Key benchmark indices moved in a narrow range in positive zone in mid-afternoon trade. The market breadth, indicating the overall health of the market, was negative. The barometer index, the S&P BSE Sensex, was up 28.75 points or 0.13%, off close to 110 points from the day's high and up about 90 points from the day's low.
Metal stocks were mixed. SpiceJet edged higher after the budget carrier placed an order with Boeing Co for 42 Boeing B737 Max planes worth $4.4 billion by swapping existing orders of 12 Boeing 737 planes.
Key benchmark indices edged lower amid initial volatility on weak Asian stocks. Key benchmark indices languished in the negative terrain in morning trade. A bout of volatility was witnessed as key benchmark indices moved into positive zone from negative zone in mid-morning trade. Key benchmark indices moved in a narrow range in positive zone in early afternoon trade. Key benchmark indices trimmed gains in afternoon trade. While the S&P BSE Sensex was a tad higher for the day, the CNX Nifty slipped into the red. Key benchmark indices moved in a narrow range in positive zone in mid-afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1,471.23 crore on Tuesday, 11 March 2014, as per provisional data from the stock exchanges.
At 14:20 IST, the S&P BSE Sensex was up 28.75 points or 0.13% to 21,855.17. The index jumped 139.53 points at the day's high of 21,965.95 in mid-morning trade. The index shed 58.28 points at the day's low of 21,768.14 in early trade, its lowest level since 7 March 2014.
The CNX Nifty was down 1.10 points or 0.02% to 6,513. The index hit a high of 6,546.15 in intraday trade. The index hit a low of 6,487.30 in intraday trade, its lowest level since 7 March 2014.
The BSE Mid-Cap index was up 5.68 points or 0.08% at 6,709.09. The BSE Small-Cap index was up 8.15 points or 0.12% at 6,672.84. Both these indices underperformed the Sensex.
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The market breadth, indicating the overall health of the market was negative. On BSE, 1,414 shares dropped and 1,250 shares rose. A total of 152 shares were unchanged.
Sun Pharmaceuticals Industries (up 4.17%), Hero MotoCorp (up 1.98%), and ITC (up 1.86%) edged higher from the Sensex pack.
Metal stocks were mixed. Sail (down 0.09%), Hindalco Industries (down 1.49%), National Aluminum Company (down 0.29%), Hindustan Copper (down 0.24%), Sesa Sterlite (down 0.53%) and Bhushan Steel (down 0.04%), edged lower. NMDC (up 2.04%), JSW Steel (up 1.74%), Hindustan Zinc (up 0.77%), Jindal Steel & Power (up 1.71%), and Tata Steel (up 0.09%) gained.
SpiceJet jumped 4.67% to Rs 14.80 after the budget carrier placed an order with Boeing Co for 42 Boeing B737 Max planes worth $4.4 billion by swapping existing orders of 12 Boeing 737 planes. The stock was volatile. The scrip hit high of Rs 15.20 and low of Rs 14.05 so far during the day. "We have swapped 12 existing Boeing B737 Next Generation planes out of total 31 such planes to order 42 Boeing 737 Max planes," said S.L. Narayanan, group chief financial officer at Sun Group, the parent company of SpiceJet. Narayan said delivery will start from 2018 and the airline will fund the acquisition through sale and leaseback mode.
Gateway Distriparks rose 2.94% after the company said it has acquired 74 lakh equity shares of Rs 10 each in its subsidiary company, Snowman Logistics from Nichirei Logistics Group Inc. for Rs 25.90 crore. The announcement was made during trading hours today, 12 March 2014.
Post purchase of shares in Snowman Logistics (SLL) by the company, SLL will continue to be the subsidiary of Gateway Distriparks. The company's shareholding in SLL will increase to 54.19% and Nichirei Logistics Group Inc. will cease to be a shareholder of SLL, Gateway Distriparks said.
In the foreign exchange market, the rupee edged lower against the dollar on global risk-off sentiment. The partially convertible rupee was hovering at 61.11, compared with its close of 60.94/95 on Tuesday, 11 March 2014.
Government bond prices rose after the Reserve Bank of India on Tuesday, 11 March 2014, said it will conduct a 21-day term repo variable rate auction for a notified amount of Rs 50000 crore on Friday, 14 March 2014, so as to address the anticipated tightening in liquidity conditions in the banking system 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 reversal will be on 4 April 2014, the central bank said. The auction will be conducted as per the revised guidelines issued on 13 February 2014, the RBI said. There will be no term repo auction on 18 March 2014 when the existing 28-day term repo of Rs 30004 crore matures, the RBI said.
The yield on 10-year benchmark federal paper, 8.83% GS 2023, was hovering at 8.7246%, lower than its close of 8.7335% on Tuesday, 11 March 2014. Bond yield and bond prices move in opposite direction.
Industrial production is expected to remain in contraction mode in January 2014. Industrial production is seen contracting 0.5% in January 2014, as per the median estimate of a poll of economists carried out by Capital Market. Industrial output fell 0.6% in December 2013, after contracting a revised 1.3% in November 2013. The government will unveil industrial production data for January 2014 after market hours today, 12 March 2014.
Inflation based on the combined consumer price index (CPI) of urban and rural India is projected at 8.2% in February 2014, further easing from 8.79% in January 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 combined consumer price index (CPI) for urban and rural India for February 2014 after market hours today, 12 March 2014.
Inflation based on the wholesale price index (WPI) is seen easing at 4.9% in February 2014, from 5.05% in January 2014, as per the median estimate of a poll of economists carried out by Capital Market. The data on inflation based on the wholesale price index (WPI) for February 2014 is due at 12:00 IST on Friday, 14 March 2014.
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.
European stocks dropped on Wednesday, 12 March 2014, as companies from Tod's SpA to G4S Plc reported worse-than-forecast results. Key benchmark indices in France and UK shed 0.06% to 0.46%. Germany's DAX rose 0.46%.
Asian stocks fell on Wednesday, 12 March 2014, on concerns that China's economy may be faltering. Key benchmark indices in China, Indonesia, South Korea, Hong Kong, Taiwan, Singapore and Japan were off 0.17% to 2.59%.
Aggregate financing in China dropped to 938.7 billion yuan ($153 billion) last month amid a crackdown on shadow lending, a government report this week showed. That compares with January's record 2.58 trillion yuan. Chinese exports slid the most since 2009 last month, a separate report over the weekend showed.
China's central bank governor said on Tuesday that the country's deposit rates are likely to liberalised in one to two years - the most explicit timeframe to date for what would be the final step in freeing up banks to set their own interest rates. The move will let financial markets decide the price of loans, which economists say will go a long way to prevent the wasteful investment funded by artificially cheap credit that has led to a massive buildup in debt. "Deposit rate liberalisation is on our agenda. Personally I think it's very likely to be realised within one to two years," said Zhou Xiaochuan, the head of the People's Bank of China.
Trading in US index futures indicated that the Dow could drop 4 points at the opening bell on Wednesday, 12 March 2014. US stocks edged lower for the second day in a row on Tuesday without any big economic news or blowout company earnings to respond to. The Labor Department said Tuesday that employers posted 3.9 million job openings in January, up 1.5% from December, a sign that hiring should remain steady in coming months. However, the increase fell short of what the market was expecting.
US wholesale inventories rose in January while wholesale sales fell, the Commerce Department reported on Tuesday.
Small-business sentiment, released before the market open, slumped in February. According to the National Federation of Independent Business, its small-business index dropped by more than expected, on concerns over sales, the economy and employment driving the downturn.
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 recovery in developed economies is on track although slowing activity in big emerging markets means global growth will be only moderate at best in the near term, the OECD said on Tuesday. Exceptionally bad winter weather in North America and a sales tax hike in Japan are also disrupting the pace of recovery, the Paris-based Organisation for Economic Cooperation and Development said. Against that backdrop, the OECD urged the European Central Bank and the Bank of Japan to keep up their monetary stimulus, if not increase it, while it said the US Federal Reserve was right to begin winding down its bond-buying programme.
The stand off between the West and Russia over the Ukraine crisis continues. Germany told Russia it must switch course in Crimea by next week or risk more sanctions as Ukraine's deposed president warned of a possible civil war. The European Union will discuss harsher penalties on March 17 barring "obvious changes in Russia's actions," German Foreign Minister Frank-Walter Steinmeier said in Estonia. A planned March 16 referendum in Crimea on whether to join Russia should be halted, he said. Toppled President Viktor Yanukovych told reporters in Russia that lawlessness is spreading in Ukraine, fomented by the "fascists and ultranationalists" who are in charge in Kiev.
Russia stood by deposed Ukrainian President Viktor Yanukovych and called possible US aid to the new government in Kiev illegal. Ukraine's interim prime minister Arseniy Yatsenyuk meets US President Barack Obama in Washington today, 12 March 2014, as the US House of Representatives passed a resolution seeking sanctions against Russia. Yatsenyuk addresses the United Nations Security Council in New York tomorrow, 13 March 2014.
Ukraine says Russia has as many as 19,000 Russian troops in the Crimea region.
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