A bout of volatility was witnessed as the key benchmark indices regained strength after paring intraday gains in mid-morning trade. The barometer index, the S&P BSE Sensex, was up 201.57 points or 0.83%, up 151.81 points from the day's low and off 12.17 points from the day's high. The market breadth indicating the overall health of the market was quite strong, with more than 3 gainers for every loser on BSE. The BSE Small-Cap index was up more 2.5%. The BSE Mid-Cap index was up 2.5%. Both these indices outperformed the Sensex. Gains in Asian stocks and upmove in US stocks on Wednesday, 21 May 2014, underpinned sentiment on the domestic bourses.
Index heavyweight and cigarette major ITC edged higher in volatile trade. Bajaj Auto gained in volatile trade on reports Egypt has lifted a ban on import of two wheelers and three wheelers after more than three months. Bank stocks edged higher.
Key benchmark indices edged higher amid initial volatility. The Sensex extended initial gains in morning trade. A bout of volatility was witnessed as the key benchmark indices regained strength after paring intraday gains in mid-morning trade.
Asian stocks edged higher on Thursday, 22 May 2014, after Federal Reserve meeting minutes showed policy makers see a muted risk of inflation from continued US stimulus and as a China manufacturing gauge rose to a five-month high this month.
At 12:15 IST, the S&P BSE Sensex was up 201.57 points or 0.83% to 24,499.59. The index jumped 213.74 points at the day's high of 24,511.76 in early afternoon trade, its highest level since 20 May 2014. The index rose 49.76 points at the day's low of 24,347.78 in early trade.
The CNX Nifty was up 55.15 points or 0.76% to 7,308.05. The index hit a high of 7,313.70 in intraday trade, its highest level since 20 May 2014. The index hit a low of 7,258.15 in intraday trade.
More From This Section
The market breadth indicating the overall health of the market was quite strong, with more than 3 gainers for every loser on BSE. On BSE, 2,162 shares gained and 581 shares fell. A total of 81 shares were unchanged.
The BSE Mid-Cap index was up 208.97 points or 2.5% at 8,551.33. The BSE Small-Cap index was up 231.80 points or 2.65% at 8,990.08. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2905 crore by 12:15 IST, compared with Rs 2203 crore by 11:15 IST.
Among the 30-share Sensex pack, 19 stocks gained and rest of them declined.
Coal India (up 6.77%), NTPC (up 4.42%) and Maruti Suzuki India (up 4.35%) edged higher from the Sensex pack.
Index heavyweight and cigarette major ITC rose 0.09% to Rs 342.40. The stock hit high of Rs 343 and low of Rs 340.50 so far during the day.
Bajaj Auto rose 1.83% to Rs 1,995.05, with the stock trimming intraday gain in volatile trade. The stock hit high of Rs 2,028.60 and low of Rs 1,990 so far during the day.
According to reports, Egypt lifted a ban on import of two wheelers and three wheelers, after more than three months. For Bajaj Auto, the biggest exporter of three-wheelers, Egypt is the second biggest export market for the company after Sri Lanka.
Egypt banned the imports of two-wheelers and three-wheelers in the middle of February this year. A committee was set up, to look into the matter, as three-wheelers were considered as common man's transport.
Meanwhile, Bajaj Auto has reportedly received an export order from Egypt for 5,500 three wheelers and 3,500 motorcycles for the month of June 2014.
Bank stocks edged higher. IndusInd Bank (up 0.68%), ICICI Bank (up 1.76%), Axis Bank (up 1.67%), Federal Bank (up 4.15%) and Yes Bank (up 2.77%) gained. HDFC Bank (down 1.12%) and Kotak Mahindra Bank (down 0.27%) fell.
Among PSU bank stocks, Canara Bank (up 1.81%), Union Bank of India (up 3.7%), Punjab National Bank (up 1.93%), State Bank of India (SBI) (up 1.64%) and Bank of India (up 2.23%) gained.
Bank of Baroda shed 0.16%.
UCO Bank rose 1.99% after net profit galloped 474.45% to Rs 284.70 crore on 17.27% growth in total income to Rs 5309.27 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced after market hours on Wednesday, 21 May 2014.
The bank's ratio of gross non-performing assets (NPAs) to gross advances stood at 4.32% as on 31 March 2014 as against 5.2% as on 31 December 2013 and 5.42% as on 31 March 2013. The ratio of net NPAs to net advances stood at 2.38% as on 31 March 2014 as against 3.06% as on 31 December 2013 and 3.17% as on 31 March 2013.
UCO Bank's provisions and contingencies declined 7.37% to Rs 904.64 crore in Q4 March 2014 over Q4 March 2013.
UCO Bank's net profit surged 144.34% to Rs 1510.54 crore on 10.43% growth in total income to Rs 19550.42 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
Rane Brake Lining was locked at 20% upper circuit at Rs 180.70 after net profit surged 141.62% to Rs 9.52 crore on 7.74% rise in net sales to Rs 108.42 crore in Q4 March 2014 over Q4 March 2013. The company announced the result after market hours on Wednesday, 21 May 2014.
Rane Brake Lining's net profit rose 89.12% to Rs 17.21 crore on 2.03% rise in net sales to Rs 383.51 crore in the year ended March 2014 over the year ended March 2013.
Deepak Nitrite rose 7.11% after the firm said it has commissioned balance capacities of optical brightening agent post successful completion of trial runs of production at its new greenfield plant at Dahej in Gujarat. Deepak Nitrite said that the newly commissioned plant at Dahej in Gujarat now stands fully commissioned. The announcement was made after market hours on Wednesday, 21 May 2014.
In the foreign exchange market, the rupee edged higher against the dollar as equities rose. The partially convertible rupee was hovering at 58.51, compared with its close of 58.775/785 on Wednesday, 21 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.
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 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. With Modi at the helm of affairs, 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.
Modi will be sworn in as India's next Prime Minister on Monday, 26 May 2014, evening at the Rashtrapati Bhawan.
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 stocks edged higher on Thursday, 22 May 2014, after Federal Reserve meeting minutes showed policy makers see a muted risk of inflation from continued US stimulus and a China manufacturing gauge rose to a five-month high in May. Key benchmark indices in Taiwan, Hong Kong, China, Singapore, Japan, Indonesia and South Korea were up 0.18% to 2.11%.
The China manufacturing purchasing managers' index released today by HSBC Holdings Plc and Markit Economics delivered a provisional reading of 49.7 for May, rising from 48.1 in April. Readings below 50 indicate contraction.
Trading in US index futures indicated that the Dow could advance 42 points at the opening bell on Thursday, 22 May 2014. US stocks rebounded on Wednesday from the previous day's losses and ended the session with solid gains, led by advances in the consumer discretionary and energy sectors. The main benchmarks extended gains after the release of the minutes from the Federal Open Market Committee meeting, which showed officials considering options on exiting from ultra-loose monetary policy and a decision to remain flexible.
Minutes from the April 29-30 meeting showed that Fed officials are monitoring progress toward the goal of full employment in the US as they consider the timing of the first interest-rate increase since 2006. The minutes also showed policy makers agreed that early communication of their exit strategy on stimulus and interest rates would enhance the clarity and credibility of monetary policy. The Fed reiterated in the minutes that it will keep the key interest rate target near zero for a "considerable time" once it concludes the bond program.
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.
Powered by Capital Market - Live News