After hovering in positive zone in mid-morning trade, key benchmark indices extended intraday gains in early afternoon trade. The barometer index, the S&P BSE Sensex was currently up 129.25 points or 0.48% at 27,335.31. The market breadth indicating the overall health of the market was strong. Small-Cap stocks were in demand. Quite a few stocks which are a part of the BSE Small-Cap index were up 2% to 16%.
Banking stocks were mixed. Telecom stocks were in demand.
Meanwhile, the India Meteorological Department (IMD) yesterday, 14 May 2015, forecast that the southwest monsoon will hit the Kerala coast on 30 May, two days ahead of schedule. This bodes well for timely sowing of crops.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 73.76 crore yesterday, 14 May 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 302.57 crore yesterday, 14 May 2015, as per provisional data.
In overseas markets, Asian stocks were mixed. US stocks edged higher yesterday, 14 May 2015, with the S&P 500 index ringing up a new closing high, overshadowing a string of small losses on the week.
At 12:23 IST, the S&P BSE Sensex was up 129.25 points or 0.48% at 27,335.31. The index jumped 173.51 points at the day's high of 27,379.57 in early trade, its highest level since 12 May 2015. The index fell 46.30 points at the day's low of 27,159.76 in morning trade.
The 50-unit CNX Nifty was up 44.25 points or 0.54% at 8,268.45. The index hit a high of 8,279.20 in intraday trade, its highest level since 12 May 2015. The index hit a low of 8,212.20 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,422 shares gained and 918 shares fell. A total of 121 shares were unchanged.
The BSE Mid-Cap index was up 58.59 points or 0.56% at 10,585.53. The BSE Small-Cap index was up 105.84 points or 0.96% at 11,078.18. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1268 crore by 12:25 IST compared with turnover of Rs 877 crore by 11:15 IST.
Bank stocks were mixed. Among private bank stocks, IndusInd Bank (up 2.7%), Kotak Mahindra Bank (up 1.18%), Axis Bank (up 1.44%) and Yes Bank (up 2.06%) rose. HDFC Bank (down 0.09%) and ICICI Bank (down 0.36%) declined.
Among PSU bank stocks, State Bank of India (SBI) (up 2.17%), Bank of India (up 0.31%) and Union Bank of India (up 2.72%) gained. Punjab National Bank (down 1.7%), Bank of Baroda (down 0.97%) and Canara Bank (down 0.99%) fell.
Reserve Bank of India (RBI) Governor Raghuram Rajan reportedly said yesterday, 14 May 2015, that bad loans at Indian banking sector may not have peaked yet, adding that the central bank was working with lenders to recognise and resolve these non-performing assets. Rajan made those comments in reply to a question during a news conference after the central bank's board meeting in Goa.
Telecom stocks were in demand. Bharti Airtel (up 2.13%), Idea Cellular (up 1.57%), Tata Teleservices (Maharashtra) (up 0.67%) and Reliance Communications (up 0.77%) gained. MTNL was trading unchanged at Rs 17.80.
Meanwhile, the India Meteorological Department (IMD) yesterday, 14 May 2015, forecast that the southwest monsoon will hit the Kerala coast on 30 May, two days ahead of schedule. This bodes well for timely sowing of crops. The IMD said that the southwest monsoon is likely to set over Kerala on 30 May, with a model error of plus/minus 4 days. The onset of southwest monsoon over Kerala signals the arrival of monsoon over the Indian subcontinent and represents beginning of rainy season over the region. The IMD has forecast below normal rains during the June-September southwest monsoon season this year.
The Australian Bureau of Meteorology and Japan Meteorological Agency both announced the emergence of El Ni conditions this week. El Ni has also been linked to a weaker Indian monsoon. The annual monsoon is critical for the country's agriculture.
Meanwhile, Prime Minister Narendra Modi today, 15 May 2015, said that India and China have signed over 20 agreements, covering diverse areas of cooperation. Modi is currently on a three-day visit to China. According to a joint statement issued by India and China, the two nations have agreed to take necessary measures to remove impediments to bilateral trade and investment, facilitate greater market access to each other's economies and support local governments of the two countries to strengthen trade and investment exchanges, with a view to optimally exploiting the present and potential complementarities in identified sectors in the Five Year Trade and Economic Development Plan signed in September 2014, including Indian pharmaceuticals, Indian IT services, tourism, textiles and agro-products.
The two sides resolved to take joint measures to alleviate the skewed bilateral trade so as to realize its sustainability. Such measures will include cooperation on pharmaceutical supervision including registration, speedier phytosanitary negotiations on agro-products for two-way trade, stronger links between Indian IT companies and Chinese enterprises, and increasing services trade in tourism, films, healthcare, IT and logistics. The leaders of the two countries welcomed the decision to expedite discussion and endeavour to favourably address, in the spirit of mutual cooperation and reciprocity, the issues pertaining to tariff reduction in respect of relevant Indian products under the framework of Asia-Pacific Trade Agreement.
The two sides recognized that enhancing border areas cooperation through border trade, pilgrimage by people of the two countries and other exchanges can effectively promote mutual trust and agreed to further broaden this cooperation so as to transform the border into a bridge of cooperation and exchanges. The two sides agreed to hold negotiation on augmenting the list of traded commodities, and expand border trade at Nathu La, Qiangla/Lipu-Lekh Pass and Shipki La.
In overseas markets, Asian stocks were mixed today, 15 May 2015. Key benchmark indices in China, Indonesia, Taiwan and South Korea were off 0.33% to 0.65%. Key benchmark indices in Singapore, Hong Kong and Japan were up 0.03% to 1.83%.
The Bank of Korea's monetary policy board today, 15 May 2015 decided to keep nation's benchmark interest rate steady at the record low of 1.75%. The Bank of Korea had earlier trimmed the rate by 25 basis points from 2% in March.
US stocks ended higher yesterday, 14 May 2015, with the S&P 500 index ringing up a new closing high. The rally for stocks came as US economic reports offered no real clarity on when the Federal Reserve may hike rates for the first time since 2006.
A report on weekly jobless claims unexpectedly declined, pointing to stability in the employment picture, while a measure of inflation suggested that headline inflation is falling below the central bank's 2% target- the target the Fed is looking for before it feels comfortable lifting rates.
Meanwhile, in a major speech delivered in Washington, European Central Bank (ECB) President Mario Draghi yesterday, 14 May 2015, said that the ECB's vast stimulus efforts will remain in place as long as needed to achieve a desired level of inflation.
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