,632.29. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 3581.52 crore, higher than Rs 3238.55 crore on Friday, 9 May 2014.
The market breadth, indicating the overall health of the market was negative. On BSE, 1,440 shares declined and 1,408 shares rose. A total of 165 shares were unchanged.
The S&P BSE Oil & Gas index (up 3.07%), the S&P BSE Power index (up 2.98%), the S&P BSE Auto index (up 2.88%), the S&P BSE Capital Goods index (up 2.78%), the S&P BSE FMCG index (up 2.53%) and the S&P BSE Bankex (up 2.5%) outperformed the Sensex.
The S&P BSE Metal index (up 2.36%), the S&P BSE Consumer Durables index (up 1.93%), the S&P BSE Teck index (up 1.26%), the S&P BSE IT index (up 1.04%), the S&P BSE Realty index (up 0.92%) and the S&P BSE Healthcare index (down 0.81%) underperformed the Sensex.
Among the 30-share Sensex pack, 27 stocks gained and rest of them fell.
Index heavyweight and cigarette major ITC gained 3.98% to Rs 359.25. The stock hit high of Rs 359.95 and low of Rs 346.
United Spirits (USL) dropped 2.79%. United Spirits after market hours on Friday, 9 May 2014, said that company has agreed to sell its Whyte & Mackay scotch whisky unit to Emperador Inc in a 430 million pound deal. Emperador Inc is a leading Philippines-based integrated manufacturer of alcoholic beverages. Under the terms of the deal, Emperador has agreed to supply scotch whisky to United Spirits (USL) for a period of 3 years. The sale is subject lo USL shareholders' approval as well as Indian and UK regulatory requirements and is pursuant to a commitment given to the UK Competition and Markets Authority. USL said the sale will result in a significant write off of loan amounts recoverable by the company from its overseas subsidiary.
Index heavyweight Reliance Industries (RIL) rose 2.84% at Rs 1,025.70. The stock hit a 52-week high of Rs 1,048 in intraday trade. The stock hit a low of Rs 995 in intraday trade. RIL, BP and Niko Resources said in a joint statement issued on Saturday, 10 May 2014, that they have issued a Notice of Arbitration on Friday, 9 May 2014, to the Government of India seeking the implementation of the "Domestic Natural Gas Pricing Guideline 2014" notified on 10 January 2014. The continuing delay on part of the Government of India in notifying gas price in accordance with the approved formula for the gas to be sold has left the parties with no other option but to pursue this course of action, the three companies said.
Without this clarity, the parties are unable to sanction planned investments of close to $4 billion this year, they said. In addition, this will also delay the ability of the parties to appraise and develop other significant discoveries made last year, the joint statament said. Overall, the parties were planning to invest $ 8-10 billion in the next few years to significantly increase production from the KGD6 block, they said. This domestic production is essential for meeting India's energy needs and will also help conserve foreign exchange which is required for imports of natural gas into India at the present time. All of this requires clarity on pricing, the joint statement said. The three parties shall endeavour to work with the government to achieve a prompt and efficient resolution of this dispute, they said.
ONGC gained 2.8% at Rs 357.50. The stock hit a 52-week high of Rs 361 in intraday trade.
PSU OMCs gained. Indian Oil Corporation (IOCL) jumped 5.66%.
HPCL gained 3.17% to Rs 374.50 after hitting 52-week high of Rs 383 in intraday trade.
BPCL rose 3.68% to Rs 503 after hitting record high of Rs 504 in intraday trade.
Coal India surged 6.03% to Rs 327.70 after hitting 52-week high of Rs 336.20 in intraday trade.
Auto stocks rose on renewed buying. Tata Motors advanced 3.98% to Rs 444.50 after scaling a record high of Rs 446 in intraday trade.
Ashok Leyland rose 4.82% to Rs 25 after hitting a 52-week high of Rs 26.25 in intraday trade.
Mahindra & Mahindra (M&M) rose 2.69% at Rs 1,134.05. The stock hit record high of Rs 1,139 in intraday trade. M&M during trading hours on Friday, 9 May 2014, said that a section of employees who were not reporting to duties at the company's tractor manufacturing plants situated at Mohali, Punjab, have resumed their work with effect from 8 May 2014 as the matter was resolved amicably through mutual dialogues and the matter has also been withdrawn from the Conciliation Officer, Mohali. M&M also said that that there has been no production loss during the period when these employees had stopped reporting to duties and that all operations continued without any interruptions during this period. Earlier, M&M had on 28 April 2014 announced that a section of employees were not reporting to duties in a concerted manner at the tractor manufacturing unit in Mohali.
India's largest car maker by sales Maruti Suzuki India rose 4.24% at Rs 2,056.30. The stock hit record high of Rs 2,064.70 in intraday trade.
Bajaj Auto (up 1.63%) and Hero MotoCorp (up 3.67%) gained.
TVS Motor Company surged 6.96% to Rs 119.10 after scaling record high of Rs 123.65 in intraday trade.
Bank stocks gained across the board on renewed buying. Among private sector banks, Yes Bank (up 1.83%), and Federal Bank (up 2.47%) gained.
HDFC Bank rose 4.61% to Rs 792.10 after hitting a record high of Rs 794.40 in intraday trade.
Axis Bank rose 0.78% to Rs 1,644.25 after hitting a record high of Rs 1,691 in intraday trade.
ICICI Bank rose 1.83% to Rs 1,400 after hitting 52-week high of Rs 1,413.85 in intraday trade.
Kotak Mahindra Bank shed 0.22% to Rs 850, with the stock reversing direction after hitting a record high of Rs 864.65 in intraday trade.
IndusInd Bank rose 1.55% to Rs 521.60 after hitting a record high of Rs 535.40 in intraday trade.
Among PSU bank stocks, State Bank of India (SBI) (up 3.22%), Canara Bank (up 1.08%), Union Bank of India (up 2.34%), Bank of India (up 1.15%), and Punjab National Bank (up 1.84%) gained.
Corporation Bank dropped 5.01% after net profit declined 88.3% to Rs 41.57 crore on 8.6% growth in total income to Rs 5032.62 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced after market hours on Friday, 9 May 2014.
Corporation Bank's net profit declined 60.8% to Rs 561.72 crore on 15.7% growth in total income to Rs 19606.29 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013). The bank's provisions and contingencies surged 79.3% to Rs 824.53 crore in Q4 March 2014 over Q4 March 2013.
Corporation Bank's ratio of gross non-performing assets (NPAs) to gross advances stood at 3.42% as on 31 March 2014 as against 3.08% as on 31 December 2013 and 1.72% as on 31 March 2013. The ratio of net NPAs to net advances stood at 2.32% as on 31 March 2014 as against 2.15% as on 31 December 2013 and as against 1.19% as on 31 March 2013.
The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 11.64% as on 31 March 2014 as against 11.89% as on 31 December 2013. The bank's provision coverage ratio stood at 52.9% as on 31 March 2014 as against 62.06% as on 31 March 2013.
Bank of Baroda rose 1.01% to Rs 838.25 after hitting 52-week high of Rs 849 in intraday trade.
Bharti Airtel rose 2.44%. The company today, 12 May 2014, said its that subsidiary -- Bharti Airtel International (Netherlands) BV -- has approached investors for issuance of debt instruments in the form of dollar and euro denominated senior unsecured guaranteed notes. The proceeds of the issue will be used for repayment and refinancing of existing foreign currency indebtedness with the rest for general corporate purposes, Bharti Airtel said.
Capital goods stocks gained on renewed buying. Bharat Heavy Electricals (Bhel) (up 2.3%), Bharat Electronics (up 1.87%), Crompton Greaves (up 1.29%), L&T (up 3.26%), Siemens (up 4.22%) gained.
ABB (India) jumped 5.43% to Rs 877.50 after hitting 52-week high of Rs 922.70 in intraday trade.
L&T rose 3.66% to Rs 1,392.30 after hitting 52-week high of Rs 1,394 in intraday trade.
Reliance Infrastructure rose 2.64% to Rs 558.80 after hitting 52-week high of Rs 567.40 in intraday trade.
Power Finance Corporation advanced 3.94% to Rs 209.50 after hitting 52-week high of Rs 210.65 in intraday trade.
Rural Electrification Corporation (REC) rose 1.04% to Rs 252.40 after hitting 52-week high of Rs 257.10 in intraday trade. REC after market hours today, 12 May 2014, said that after the receipt of approval from the Ministry of Power vide their letter dated 22 April 2014, 50,000 equity shares of NRSS XXXI (A) Transmission held by REC Transmission Projects Company (RECTPCL) (a wholly owned subsidiary of REC) and its nominees, have been transferred along with all assets and liabilities of the company to Power Grid Corporation of India (PGCIL) and their nominees, on 12 May 2014, substantially upon the terms and conditions as detailed in the Share Purchase Agreement executed between the RECTPCL, NRSS XXXI (A) Transmission and Power Grid Corporation of India, for establishment of "Transmission System for Northern Region System Strengthening Scheme, NRSS XXXI (Part A)."
REC also informed that 50,000 equity shares of NRSS XXXI (B) Transmission held by REC Transmission Projects Company (RECTPCL) (a wholly owned subsidiary of REC) and its nominees, have been transferred along with all assets and liabilities of the company to Essel Infraprojects (EIL) and their nominees, on 12 May 2014, substantially upon the terms & conditions as detailed in the Share Purchase Agreement executed between the RECTPCL, NRSS XXXI (B) Transmission Limited and Essel Infraprojects, for establishment of Transmission System for Northern Region System Strengthening Scheme, NRSS XXXI (Part B).
Shares of Power Grid Corporation of India jumped 5.96%.
JSW Steel advanced 2.53% to Rs 1,161.25 after hitting 52-week high of Rs 1,167.20 in intraday trade.
Cipla shed 1.31% at Rs 387.40. The stock was volatile. The stock hit high of Rs 394.50 and low Rs 384.60. Cipla today, 12 May 2014, announced its investment in Chase Pharmaceuticals Corporation Inc., US (Chase), through its wholly owned subsidiary, Cipla (EU), UK. Chase is an early stage drug development company, based in Washington DC. Chase is focused on developing novel approaches to improve treatments for Alzheimer's disease. Chase has a unique patented approach and is focused on improving the efficacy, safety and tolerability of existing Alzheimer medications, Cipla said in a statement.
Cipla through its impact investment unit -- Cipla New Ventures -- is investing in the Series B round of financing as part of a syndicate, which also consists of Edmond de Rothschild Investment Partners and New Rhein Healthcare LLC. Cipla New Ventures was set up to chart a trajectory in innovation around biologicals, repurposing existing safe drugs and leveraging Cipla's enviable suite of delivery technologies through disruptive innovation around access and affordability. It is managed by Mr. Chandru Chawla. The $21 million two-phase financing will support Phase 2a and Phase 2b clinical trials for Chase's lead drug CPC 201. The original venture funding for Chase was provided by the Brain Trust Accelerator Fund in 2010.
Commenting on the investment, Mr. Subhanu Saxena, MD & Global CEO, Cipla Ltd said: "This investment is consistent with Cipla New Ventures' mission to build more innovation-led business streams for Cipla in the future. We want to bring affordable medicines, where we identify an unmet patient need, in a way that leverages Cipla's formidable technology, device and development capabilities."
In India, over 5 million patients suffer from dementia, most of whom are afflicted with Alzheimer's. These numbers are expected to double by 2030. In India, the caregiver is the family and the economic and social impact is far reaching. In North America, Alzheimer's disease affects more than over 7 million patients and its impact is growing as the population ages. The disease costs the US alone $203 billion annually with projections to reach $1.2 trillion by 2050.
In addition to financing Chase, Cipla will collaborate with the company to develop the drug. If successful, Cipla may provide low cost access to Chase's lead drug in India and South Africa where Cipla has championed affordable access to essential and life-saving medications for decades, the company said in a statement.
Torrent Pharmaceuticals rose 2.78% after consolidated net profit surged 120% to Rs 244 crore on 41% growth in revenue to Rs 1225 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced after market hours on Friday, 9 May 2014.
Torrent Pharmaceuticals' EBITDA (earnings before interest, taxation, depreciation, and amortization) surged 59% to Rs 350 crore in Q4 March 2014 over Q4 March 2013.
The company's consolidated net profit surged 53% to Rs 664 crore on 30% growth in revenue to Rs 4184 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013). EBITDA surged 37% to Rs 952 crore in FY 2014 over FY 2013.
Realty stocks edged higher. Housing Development and Infrastructure (up 0.38%), DLF (up 0.59%), Sobha Developers (up 3.18%) and Unitech (up 4.59%) gained.
Oberoi Realty lost 2.13% after consolidated net profit dropped 46.93% to Rs 77.03 crore on 29.9% fall in total income to Rs 228.49 crore in Q4 March 2014 over Q4 March 2013. The result was announced on Saturday, 10 May 2014.
Oberoi Realty's net profit fell 38.37% to Rs 311.06 crore on 25.44% decline in total income to Rs 855.51 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
Total area booked declined to 0.48 lakh sq ft in Q4 March 2014 as against 1.18 lakh sqft sold in Q4 March 2013 and the total value was Rs 112.17 crore in Q4 March 2014 as against Rs 222.66 crore in Q4 March 2013.
Chambal Fertilisers & Chemicals lost 2.91% after net profit dropped 75.5% to Rs 5.63 crore on 6.6% fall in net sales to Rs 1441.18 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced after market hours on Friday, 9 May 2014.
On a consolidated basis, Chambal Fertilisers & Chemicals' net profit rose 2.3% to Rs 244.12 crore on 8.6% rise in net sales to Rs 8905.10 crore in the year ended 31 March 2014 over the year ended 31 March 2013.
Chambal Fertilisers & Chemicals net profit fell 0.8% to Rs 303.07 crore on 8.7% rise in net sales to Rs 7976.42 crore in the year ended 31 March 2014 over the year ended 31 March 2013.
Chambal Fertilisers & Chemicals' Board of Directors at its meeting held on Friday, 9 May 2014, recommended a dividend of Rs 1.90 per equity share for the year ended 31 March 2014.
Gokaldas Exports rose by maximum permissible level of 10% to Rs 60.90 after the company reported a net profit of Rs 6.35 crore in Q4 March 2014 compared with a net loss of Rs 10.98 crore in Q4 March 2013. The result was announced on Saturday, 10 May 2014. Gokaldas Exports' total income from operations (net) rose 17.15% to Rs 322.03 crore in Q4 March 2014 over Q4 March 2013.
Blue Dart Express fell 1.16% after net profit declined 26.6% to Rs 30.65 crore on 12.9% growth in net sales to Rs 502.89 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced after market hours on Friday, 9 May 2014. On a consolidated basis, Blue Dart Express' net profit declined 36.6% to Rs 122.60 crore on 10.6% fall in net sales to Rs 1936.64 crore in the year ended 31 March 2014 over the year ended 31 March 2013.
Taj GVK Hotels & Resorts rose 0.37% after net profit surged 748.28% to Rs 4.92 crore on 1.26% rise in net sales to Rs 65.07 crore in Q4 March 2014 over Q4 March 2013. The company announced the result during trading hours today, 12 May 2014.
Indian government bond prices rose on speculation exit-poll results will show a victory by BJP-led NDA in Lok Sabha elections. The yield on 10-year benchmark federal paper, 8.83% GS 2023, was hovering at 8.7272%, lower than its close of 8.7459% on Friday, 9 May 2014. Bond yield and bond prices move in opposite direction.
India's merchandise exports rose 5.26% to $25.63 billion in April 2014 over April 2013, data released by the government after trading hours on Friday, 9 May 2014, showed. Imports dropped 15% at $35.72 billion in April 2014 over April 2013. Oil imports declined 0.6% at $12.98 billion in April 2014 over April 2013. Non-oil imports dropped 21.5% at $22.74 billion in April 2014 over April 2013. The trade deficit for April 2014 was estimated at $10.09 billion, which was sharply lower than the trade deficit of $17.67 billion during April 2013.
A major near term trigger for the stock market is the outcome of the ongoing Lok Sabha elections. The 36 days long voting process which began on 7 April 2014 conclude with the final phase of voting today, 12 May 2014. Results of exit polls predicting the outcome of the election will likely start coming in from today evening. The counting of votes will take place on 16 May 2014 and the results are expected on the same day. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.
Investors are hoping that a stable government which will complete its full term of five years in office comes to power after the elections. A party or a pre-poll alliance will need 272 MPs to form government at the Centre, which is a simple majority in 543-member Lok Sabha. Investors are expecting measures for revival of the economy, business-friendly policies and good governance from the new government that comes to power after the elections. Investors expect policy measures from the new government to put India on a high-growth path on a sustainable basis.
There are expectations that the Bharatiya Janata Party (BJP) led National Democratic Alliance (NDA) will be able to form the next government at the centre with support from some regional parties after Lok Sabha elections which conclude next week. Various opinion polls have forecast that the NDA with Narendra Modi as its prime ministerial candidate is leading the race to Parliament. Most opinion polls have forecast that the NDA will be unable to form the government on its own and that it will have to rely on support from smaller regional parties to form the government. For the first time in mid-April, an opinion poll for a television news channel showed the NDA winning a narrow majority of 275 seats.
The BJP in its Lok Sabha polls manifesto has promised more business-friendly policies if the party comes to power after elections. The BJP has said that measures for the revival of the economy are its priority if the party comes to power after elections. India's GDP growth has slowed to a decade low of below 5%. The GDP grew 4.7% in Q3 December 2013.
Industrial production is seen remaining in contraction mode in March 2014. Industrial production is expected to shrink 1.4% in March 2014, as per the median estimate of a poll of economists carried out by Capital Market. Industrial production declined 1.9% in February 2014. The government unveils data on industrial production for March 2014 after trading hours today, 12 May 2014.
The rate of inflation based on the combined consumer price index (CPI) for urban India and rural India is seen accelerating to 8.6% in April 2014, from 8.3% in March 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government unveils CPI data for April 2014 after trading hours today, 12 May 2014.
The rate of inflation based on the wholesale price index is expected to remain at 5.7% in April 2014, at the same level it was in March 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 wholesale price index (WPI) for April 2014 at about 12:00 noon on Thursday, 15 May 2014.
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.
European stocks edged higher Monday, 12 May 2014, with mining shares advancing after a brokerage upgrade of the sector. Key benchmark indices in UK, France and Germany were up 0.13% to 0.93%.
Asian stocks rose on Monday, 12 May 2014, after Chinese President Xi Jinping said the nation needs to adapt to a "new normal" in the pace of economic growth. Key benchmark indices in Indonesia, South Korea, Hong Kong, China and Indonesia were up 0.3% to 2.08%. Key benchmark indices in Taiwan, Singapore and Japan were off 0.35% to 0.91%.
China's growth fundamentals haven't changed and the country is still in a significant period of strategic opportunity, Xi reportedly said. At the same time, the government must prevent risks and take timely countermeasures to reduce potential negative effects, he said.
Japan's current-account surplus narrowed more than forecast in March as a surge in imports before last month's sales-tax increase trimmed gains from overseas investments. The excess of 116.4 billion yen ($1.14 billion) reported today by the Ministry of Finance in Tokyo. A 782.9 billion yen deficit on a seasonally adjusted basis was the largest in comparable data back to at least 1996.
Trading in US index futures indicated that the Dow could advance 51 points at the opening bell on Monday, 12 May 2014. US stocks rose with the Dow Jones Industrial Average ending at a record high on Friday, boosted by IBM, while a rebound in high-growth momentum names helped the broader market.
Dennis Lockhart, president of the Atlanta Fed, said he expects the central bank will use a reverse-repurchase program when it eventually begins to tighten monetary policy. Lockhart, who doesn't vote on policy this year, told reporters on Sunday, 11 May 2014, after a speech in Dubai that reverse repos may play a role in influencing short-term rates.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 17-18 June 2014. The Fed on 30 April 2014 said after a monetary policy review that it will keep the benchmark interest-rate target at almost zero for a "considerable time" after its bond-buying program ends. The FOMC also reduced monthly debt purchases to $45 billion, its fourth straight $10 billion cut, and said further reductions are likely in "measured steps" if the economy continues to improve.
Pro-Russian separatists in eastern Ukraine declared victory in a secession referendum Sunday, threatening to escalate tensions between Moscow and Kiev, even as German Chancellor Angela Merkel and French President Franis Hollande warned of further sanctions against Russia.
Russia today, 12 May 2014, said it respected the outcome of the referendum that took place in the Donetsk and Luhansk regions, but Ukrainian officials dismissed the vote as filled with irregularities.
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