Key benchmark indices extended intraday gains and hit fresh intraday high in mid-afternoon trade after government bond prices rose on reports that the Reserve Bank of India fully sold the Rs 20000-crore worth of bonds on offer at its biggest ever auction held today, 17 April 2014. The barometer index, the S&P BSE Sensex, was up 293.76 points or 1.32%, up close to 260 points from the day's low and off about 40 points from the day's high. The market breadth, indicating the overall health of the market was strong. The BSE Mid-Cap and BSE Small-Cap indices were up more than 1% each. All thirteen sectoral indices on BSE were in the green.
Tata Motors extended intraday gains. Tyre shares surged. Pharma stocks edged higher.
The market edged higher in early trade on firm Asian stocks. Key benchmark indices retained positive terrain in morning trade. The Sensex extended gains and hit fresh intraday high in mid-morning trade. Firmness continued on the bourses in early afternoon trade. Key benchmark indices retained positive zone in afternoon trade. Key benchmark indices extended intraday gains and hit fresh intraday high in mid-afternoon trade after government bond prices rose on reports that the Reserve Bank of India fully sold the Rs 20000-crore worth of bonds on offer at its biggest auction ever held today, 17 April 2014
The stock market remains closed tomorrow, 18 April 2014, on account of Good Friday.
At 14:20 IST, the S&P BSE Sensex was up 293.76 points or 1.32% to 22,570.99. The index jumped 332.05 points at the day's high of 22,609.28 in mid-afternoon trade, its highest level since 15 April 2014. The index rose 34.96 points at the day's low of 22,312.19 in early trade.
The CNX Nifty was up 90.95 points or 1.36% to 6,766.25. The index hit a high of 6,775.75 in intraday trade, its highest level since 15 April 2014. The index hit a low of 6,684.40 in intraday trade.
The BSE Mid-Cap index was up 93.56 points or 1.29% at 7,326.32, underperforming the Sensex. The BSE Small-Cap index was up 97.98 points or 1.32% at 7,516.20, matching with the Sensex's performance in percentage terms.
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The market breadth, indicating the overall health of the market was positive. On BSE, 1,572 shares gained and 1,048 shares fell. A total of 137 shares were unchanged.
Tata Power Company (up 2.7%), Hindalco Industries (up 3.36%) and ICICI Bank (up 3.57%) edged higher from the Sensex pack.
Tata Motors rose 3.56%, with the stock extending intraday gains.
Tyre shares surged. CEAT (up 8.7%) and MRF (up 1.3%) edged higher.
JK Tyre & Industries was up 11.5% at Rs 201.70. The stock hit 52-week high of Rs 211.10 in intraday trade.
Apollo Tyres was up 7.1% at Rs 172.40. The stock hit record high of Rs 174.90 in intraday trade.
Pharma stocks gained. Cipla (up 0.54%), Dr. Reddy's Laboratories (up 1.18%), Glenmark Pharmaceuticals (up 0.5%), Lupin (up 0.81%), Ranbaxy Laboratories (up 0.31%), Strides Arcolab (up 0.09%), Wockhardt (up 1.6%) and Sun Pharmaceutical Industries (up 1.59%) gained.
Aarti Industries rose 1.95% after the company in a clarification said that there was no incident of fire at any unit of Aarti Industries. The clarification was issued after market hours on Wednesday, 16 April 2014. Aarti Industries in a clarification issued to the stock exchange said that a misquoted article on fire incident at the Boisar unit of the Aarti Industries was published in a Gujarati newspaper daily on 14 April 2014. Aarti Industries said that the article is erroneous and based on wrong information. The company added that there was no such incident of fire at any unit of Aarti Industries and the article is published based on wrong information. The concerned newspaper daily has been approached to make suitable clarifications for the same, Aarti Industries said.
Indian government bond prices edged higher on reports that the Reserve Bank of India fully sold the Rs 20000-crore worth of bonds on offer at its biggest ever auction held today, 17 April 2014. The yield on 10-year benchmark federal paper, 8.83% GS 2023, was hovering at 8.8905%, lower than its close of 8.9644% on Wednesday, 16 April 2014. Bond yield and bond prices move in opposite direction.
In the foreign exchange market, the rupee was currently unchanged for the day against the dollar. The partially convertible rupee was hovering at 60.38, compared with its close of 60.37/38 on Wednesday, 16 April 2014.
Global credit rating agency Standard & Poor's (S&P) today, 17 April 2014, said it may upgrade India's rating outlook if the government that is elected next month address some of the country's fiscal and economic challenges through steps such as passing a goods and services tax. "If in the future they implement policies that effectively addresses some of the credit weaknesses that I have highlighted, we could revise the outlook to stable again," said S&P senior director Kim Eng Tan in a webcast. "In the absence of effective policy action, we could lower the ratings on the sovereign," he added. S&P rates India at "BBB-minus" and is the only of the three major credit agencies to have a "negative" outlook.
The United States on Wednesday, 16 April 2014, urged the Indian government that emerges from ongoing elections to follow economic policies that encourage investment, saying Washington would like to see bilateral trade grow to $500 billion a year. Nisha Biswal, US assistant secretary of state for South and Central Asia, said future economic growth in South Asia hinged on India as the region's growth engine. However, Biswal said that while Indian leaders had targeted $1 trillion in infrastructure investment over five years to close gaps preventing growth in manufacturing, policies still inhibited foreign investment. She said India ranked a poor 134 out of 189 countries as a place to invest and start a business.
Biswal said India had the potential to exceed all expectations economically, but needed to adopt investment and tax policies designed to lure, not deter, capital flows and a system of timely regulatory approvals and contract enforcement. It also needed to protect intellectual property rights, she said. "The more integrated India is into global markets and into the economic architecture of Asia, the more India's economy will grow and benefit the entire global economic system," she said. Biswal said the United States wanted to see bilateral trade grow to $500 billion a year. It is about $100 billion currently.
Biswal also said an improved climate between India and Pakistan could "pay enormous economic dividends."
The United Nations' World Meteorological Organization early this week said its weather model forecasts show a fairly large potential for the occurrence of a weather phenomenon known as El Ni by mid-year, threatening to hinder production of various food crops around the globe. An El Ni phenomenon is associated with above-average water temperatures in the central and eastern Pacific and can in its worst form bring drought to West Africa (the world's largest cocoa producing region), less rainfall to India during its vital monsoon season and drier conditions for the cultivations crops such as sugar and cotton in major grower Australia.
"Model forecasts indicate a fairly large potential for an El Ni, most likely by the end of the second quarter of 2014," the World Meteorological Organization said on 15 April 2014. "For the June to August period, approximately two-thirds of the models surveyed predict that El Ni thresholds will be reached, while the remaining models predict a continuation of neutral conditions. A few models predict an earlier El Ni onset, such as in May. No model suggests a La Ni in 2014," said the weather body.
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.
A major near term trigger for the stock market is the outcome of the upcoming Lok Sabha elections. Voting in Maharashtra in the crucial fifth phase of the Lok Sabha elections takes place today, 17 April 2014. Nineteen seats are going for elections in this phase. Voting has also begun in Madhya Pradesh with 142 candidates in the fray in 10 Lok Sabha constituencies. The 36 days long voting process began on 7 April 2014 and will conclude on 12 May 2014. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.
European stocks edged lower on Thursday, 17 April 2014, with investors assessing a crop of quarterly corporate updates and monitoring diplomatic talks in Geneva about the crisis in Ukraine. Key benchmark indices in UK and Germany were off 0.14% to 0.2%. In France, the CAC 40 Index was up 0.02%.
Investors were keeping tabs on any developments from diplomatic talks between Ukraine, Russia, the European Union and the US as they discuss Ukraine's growing political crisis and tensions with Russia.
Three pro-Russian protesters were killed and 13 wounded in an overnight clash with Ukrainian authorities at a military installation in the southeastern city of Mariupol, the country's Interior Ministry said today, 17 April 2014. The violence marked the bloodiest altercation yet since the start of an "antiterrorist" military operation by the Ukrainian government to drive out pro-Russian militants who have seized control of 10 cities in the largely Russian-speaking east.
Pro-Russian partisans took control of the Mariupol city council over the weekend as part of a wave of government building seizures in 10 eastern cities where armed militants demanded a referendum on granting the region greater independence.
Asian stocks edged lower on Thursday, 17 April 2014, on concern over the escalating crisis in Ukraine. Key benchmark indices in Singapore, South Korea and China were off 0.01% to 0.3%. In Japan, the Nikkei 225 average lost 0.15 points to settle at 14,417.53. Key benchmark indices in Indonesia, Hong Kong and Taiwan were up 0.23% to 0.36%.
China's Premier Li Keqiang said China isn't considering strong stimulus, and reiterated that economic growth a bit higher or lower than 7.5% is a reasonable range, according to a statement posted on the central government's website. The government said it will lower reserve ratios at some rural lenders.
Trading in US index futures indicated that the Dow could drop 34 points at the opening bell on Thursday, 17 April 2014. US stocks rose to their highest level in a week on Wednesday, 16 April 2014, encouraged by a crop of corporate earnings and reassuring US and Chinese economic data.
The US economy continued to expand in most regions as businesses benefited from a rebound from harsh winter weather earlier in the year. Eight of 12 Fed districts characterized growth as modest or moderate, the Fed said in its Beige Book business survey, based on reports gathered before April 7. Industrial production rose more than forecast in March after a February gain that was twice as big as previously estimated. A Commerce Department report showed the pace of US home construction rebounded less than forecast in March.
In her first major speech on her policy framework as Fed chair, Janet Yellen said US central bankers must be mindful of how short the Fed is of its goals of full employment and price stability. The larger the shortfall of employment or inflation from their respective objectives, and the slower the projected progress toward those objectives, the longer the current target range for the federal funds rate is likely to be maintained, Yellen said to the Economic Club of New York.
The gap, in both cases, is large, with a jobless rate of 6.7% more than a percentage point higher than the top end of the Federal Open Market Committee's estimate of full employment. Inflation, by the Fed's preferred measure, is more than a percentage point below its 2% goal. It will take more than two years for the economy to close in on the Fed's goals, she said, adding that the Fed's forecasts in the past were disrupted by negative surprises, not positive ones.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 29-30 April 2014. The Federal Reserve on 19 March 2014 decided after the conclusion of a monetary policy review to trim its monthly bond purchases by $10 billion to $55 billion.
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