Key benchmark indices edged higher in early trade tracking mostly higher Asian stocks. The barometer index, the S&P BSE Sensex, was up 162.55 points or 0.65%, up close to 5 points from the day's low and off about 70 points from the day's high. The market breadth, indicating the overall health of the market, was strong. The BSE Mid-Cap index rose almost 1%. The BSE Small-Cap index rose more than 1%.
Crompton Greaves rose after the Avantha Group company closed a Rs 244 crore contract with Spanish multinational electric utility company Iberdrola to supply over 1 million ZIV single smart meters in a year. Tech Mahindra gained after the company and Informatica Corporation announced an expansion of their decade-long strategic association. NMDC gained after the company said that production rose 0.81% to 4.94 million tonnes in May 2014 over May 2013 while despatches rose 11.22% to 5.65 million tonnes in May 2014 over May 2013. Yes Bank gained after the bank said that in respect of the qualified institutional placement (QIP), the Capital Raising Committee of the bank has, at its meeting held on 5 June 2014, approved the issue and allotment of 5.34 crore shares to eligible qualified institutional buyers at the issue price of Rs 550 per share.
NHPC gained after the company said that consequent upon successful trial run of unit 4 of Parbati-III power station (4x130 MW) at its maximum continuous rating of 130 megawatts for 12 hours on 3 June 2014, the unit has been declared operational. TCS declined as the stock turned ex-dividend today, 6 June 2014 for final dividend of Rs 20 per share for the year ended 31 March 2014 (FY 2014). Idea Cellular rose after the company said that the Securities Allotment Committee of the board of directors of the company has decided to open bidding for issue of shares under qualified institutional placement (QIP).
Asian stocks rose on Friday after the unprecedented low rates from the European Central Bank and before US payrolls data due later in the global day.
The market sentiment was also boosted by data showing that foreign funds made heavy purchases of Indian stocks on Thursday, 5 June 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 1368.97 crore on Thursday, 5 June 2014, as per provisional data from the stock exchanges.
At 9:35 IST, the S&P BSE Sensex was up 162.55 points or 0.65% to 25,182.06. The index surged 229.16 points at the day's high of 25,248.67 in early trade. The index rose 156.37 points at the day's low of 25,175.88 in early trade.
The CNX Nifty was up 46.95 points or 0.63% to 7,521.05. The index hit a high of 7,535.10 in intraday trade. The index hit a low of 7,509.50 in intraday trade.
The BSE Mid-Cap index was up 85.85 points or 0.96% to 9,041.76. The BSE Small-Cap index was up 123.04 points or 1.28% to 9,746.96. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,224 shares rose and 215 shares fell. A total of 35 shares were unchanged.
Idea Cellular rose 2.27% to Rs 139.45 after the company after trading hours Thursday, 5 June 2014, said that the Securities Allotment Committee of the board of directors of the company has decided to open bidding for issue of shares under qualified institutional placement (QIP). The company intends to raise up to Rs 3000 crore from the issue. The floor price for the QIP issue has been fixed at Rs 136.98 per share. Shares of Idea Cellular gained 0.41% to settle at Rs 136.35 on BSE on Thursday, 5 June 2014, ahead of the announcement.
TCS declined 1.2% as the stock turned ex-dividend today, 6 June 2014 for final dividend of Rs 20 per share for the year ended 31 March 2014 (FY 2014).
NHPC gained 1.13% after the company after trading hours on Thursday, 5 June 2014, said that consequent upon successful trial run of unit 4 of Parbati-III power station (4x130 MW) at its maximum continuous rating of 130 megawatts for 12 hours on 3 June 2014, the unit has been declared operational.
NTPC rose 1.67%. With reference to the earlier announcement dated 27 May 2014, NTPC said before market hours that basis of allotment to employees of offer for sale has been finalized and 34.83 lakh shares will be transferred from Government of India's demat to respective demat accounts of successful applicants (employees.)
Accordingly, Government of India's share holding in NTPC's would reduce to 618.06 crore shares i.e.74.96% of paid-up equity capital of the company from 618.40 crore shares i.e. 75 of paid-up capital of the Company. Post transfer of equity share to respective demat accounts of employees, these shares will be available for trading, company added.
Yes Bank gained 1.76% to Rs 584.35 after the bank said after market hours on Thursday, 5 June 2014 that in respect of the qualified institutional placement (QIP), the Capital Raising Committee of the bank has, at its meeting held on 5 June 2014, approved the issue and allotment of 5.34 crore shares to eligible qualified institutional buyers at the issue price of Rs 550 per share, which is at a discount of Rs. 0.04 per share on the floor price of Rs 550.04 per share, aggregating to approximately Rs 2942.07 crore under the SEBI Regulations and Section 42 of the Companies Act, 2013 (including the rules made thereunder).
NMDC gained 0.31% after the company said after market hours on Thursday, 5 June 2014 that production rose 0.81% to 4.94 million tonnes in May 2014 over May 2013. Despatches rose 11.22% to 5.65 million tonnes in May 2014 over May 2013. Prices of lump ore for the month of June 2014 was fixed at Rs 4600/WMT. Prices of fines for the month of June 2014 was fixed at Rs 3160/WMT.
Tech Mahindra gained 0.23% after the company and Informatica Corporation, the world's number one independent provider of data integration software, after market hours on Thursday, 5 June 2014 announced an expansion of their decade-long strategic association.
The already established global alliance now brings further value to customers through its new data management services. Customers will benefit extensively from Tech Mahindra's rich experience in data management services, along with Informatica's cutting-edge data integration solutions. Together, the two companies will play a critical role in taking data management beyond the domain of special IT projects and making it business-as-usual through data-fueled applications. With the power of the Informatica Intelligent Data Platform, the alliance will deliver a number of data management services, including Data Archive, Data Anonymization, Reference Data Management, Test Data Management, Data Governance, Master Data Management (MDM), Data Migration, Big Data, Data Integration and Data Quality.
Customers utilizing these data management services will benefit from reliable, reusable and repeatable offerings with predictable outcomes. This will be delivered through Tech Mahindra's copyrighted framework: UDMF (Unified Data Migration Framework), DQMS (Data Quality Management Services) and iDecisions, a packaged analytic framework that enables businesses to interpret information, discover knowledge and make innovative decisions.
Further, Tech Mahindra and Informatica announced plans for joint investments in developing solutions at Tech Mahindra Research Centers in Pune, Bangalore and Hyderabad. The Research Centers will focus on building portable frameworks, solutions and offerings and make them Informatica Vibe-enabled. The Informatica Vibe Virtual Data Machine is an embeddable data management engine that can access, aggregate and manage numerous types of data. Vibe provides developers the power to map data in single instance and deploy anywhere, in an application and/or on an appliance or device, regardless of the data format. It also provides further flexibility to users as the data can reside on-premise or in the Cloud.
L. Ravichandran, chief operating officer (Telecom), Tech Mahindra, said, "We are excited about this strategic offering with Informatica in the data management space. This offering comes at an appropriate time when organizations have started moving toward being data driven. There is a tremendous potential for this unique offering, and we're confident that Informatica and Tech Mahindra's customers will reap extensive value from these offerings. We consider these offerings as key enablers to achieve our Mission 2015."
Anil Chakravarthy, executive vice president and chief product officer, Informatica, said, "The relationship between Tech Mahindra and Informatica brings together two technology leaders who share a vision for helping our mutual customers gain a competitive advantage from their data. With this expanded alliance, the two companies will build on our individual strengths - Tech Mahindra's rich experience in IT services and Informatica's differentiated technology offerings, including the Intelligent Data Platform. Together, we are focused on building and delivering solutions and services that are the foundational elements for the deep insight necessary to make the promise of flexible IT and agile business a reality."
Crompton Greaves rose 1.05% after the Avantha Group company closed a Rs 244 crore contract with Spanish multinational electric utility company Iberdrola to supply over 1 million ZIV single smart meters in a year. The announcement was made after market hours on Thursday, 5 June 2014. The order comprises single-phase and three-phase meters and reiterates CG's growing dominance in the global smart grid sector. Europe's installation base for smart meters is expected to rise sharply and hit 180 million by 2020 just as the Asian market will gain significant traction during the period. Whilst Spain continues its dominance as an active market in 2014, large-scale deployments in the UK, Germany and France will bring in the momentum by late 2015.
A significant advantage for CG in the Spanish market has been the regulatory framework in the country which makes it mandatory that 70 percent of the analog meters are replaced by 2016 and 100 percent by 2018. ZIV as the world's main PRIME meter supplier, is uniquely positioned to benefit from this regulation, by collaborating closely with the distribution utilities and assisting them in achieving the challenge on time.ZIV, was awarded significant contracts this year, from major European Utilities : Energias de Portugal and Gas Natural Fenoza with a total of more than 2 million meters. In addition ZIV received 10 Automatic Meter Infrastructure ( AMI) pilot projects in 3 continents .
About the latest win, Avantha Group Company CG's CEO and Managing Director, Mr Laurent Demortier said: "This win reinstates CG's long term commitment to providing smart grid solutions to the European Distribution grid to monitor and manage their own networks. We thank Iberdrola for their trust and continued patronage of our efficient and state-of-the-art smart meter technology. Weremain focussed on supporting our customers' to build a modern, efficient grid and improve their overall end-user experience by providing a full suite of smart grid products and services."
The Union Finance Minister Shri Arun Jaitley said on Thursday that social sector groups can play an important role in taking positive advantage of demographic dividend. Shri Jaitley said that we may have been implementing the various social sector programmes but there is need to upgrade them and their delivery mechanisms and also provide adequate interventions within the fiscal space available. He said that there is need to ensure that the benefits of these programmes reach the poor and marginalized and other weaker sections of the society. The Finance Minister was making the Opening Remarks while holding his second Pre-Budget Consultation with the representatives of the Social Sector related Groups.
Various suggestions were received during the meeting from the representatives of the different Social Sector Groups. Major suggestions include higher budgetary allocation in General Budget 2014-15 for 2.68 crore disabled people in the country, simplification of procedures for seeking grants and their timely release, helping in making NGOs especially welfare NGOs self-sustainable and financially viable by giving certain tax concessions and allowing creation of corpus fund among others. Other suggestions include higher allocation to promote use of renewable energy especially solar and wind energy, focus on making a roadmap for replacing kerosene and diesel by renewable energy wherever possible and creation of National Green Energy Fund among others.
Other suggestions include adoption and implementation of the National Competition Policy, enactment and implementation of the Public Procurement Act and the National Procurement Policy, enactment and implementation of an omnibus Financial Consumer Protection Act and fixing of Fiscal Management Practices by establishment of Parliamentary Budget Office, adoption of international best practices in budgetary planning and reduction of non-merit subsidies among others.
Other suggestions made during the aforesaid meeting include focus on financial inclusion by setting-up of a Special Purpose Vehicle (SPV) by Public Sector Banks, universalize the pension for all the poor, extension of Rashtriya Swasthaya Beema Yojana(RSBY) to all the districts in the country, setting-up of old age home in each district of the country for destitute and vulnerable old age people, inculcation of value education in our system , setting-up of National Nutrition Mission and creation of a Dalit Fund to encourage any innovative activity undertaken by a SC/ST person.
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.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 5 August 2014. The RBI kept its main lending rate -- repo rate -- unchanged at 8% after a monetary policy review on 3 June 2014. The central bank at that time signaled it would ease monetary policy if inflation slows faster than targeted.
Most Asian stocks rose on Friday after the unprecedented low rates from the European Central Bank and before US payrolls data due later in the global day. Key benchmark indices in Indonesia, Singapore and Taiwan were up 0.05% to 0.39%. Key benchmark indices in Hong Kong and China fell 0.15% to 0.63%.
US stocks rose to records on Thursday as European Central Bank stimulus boosted optimism in the global economy before US jobs report.
The Fed said in its Beige Book business survey that the economy expanded at a modest to moderate pace last month as auto sales led household spending and the labor market improved. The survey, released two weeks before policy makers meet in Washington, supports Chair Janet Yellen's view that the economy is rebounding from a 1% contraction in the first quarter caused largely by harsh winter weather.
Nonfarm payrolls in the US rose by 288,000 people in April, the most since a 360,000 advance in January 2012. Claims for American unemployment benefits climbed by a more-than-estimated 312,000 in the week to May 31, data yesterday showed.
The influential US nonfarm payroll data for May 2014 is due for release today, 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, the European Central Bank cut interest rates to record lows on Thursday, launched a series of measures to pump money into the sluggish euro zone economy, and pledged to do more if needed to fight off the risk of Japan-like deflation. The ECB lowered the deposit rate to sub zero -0.1%. It cut its main refinancing rate to 0.15%, and the marginal lending rate - or emergency borrowing rate - to 0.40%.
For the first time, the ECB will charge banks for parking funds at the central bank overnight in an attempt to force them to lend to small- and medium-sized businesses. The measures were also aimed at easing pressure on the strong euro, which is threatening economic recovery and importing disinflation.
ECB President Mario Draghi outlined a four-year 400 billion euro ($544.86 billion) scheme giving banks that have been holding back credit due to looming stress tests an incentive to increase lending to businesses in the euro zone. "Now we are in a completely different world," Draghi said, citing "low inflation, a weak recovery and weak monetary and credit dynamics". The package, adopted unanimously, was aimed at increasing lending to the "real economy", he said.
Other steps included extending the duration of unlimited cheap liquidity for euro zone banks, injecting about 170 billion euros by stopping tenders that withdrew funds spent on past government bond purchases, and preparing for possible future purchases of asset-backed securities to support small business. "If required, we will act swiftly with further monetary policy easing," he said, adding that the policy-setting Governing Council was unanimous in its commitment to use unconventional instruments if needed "to further address risks of too prolonged a period of low inflation".
UK interest rates have been held at the record low of 0.5% for another month by the Bank of England on Thursday. The size of the Bank's bond-buying economic stimulus programme was also kept unchanged at 375bn. The decision was widely expected, despite continued signs of strength in the UK economy.
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