Intraday volatility continued as key benchmark indices alternately swung between positive and negative zone in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was currently up 13.02 points or 0.05%, up close to 85 points from the day's low and off about 140 points from the day's high. The market breadth, indicating the overall health of the market was weak.
Most auto stocks gained. But, Bajaj Auto extended losses after the company reported weak Q4 results. Tata Motors edged lower in choppy trade after the company said its group's global wholesales, including Jaguar Land Rover, fell 7.65% to 75,026 units in April 2014 over April 2013.
The Sensex edged higher amid initial volatility. Key benchmark indices trimmed initial gains in morning trade. While the barometer index, the S&P BSE Sensex, retained positive zone in mid-morning trade, the 50-unit CNX Nifty slipped into the red. Key benchmark indices hovered in negative zone in early afternoon trade. Volatility ruled the roost as the key benchmark indices regained positive zone in afternoon trade after data released by the government today, 15 May 2014, showed that inflation based on monthly wholesale price index eased to 5.2 in April 2014 from 5.7% in March 2014. Intraday volatility continued as key benchmark indices alternately swung between positive and negative zone in mid-afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1520.08 crore on Wednesday, 14 May 2014, as per provisional data from the stock exchanges.
At 14:20 IST, the S&P BSE Sensex was up 13.02 points or 0.05% at 23,828.14. The index shed 72.37 points at the day's low of 23,742.75 in early afternoon trade, its lowest level since 13 May 2014. The index jumped 156.66 points at the day's high of 23,971.78 in early trade, its highest level since 13 May 2014.
The CNX Nifty was down 3.75 points or 0.05% at 7,105. The index hit a low of 7,082.55 in intraday trade. The index hit a high of 7,152.55 in intraday trade, its highest level since 13 May 2014.
The BSE Mid-Cap index was off 38.41 points or 0.5% at 7,665.69. The BSE Small-Cap index was down 43.07 points or 0.55% at 7,815.96. Both these indices underperformed the Sensex.
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The market breadth, indicating the overall health of the market was weak. On BSE, 1,705 shares dropped and 1,073 shares rose. A total of 146 shares were unchanged.
Among the 30-share Sensex pack, 15 stocks gained and rest of them declined. Tata Power Company (up 3.78%), NTPC (up 3.31%) and Tata Steel (up 2.5%) edged higher from the Sensex pack.
Most auto stocks gained. Hero MotoCorp (up 0.5%) Mahindra & Mahindra (M&M) (up 0.97%), Maruti Suzuki India (up 1.04%) and TVS Motor Company (up 3.12%) gained. Ashok Leyland fell 0.2%.
Tata Motors edged lower in choppy trade after the company said its group's global wholesales, including Jaguar Land Rover (JLR), fell 7.65% to 75,026 units in April 2014 over April 2013. The stock was off 0.18% at Rs 441.60. The stock hit high of Rs 448.75 and low of Rs 439 so far during the day. Global wholesales for JLR rose 39% to 40,137 vehicles in April 2014 over April 2013.
Tata Motors-owned Jaguar Land Rover (JLR) on Monday, 12 May 2014, reported 30% increase in global sales at 37,171 units in April 2014 over April 2013.
Bajaj Auto declined 2.11% after the company reported weak Q4 results. The company's net profit fell 0.24% to Rs 763.93 crore on 2.54% rise in total income to Rs 5117.10 crore in Q4 March 2014 over Q4 March 2013. The result was announced during market hours. Operating earnings before interest, taxes, depreciation and amortization (EBITDA) margin stood at 20.6% in Q4 March 2014 compared with 18.9% in Q4 March 2013.
Bajaj Auto's net profit rose 6.56% to Rs 3243.32 crore on 0.30% increase in total income to Rs 20855.92 crore in the year ended March 2014 over the year ended March 2013.
Operating EBITDA margin stood at 21.5% in the year ended March 2014 compared with 19.1% in the year ended March 2013.
On a consolidated basis, net profit rose 7.90% to Rs 3380.28 crore in the year ended March 2014 over the year ended March 2013. Sales were almost flat at Rs 20840.10 crore in the year ended March 2014 over the year ended March 2013.
Cash and cash equivalents as on 31 March 2014 stood at Rs 7759 crore as against Rs 5706 crore as on 1 April 2013.
In the foreign exchange market, the rupee edged higher against the dollar on signs Lok Sabha election results due tomorrow, 16 May 2014, will show a clear winner. The partially convertible rupee was hovering at 59.365, compared with its close of 59.66/67 on Tuesday, 13 May 2014. The foreign exchange market was closed on Wednesday, 14 May 2014, on account of a bank holiday.
The annual rate of inflation based on monthly wholesale price index (WPI) eased to 5.2% for the month of April 2014 from 5.7% in March 2014, helped by a decline in fuel prices, data released by the government today, 15 May 2014, showed. Simultaneously, the government revised upwards the rate of WPI inflation for February 2014 to 5.03%, from 4.68% reported on 14 March 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.
Indian stocks may see high intraday volatility tomorrow, 16 May 2014, as trends and actual results of wins by candidates/parties are announced during the process of counting of votes for the recently concluded Lok Sabha elections. The counting of votes will begin at 8:00 IST tomorrow, 16 May 2014, and results are expected by tomorrow itself. Various exit polls have predicted that the Bharatiya Janata Party (BJP) led National Democratic Alliance (NDA) would win a majority in the Lok Sabha elections which concluded on Monday, 12 May 2014. If exit polls prove correct, NDA's prime ministerial candidate Narendra Modi will become India's next Prime Minister. The term of the current Lok Sabha ends on 1 June and the new House has to be constituted by 31 May.
Modi is perceived as being more business-friendly and decisive by the business community. As chief minister for the fast-growing state of Gujarat, Modi has built a reputation for getting things done. While campaigning for the Lok Sabha elections, Modi has pledged to reinvigorate the country's manufacturing sector, create more jobs and overhaul the country's inadequate infrastructure. Investors are hoping that the BJP-led government will be better at getting things done and more business-friendly than the current Congress-party-led coalition government.
Investors are hoping that when the results of the Lok Sabha elections are out tomorrow, 16 May 2014, a stable government which will complete its full term of five years in office comes to power. A party or a pre-poll alliance will need 272 MPs to form government at the Centre, which is a simple majority in 543-member Lok Sabha. Investors are expecting measures for revival of the economy, business-friendly policies and good governance from the new government that comes to power after the elections. Investors expect policy measures from the new government to put India on a high-growth path on a sustainable basis.
The BJP in its Lok Sabha polls manifesto has promised more business-friendly policies if the party comes to power after elections. The BJP has said that measures for the revival of the economy are its priority if the party comes to power after elections. India's GDP growth has slowed to a decade low of below 5%. The GDP grew 4.7% in Q3 December 2013.
European stock markets edged lower in choppy trade on Thursday, 15 May 2014, as investors waited for first-quarter economic growth data for the euro zone and the final inflation reading for April. Key benchmark indices in UK, Germany and France were down 0.02% to 0.11%.
German economic growth accelerated more than forecast in first quarter as mild weather boosted construction and domestic demand countered weaker exports. Gross domestic product expanded 0.8% from the fourth quarter, when it rose 0.4%, the Federal Statistics Office in Wiesbaden said today. Germany, as the euro area's largest economy, is key to the 18-nation currency bloc's drive to sustain a recovery from its longest-ever recession.
France's economic recovery stalled in the first quarter as tax increases used by President Francois Hollande to cut the budget deficit squeezed consumers. Gross domestic product was unchanged in the period, compared with a revised 0.2% gain in the previous three months, national statistics office Insee said.
Asian stocks were mixed on Thursday, 15 May 2014. Key benchmark indices in China, South Korea, and Japan were off 0.03% to 1.12%. Key benchmark indices in Taiwan, Singapore and Hong Kong were up 0.06% to 0.65%.
Japan's economy grew at the fastest pace since 2011 in the first quarter as companies stepped up investment and consumers splurged before the first sales-tax rise in 17 years last month. Gross domestic product grew an annualized 5.9% from the previous quarter, the Cabinet Office said today in Tokyo.
Trading in US index futures indicated a flat opening of US stocks on Thursday, 15 May 2014. US stocks fell on Wednesday, with the Dow Jones Industrial Average and the S&P 500 index retreating from recent record highs, as small caps resumed their sell-off and consumer discretionary shares lagged.
Prices paid to American factories and service producers rose in April by the most in more than a year, indicating a diminishing risk of deflation as demand improves. The 0.6% increase in the producer price index was the biggest since September 2012 and exceeded all estimates, figures from the Labor Department showed.
Federal Reserve Chair Janet Yellen will speak later in the global day today, 15 May 2014, after saying last week the world's biggest economy still requires a strong dose of stimulus.
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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