Volatility continued in mid-morning trade as key benchmark indices trimmed losses after slipping into the red in mid-morning trade. The barometer index, the BSE Sensex was down 32.63 points or 0.15%, up about 80 points from the day's low and off close to 120 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
Most bank stocks gained with HDFC Bank scaling record high.
Immense volatility was witnessed in initial trade as key indices after opening lower surged to hit fresh record highs only to slip into the red shortly after that. Weakness in Asian stocks dampened sentiment. The S&P BSE Sensex hit a fresh record high, with the index crossing the psychological 22,000 mark for the first time in history. But, the Sensex slipped below that mark shortly later. The 50-unit CNX Nifty also scaled fresh record high in early trade. It pared gains and swung between positive and negative terrain near the flat line after regaining strength in morning trade, It trimmed losses after slipping into the red in mid-morning trade.
Asian stocks edged lower on Monday as weaker-than-estimated Chinese trade and inflation data stoked concern over the outlook for the world's second-largest economy.
Foreign institutional investors (FIIs) bought shares worth a net Rs 2,577.44 crore on Friday, 7 March 2014, as per provisional data from the stock exchanges.
At 11:20 IST, the S&P BSE Sensex was down 32.63 points or 0.15% to 21,887.16. The index gained 85.75 points at the day's high of 22,005.54 in early trade, a new record high. The index shed 114.57 points at the day's low of 21,805.22 in early trade.
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The CNX Nifty was down 5.65 points or 0.09% to 6,521. The index hit a high of 6,548.75 in intraday trade, a new record high. The index hit a low of 6,487.35 in intraday trade.
The BSE Mid-Cap index rose 24.33 points or 0.36% to 6,717.77. The BSE Small-Cap index rose 31.01 points or 0.47% to 6,643.46. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,138 shares gained and 1,020 shares fell. A total of 133 shares were unchanged.
Tata Motors (down 2.51%), Hindalco Industries (down 2.29%), and TCS (down 1.92%) edged lower from the Sensex pack.
Most bank stocks gained. Among private bank stocks, Yes Bank (up 0.68%), IndusInd Bank (up 5.36%), AXIS Bank (up 0.72%), and Kotak Mahindra Bank (up 0.84%) gained. But, ICICI Bank declined 0.28%.
HDFC Bank rose 0.48% to 714.80 after hitting a record high of Rs 734.55 in intraday trade.
A leading foreign brokerage firm has turned "overweight" across all private sector lenders in India, after previously having that stance for only HDFC Bank, Housing Development Finance Corp, ICICI Bank, and Axis Bank.
Among PSU bank stocks, Union Bank of India (up 0.8%), Bank of Baroda (up 0.92%), Canara Bank (up 0.83%), Bank of India (up 2.78%), Punjab National Bank (up 0.72%) and State Bank of India (up 1.14%) edged higher.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.2425, compared with its close of 61.08 on Friday, 7 February 2014.
The 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.
With the election code of conduct coming into force, government authorities will not be able to announce any major policy initiatives. However, they can announce routine or unavoidable policy measures after taking the approval of the election commission.
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.
Asian stocks edged lower on Monday as weaker-than-estimated Chinese trade and inflation data stoked concern over the outlook for the world's second-largest economy. Key benchmark indices in South Korea, Indonesia, China, Hong Kong, Taiwan, Singapore and Japan were down 0.04% to 1.69%.
Overseas shipments from China dropped 18.1% in February from a year earlier. Producer prices slid 2%, the most since July, while the inflation rate was 2% for February, reports at the weekend showed. The National People's Congress, an annual meeting of China's lawmakers, continues this week, with People's Bank of China Governor Zhou Xiaochuan speaking tomorrow.
Japan's economy expanded less than estimated in the fourth quarter and the current-account deficit widened to a record in January, highlighting risks to Abenomics as a sales-tax increase looms. Gross domestic product grew an annualized 0.7% from the previous quarter, the Cabinet Office said today in Tokyo, less than estimates. The current-account deficit widened to 1.59 trillion yen ($15.4 billion), a record in data back to 1985, the finance ministry said.
Trading in US index futures indicated that the Dow could fall 31 points at the opening bell on Monday, 10 March 2014. US stocks rose on Friday, with the Standard & Poor's 500 Index closing at a record, as data showing stronger-than-forecast jobs growth overshadowed concern the situation in Ukraine could worsen.
Employers added more workers than projected in February, indicating the US economy is starting to shake off the effects of the severe winter weather that slowed growth at the start of 2014. The 175,000 gain in employment followed a 129,000 increase the prior month that was bigger than initially estimated, Labor Department figures showed in Washington. The jobless rate rose to 6.7% from 6.6% as the number of people joining the workforce swamped the quantity of jobs available. The pickup following the weakest two-month hiring gain in more than a year shows employers remain confident the economic expansion will recover after winter storms slowed consumer spending.
Fed Bank of New York President William C. Dudley said he sees a reasonably favorable outlook for the US economy. even as elevated joblessness and too-low inflation warrant a high level of stimulus for a considerable time.
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.
Germany's Angela Merkel delivered a rebuke to President Vladimir Putin on Sunday, telling him that a planned Moscow-backed referendum on whether Crimea should join Russia was illegal and violated Ukraine's constitution.
Putin defended breakaway moves by pro-Russian leaders in Crimea, where Russian forces tightened their grip on the Ukrainian region by seizing another border post.
Russian forces' seizure of the Black Sea peninsula has been bloodless but tensions are mounting following the decision by pro-Russian groups there to make Crimea part of Russia. Putin declared a week ago that Russia had the right to invade Ukraine to protect Russian citizens, and his parliament has voted to change the law to make it easier to annex territory inhabited by Russian speakers.
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