Key benchmark indices edged higher in choppy trade, with the market sentiment boosted by data showing that foreign institutional investors (FIIs) made substantial purchases of Indian stocks on Friday, 28 March 2014. The barometer index, the S&P BSE Sensex, was provisionally up 45.17 points or 0.2%, up about 130 points from the day's low and off close to 80 points from the day's high. The market breadth, indicating the overall health of the market was strong. The BSE Mid-Cap and Small-Cap indices gained more than 1% each, with both these indices outperforming the Sensex.
Shares of metal and mining stocks extended recent gains triggered by growing expectations that China will take steps to stimulate its sagging economy. Shares of aluminium major Hindalco Industries hit 52-week high. Steel stocks surged. Index heavyweight and cigarette major ITC declined. Another index heavyweight Reliance Industries (RIL) edged higher in choppy trade. ABB India hit a 52-week high.
The market opened on a firm note after provisional data released by the stock exchanges after trading hours on Friday, 28 March 2014, showed that foreign institutional investors (FIIs) made substantial purchases of Indian stocks on that day. The Sensex, and the 50-unit CNX Nifty, both, hit record high. The Sensex trimmed initial gains in mid-morning trade. The Sensex erased almost entire intraday gains in early afternoon trade. A bout of volatility was witnessed as key benchmark indices reversed intraday gains in mid-afternoon trade. Intraday volatility continued as key benchmark indices regained positive zone in late trade.
The market sentiment was boosted by data showing that foreign institutional investors (FIIs) made substantial purchases of Indian stocks on Friday, 28 March 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 1362.87 crore on Friday, 28 March 2014, as per provisional data from the stock exchanges.
As per provisional figures, the S&P BSE Sensex was up 45.17 points or 0.2% to 22,385.14. The index jumped 127.24 points at the day's high of 22,467.21 in early trade, a record high for the barometer index. The index fell 86.19 points at the day's low of 22,253.78 in mid-afternoon trade.
The CNX Nifty was up 5.45 points or 0.08% to 6,701.35, as per provisional figures. The index hit a high of 6,730.05 in intraday trade, a record high for the index. The index hit a low of 6,662.40 in intraday trade.
The BSE Mid-Cap index was up 72.57 points or 1.04% at 7,082.86. The BSE Small-Cap index was up 72.90 points or 1.04% at 7,071.96. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2596 crore, lower than Rs 2923.48 crore on Friday, 28 March 2014.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,707 shares gained and 1,023 shares fell. A total of 149 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks declined and rest of them rose.
Index heavyweight and cigarette major ITC fell 1.81% to Rs 352.50 in volatile trade. The stock hit high of Rs 361.05 and low of Rs 349.75 so far during the day.
Another index heavyweight Reliance Industries (RIL) gained 1.68% to Rs 929.50 after the company announced on Saturday, 29 March 2014, that it has been awarded two contracts for exploration of oil and gas in Myanmar. The stock hit 52-week high of Rs 939.30 intraday trade. Both these blocks are located offshore Myanmar and are spread across an area of 27,600 square kilometers.
RIL said that the Myanmar government awarded the contracts to companies based on the expertise and willingness of companies to invest the required money for discovery of oil and gas and carrying out proposed work programme. RIL will now sign a production sharing contract with Myanmar government which will provide for the profit sharing mechanism between government and RIL. For the past few years, RIL is focused on expanding its oil and gas business internationally. RIL's participation in Myanmar's oil & gas discovery is in line with this strategy.
ABB India rose 4.64% to Rs 854.95 after hitting 52-week high of Rs 858 in intraday trade.
Shares of metal and mining stocks extended their recent gains triggered by growing expectations that China will take steps to stimulate its sagging economy. China is the world's largest consumer of copper and aluminum. NMDC (up 0.98%), Sesa Sterlite (up 2.54%), National Aluminum Company (up 2.98%) and Hindustan Copper (up 2.09%) gained.
Hindalco Industries galloped 8.75% to Rs 141.75 after hitting 52-week high of Rs 142.70 in intraday trade.
Hindustan Zinc rose 3.14%. The company after market hours on Friday, 28 March 2014, said it has commissioned the first sewage treatment plant (STP) in Udaipur. It is the first sustainable development project of its kind in Rajasthan and has been constructed as per a tripartite agreement between Hindustan Zinc, Udaipur Municipal Corporation and Urban Improvement Trust. The STP will treat 20 million litres of sewage per day. The project has been constructed in a record time of 14 months at a cost of over Rs 70 crore, Hindustan Zinc said.
Hindustan Zinc said during market hours today, 31 March 2014, that the board of directors at its meeting held on 29 March 2014 has further extended the tenure of Mr. Akhilesh Joshi as CEO & Whole-time director for a period of 18 months from 1 April 2014 to 30 September 2015.
Steel stocks rallied. Tata Steel (up 3.33%), Steel Authority of India (Sail) (up 10.05%), JSW Steel (up 5.6%), and Jindal Steel & Power (up 4.07%) surged.
HCL Technologies shed 1.2%. The Avaloq group, a leader in integrated and comprehensive banking solutions today, 31 March 2014, announced a strategic partnership with HCL Technologies. The highlight of the partnership will be the foundation of an off-shore Centre of Excellence in Bangalore, India. The centre will offer flexible and scalable capabilities in implementation, systems integration, migration and testing on the Avaloq Banking Suite's range of wealth management products, the two companies said in a joint statement.
The global partnership will provide flexible and scalable access to Avaloq know-how and the ability to deliver from off-shore, near-shore and on-site, leveraging HCL global delivery centres. As a consequence of the strategic partnership, current and future Avaloq customers will benefit from improved service, delivery and support for their international implementation projects. HCL will invest in skills development and training programs for employees of the newly created off-shore Centre of Excellence. The partnership focuses on a global delivery model during and after implementation of the Avaloq Banking Suite. The Centre of Excellence will be capable of providing support on the product level as well as for bank side services.
The government will raise Rs 3.68 lakh crore ($61.4 billion) through bond sales in the first half of the fiscal beginning 1 April 2014, which is 61.6% of the total borrowing scheduled for fiscal year 2014-15. The borrowing programme for the first half of the fiscal year 2014-15 was announced by economic affairs secretary Arvind Mayaram and later notified by the Reserve Bank of India (RBI) on Friday, 28 March 2014. In the interim budget for the year 2014-2015, finance minister P. Chidambaram had announced that the government plans to borrow Rs 4.65 lakh crore from the market in 2014-15 against the Rs 4.54 lakh crore it borrowed in the current fiscal. The gross borrowing programme for the next fiscal will be Rs 5.97 lakh crore, while bonds worth about Rs 1.40 lakh crore are to be paid back to investors in the year to March, Chidambaram said. The gross borrowing plan for 2013-14 was at Rs 5.64 lakh crore.
In a separate announcement, RBI on Friday, 28 March 2014, said it will borrow Rs 1.9 lakh crore through issuance of short-term bills in the market in the April-June 2014 quarter.
The Reserve Bank of India will announce the First Bi-monthly Monetary Policy Statement, 2014-15 at 11:00 IST tomorrow, 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 market is Q4 March 2014 and year ended 31 March 2014 (FY 2014) corporate earnings. Investors and analysts will closely watch the management commentary that would accompany the results to see if there is any revision in their future earnings forecast of the company for the year ending 31 March 2015 (FY 2015) and/or for the year ending 31 March 2016 (FY 2016). Indian companies will start reporting their Q4 and full year results from mid-April 2014. The result season will conclude in end-May 2014.
Another 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 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.
European stocks edged higher on Monday, 31 March 2014, after data showing a larger-than-expected drop in euro-zone inflation in March 2014 boosted expectations that the European Central Bank (ECB) will signal stimulus measures at a policy meeting this week. Key benchmark indices in UK and Germany were up 0.02% to 0.21%. France's CAC 40 was off 0.09%.
Inflation fell to 0.5% in the currency union in March, below analysts' expectations and marking the lowest level since late 2009.
Data out on Friday, 28 March 2014, showed Spain fell into deflation in March, as high unemployment and weak demand for goods among households and businesses added pressure on consumer prices.
In Germany, a report today, 31 March 2014, showed that retail sales rose 1.3% last month after a revised 1.7% gain in January.
A policy meeting of the Governing Council of the European Central Bank (ECB) will be held on Thursday, 3 April 2014, in Frankfurt to decide euro zone interest rates. ECB President Mario Draghi has consistently reassured listeners that the euro zone isn't heading for deflation, but that the central bank stands ready to act if needed.
Asian stocks edged higher on Monday, 31 March 2014, with investors holding out hopes that China would take steps to stimulate its economy. Key benchmark indices in Hong Kong, Singapore, South Korea, Japan and Taiwan were up 0.23% to 0.9%. China's Shanghai Composite shed 0.41%.
South Korea reportedly on Monday returned fire into North Korean waters after shells from a North Korean live-fire drill fell south of the rivals' disputed western sea boundary. Residents on one South Korean island near the artillery exchange have been evacuated, according to reports. Reports said North Korean forces had fired into the South's sea territory as part of a live-fire exercise, prompting South Korea to return fire.
Trading in US index futures indicated that the Dow could advance 59 points at the opening bell on Monday, 31 March 2014. US stocks climbed after a two-day slide on Friday, 28 March 2014, as consumer shares rebounded amid data showing household purchases rose the most in three months. Household purchases, which account for almost 70% of the US economy, climbed 0.3% in February 2014 after a 0.2% gain in January 2014 that was smaller than previously estimated, Commerce Department figures showed.
The influential US non-farms payroll data for March 2014 will be released this Friday, 4 April 2014.
Federal Reserve Chair Janet Yellen is scheduled to deliver remarks at a conference in Chicago today, 31 March 2014.
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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