Key benchmark indices languished in negative zone in mid-morning trade. The barometer index, the S&P BSE Sensex, was down 28.74 points or 0.12%, up 68.50 points from the day's low and off 70.28 points from the day's high. The market breadth, indicating the overall health of the market was strong. The BSE Small-Cap index was up more than 1.5%. The BSE Mid-Cap index was up more than 1%.
Among capita goods shares, ABB India hit 52-week high. Hospitality stocks gained on renewed buying.
Key benchmark indices edged lower amid initial volatility on weak Asian stocks. Key benchmark indices cut losses after hitting fresh intraday low in morning trade. Key benchmark indices languished in negative zone in mid-morning trade.
At 11:15 IST, the S&P BSE Sensex was down 28.74 points or 0.12% to 24,348.14. The index fell 97.24 points at the day's low of 24,279.64 in morning trade, its lowest level since 19 May 2014. The index gained 41.54 points at the day's high of 24,418.42 in early trade.
The CNX Nifty was down 9.30 points or 0.13% to 7,266.20. The index hit a low of 7,246 in intraday trade, its lowest level since 19 May 2014. The index hit a high of 7,287.15 in intraday trade.
The BSE Mid-Cap index was up 110.37 points or 1.34% at 8,342.77. The BSE Small-Cap index was up 140.24 points or 1.63% at 8,740.57. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,760 shares gained and 760 shares fell. A total of 97 shares were unchanged.
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The total turnover on BSE amounted to Rs 1769 crore by 11:15 IST, compared with Rs 1106 crore by 10:15 IST.
Among the 30-share Sensex pack, 17 stocks declined and rest of them gained.
Bajaj Auto (up 3.41%), NTPC (up 3.22%) and Coal India (up 1.65%) edged higher from the Sensex pack.
Capital goods stocks were mixed. L&T fell 1.56% to Rs 1,485.30.
Bharat Heavy Electricals (Bhel) was off 2.03% at Rs 272.25. The stock had gained 28.36% in four trading days to settle at Rs 277.90 on Tuesday, 20 May 2014, from recent low of Rs 216.50 on 14 May 2014.
ABB India gained 4.54% to Rs 968 after hitting 52-week high of Rs 981.60 in intraday trade.
BEML (up 3.45%), Bharat Electronics (up 0.77%), Siemens (up 2.97%), Thermax (up 0.56%) gained.
Hospitality stocks gained on renewed buying. EIH (up 1.95%), Indian Hotels Company (up 2.69%) and Hotel Leela Venture (up 9.09%) gained.
VIP Industries jumped 5.31% after consolidated net profit surged 217.2% to Rs 20.30 crore on 21.5% increase in net sales to Rs 226.60 crore in Q4 March 2014 over Q4 March 2013. The result was announced after trading hours on Tuesday, 20 May 2014.
VIP Industries reported an exceptional income of Rs 15.90 crore in Q4 March 2014 on profit realized from sale of its old investment in securities and its property at Bhandup, Mumbai.
On a consolidated basis, the company's net profit rose 83.2% to Rs 57.70 crore on 16.1% increase in net sales to Rs 968.40 crore in the year ended March 2014 over the year ended March 2013.
Generally, the luggage business is seasonal in nature and accordingly, financial results for the quarter are not representative of the whole year, the company said in a statement.
Mangalore Refinery and Petrochemicals jumped 10.86% after the company reported a net profit of Rs 1067.04 crore in Q4 March 2014 compared with net loss of Rs 61.90 crore in Q4 March 2013. The result was announced after market hours on Tuesday, 20 May 2014.
Mangalore Refinery and Petrochemicals' (MRPL) total income rose 6.36% to Rs 19863.99 crore in Q4 March 2014 over Q4 March 2013.
MRPL reported a net profit of Rs 601.18 crore in the year ended March 2014 (FY 2014) compared with net loss of Rs 756.91 crore in the year ended March 2013 (FY 2013). Total income rose 9.62% to Rs 72134.95 crore in FY 2014 over FY 2013.
Gross refining margin (GRM) jumped to $3.18 a barrel in Q4 March 2014 compared with $1.98 a barrel in Q4 March 2013.
In the foreign exchange market, the rupee edged lower against the dollar as importers stepped in to buy dollars to pay bills. The partially convertible rupee was hovering at 58.765, compared with its close of 58.63/64 on Tuesday, 20 May 2014.
Reserve Bank of India Governor Raghuram Rajan on Tuesday, 20 May 2014, reiterated his call for fiscal discipline, saying it is essential for India to achieve sustainable economic growth. Rajan said India would not always be able to rely on banks to buy a large portion of its government debt as it usually does. "(Bank) deposits will not continue to be cheap, while the government cannot continue to pre-empt financing at the scale it has in the past if we are to have a modern entrepreneurial economy. This is yet another reason why fiscal discipline will be central to sustainable growth going forward," Rajan said at an event in New Delhi. Rajan suggested the need for India to offer more specialised banking licences that would result in smaller banks offering niche services. The RBI on April granted two new commercial banking licences, its first new ones in 10 years.
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.
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.
Modi will be sworn in as India's next Prime Minister on Monday, 26 May 2014, evening at the Rashtrapati Bhawan.
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.
Asian markets edged lower on Wednesday, 21 May 2014, tracking overnight decline in US markets. Key benchmark indices in Taiwan, South Korea, Singapore, Japan and Indonesia were off 0.22% to 0.35%. China's Shanghai Composite index was up 0.27%. Hong Kong's Hang Seng index was unchanged.
The Bank of Japan refrained from boosting stimulus as the economy shows signs of weathering the impact of the first sales-tax increase since 1997. The central bank will continue to expand the monetary base at a pace of 60 trillion yen to 70 trillion yen per year, it said in a statement in Tokyo today, 21 May 2014.
Japan posted a trade deficit of 808.9 billion yen ($8 billion) for April, data showed today, 21 May 2014. Exports gained 5.1% year on year, while imports increased 3.4%.
Trading in US index futures indicated that the Dow could advance 8 points at the opening bell on Wednesday, 21 May 2014. US stocks ended Tuesday with broad-based losses after disappointing earnings from TJX Companies, Inc, Staples, Inc. and weak sales numbers from Caterpillar Inc. weighed on investor sentiment. Selling intensified in the afternoon after comments from Philadelphia Fed President Charles Plosser, who said that Fed may need to act sooner rather than later should the economy accelerate.
New York Fed President William Dudley, who gets a vote at every Federal Open Market Committee meeting and is vice chairman of the interest-rate setting committee, told the New York Association for Business Economics on Tuesday, 20 May 2014, that there will be a considerable period of time between the end of its asset purchases and the first rate hike.
The Federal Reserve releases minutes from the April 29-30 meeting of Federal Open Market Committee today, 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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