Key benchmark indices alternately moved between positive and negative zone in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was currently down 23.37 points or 0.1%, off 247.48 points from the day's high and up 40.15 points from the day's low. The market breadth, indicating the overall health of the market was strong. Shares of a number of small-cap and mid-cap companies were up sharply. The BSE Mid-Cap index was up more than 2%. The BSE Small-Cap index was up almost 3%. Both these indices outperformed the Sensex.
Auto stocks declined. But, Eicher Motors bucked the overall weakness in auto stocks as the stock scaled record high. Sugar stocks were in demand on renewed buying.
A bout of volatility was witnessed in early trade as key benchmark indices regained positive zone after reversing gains after a firm opening. Key benchmark indices extended intraday gains in morning trade. Volatility ruled the roost as the key benchmark indices slipped into the red after extending intraday gains in morning trade. Intraday volatility continued as key regained positive zone in early afternoon trade after Prime Minister-designate Narendra Modi was elected as BJP Parliamentary Party leader unanimously. Key benchmark indices alternately moved between positive and negative zone near the flat line in afternoon trade. Key benchmark indices alternately moved between positive and negative zone in mid-afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1350.04 crore on Monday, 19 May 2014, as per provisional data from the stock exchanges.
At 14:15 IST, the S&P BSE Sensex was down 23.37 points or 0.1% to 24,339.68. The index jumped 224.11 points at the day's high of 24,587.16 in early trade, its highest level since 16 May 2014. The index fell 63.52 points at the day's low of 24,299.53 in mid-morning trade.
The CNX Nifty was down 1.10 points or 0.02% to 7,262.45. The index hit a high of 7,353.65 in intraday trade, its highest level since 16 May 2014. The index hit a low of 7,247.70 in intraday trade.
The BSE Mid-Cap index was up 164.55 points or 2.03% at 8,255.82. The BSE Small-Cap index was up 244.03 points or 2.92% at 8,588.73. Both these indices outperformed the Sensex.
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The market breadth, indicating the overall health of the market was strong. On BSE, 2,014 shares gained and 778 shares fell. A total of 110 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks declined and rest of them gained.
Most auto stocks declined. Tata Motors (down 1.06%), Maruti Suzuki India (down 0.87%) and Ashok Leyland (down 0.59%) declined.
Mahindra & Mahindra (M&M) rose 2.5%.
Shares of two-wheeler makers declined. Hero MotoCorp declined 3.09%. Bajaj Auto dropped 0.82%. TVS Motor Company fell 1.35%.
Eicher Motors jumped 6.3% to Rs 6,734.20 after hitting a record high of Rs 6,779.50 in intraday trade.
Indiabulls Power (up 19.98%), Unitech (up 17.9%), MMTC (up 13.54%), Suzlon Energy (up 11.56%), Tata Communications (up 10.33%), Jain Irrigation Systems (up 10.23%), Carborundum Universal (up 10.22%), Oberoi Realty (up 9.68%), Gujarat Flurochemicals (up 8.73%) and JSW Energy (up 8.45%) were the top from the BSE Mid-Cap index.
BGR Energy Systems (up 19.99%), D B Realty (up 19.99%), Kolte Patil Developers (up 19.97%), Lanco Infratech (up 19.96%), Capital First (up 18.01%), Allcargo Logistics (up 14.9%), Ansal Properties & Infrastructure (up 14.78%), Himadri Chemicals & Industries (up 14.49%), Apar Industries (up 14.41%) and MTNL (up 13.71%) were the top gainers from the BSE Small-Cap index.
Sugar stocks were in demand on renewed buying. Bajaj Hindusthan (up 10.48%), Dhampur Sugar Mills (up 12.13%), Sakthi Sugars (up 5%), Balrampur Chini Mills (up 1.06%), Triveni Engineering & Industries (up 11.53%), Shree Renuka Sugars (up 3.82%), Simbhaoli Sugar Mills (up 4.95%) and Dwarikesh Sugar Industries (up 4.9%) gained.
FDC rose 1.58% after the company said it has purchased a land including factory building at Andheri (West), Mumbai, for a total consideration of Rs 115 crore. The announcement was made during trading hours today, 20 May 2014. FDC said that the company intends to use the land for its business operations.
In the foreign exchange market, the rupee edged lower against the dollar as importers stepped up dollar purchases. The partially convertible rupee was hovering at 58.72, compared with its close of 58.59/60 on Monday, 19 May 2014.
Indian government bond prices rose on optimism global funds will boost holdings of local debt after the elections handed a clear majority to the Bharatiya Janata Party. The yield on 10-year benchmark federal paper, 8.83% GS 2023, was hovering at 8.8596%, lower than its close of 8.8627% on Monday, 19 May 2014. Bond yield and bond prices move in opposite direction.
The Bharatiya Janata Party Parliamentary party today, 20 May 2014, elected Narendra Modi as its leader, officially making him the Prime Minister-in-making.
After Bharatiya Janata Party (BJP) led National Democratic Alliance's (NDA) landslide victory in the recently concluded Lok Sabha election, investors are expecting measures from the incoming government to revive the Indian economy. There are expectations that Gujarat chief minister and Prime Minister-designate Narendra Modi will be in a position to replicate the economic success he enjoyed in Gujarat state when he takes over as the country's Prime Minister. Gujarat's economy expanded by 10.1% a year, on average and adjusting for inflation, from 2001 and 2012, compared with 7.7% growth a year for India's economy as a whole. India's GDP growth slowed sharply at 4.7% in Q3 December 2013. Investors hope that a BJP-led government would be able to accelerate policy reforms and overhaul the country's poor infrastructure. Investors will now be keenly watching policy announcements from the new government to drive a turnaround in the investment cycle.
Ever since NDA's victory in the election last week, speculation has been rife about the likely allocation of key ministerial portfolios in the Modi-led NDA government.
The first budget of the new government is expected by July 2014. An interim budget was presented by P. Chidambaram in February this year. Essentially, in the nature of a vote on account, the interim budget was intended to get Parliament approval for expenditure to be incurred during the first few months of fiscal year 2014-15 due to Lok Sabha elections.
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 lower on Tuesday, 20 May 2014, as investors weighed corporate earnings. Key benchmark indices in Germany, France and UK shed 0.06% to 0.43%.
Asian stocks edged higher on Tuesday, 20 May 2014, tracking overnight gains in US markets. Key benchmark indices in Singapore, Hong Kong, China and Japan were up 0.1% to 0.57%. Key benchmark indices in Taiwan, Indonesia and South Korea were off 0.14% to 2.75%.
Thailand's army today, 20 May 2014, imposed martial law nationwide after months of political turmoil that brought down an elected government and tipped the economy into a contraction.
China plans to have about 100 initial public offerings from June through the end of this year as the government pushes for development in capital markets. The stock sales will be spread out to ensure there are a similar number each month, China Securities Regulatory Commission Chairman Xiao Gang said in a statement posted on the regulators website yesterday, 19 May 2014.
Singapore's gross domestic product expanded an annualized 2.3% in the three months through March from the previous quarter, when it climbed a revised 6.9%, the trade ministry said in a statement today, 20 May 2014.
Trading in US index futures indicated that the Dow could fall 10 points at the opening bell on Tuesday, 20 May 2014. US stocks ended Monday's thinly traded session higher with small-cap and tech companies leading the gains.
The Federal Reserve releases minutes from the April 29-30 meeting of Federal Open Market Committee tomorrow, 21 May 2014. 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.
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