Volatility continued as key benchmark indices regained positive terrain in morning trade. The barometer index, the S&P BSE Sensex, was up 62.43 points or 0.26%, off about 60 points from the day's high and up close to 130 points from the day's low. The market breadth, indicating the overall health of the market, was strong.
Capital goods stocks gained. Bharat Heavy Electricals' (Bhel) rose after announcing Q4 result. L&T gained ahead of its Q4 results today, 30 May 2014.
The market slipped into the red from positive terrain in early trade. The Sensex hit over one-week low. The 50-unit CNX Nifty hit over two-week low. It regained positive terrain in morning trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 522.90 crore on Thursday, 29 May 2014, as per provisional data from the stock exchanges.
At 10:20 IST, the S&P BSE Sensex was up 62.43 points or 0.26% to 24,296.58. The index rose 119.44 points at the day's high of 24,353.59 in early trade. The index fell 66.21 points at the day's low of 24,167.94 in early trade, its lowest level since 21 May 2014.
The CNX Nifty was up 17.50 points or 0.24% to 7,253.15. The index hit a high of 7,272.50 in intraday trade. The index hit a low of 7,118.45 in intraday trade, its lowest level since 15 May 2014.
The BSE Mid-Cap index was up 67.74 points or 0.8% to 8,502.14. The BSE Small-Cap index was up 81.99 points or 0.91% to 9,067.36. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,084 shares rose and 642 shares fell. A total of 60 shares were unchanged.
Among the 30-share Sensex pack, 18 stocks rose and rest of them fell. Hindustan Unilever (up 1.85%), Bharti Airtel (up 1.7%) and Tata Steel (up 1.69%) edged higher from the Sensex pack.
Capital goods stocks gained. ABB (India) (up 1.19%), BEML (up 8.47%), Punj Lloyd (up 3.81%) and Thermax (up 1.19%) gained.
L&T gained 1.46% ahead of its Q4 results today, 30 May 2014.
Bharat Heavy Electricals' (Bhel) rose 1.44% to Rs 246.95 after announcing Q4 result. The stock hit high of Rs 252.45 and low of Rs 243.50 so far during the day. The company's net profit fell 43.02% to Rs 1844.59 crore on 21.42% fall in total income to Rs 15320.38 crore in Q4 March 2014 over Q4 March 2013. The result was announced after trading hours on Thursday, 29 May 2014. Bhel's net profit fell 47.68% to Rs 3460.78 crore on 17.8% fall in total income to Rs 40724.86 crore in the year ended 31 March 2014 over the year ended 31 March 2013.
On a consolidated basis, Bhel's net profit fell 47.66% to Rs 3502.86 crore on 17.68% fall in total income to Rs 41192.43 crore in the year ended 31 March 2014 over the year ended 31 March 2013.
Bhel said that consequent to merger of Bharat Heavy Plates & Vessels (BHPV) with the company with effect from 30 August 2013, the financial results of HPVP unit (erstwhile BHPV) have been included in the above results. In view of this, figures for the current reporting period are not comparable with the figures in corresponding period of previous year.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 58.9575, compared with its close of 59.03/04 on Thursday, 29 May 2014.
Prime Minister Narendra Modi on Thursday vacated the Vadodara Parliamentary seat, retaining the Varanasi Lok Sabha seat. Shri Narendra Modi sent in his resignation as a Member of Parliament from Vadodara to Speaker of Lok Sabha. Shri Narendra Modi was elected from both the Varanasi and Vadodara parliamentary constituencies in the recent Lok Sabha elections.
At a meeting of his Cabinet on Thursday Prime Minister Narendra Modi asked his ministers to prepare a list of issues that they will take up in the first 100 days in office, with a focus on efficiency, delivery systems and implementation. The PM also has a list of top 10 priorities, which include among others to remove hurdles in economic growth which includes containing inflation as a priority, to prioritize education, energy and water, to bring in reforms in infrastructure, to revive growth and investor confidence, to provide a people-oriented government and governance, to ensure time-bound implementation of policy, to maintain consistency in policy, to promote e-auctioning in government tenders and other government work, to improve inter-ministerial co-ordination, to build confidence in the bureaucracy and to empower and provide freedom to the bureaucracy.
The inaugural session of the new Lok Sabha will commence on 4 June 2014 and end on 11 June 2014. The seven-day-long session has been convened to enable the newly-elected MPs to be sworn in. This will be followed by the election of the Speaker of the 16th Lok Sabha. President Pranab Mukherjee will also address a joint sitting of the two Houses during the session. The special session will be followed by a full-fledged budget session after a gap.
Finance Minister Arun Jaitley is expected to table Union Budget for 2014-15 in Lok Sabha by July 2014. An interim budget was presented by P. Chidambaram in February this year. Essentially, in the nature of a vote on account, the interim budget was intended to get Parliament approval for expenditure to be incurred during the first few months of fiscal year 2014-15 due to Lok Sabha elections.
On macro front, the government will announce data on gross domestic product (GDP) for Q4 March 2014 and the year ended 31 March 2014 (FY 2014) today, 30 May 2014. India's GDP grew 4.7% in Q3.
The Reserve Bank of India (RBI) undertakes a 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.
Asian stocks edged lower in choppy trade on Friday. Key benchmark indices in Indonesia, Japan, Singapore, South Korea and Taiwan were off 0.09% to 0.92%. China's Shanghai Composite was flat. Hong Kong's Hang Seng rose 0.23%.
Price growth in Japan excluding fresh food rose to 3.2% in April, up from 1.3% in March.
Trading in US index futures indicated that the Dow could fall 16 points at the opening bell on Friday, 30 May 2014. US stocks rose for the fifth time in six days on Thursday, driving the Standard & Poor's 500 Index to a record, after Tyson Foods Inc. offered to buy Hillshire Brands (HSH) Co. and investors speculated the economy is improving following a contraction in the first quarter.
US economy suffered its first contraction since 2011 last quarter. Gross domestic product fell at a 1% annualized rate revised Commerce Department figures showed in Washington. Stockpiles grew at less than half the pace than in the final three months of 2013, lopping 1.6 percentage points off GDP while businesses cut back on investment. Demand picked up entering the second quarter, giving weight to the Federal Reserve's view that the economy is recovering.
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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