A bout of volatility was witnessed in initial trade as key benchmark indices regained positive terrain after slipping into the red after opening higher. The barometer index, the S&P BSE Sensex, was up 7.07 points or 0.03%, up close to 70 points from the day's low and off about 20 points from the day's high. The market breadth, indicating the overall health of the market, was strong.
ICICI Bank slipped as the stock turned ex-dividend today, 5 June 2014, for dividend of Rs 23 per share for the year ended 31 March 2014. HDFC Bank dropped as the stock turned ex-dividend today, 5 June 2014, for dividend of Rs 6.85 per share for the year ended 31 March 2014
Foreign institutional investors (FIIs) bought shares worth a net Rs 192.56 crore on Wednesday, 4 June 2014, as per provisional data from the stock exchanges.
At 9:35 IST, the S&P BSE Sensex was up 7.07 points or 0.03% to 24,812.90. The index rose 25.96 points at the day's high of 24,831.79 in early trade. The index fell 64.49 points at the day's low of 24,741.34 in early trade.
The CNX Nifty was up 1.55 points or 0.02% to 7,403.80. The index hit a high of 7,409.70 in intraday trade. The index hit a low of 7,392.35 in intraday trade.
The BSE Mid-Cap index was up 63.70 points or 0.72% to 8,929.64. The BSE Small-Cap index was up 72.76 points or 0.77% to 9,561.47. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 939 shares rose and 156 shares fell. A total of 27 shares were unchanged.
Mahindra & Mahindra (M&M) (down 0.68%), ONGC (down 0.36%) and Tata Motors (down 0.33%) edged lower from the Sensex pack.
ICICI Bank slipped 1.1% as the stock turned ex-dividend today, 5 June 2014, for dividend of Rs 23 per share for the year ended 31 March 2014.
HDFC Bank dropped 0.69% as the stock turned ex-dividend today, 5 June 2014, for dividend of Rs 6.85 per share for the year ended 31 March 2014
NMDC fell 0.21%, The company has reportedly raised ore prices by up to 9% in June, the first increase in five months as supply has been cut by a temporary ban on some mines in Odisha state.
Given the expected rise in demand for NMDC's ore, the company has raised prices for iron ore fines by 9% to Rs 3,160 per tonne and by 7% to Rs 4,600 for lumps.
The Prime Minister, Shri Narendra Modi, on Wednesday held discussions with Secretaries of all the Ministries and senior officers of the Departments of the Government of India. Such a meeting has taken place after more than eight years.
The Prime Minister listened extensively to suggestions and comments of the Secretaries for nearly two and a half hours. Shri Modi empathized with the sentiment expressed by the Secretaries, and their anguish in not being able to realize their true potential because of circumstances. However, he expressed full faith in their commitment and competence to build a better future for the country.
He called upon the senior bureaucrats to simplify and streamline the administrative rules and procedures to make them people-friendly. He emphasized the need for a team spirit and urged the Secretaries to be leaders of their teams. He also encouraged the officers to take decisions and assured them that he would stand by them. He added that in the process of governance, ideas should be converted into institutions because institutions last longer than individuals. However, he clarified that there may be rules and processes which have become outdated, and instead of serving the process of governance, they are leading to avoidable confusion. He stressed upon the need to identify and do away with such archaic rules and procedures. He even added that the process of governance of his government should begin with cleaning-up of the offices, improving the workplace, which would automatically result in a better work culture and efficient services to the citizens.
The Prime Minister emphasized the need for use of technology for greater efficiency and effectiveness in administration. He further added that in a democracy, redressal of citizens' grievances is very important, and information technology can help greatly in this regard. He also added that through use of technology, and better understanding among departments, administrative and schematic convergence is possible. Only through collective action, faster results can be achieved. Shri Modi offered that he would always be ready to give an account of the work being done by him. The senior bureaucrats echoed this sentiment and welcomed a similar standard of accountability.
The Prime Minister said that he was accessible to all officers and encouraged them to approach him with their inputs and ideas.
As announced in the Second Bi-Monthly Monetary Policy Statement for 2014-15, the Reserve Bank of India will conduct a special 28-day term repo variable rate auction for a notified amount of Rs. 20000 crore tomorrow, 6 June 2014. The auction will be conducted as per the revised guidelines issued on 13 February 2014. Successful bidders will get the allotment at their respective bids. The reversal of the 28-day term repo will take place on Friday, 4 July 2014.
Finance Minister Arun 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.
Asian stocks edged lower on Thursday as investors await a European Central Bank policy decision later in the global day. Key benchmark indices in Indonesia, Singapore, Taiwan, Hong Kong, Indonesia and China were down 0.07% to 0.81%. Japan's Nikkei Average rose 0.05%.
HSBC/Markit's measure of the China service sector eased to 50.7 in May from April's 51.4, though that was still above the 50-point level that is supposed to separate growth from contraction.
US stocks edged up on Wednesday with the S&P 500 index ending at a new record as investors brushed off weaker-than-expected labor market data and focused on an acceleration in services-sector growth.
Service industries in the US expanded at the fastest pace in nine months in May. The Institute for Supply Management said its services sector index rose to 56.3 last month from 55.2 in April as new orders, order backlogs and hiring increased. It was the highest reading in nine months. The Federal Reserve said in its Beige Book review of regional conditions that the world's largest economy expanded at a modest to moderate pace last month. The Beige Book, released two weeks before policy makers meet, supported Fed Chair Janet Yellen's view that the US economy is rebounding from a 1% contraction in the first quarter caused largely by harsh winter weather. The Commerce Department said the trade gap increased 6.9% to $47.2 billion in April as imports hit a record high and exports slipped. It was the largest deficit in two years.
A private report showed employment rose less than economists projected. Private employers added 179,000 jobs to their payrolls last month after hiring 215,000 workers in April, according to payrolls processor ADP.
The influential US nonfarm payroll data for May 2014 is due for release tomorrow, 6 June 2014.
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, expectations are that ECB will announce new stimulus measures when the Governing Council of the ECB holds a monthly meeting on euro area interest rates today, 5 June 2014.
Bank of England's Monetary Policy Committee will probably keep its benchmark interest rate at a record-low 0.5% and leave its bond-purchase program unchanged at a monthly meeting on interest rates in UK today, 5 June 2014.
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