A strong intraday rebound in late trade took the key benchmark indices to positive zone from negative zone. The market sentiment was boosted by the latest data showing that inflation based on the wholesale price index (WPI) eased to a nine-month low last month. The barometer index, the S&P BSE Sensex, garnered 35.19 points or 0.16%, up about 235 points from the day's low and off close to 45 points from the day's high.
The Sensex has risen 689.68 points or 3.26% in this month so far (till 14 March 2014). The Sensex has risen 639.12 points or 3.01% so far in calendar 2014 (till 14 March 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 4,361.09 points or 24.99%. From a record high of 22,023.98 on 10 March 2014, the Sensex has lost 214.18 points or 0.97%.
Coming back to today's trade, index heavyweight Reliance Industries (RIL) and ITC, both, reversed intraday losses. Shares of L&T scaled 52-week high and L&T Finance Holdings slumped after the offer for sale of shares of L&T Finance Holdings by L&T was oversubscribed. Among auto stocks, M&M scaled record high.
The market breadth, indicating the overall health of the market, was negative.
The market edged lower in early trade on weak Asian stocks. Key benchmark indices extended losses and hit fresh intraday low in mid-morning trade. The Sensex and the 50-unit CNX Nifty, both, hit one-week low. Key benchmark indices languished in negative terrain in early afternoon trade after the data showed that inflation based on the wholesale price index (WPI) eased to 4.68% in February 2014 from 5.05% in January 2014 and after the government revised upwards WPI inflation for December 2013 to 6.4% from 6.16% reported earlier. Key benchmark indices extended losses and hit fresh intraday low in afternoon trade. The Sensex trimmed losses after hitting fresh intraday low in mid-afternoon trade. A strong intraday rebound in late trade took the key benchmark indices to positive zone from negative zone..
Foreign institutional investors (FIIs) bought shares worth a net Rs 637.20 crore from the secondary equity markets on Thursday, 13 March 2014, as per the data from the Securities & Exchange Board of India (Sebi).
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The stock market remains closed on Monday, 17 March 2014, on account of Holi.
The S&P BSE Sensex garnered 35.19 points or 0.16% to settle at 21,809.80, its highest closing level since 12 March 2014. The index rose 78.71 points at the day's high of 21,853.32 in late trade. The index lost 201.13 points at the day's low of 21,573.48 in mid-afternoon trade, its lowest level since 7 March 2014.
The CNX Nifty garnered 11.10 points or 0.17% to settle at 6,504.20, its highest closing level since 12 March 2014. The index hit a high of 6,518.45 in intraday trade. The index hit a low of 6,432.70 in intraday trade, its lowest level since 7 March 2014.
The BSE Mid-Cap index lost 15.36 points or 0.23% to settle at 6,656.18. The BSE Small-Cap index shed 22.51 points or 0.34% to settle at 6,627.68. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 2233 crore, lower than Rs 2718.68 crore on Thursday, 13 March 2014.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,550 shares fell and 1,207 shares rose. A total of 146 shares were unchanged.
Among the 30 Sensex shares, 15 rose and rest fell.
Private banks fell and PSU banks rose after the data showed today, 14 March 2014, wholesale price inflation eased to a nine-month low of 4.68% in February 2014. Among private sector banks, HDFC Bank (down 1.37%), ICICI Bank (down 0.37%), Yes Bank (down 1.49%), Federal Bank (down 0.06%), and Kotak Mahindra Bank (down 1.04%) declined.
AXIS Bank edged lower in choppy trade after the joint secretary in the Department of Disinvestment Alok Tandon today, 14 March 2014, said that the government is aiming to raise Rs 3000 crore to Rs 4000 crore via the sale of a stake held by a state-run trust fund in the private sector bank by month-end. Specified Undertaking of the Unit Trust of India (SUUTI) holds a 20.72% stake in AXIS Bank. The stock dropped 2.16% to Rs 1,351. The stock hit high of Rs 1,371 and low of Rs 1,333.10.
Among PSU bank stocks, Punjab National Bank (up 1.48%), State Bank of India (up 0.18%), Canara Bank (up 0.78%), Bank of India (up 1.59%) and Bank of Baroda (up 2.08%) gained. Union Bank of India fell 0.57%.
Metal and mining stocks were mixed. Sesa Sterlite (down 0.72%), Hindalco Industries (down 0.35%), Hindustan Copper (down 0.3%), Hindustan Zinc (down 1.1%), Bhushan Steel (down 0.12%), and National Aluminum Company (down 1.14%) declined. Sail (up 0.18%), JSW Steel (up 1.33%), Tata Steel (up 1.47%), NMDC (up 2.1%), and Jindal Steel & Power (up 1.93%) gained.
Most IT shares declined. HCL Technologies (down 2.89%), Wipro (down 2.9%), and TCS (down 2.9%), edged lower.
MphasiS lost 0.76% after consolidated net profit fell 5.05% to Rs 180.60 crore on 1.88% decline in net sales to Rs 1563.97 crore in Q1 January 2014 over Q4 October 2013. The Q1 result was announced after market hours on Thursday, 13 March 2014.
MphasiS' direct business revenues rose 1% quarter-on-quarter (QoQ) or 2.2% net of rupee appreciation in Q1 January 2014 despite being a seasonally weak quarter. Direct business revenue stood at 63% of revenue in Q1 January 2014 against 48% of revenue in Q1 January 2013. Gross profit rose 3.3% QoQ at Rs 415 crore in Q1 January 2014. EBIT margin was at 15% in Q1 January 2014 as against 15.3% in Q4 October 2013. Cash and cash equivalents increased by Rs 159 crore in Q1 January 2014 to Rs 2647 crore.
The company added 11 new clients in Q1 January 2014 of which 10 were in Direct business.
Commenting on the company's Q1 performance, Ganesh Ayyar, CEO, MphasiS said, "We are building an innovation led, high value, specialized and customer focused organization. We firmly believe IT services in its current state would cease to exist in time to come. To deliver greater business value to our clients, we continue to invest in portfolio specialization thereby resulting in improved margins".
Infosys edged higher on bargain hunting after Thursday's steep slide. The stock rose 0.95% to Rs 3389.45. The scrip had slumped 8.54% in a single trading session to settle at Rs 3,357.50 on Thursday, 13 March 2014. The sell off was triggered by the company's CEO and Managing Director S.D. Shibulal's comments on Wednesday, 12 March 2014, that the company's sales growth for the current fiscal year may be near the lower end of its forecast as some of its clients are tightening spending on technology. Shibulal said that the company's revenue growth in the fiscal year that begins in April may also be slow if business momentum remains weak. Infosys's clients in the retail and manufacturing sectors are facing spending pressure, he said. Many of the factors that have led to the recent slowdown will continue to impact client spending at least in the initial part of fiscal year 2015, Shibulal said.
It may be recalled that Infosys had at the time of the announcement of Q3 December 2013 results on 10 January 2014 raised its revenue growth guidance in both rupee and dollar terms for the year ending 31 March 2014 (FY 2014). At that time, the company forecast 11.5% to 12% growth in revenue in dollar terms for FY 2014. At that time, the company had forecast 24.4% to 24.9% in revenue in rupee terms for FY 2014 based on rupee dollar conversion rate of 61.81 for the rest of the financial year.
Tech Mahindra gained 0.19% after the Reserve Bank of India on Thursday, 13 March 2014, notified that Foreign Institutional Investors (FIIs), through primary market and stock exchanges, can now purchase up to 48% (revised from earlier limit of 45%) of the paid up capital of Tech Mahindra under the Portfolio Investment Scheme (PIS). Tech Mahindra has passed resolutions at the board of directors' level and a special resolution by the shareholders, agreeing for enhancing the limit from 45% to 48% for the purchase of its equity shares and convertible debentures by Foreign Institutional Investors (FIIs).
The Reserve Bank has notified this under FEMA 1999, regarding raising of aggregate ceiling for investments by FIIs in Indian companies under Portfolio Investment Scheme (PIS).
Among pharma stocks, Dr. Reddy's Laboratories rose 1.53%. Ranbaxy Laboratories declined 3.18%.
Cipla gained 1.47%. The company announced after market hours on Thursday, 13 March 2014 that the board of directors of the company at its meeting held on 13 March 2014, inter alia has approved retirement of Mr. M. K. Hamied as Executive Vice-Chairman. The board unanimously acknowledges the outstanding contribution of Mr. M. K. Hamied to the company over the past 30 years, and in deference to his wishes, has accepted his proposal to retire as Executive Vice-Chairman effective 31 March 2014.
Mr. M. K. Hamied however continues to be the Vice-Chairman of the company in a non-executive role effective 1 April 2014.
The board also appointed Mr. Rajesh Garg as Executive Director and Global Chief Financial Officer Mr. Rajesh Garg has been designated as "Executive Director and Global Chief Financial Officer" and appointed as an Additional Director and Whole-time Director of the company with effect from 1 April 2014. Mr. Rajesh Garg joined the company as its Global Chief Financial Officer on 3 June 2013.
Sun Pharmaceutical Industries rose 1.42% to Rs 581.75 on bargain hunting. The stock was volatile. The scrip hit high of Rs 583.70 and low of Rs 552.50. The stock had lost 5.13% on Thursday after the USFDA issued an import alert for the company's cephalosporin facility located at Karkhadi, Gujarat in India. The company during trading hours on Thursday, 13 March 2014, said that the United States Food and Drug Administration (USFDA) has issued an import alert for the company's cephalosporin facility located at Karkhadi, Gujarat in India. The import alert was issued by the USFDA as a follow up to the last inspection of the facility, during which some non-compliance of current Good Manufacturing Practice (cGMP) regulations were identified, Sun Pharma said in a statement.
Sun Pharma said it remains fully committed to compliance and has already initiated several corrective steps to address the observations made by the USFDA. The contribution of this facility to Sun Pharma's consolidated revenues is negligible. Sun Pharma said that there is no change in the company's consolidated sales growth guidance for the year ending March 2014.
At the time of the announcement of Q3 December 2013 results last month, Sun Pharmaceutical Industries had raised its consolidated revenue growth guidance to 29% for the year ending 31 March 2014, from the previous guidance of 25%. The guidance is at constant exchange rate.
Shares of leading two wheeler makers were mixed. Bajaj Auto fell 0.01%. Hero MotoCorp (up 1.18%) and TVS Motor Company (up 0.35%) gained.
M&M rose 1.57% to Rs 1,030.75 after hitting record high of Rs 1,035 in intraday trade.
L&T rose while L&T Finance Holdings declined offer for sale of shares of L&T Finance Holdings by L&T was oversubscribed. Shares of L&T rose 2.25% to Rs 1,253 after hitting 52-week high of Rs 1,262.75 in intraday trade. L&T Finance Holdings slumped 6.76% at Rs 73.85.
L&T, the promoter of L&T Finance Holdings, after market hours on Thursday, 13 March 2014, announced an Offer for Sale (OFS) to sell 5.55 crore equity shares, constituting 3.23% of the equity share capital of the company today, 14 March 2014 through stock exchanges mechanism. In addition to the sale shares, L&T may also sell up to 2.77 crore equity shares of face value Rs 10 each of the company in the sale today, 14 March 2014. The offer price for the share sale was fixed at Rs 70 per share after market hours on Thursday, 13 March 2014. The offer price is at a discount of 11.61% to the stock's closing price of Rs 79.20 on Thursday, 13 March 2014.
Bids were received for a total of 10.63 crore shares of L&T Finance Holdings in the OFS at an indicative price of Rs 72.77 per share, as per the data on BSE.
Index heavyweight and cigarette maker ITC rose 1.27% to Rs 347.70, also the day's high. The stock hit low of Rs 340.10
Index heavyweight Reliance Industries (RIL) gained 0.78% to Rs 885.95. The stock hit high of Rs 889.90 and low of Rs 869.75.
The economy can grow an annual 5.2% in the quarter to end-March on higher farm output growth, the chairman of the Prime Minister's Economic Advisory Council said today, 14 March 2014. C. Rangarajan also said he expects the economic growth to pick up to 5.5% to 6% in the fiscal year that begins on 1 April 2014.
Inflation based on the wholesale price index (WPI) eased to a nine-month low of 4.68% in February 2014, from 5.05% in January 2014 and 7.28% during the corresponding month of the previous year, data released by the government today, 14 March 2014, showed. Build up inflation rate in the financial year so far was 5.17% compared to a build up rate of 6.15% in the corresponding period of the previous year. The government revised upwards the rate of WPI inflation for December 2013 to 6.4%, from 6.16% reported on 15 January 2014.
The Reserve Bank of India next undertakes monetary policy review on 1 April 2014. Citing price pressures, the Reserve Bank of India raised its key lending rates by 25 basis points after Third Quarter Review of Monetary Policy for 2013-14 on 28 January 2014.
The next major trigger for the stock market is the outcome of the upcoming Lok Sabha elections. Lok Sabha elections will be held between 7 April 2014 and 12 May 2014 in nine phases. The counting of votes will be take place on 16 May 2014. The term of the current Lok Sabha expires on June 1 and the new House has to be constituted by May 31. Along with the Lok Sabha election, Andhra Pradesh (AP), including the regions comprising Telangana, Odisha and Sikkim will go to polls to elect new assemblies. AP, Odisha and Sikkim assemblies come to end on June 2, June 7 and May 7 respectively.
European stocks edged lower on Friday, 14 March 2014, as investors awaited a weekend referendum that may lead to Crimea's secession from Ukraine. Key benchmark indices in France, Germany and UK were off 0.21% to 0.66%.
The Black Sea region of Crimea votes March 16 on becoming independent or rejoining Russia, with the US and Germany threatening Moscow with sanctions over its support for the secession. Russia launched new military exercises near its border with Ukraine on Thursday, showing no sign of backing down in its plans to annex its neighbour's Crimea region despite a stronger than expected drive for sanctions from the EU and United States. US Secretary of State John Kerry warned Russia that the US and Europe could take very serious steps the day after the referendum should there be no sign of a resolution to the crisis. Kerry, who told a Senate panel in Washington that "nobody doubts" Crimea will vote to leave Ukraine.
Asian stocks edged lower on Friday, 14 March 2014, after at least four investment banks lowered forecasts for China's 2014 economic expansion after reports on Thursday, 13 March 2014, showed factory output rose in January and February from a year earlier by the least since the global financial crisis, while retail sales grew at the slowest rate for the period since 2004. Key benchmark indices in China, South Korea, Taiwan, Hong Kong, Japan and Singapore were off 0.25% to 3.3%. Indonesia's Jakarta Composite jumped 3.23%.
China's Premier Li Keqiang told reporters on Thursday, 13 March 2014, that the nation's 2014 goal of 7.5% economic growth is flexible and some financial-product defaults may be unavoidable.
Trading in US index futures indicated that the Dow could gain 11 points at the opening bell on Friday, 14 March 2014. US stocks tumbled on Thursday, 13 March 2014, as disappointing China data and ongoing tension in Ukraine overshadowed reports showing improvement in the American economy. The implied volatility on the S&P 500 as measured by the CBOE Vix index, dubbed "Wall Street fear gauge" jumped 12.1% to the highest level since early February.
Global concerns overshadowed better-than-forecast data in the US retail sales rose in February for the first time in three months, as Americans ventured out to shop last month even as colder-than-normal temperatures and severe snowstorms blanketed parts of the US.
The number of Americans filing applications for unemployment benefits unexpectedly fell last week to the lowest level since the end of November, a sign of further improvement in the labor market. Jobless claims dropped by 9,000 to 315,000 in the week ended March 8, a Labor Department report showed in Washington.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review on 18-19 March 2014. After a monetary policy review, the FOMC on 29 January 2014 announced it will reduce monthly bond purchases by another $10 billion to $65 billion.
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