Key benchmark indices hovered in positive zone in early afternoon trade. The barometer index, the S&P BSE Sensex, was up 65.41 points or 0.31%, up 57.86 points from the day's low and off 21.39 points from the day's high. The market breadth, indicating the overall health of the market, was positive. The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Tuesday, 25 February 2014.
GAIL (India) extended gain and hit an intraday high, matching its 52-week high hit on 3 February 2014. Coal India edged lower in choppy trade. Tata Steel also extended intraday slide. Realty stocks declined. In the IT pack, Wipro hit 52-week high. Mastek dropped on profit booking after five-day upmove.
Key benchmark indices edged higher amid initial volatility. The Sensex soon extended initial gains. The Sensex and the 50-unit CNX Nifty, both, hit their highest level in more than 4-1/2 weeks. The Sensex pared gains in morning trade. Key benchmark indices hovered in positive zone in early afternoon trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Tuesday, 25 February 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 423.41 crore on Tuesday, 25 February 2014, as per provisional data from the stock exchanges.
The market may remain volatile today, 26 February 2014, as traders roll over positions in the futures and options (F&O) segment from the near-month February 2014 series to March 2014 series. The near month February 2014 F&O contracts expire today, 26 February 2014. The stock market remains closed tomorrow, 27 February 2014, on account of Mahashivratri.
At 12:15 IST, the S&P BSE Sensex was up 65.41 points or 0.31% to 20,917.88. The index gained 86.80 points at the day's high of 20,939.27 in morning trade, its highest level since 24 January 2014. The index rose 7.55 points at the day's low of 20,860.02 in early trade.
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The CNX Nifty was up 14.55 points or 0.23% to 6,214.60. The index hit a high of 6,222.90 in intraday trade, its highest level since 24 January 2014. The index hit a low of 6,202.10 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,156 shares gained and 1,137 shares fell. A total of 142 shares were unchanged.
The BSE Mid-Cap index was up 3.26 points or 0.05% at 6,465.58 and the BSE Small-Cap index was up 12.18 points or 0.19% at 6,433.88. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 797 crore by 12:15 IST, compared with Rs 612 crore by 11:15 IST.
Among the 30-share Sensex pack, 18 stocks gained and rest of them declined.
GAIL (India) surged 3.02% to Rs 368.20, with the stock extending intraday gain. The stock hit high of Rs 369.70 in intraday trade, matching its 52-week high hit on 3 February 2014. The stock hit low of Rs 357.25 so far during the day.
Coal India was off 2.27% at Rs 240.75. The scrip was volatile. The stock hit high of Rs 246 and low of Rs 240.50 so far during the day.
Tata Steel dropped 2.66% to Rs 351.30, with the stock extending intraday fall. The stock hit high of Rs 363.15 and low of Rs 351.20 so far during the day.
Wipro rose 1.61% to Rs 604.75 after hitting a 52-week high of Rs 604.90 in intraday trade.
Mastek lost 3.09% to Rs 212, with the stock sliding on profit booking after recent rally. Shares of Mastek had rallied 11.01% in five trading sessions to settle at Rs 218.75 on 25 February 2014, from a recent low of Rs 197.05 on 18 February 2014.
Mastek's board of directors at a meeting held on Monday, 24 February 2014, decided to proceed with the buyback of equity shares pursuant to the special resolution approved by the shareholders of the company. Mastek would buyback up to 32 lakh shares (not exceeding 25% of the total paid-up equity share capital as at the nine month period ended 31 March 2013) for an amount not exceeding Rs 54.50 crore (excluding brokerage and other charges), being 14.92% of total paid-up share capital and free reserves as on 31 March 2013 for a price not exceeding Rs 250 per share from the shareholders of the company under the buyback regulations from the open market through the stock exchanges.
Realty stocks declined. DLF (down 2.08%), Indiabulls Real Estate (down 2.16%), HDIL (down 1.33%), Hubtown (down 1.73%), D B Realty (down 0.49%), Unitech (down 1.57%) declined.
V-Mart Retail fell 1.61% to Rs 259.90 after the central bank restricted foreign institutional investors from buying additional shares in the company as their shareholding has reached the limit.
On Tuesday, 25 February 2014, the Reserve Bank of India (RBI) notified that the foreign share holding through foreign institutional investors (FIIs) in V-Mart Retail has crossed the overall limit of 24% of its paid-up capital. Therefore, no further purchases of shares of this company would be allowed through stock exchanges in India on behalf of FIIs.
Meanwhile, on Tuesday, 25 February 2014, Kotak Mahindra (International) sold 2.52 lakh shares, or 1.40% equity, of V-Mart Retail at Rs 250.03 per share on NSE.
As on 31 December 2013, Kotak Mahindra (International) held 7.71 lakh shares, or 4.29% equity, in the company.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.9575, compared with its close of 61.935/945 on Tuesday, 25 February 2014.
The government will unveil data on gross domestic product (GDP) for Q3 December 2013 on Friday, 28 February 2014. The GDP grew at improved pace of 4.8% in Q2 September 2013, from 4.4% growth recorded in Q1 June 2013.
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.
On the political front, eleven regional parties formed an alliance on Tuesday, 25 February 2014, to contest general elections, presenting themselves as an alternative to the ruling Congress party and the opposition Bharatiya Janata Party. Prakash Karat, a leader of the Communist Party of India (Marxist), which is part of the new coalition, said the partnership was forged in an effort to keep the country's two major national parties out of power. Mr. Karat accused the incumbent Congress of corruption and misrule, and declared the BJP unfit to run the country because of its controversial prime ministerial candidate Narendra Modi, who Mr. Karat denounced as a "challenge to the very secular edifice" of India. "We need an alternative," Mr. Karat said.
Among members of the new bloc are the Communist Party of India (Marxist), the Communist Party of India, Janata Dal (United), Samajwadi Party, Biju Janata Dal and the All India Anna Dravida Munnetra Kazhagam. The alliance includes regional chieftains from the politically crucial states of Bihar, Uttar Pradesh, Tamil Nadu and Orissa. The two notable exceptions are Mamata Banerjee, the powerful chief minister of West Bengal, and Kumari Mayawati, a resurgent lower caste leader in Uttar Pradesh.
Asian stocks edged higher on Wednesday, 26 February 2014, as energy shares advanced, countering declines by raw- material companies. Key benchmark indices in China, Hong Kong, South Korea and Taiwan were up 0.29% to 0.68%. Key benchmark indices in Singapore, Japan and Indonesia were off 0.54% to 0.95%.
China's central bank the People's Bank of China cut the yuan's fixing by 0.01% to 6.1192 per dollar, the weakest since Dec. 20 amid speculation it is looking to counter one-way appreciation bets on the currency.
The People's Bank of China on Tuesday, 25 February 2014, drained another 100 billion yuan ($16.4 billion) from money markets.
A meeting of China's lawmakers to set economic policy and growth targets begins next week in Beijing.
Trading in US index futures indicated that the Dow could advance 34 points at the opening bell on Wednesday, 26 February 2014. US stocks finished a choppy trading session lower on Tuesday, 25 February 2014, as gloomy reports on home prices and consumer confidence dampened the mood. The pace of US home-price growth slowed down at the end of 2013, but despite this the year saw the fastest calendar-year price growth in eight years, according to data released on Tuesday. The US consumer confidence index also dipped primarily because Americans are less certain about the economy in the next six months, even though they view the current environment as much improved, the Conference Board said on Tuesday.
About $1.7 billion was taken out of US equity exchange-traded funds on 24 February 2014, bringing total withdrawals to almost $6 billion this month, according to reports.
Federal Reserve Chair Janet Yellen will testify for the US Senate on monetary policy tomorrow, 27 February 2014.
The US Federal Reserve bought $2.66 billion of Treasuries due from February 2023 to November 2023 on Tuesday, 25 February 2014, under its quantitative-easing stimulus strategy to hold down borrowing costs and fuel economic growth.
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.
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