Key benchmark indices swung between gains and losses near the flat line in early trade. The barometer index, the S&P BSE Sensex, was currently unchanged at 22,342.93, up about 25 points from the day's low and off close to 30 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
Tata Power Company rose after the company said that the Supreme Court on 8 May 2014 dismissed the appeal filed by the BEST in which it sought to restrain Tata Power from laying its network to provide power supply to consumers in its License Area in island Mumbai city. HCL Technologies gained after the company said it has partnered with LinkedIn to launch an application aimed at encouraging users to go above and beyond the scope of their existing contracts. Ranbaxy Laboratories fell ahead of its Q1 results today, 9 May 2014.
Foreign institutional investors (FIIs) bought shares worth a net Rs 363.24 crore on Thursday, 8 May 2014, as per provisional data from the stock exchanges.
At 9:30 IST, the S&P BSE Sensex was currently unchanged at 22,342.93. The index rose 32.70 points at the day's high of 22,376.74 in early trade. The index fell 26.86 points at the day's low of 22,317.18 in early trade.
The CNX Nifty was up 5.60 points or 0.08% to 6,665.45. The index hit a high of 6,667.05 in intraday trade. The index hit a low of 6,652.15 in intraday trade.
The BSE Mid-Cap index was up 3.82 points or 0.05% to 7,351.80 The BSE Small-Cap index was up 12.10 points or 0.16% to 7,551.74. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 493 shares gained and 344 shares fell. A total of 38 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks gained and rest of them fell. Dr. Reddy's Laboratories (down 1.23%), GAIL (India) (down 0.79%) and Sesa Sterlite (down 0.44%) edged lower from the Sensex pack.
Ranbaxy Laboratories fell 0.15% ahead of its Q1 results today, 9 May 2014.
HCL Technologies gained 0.29% after the company after market hours on Thursday, 8 May 2014, said it has partnered with LinkedIn to launch an application aimed at encouraging users to go above and beyond the scope of their existing contracts. The application, which will launch globally in English, German and French, will highlight the changing nature of business engagements as part of the first stage of a global campaign aimed at encouraging more employees and businesses to build a 'Relationship Beyond the Contract', HCL Technologies said in a statement.
Krishnan Chatterjee, Global Head of Strategic Marketing, HCL Technologies said: "At HCL, the way we do business is premised on deeply rooted principles of trust and transparency, flexibility, and value centricity. The Relationship Beyond the Contract digital campaign is an outcome of behaviours and the Employees First, Customer Second business model we believe in, developed from the work HCL has done to seek a deeper understanding and foster clearer, more open dialogue among technology companies, vendors and partners globally".
Hari Krishnan, Managing Director APAC, LinkedIn added: "At LinkedIn, 'Relationships Matter' is a core value practiced by every employee as we go about helping our members and clients. We are pleased to be part of HCL's campaign to celebrate, and bring to life how relationships are a key ingredient behind every success story".
Bharti Airtel rose 0.26%. The company reportedly plans annual capital expenditure of $1 billion in Africa in the next few years and will focus on deepening investments in 17 countries there rather than entering new markets.
"We have made massive investments in 17 countries and we spend capital expenditures every year in excess of $1 billion. $1 billion is the plan," its Chairman Sunil Mittal told a leading media agency on Thursday.
Bharti entered Africa in 2010 with the $9 billion acquisition of Kuwaiti telecoms group Zain's operations on the continent. Mittal said Africa represents one-third of Bharti's business.
The firm is comfortable with debt levels of 2.5-2.6 times earnings before interest, tax, depreciation and amortisation (EBITDA) and is weighing options for the sale, leaseback or sharing of its African transmission towers, Mittal said on the sidelines of the World Economic Forum in Abuja, Nigeria.
"The interconnect regime is changing in many places and in Nigeria also, and when interconnection rates change, revenues drop because the total amount of top line goes down," said Mittal, who is also the chairman and CEO of parent company Bharti Enterprises. Interconnection rates are the charges for calling from one network to another.
Mittal added that revenue from Africa stood at $4.4 billion in 2013, below the company's $5 billion projection.
Tata Power Company rose 0.92% after the company said before market hours that the Supreme Court on 8 May 2014 dismissed the appeal filed by the BEST in which it sought to restrain Tata Power from laying its network to provide power supply to consumers in its License Area. The Apex court ruled that there is no provision given in the statute which gives BEST a privileged position of being the sole distribution licensee in that area.
Tata Power welcomes the Supreme Court's ruling allowing consumers serviced by BEST in the Mumbai Island City to choose their service provider for electricity. This ruling will foster competition and also pave the way for customers to avail competitive tariffs and better customer service.
The Reserve Bank of India (RBI) next undertakes 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.
A major near term trigger for the stock market is the outcome of the ongoing Lok Sabha elections. The 36 days long voting process began on 7 April 2014 and will conclude on 12 May 2014. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.
Investors are hoping that a stable government which will complete its full term of five years in office comes to power after the elections. A party or a pre-poll alliance will need 272 MPs to form government at the Centre, which is a simple majority in 543-member Lok Sabha. Investors are expecting measures for revival of the economy, business-friendly policies and good governance from the new government that comes to power after the elections. Investors expect policy measures from the new government to put India on a high-growth path on a sustainable basis.
There are expectations that the Bharatiya Janata Party (BJP) led National Democratic Alliance (NDA) will be able to form the next government at the centre with support from some regional parties after Lok Sabha elections which conclude next week. Various opinion polls have forecast that the NDA with Narendra Modi as its prime ministerial candidate is leading the race to Parliament. Most opinion polls have forecast that the NDA will be unable to form the government on its own and that it will have to rely on support from smaller regional parties to form the government. For the first time in mid-April, an opinion poll for a television news channel showed the NDA winning a narrow majority of 275 seats.
The BJP in its Lok Sabha polls manifesto has promised more business-friendly policies if the party comes to power after elections. The BJP has said that measures for the revival of the economy are its priority if the party comes to power after elections. India's GDP growth has slowed to a decade low of below 5%. The GDP grew 4.7% in Q3 December 2013.
Narendra Modi, the prime ministerial candidate from the NDA, is perceived as being more business-friendly and decisive by the business community. As chief minister for the fast-growing state of Gujarat, Modi has built a reputation for getting things done.
Most Asian stocks declined on Friday as investors weighed earnings reports from Japan's biggest companies and Canon Inc. announced a share buyback. Key benchmark indices in Hong Kong, China, Singapore, and Taiwan were down 0.03% to 0.41%. Key benchmark indices in Indonesia, South Korea and Japan rose 0.08% to 0.59%.
China's producer prices slumped more than estimated in April and are in the midst of the longest decline since a 31-month period from 1997. The consumer price index decelerated to the slowest pace since October 2012.
South Korea's central bank left its key rate unchanged and the government said it will speed up spending, seeking to spur growth that faces headwinds from a surge in the won and weaker consumption after a deadly ferry accident.
The Reserve Bank of Australia reinforced that interest rates will remain on hold for the foreseeable future as a fall in mining investment and fiscal tightening weigh on growth. The central bank, in minor adjustments to its forecasts, raised projected gross domestic product growth for June 2014 to 3% from 2.75% three months earlier, and lowered its growth ranges for 2015 by a quarter percentage point. On core inflation, the RBA cut the forecast for June to 2.75% from 3%, while other periods were little changed.
US stocks mostly fell on Thursday led by losses in the energy and utility sectors.
Fewer Americans than forecast filed applications for unemployment benefits last week, a sign the labor market continues to gain traction. Jobless claims fell 26,000 to 319,000 in the week ended May 3 from a revised 345,000 in the prior period, the Labor Department reported in Washington.
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.
In Europe, the European Central Bank kept interest rates unchanged on Thursday, giving itself more time to gauge whether the euro-area recovery has reignited inflation. The 24-member Governing Council, meeting in Brussels, left the main refinancing rate at a record low of 0.25%.
The European Central Bank is ready to take action next month to boost the euro zone economy if updated inflation forecasts merit it, its president said on Thursday, warning outsiders not to pressure the bank into action. Stressing that the euro's strength was "a serious concern", ECB chief Mario Draghi said the exchange rate would have to be addressed, adding that the bank's policymakers held a discussion about "all instruments" at their meeting in Brussels.
Bank of England officials left the UK central bank's main interest rate unchanged on Thursday at their first meeting since unemployment tumbled past a threshold they set out in August. The BOE said its Monetary Policy Committee kept the central bank's benchmark interest rate at a record low of 0.5% and the total size of its bond portfolio at 375 billion ($636 billion) after a two-day meeting.
Powered by Capital Market - Live News
