Key benchmark indices retained positive zone in early afternoon trade after Railway Minister Mallikarjun Kharge kept passenger fares unchanged in the Interim Railway Budget 2014 presented in the Lok Sabha at about 12:00 IST today, 12 February 2014. The barometer index, the S&P BSE Sensex, was up 114.64 points or 0.56%, up about 50 points from the day's low and off close to 40 points from the day's high. The market breadth, indicating the overall health of the market, was positive. Except BSE Metal index and the BSE FMCG index, all the other sectoral indices on BSE were in the green. Gains in Asian stocks and overnight rally in US stocks underpinned sentiment on the domestic bourses.
IT stocks edged higher, with HCL Technologies hitting record high. Bank stocks rose across the board. Telecom stocks gained. Shares of companies whose fortunes are linked to orders from Indian Railways rose as Rail minister Mallikarjun Kharge was delivering his speech in the Lok Sabha on the Interim Railway Budget 2014.
The market edged higher in early trade on firm Asian stocks. The Sensex extended initial gains and hit fresh intraday high in morning trade. The barometer index, the S&P BSE Sensex, hit its highest level in more than 1-1/2 weeks. The 50-unit CNX Nifty scaled two-week high. The Sensex retained positive zone in early afternoon trade after Railway Minister Mallikarjun Kharge kept passenger fares unchanged in the Interim Railway Budget 2014 presented in the Lok Sabha at about 12:00 IST today, 12 February 2014.
Asian shares edged higher on Wednesday, 12 February 2014, as upbeat trade data from China and an optimistic economic outlook from Federal Reserve Chair Janet Yellen whetted investors' appetite for risk.
At 12:20 IST, the S&P BSE Sensex was up 114.64 points or 0.56% to 20,478.01. The index jumped 153.23 points at the day's high of 20,516.60 in mid-morning trade, its highest level since 31 January 2014. The index rose 66.46 points at the day's low of 20,429.83 in morning trade.
The CNX Nifty was up 31.75 points or 0.52% to 6,094.45. The index hit a high of 6,106.60 in intraday trade, its highest level since 29 January 2014. The index hit a low of 6,080.35 in intraday trade.
The BSE Mid-Cap index was up 22.78 points or 0.36% at 6,380.35. The BSE Small-Cap index was up 30.25 points or 0.48% at 6,376.78. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,229 shares rose and 1,005 shares fell. A total of 152 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks rose and rest fell. GAIL (India) (up 2.93%), ONGC (up 2.23%) and RIL (up 1.65%) edged higher from the Sensex pack.
Shares of companies whose fortunes are linked to orders from Indian Railways rose as Rail minister Mallikarjun Kharge was delivering his speech in the Lok Sabha on the Interim Railway Budget 2014.. Stone India, Kalindee Rail Nirman, Titagarh Wagons, Texmaco and BEML were up 0.57% to 2.87%.
Telecom stocks gained. Bharti Airtel (up 0.59%), Idea Cellular (up 2.35%), MTNL (up 0.34%) and Reliance Communications (up 1.25%) gained. Tata Teleservices (Maharashtra) fell 0.7%.
The Auction of spectrum in the 1800 MHz and 900 MHz band that began on 3 February 2014, continued on Tuesday, 12 February 2014. Bids have been received in all 22 Service Areas in 1800 MHz band and in all 3 Service Areas in 900 MHz band. Thus, bidding has taken place in all the Service Areas in both bands.
Bank stocks rose across the board. AXIS Bank (up 0.68%), HDFC Bank (up 0.62%) and ICICI Bank (up 2.17%) gained.
Among PSU bank stocks, State Bank of India, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank rose 0.62% to 2.79%.
IT stocks gained. TCS (up 0.43%), Tech Mahindra (up 1%), Infosys (up 0.45%) and Wipro (up 0.05%) gained.
HCL Technologies rose 1.98% to Rs 1503 after hitting record high of Rs 1509.40 in intraday trade.
KSB Pumps lost 1.86% after net profit fell 44.8% to Rs 10.79 crore on 7.4% decline in net sales to Rs 179.49 crore in Q4 December 2013 over Q4 December 2012. The Q4 result was announced after market hours on Tuesday, 11 February 2014.
KSB Pumps' net profit rose 3% to Rs 59.76 crore on 2.1% growth in net sales to Rs 724.62 crore in the year ended 31 December 2013 over the year ended 31 December 2012.
KSB Pumps' board of directors at its meeting held on Tuesday, 11 February 2014, recommended final dividend of Rs 4.50 per share for the year ended 31 December 2013.
In the foreign exchange market, the rupee edged higher against the dollar on global risk-on sentiment. The partially convertible rupee was hovering at 62.135, higher than its close of 62.22/23 on Tuesday, 11 February 2014.
Finance Minister P Chidambaram will present the Vote-on-Account or interim budget on 17 February 2014. The objective of a Vote-on-Account is to get Parliament's nod for expenditure to be incurred in the months prior to elections. The next full-fledged budget will be presented by the new government which comes to power after the Lok Sabha polls in April-May 2014.
Consumer price inflation is seen easing a bit in January 2014. Inflation based on the combined consumer price index (CPI) for urban and rural India is seen easing to 9.4% in January 2014 from 9.87% in December 2013, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil data on inflation based on the combined consumer price index (CPI) for urban and rural India for January 2014 at 17:30 IST today, 12 February 2014.
Inflation based on the wholesale price index (WPI) is also expected to ease in January 2014. WPI inflation is seen easing to 5.9% in January 2014 from 6.16% in December 2013, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil data on inflation based on the wholesale price index (WPI) for January 2014 at 12 noon on Friday, 14 February 2014.
Industrial production is expected to remain in contraction mode in December 2013. Industrial output is expected to decline 1% in December 2013, as per the median estimate of a poll of economists carried out by Capital Market. India's industrial production declined 2.1% in November 2013, recording decline for second consecutive month after 1.6% dip in October 2013. The data will be announced at 17:30 IST today, 12 February 2014.
The Reserve Bank of India next undertakes monetary policy review on 1 April 2014. Sighting elevated consumer price inflation, 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 shares edged higher on Wednesday, 12 February 2014, as upbeat trade data from China and an optimistic economic outlook from Federal Reserve Chair Janet Yellen whetted investors' appetite for risk. Key benchmark indices in China, Japan, South Korea, Singapore, Indonesia, Hong Kong and Taiwan were up 0.1% to 0.99%.
Chinese exports jumped 10.6% in January from a year earlier, eclipsing an estimate for a 0.1% gain, while imports rose 10% and the country's trade surplus widened to $31.86 billion.
Trading in US index futures indicated that the Dow could advance 29 points at the opening bell on Wednesday, 12 February 2014. US stocks surged on Tuesday as Federal Reserve Chairwoman Janet Yellen pledged to keep interest rates low and to continue to taper the pace of bond purchases if the economy keeps improving. US economic growth has picked up and the Federal Reserve will continue to scale back stimulus in "measured steps", Yellen said. Yellen said the Fed will continue to follow its low-interest-rate policy course during a hearing before the House Financial Services Committee. "Let me emphasize that I expect a great deal of continuity in the Federal Open Market Committee's approach to monetary policy," she said. "I am committed to achieving both parts of our dual mandate: helping the economy return to full employment and returning inflation to 2% while ensuring that it does not run persistently above or below that level," she said.
Yellen will testify before the Senate Banking Committee tomorrow, 13 February 2014.
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. The Fed also signaled that it is likely to keep reducing bond purchases in the coming months, citing a pickup in US economic activity and improvement in the US labor market.
The House of Representatives voted on Tuesday, 12 February 2014, to suspend the US debt limit until March 2015, giving a win to President Barack Obama and Democrats in Congress who insisted that the ceiling be lifted without conditions.
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