Key benchmark indices extended initial gains in morning trade with the barometer index, the S&P BSE Sensex, hitting fresh record high. The Sensex was up 109.36 points or 0.48%, up 87.60 points from the day's low and off 7.44 points from the day's high. The market breadth, indicating the overall health of the market was strong. The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Tuesday, 22 April 2014.
Capital goods stocks rose on renewed buying, with L&T hitting 52-week high. Pharmaceutical shares gained as the rupee edged lower against the dollar.
The market opened on a positive note after provisional data released by the stock exchanges after trading hours on Tuesday, 22 April 2014, showed that foreign funds remained net buyers of Indian stocks on Tuesday, 22 April 2014. The Sensex and the 50-unit CNX Nifty, both, hit record high. Key benchmark indices extended initial gains in morning trade.
Indian stocks may remain volatile today, 23 April 2014, as traders roll over positions in the futures & options (F&O) segment from the near month April 2014 series to May 2014 series. The April 2014 F&O contracts expire today, 23 April 2014. The stock market remains closed tomorrow, 24 April 2014, on account of Parliamentary elections in Mumbai constituency.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Tuesday, 22 April 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 162.93 crore on Tuesday, 22 April 2014, as per provisional data from the stock exchanges.
At 10:15 IST, the S&P BSE Sensex was up 109.36 points or 0.48% at 22,867.73. The index jumped 116.80 points at the day's high of 22,875.17 in morning trade, a lifetime high for the barometer index. The index rose 21.76 points at the day's low of 22,780.13 in early trade.
The CNX Nifty was up 27.05 points or 0.4% at 6,842.40. The index hit a high of 6,861.60 in intraday trade, a lifetime high for the index. The index hit a low of 6,820.75 in intraday trade.
The market breadth, indicating the overall health of the market was strong. On BSE, 1,192 shares gained and 656 shares fell. A total of 87 shares were unchanged.
The BSE Mid-Cap index was up 33.01 points or 0.45% at 7,419.18, underperforming the Sensex. The BSE Small-Cap index was up 41.32 points or 0.54% at 7,670.42, outperforming the Sensex
The total turnover on BSE amounted to Rs 509 crore by 10:15 IST, compared with Rs 191 crore by 09:30 IST.
Among the 30-share Sensex pack, 23 stocks gained and rest of them declined.
Hindalco Industries (down 1.11%), Sesa Sterlite (down 0.99%) and NTPC (down 0.73%) edged lower from the Sensex pack.
Capital goods stocks rose on renewed buying. ABB India (up 0.41%), Bharat Heavy Electricals (Bhel) (up 1.96%), BEML (up 1.06%), Bharat Electronics (up 0.26%) and Siemens (up 0.91%) edged higher. Thermax (down 0.13%) and Crompton Greaves (down 1.36%) declined.
Engineering and construction major L&T rose 1.04% to Rs 1,358.50 after hitting a 52-week high of Rs 1,365 in intraday trade.
Pharmaceutical shares gained as the rupee edged lower against the dollar. A lower rupee boosts the value of overseas earnings in local terms. Pharma companies derive substantial revenue from exports.
Cipla (up 0.42%), Dr Reddy's Laboratories (up 0.84%), Glenmark Pharmaceuticals (up 0.44%), Lupin (up 0.95%), Ranbaxy Laboratories (up 2.75%), Sun Pharmaceutical Industries (up 1.62%) and Wockhardt (up 1.4%) edged higher.
Cadila Healthcare fell 0.52%.
In the foreign exchange market, the rupee edged lower against the dollar on importers' dollar purchases and on concern a decline in China's factory output will damp demand for the region's assets. The partially convertible rupee was hovering at 60.995, compared with its close of 60.76/77 on Tuesday, 22 April 2014.
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 upcoming 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.
Asian stocks edged lower on Wednesday, 23 April 2014, after Chinese manufacturing data signaled persisting weakness in the world's second-largest economy. Key benchmark indices in Taiwan, China, Indonesia, South Korea, Singapore and Hong Kong were off 0.11% to 0.72%. In Japan, the Nikkei 225 index was up 0.66%.
China's Purchasing Managers' Index for manufacturing was at 48.3 in April, compared with 48 in March, according to a preliminary reading published by HSBC Holdings Plc and Markit Economics today, 23 April 2014. A figure below 50 signals a contraction.
On Tuesday, 22 April 2014, China's central bank lowered reserve ratios at some rural lenders in the latest in a series of measures to help combat a slowing economy.
US stock markets edged higher Tuesday, 22 April 2014, with the S&P 500 extending its winning streak to six days, the longest streak of gains since September 2013. Investors welcomed better-than-expected results from Comcast Corp. and Harley-Davidson, Inc., while a flurry of deal news in the health-care sector added to positive sentiment.
In economic data, the sales pace of existing homes ticked down in March to the slowest rate since July 2012, according to data released Tuesday, 22 April 2014.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 29-30 April 2014. The Federal Reserve on 19 March 2014 decided after the conclusion of a monetary policy review to trim its monthly bond purchases by $10 billion to $55 billion.
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