Key benchmark indices extended gains and hit fresh intraday high in mid-morning trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit fresh record high. The Sensex was up 113.92 points or 0.52%, up 114.93 points from the day's low and off 7.73 points from the day's high. The market breadth, indicating the overall health of the market, was strong. The BSE Small-Cap was up more than 1%. The market sentiment was boosted by data showing that foreign institutional investors (FIIs) made substantial purchases of Indian stocks on Wednesday, 26 March 2014. Gains in Asian stocks also boosted sentiment on the domestic bourses.
Reliance Industries (RIL) edged higher after the company after market hours on Wednesday, 26 March 2014, announced that the Ministry of Energy (MOE) of the Republic of the Union of Myanmar has selected RIL for two offshore blocks in Myanmar Offshore Block Bidding Round - 2013. Banks stocks edged higher on renewed buying. Bharti Airtel extended intraday gain.
Key benchmark indices edged higher amid initial volatility. Key benchmark indices extended initial gains and hit fresh intraday high in morning trade as Asian stocks rose. Key benchmark indices extended gains and hit fresh intraday high in mid-morning trade.The Sensex and the 50-unit CNX Nifty, both, hit record high.
The market sentiment was boosted by data showing that foreign institutional investors (FIIs) made substantial purchases of Indian stocks on Wednesday, 26 March 2014. FIIs bought shares worth a net Rs 1004.52 crore on Wednesday, 26 March 2014, as per provisional data from the stock exchanges.
Indian stocks may remain volatile today, 27 March 2014, as traders roll over positions in the futures & options (F&O) segment from the near-month March 2014 series to April 2014 series. The near-month March 2014 F&O contracts expire today, 27 March 2014.
At 11:15 IST, the S&P BSE Sensex was up 113.92 points or 0.52% to 22,209.22. The index jumped 121.65 points at the day's high of 22,216.95 in mid-morning trade, a record high for the barometer index. The index fell 1.01 points at the day's low of 22,094.29 in early trade.
The CNX Nifty was up 39.80 points or 0.6% to 6,641.20. The index hit a high of 6,642.80 in intraday trade, a record high. The index hit a low of 6,599.50 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,420 shares gained and 769 shares fell. A total of 120 shares were unchanged.
The BSE Mid-Cap index was up 53.13 points or 0.77% at 6,921.20. The BSE Small-Cap was up 85.18 points or 1.24% at 6,933.57. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 658 crore by 11:15 IST, compared with to Rs 523 crore by 10:15 IST.
Among the 30-share Sensex pack, 22 stocks gained and rest of them declined.
Bharti Airtel gained 2.74% to Rs 306.95, with the stock extending intraday gain. The stock hit high of Rs 308.25 and low of Rs 299.80 so far during the day.
Reliance Industries (RIL) rose 1.51% to Rs 903.60, with the stock extending initial gains. The stock hit high of Rs 903.95 and low of Rs 894.90 so far during the day. RIL after market hours on Wednesday, 26 March 2014, said that the Ministry of Energy (MOE) of the Republic of the Union of Myanmar has selected RIL for two offshore blocks (M17 and M18) in Myanmar Offshore Block Bidding Round - 2013. Both the blocks are located offshore in the Moattama basin of Myanmar in water depths upto 3,000 ft and together encompass an area of 27,600 sq. kms.
As per the process, RIL or its affiliates will enter into Production Sharing Contracts (PSC) for these offshore blocks. The PSC allows for an initial preparation and study periods before committing into Phase 1 of Exploration period, RIL said. RIL's participation is in line with its strategy of portfolio rationalization by expanding its international asset base by investing in regimes having attractive internationally competitive terms on offer. The company thus hopes to leverage its organizational capabilities and expertise to create value for the E&P segment, RIL said.
In a separate announcement, RIL after market hours on Wednesday, 26 March 2014, said it has taken a planned maintenance shutdown of one of its three Para Xylene units at Jamnagar. The scheduled shut down period is approximately for a period of six weeks. This shut down will also be utilized to improve reliability and performance of the unit, RIL said. The other two Para Xylene units-will continue to operate normally, RIL said. RIL has a total capacity of 1.8 million MT per annum of Para Xylene at Jamnagar.
In another separate announcement, RIL after market hours on Wednesday, 26 March 2014, said that one allegation that is making rounds is that the Gujarat state government bought cheap land from farmers and gave it to RIL at concessional rates. However, the facts are completely opposite, RIL said. "We would like to make it absolutely clear that more than 90% of land that we acquired for our plants in Gujarat have been bought directly from farmers. The price that we paid to the farmers was more than the market rates. We have not violated any rules in the process of acquiring land and all rules have been followed," RIL said in a statement.
Thousands of farmers of Gujarat are the company's partners in the process of industrialisation, RIL said. RIL said that thousands of families in Gujarat have benefitted from the process of industrialisation. Some politicians have been making unsubstantiated statements against RIL for grabbing attention and instant mileage, RIL said. They tend to make sweeping statements for instant gratification without corroborative evidence, RIL said. "We would, however like to it clear that all these allegations are baseless and without any substance," RIL said.
Banks stocks edged higher on renewed buying. Among private sector banks, Axis Bank (up 1.17%), Federal Bank (up 2.39%), HDFC Bank (up 0.23%), ICICI Bank (up 0.13%) and IndusInd Bank (up 0.28%) gained. Kotak Mahindra Bank (down 1.31%) and Yes Bank (down 0.52%) fell.
Among PSU bank stocks, State Bank of India (SBI) (up 2.47%), Punjab National Bank (up 1.48%), Bank of Baroda (up 1.43%), Bank of India (up 1.1%) and Union Bank of India (up 1.09%) gained.
State Bank of Travancore rose 2.53%. State Bank of Travancore announced after market hours on Wednesday, 26 March 2014 that the board of directors of the bank at its meeting held on Wednesday, 26 March 2014, has declared an interim dividend of Rs 2.50 per share to its shareholders for the year ending 31 March 2014. The date of payment of interim dividend is fixed as 22 April 2014.
The board of directors also approved to undertake preferential allotment not exceeding Rs 385 crore to State Bank of India (SBI) for equity shares of face value of Rs 10 each along with share premium subject to receiving the shareholders' approval and any other required statutory approvals. The board has also approved in principle for increasing the equity capital of the bank by way of issue of new shares on rights basis including share premium not exceeding Rs 629 crore.
State Bank of Bikaner & Jaipur lost 2.57% as the stock turned ex-dividend today, 27 March 2014, for interim dividend of Rs 14.30 per share for the year ending 31 March 2014
The Reserve Bank of India will announce the First Bi-monthly Monetary Policy Statement, 2014-15 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.
The next major trigger for the stock market is the outcome of the upcoming Lok Sabha elections. 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.
Asian stocks edged higher in choppy trade on Thursday, 27 March 2014. Key benchmark indices in Taiwan, Japan, Indonesia, Singapore and South Korea were up 0.34% to 0.66%. Key benchmark indices in Hong Kong and China were off 0.35% to 0.93%.
Data today, 27 March 2014, showed mainland China industrial profits increased 9.4% in the two months through February year-on-year, compared with 17% growth a year earlier.
Trading in US index futures indicated that the Dow could advance 28 points at the opening bell on Thursday, 27 March 2014. US stocks edged lower on Wednesday, 26 March 2014, after mid-afternoon selling intensified when US President Barack Obama, in a speech in Brussels, called for further economic sanctions against Russia over its annexation of Crimea. Obama, speaking in Brussels, warned of consequences of complacency in Ukraine and said Russia's actions must be met with condemnation. Ukraine and the International Monetary Fund are nearing the end of bailout talks today, 27 March 2014, as the US and its European allies warned they'll further penalize Russia if it intensifies the crisis after annexing Crimea.
In US economic news, orders for big-ticket items rose 2.2% in February, powered by higher bookings for autos and aircraft. Stripping out the volatile transportation sector, orders rose a smaller 0.2%.
St. Louis Federal Reserve Bank President James Bullard today, 27 March 2014, said that the key risk for the US economy would be a bubble forming as the central bank removes monetary-policy accommodations, while he also raised concerns about financial stability in the US economy. "I don't see a major bubble right now, but one will form as we are trying to remove the accommodation in the years ahead, because that's what exactly had happened in the 2004-2006 period," Bullard told the Credit Suisse Asian Investment Conference in Hong Kong. "I do think that's a key risk going forward," he said. Bullard related the risk to the situation in 2006, the housing prices had already started to peak at the same time as the central bank was in a tightening cycle. "Just because you are moving away accommodation doesn't mean the risk of bubble forming is going away," he said. Bullard also emphasized that financial stability concerns are "looming large," as policy makers are thinking about how to accommodate those concerns. He said macroprudential tools, which have been strengthened, can be used to address emerging bubbles. Bullard is a non-voting member of Federal Open Market Committee this year.
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 said after the conclusion of a monetary policy review that it will trim its monthly bond purchases by $10 billion to $55 billion. The Federal Reserve will end its bond-buying program before the end of the year with an interest-rate increase likely to follow in "around six months," Chair Janet Yellen said on 19 March 2014. Quarterly Fed forecasts on 19 March 2014 showed more officials predicting that the benchmark interest rate, now close to zero, will rise to at least 1% by the end of 2015 and 2.25% a year later.
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