Volatility continued as key benchmark indices trimmed intraday gains in mid-morning trade. The barometer index, the S&P BSE Sensex, was up 51.61 points or 0.21%, off about 70 points from the day's high and up close to 115 points from the day's low. The market breadth, indicating the overall health of the market was strong. The BSE Small-Cap index rose over 1%.
Realty stocks gained. DLF rose after announcing Q4 results. GMR Infrastructure rose on strong Q4 result.
The Sensex slipped into the red in early trade after opening higher. The Sensex hit its lowest level in more than a low. The 50-unit CNX Nifty hit its lowest level in more than two weeks. Key benchmark indices regained positive terrain in morning trade. Volatility continued as key benchmark indices trimmed intraday gains in mid-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 11:20 IST, the S&P BSE Sensex was up 51.61 points or 0.21% to 24,285.76. The index jumped 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 15.90 points or 0.22% to 7,251.55. 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 64.52 points or 0.76% to 8,498.92. The BSE Small-Cap index was up 101.21 points or 1.13% to 9,086.58. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market was strong. On BSE, 1,521 shares rose and 901 shares fell. A total of 96 shares were unchanged.
Among the 30-share Sensex pack, 21 stocks rose and rest of them fell. L&T (up 1.65%), Bharti Airtel (up 1.88%) and Tata Steel (up 1.7%) edged higher from the Sensex pack.
Realty stocks gained. D B Realty (up 4.21%), Housing Development & Infrastructure (up 4.4%), Sobha Developers (up 1.99%) and Unitech (up 8.89%) gained.
DLF rose 3.73% to Rs 211.80. The stock was volatile. The stock was volatile. The stock hit high of Rs 212 and low of Rs 195.55 so far during the day. The company reported a consolidated net profit of Rs 219.68 crore in Q4 March 2014 as against net loss of Rs 4.19 crore in Q4 March 2013. Total income rose 8.74% to Rs 2521.60 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Thursday, 29 May 2014.
DLF's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 12% to Rs 915 crore in Q4 March 2014 over Q4 March 2013.
DLF said it expects a strong focus of the new government to kick start economic growth which will, within 24 months, deliver significant improvement in income generation for all segments of the society. Given this scenario, the company expects an uptick in consumer demand for housing in the second half of FY 2015. The company's diverse portfolio of land bank allows it to participate in the governments efforts to provide housing for all segments of the society in the shortest possible time, DLF said. With increased economic activity, the company's leasing business shall also benefit from greater demand in the office and retail businesses, DLF said.
In the year gone by, due to slowdown in the overall economy, demand for company's real estate products were severely impacted resulting in moderate sales vis-vis the target as articulated last year. DLF said that the company has met its target of non-core divestments and reduction in net debt. The company is now comfortable with its net debt levels. Going forward, it shall strive not only to maintain the current level of debt but also to improve the quality and cost of debt, DLF said. The recent successful launch of India's first Commercial Mortgage Backed Security, rated AA (SO) by CRISIL, is an effort in that direction, DLF said. The company hopes to do more such issuances in the medium term, DLF said. DLF said it realized about Rs 5930 crore in FY 2014 through divestments of non-core assets.
GMR Infrastructure rose 4.04% on strong Q4 result. The company's consolidated net profit surged 102.04% to Rs 1170.18 crore on 15% increase in total income to Rs 3066.81 crore in Q4 March 2014 over Q4 March 2013. The result was announced after trading hours on Thursday, 29 May 2014.
GMR Infrastructure's EBITDA (earnings before interest, taxes, depreciation and amortization) fell 6.93% to Rs 712 crore in Q4 March 2014 over Q4 March 2013. EBITDA margin declined to 29% in Q4 March 2014 compared with 38% in Q4 March 2013. On a consolidated basis, the company's net profit slumped 88.64% to Rs 10.01 crore on 6.99% increase in total income to Rs 10969.09 crore in the year ended March 2014 over the year ended March 2013.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 58.985, compared with its close of 59.03/04 on Thursday, 29 May 2014.
Reserve Bank of India (RBI) Governor Raghuram Rajan said on Friday he expected to join hands with the country's new government to bring down dangerously high inflation. Rajan, speaking at a seminar in Tokyo, said the new government's plan to curb food inflation seems sensible and that he expects the public's inflation expectations to fall in the future.
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.
Reserve Bank of India (RBI) Governor Raghuram Rajan today, 30 May 2014, said he expected to join hands with the country's new government to bring down high inflation. Rajan, speaking at a seminar in Tokyo, said the new government's plan to curb food inflation seems sensible and that he expected the public's inflation expectations to fall in the future. "There is a sense of conviction about our plan to bring inflation down to 8% this year and 6% next year," Rajan said. "This information has gotten out to the public. The public's inflation expectations have fallen and I think expectations will fall further in the future," Rajan said.
Rajan said India's current account deficit could fall to 2% to 2.5% of gross domestic product in medium term. Rajan said he was worried about non-performing assets in India's banking sector but wanted to work with the new government to solve this problem quickly.
The Reserve Bank of India (RBI) undertakes a monetary policy review on Tuesday, 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.
At a meeting of his Cabinet on Thursday Prime Minister Narendra Modi reportedly 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. 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.
Asian stocks edged lower in choppy trade on Friday, 30 May 2014. Key benchmark indices in Indonesia, Japan, Singapore, South Korea and Taiwan were off 0.17% to 1.01%. 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 15 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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