Key benchmark indices extended gains and hit fresh record high in mid-morning trade after President Pranab Mukherjee started addressing a joint sitting of Parliament. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, scaled record high. The Sensex was up 187.31 points or 0.74%, up close to 90 points from the day's low and off about 40 points from the day's high. The market breadth indicating the overall health of the market was strong. The BSE Mid-Cap index rose over 1.2%. The BSE Small-Cap index rose nearly 1.7%. Indian stocks rose today, 9 June 2014, as firmness in Asian stocks boosted sentiment.
Reliance Communications rose after the company announced the launch of One India, One Rate Plans, a first of its kind free national roaming offer for post paid and pre paid GSM customers. Shares of engineering & construction major L&T hit record high. Fertiliser shares rose on reports that the government plans to raise the price of urea, the fertiliser most used by its farmers, by at least 10% in order to contain subsidy costs that are straining the budget.
The market edged higher in early trade. A bout of volatility was witnessed as key benchmark indices pared gains once again after regaining strength in morning trade. Key benchmark indices extended gains and hit fresh record high in mid-morning trade after President Pranab Mukherjee started addressing a joint sitting of Parliament. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, scaled record high.
The market sentiment was also boosted by data showing that foreign funds made heavy purchases of Indian stocks on Friday, 6 June 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 1283.04 crore on Friday, 6 June 2014, as per provisional data from the stock exchanges.
Asian stocks rose on Monday, 9 June 2014, after US payrolls, Chinese trade and Japanese economic-growth data beat estimates.
At 11:20 IST, the S&P BSE Sensex was up 187.31 points or 0.74% to 25,583.77. The index surged 229.26 points at the day's high of 25,625.72 in mid-morning trade, a lifetime high for the index. The index rose 100.38 points at the day's low of 25,496.84 in morning trade.
The CNX Nifty was up 70.35 points or 0.93% to 7,653.75. The index hit a high of 7,666.60 in intraday trade, a lifetime high for the index. The index hit a low of 7,580.25 in intraday trade.
The BSE Mid-Cap index was up 111.47 points or 1.23% at 9,210.01. The BSE Small-Cap index was up 164.59 points or 1.68% at 9,938.63. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong, with over three gainers for every loser on BSE. On BSE, 1,952 shares rose and 603 shares fell. A total of 74 shares were unchanged.
Tata Power Company (up 3.29%), Coal India (up 4.23%) and Tata Steel (up 2.67%) edged higher from the Sensex pack.
L&T rose 3.47% to Rs 1,747.25, with the stock extending recent gains. The stock hit record high of Rs 1,774.70 in intraday trade. The company's net profit surged 69% to Rs 2723.48 crore on 11% growth in gross revenue to Rs 20229 crore in Q4 March 2014 over Q4 March 2013. The strong growth in bottom-line can be explained by strong operating performance and higher extraordinary income. The result was announced after market hours on 30 May 2014.
Maruti Suzuki India rose 1.34%.
Reliance Communications (RCom) rose 1.32% after the company today, 9 June 2014, announced the launch of One India, One Rate Plans, a first of its kind free national roaming offer for post paid and pre paid GSM customers. Under this innovative offer, there will be no difference between, local, STD and roaming charges and customers will be charged only their home-plan tariffs, even while roaming anywhere in India.
RCom said it is targeting a disproportionate share of corporate, SME and high-value customers through the One India, One Rate plans.
Cadila Healthcare rose 0.63%. The company said during market hours today, 9 June 2014, that the Zydus Group will be presenting data on its molecule ZYDPLA 1, a novel compound in the Gliptin class of anti-diabetic agents during the joint meeting of the International Society of Endocrinology and the Endocrine Society to be held from June 21-24, 2014 in Chicago, Illinois.
Fertiliser shares rose on reports that the government plans to raise the price of urea, the fertiliser most used by its farmers, by at least 10% in order to contain subsidy costs that are straining the budget. The hike in urea price could help cut wasteful use of urea. Rashtriya Chemicals & Fertilizers (up 7.2% at Rs 61.60), Chambal Fertilisers & Chemicals (up 7.02% at Rs 58.70), National Fertilizer (up 7.4% at Rs 47.35) and Gujarat State Fertilizers & Chemicals (up 2.9% at Rs 81) edged higher.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 59.05, compared with its close of 59.17/18 on Friday, 6 June 2014.
President Pranab Mukherjee today, 9 June 2014, in his address to the joint sitting of Parliament said that containing food inflation will be new government's top priority. The government is preparing contingency plans for sub-normal monsoons, he said. New government will focus on emphasis on improving supply side of agro-based products, he added.
The Prime Minister Narendra Modi on Sunday, 8 June 2014, said on the occasion of the release of a book, the focus with regard to infrastructure development needs to shift from highways to "i-ways", and optical fibre networks. He said cities in the past were built on river-banks. They are now built along highways. But in future, they will be built, based on availability of optical-fibre networks and next-generation infrastructure.
The Prime Minister said urbanization should not be treated as a problem, but as an opportunity. If we have to generate employment and change for the better, we plan to build 100 smart cities.
He said that India needs to exploit the demographic dividend, as 65% of India's population is below 35 years of age. For this skill development needs to be a priority area. He said if India has to compete with China, the focus should be on skill, scale and speed.
Finance Minister Arun Jaitley on Friday, 6 June 2014, said that the economic situation at present is quite challenging but there is enthusiasm among the industry to turn it to its advantage. He said that there is need to give directional thrust to translate the same into better results. The Finance Minister was speaking while interacting with the captains of Indian Trade and Industry as part of his Pre-Budget Consultation meetings. Various suggestions were received from the representatives of different industry and trade groups. Major suggestions include that the government to follow the path of fiscal consolidation, curbing inflation especially food inflation, push GST, deferment of GARR for at least next three years, no retrospective amendments in tax laws henceforth as it hurts business sentiments in general and discourages foreign investment in particular.
Jaitley is expected to table Union Budget for 2014-15 in Lok Sabha by mid-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.
The India Meteorological Department (IMD) will issue an update on the forecast of the South West monsoon rains in this month. IMD in April 2014 predicted below-normal rains this year, saying that there is a 60% possibility of the emergence of the El Ni weather phenomenona warm weather system that starts in the southern Pacific can affect weather around the world. El Ni last affected India's monsoon in 2009 when the monsoon rainfall was 23% below normal. Annual rains are important for India as most of its farmlands are dependent on rain for irrigation and more than half of its workforce is employed in agriculture.
On the macro front, the government will unveil industrial production data for April 2014 on Thursday, 12 June 2014. Industrial production shrank for a second straight month in March 2014. Industrial production declined 0.5% in March 2014, compared with a contraction of 1.8% in February 2014.
The government is scheduled to announce data on inflation based on the combined consumer price index (CPI) for rural and urban India for May 2014 on Thursday, 12 June 2014. Inflation based on the CPI accelerated to 8.59% (provisional) in April 2014, from 8.31% (final) in March 2014. Core CPI which excludes food and energy prices eased to 7.8% in April 2014, from 7.81% in March 2014.
The government will announce data on inflation based on the wholesale price index (WPI) for May 2014 on 16 June 2014. The annual rate of inflation based on monthly wholesale price index WPI eased to 5.2% for the month of April 2014 from 5.7% in March 2014, helped by a decline in fuel prices.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 5 August 2014. The RBI kept its main lending rate -- repo rate -- unchanged at 8% after a monetary policy review on 3 June 2014. The central bank at that time signaled it would ease monetary policy if inflation slows faster than targeted.
Asian stocks rose on Monday, 9 June 2014, after US payrolls, Chinese trade and Japanese economic-growth data beat estimates. Key benchmark indices in Taiwan, Japan, Singapore, Hong Kong and China were up 0.06% to 0.75%. Key benchmark indices in Indonesia and South Korea were off 0.32% to 0.57%.
Japan's economy, Asia's second largest, expanded an annualized 6.7% in the first quarter, faster than the preliminary reading of 5.9%.
Chinese exports beat projections, rising 7% last month from a year earlier. Imports dropped 1.6 % from a year earlier after a 0.8% advance in April. The trade surplus swelled to $35.92 billion.
Trading in US index futures indicated that the Dow could fall 2 points at the opening bell on Monday, 9 June 2014. US stocks rose on Friday, 6 June 2014, extending records for equity benchmarks, as data showed payrolls pushed past their pre-recession peak for the first time in May.
The 217,000 advance in hiring in May was broad-based and followed a 282,000 gain in April, figures from the Labor Department showed. It marked the fourth consecutive month employment increased by more than 200,000, the first time that's happened since early 2000. The jobless rate unexpectedly held at an almost six-year low of 6.3%.
James Bullard, president of the Federal Reserve Bank of St. Louis, speaks on the US economic outlook in Tennessee today, 9 June 2014, after US nonfarm payrolls topped a pre-recession high in May.
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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