A bout of volatility was witnessed as key benchmark indices trimmed losses after hitting fresh intraday low in mid-morning trade. The barometer index, the S&P BSE Sensex, was down 47.76 points or 0.21%, up about 90 points from the day's low and off close to 65 points from the day's high. The market breadth, indicating the overall health of the market, was strong. Indian stocks fell today, 4 April 2014 as Asian stocks declined.
Capital goods shares extended Thursday's losses. Realty stocks edged higher.
The market edged lower in early trade. It extended initial losses and hit fresh intraday low in morning trade. It trimmed losses after hitting fresh intraday low in mid-morning trade.
Asian stocks declined on Friday as investors await data on US jobs growth later in the global day today, 4 April 2014.
Foreign Institutional Investors (FIIs) bought shares worth a net Rs 717.39 crore on Thursday, 3 April 2014, as per provisional data from the stock exchanges.
At 11:20 IST, the S&P BSE Sensex was down 47.76 points or 0.21% to 22,461.31. The index declined 139.87 points at the day's low of 22,369.20 in mid-morning trade, its lowest level since 1 April 2014. The index rose 16.14 points at the day's high of 22,525.21 in early trade.
The CNX Nifty was down 15.90 points or 0.24% to 6,720.20. The index hit a low of 6,696.80 in intraday trade, its lowest level since 1 April 2014. The index hit a high of 6,741.85 in intraday trade.
The BSE Mid-Cap index was up 39.89 points or 0.54% to 7,209.14. The BSE Small-Cap index rose 52.18 points or 0.72% to 7,259.63. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,268 shares gained 827 shares fell. A total of 101 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks declined and rest of them rose. GAIL (India) (down 2.05%), ONGC (down 1.63%) and Bharti Airtel (down 1.09%) edged lower from the Sensex pack.
Realty stocks edged higher. D B Realty (up 0.41%), Unitech (up 2.27%), DLF (up 1.16%) and Housing Development & Infrastructure (HDIL) (up 3.18%), gained.
Sobha Developers rose 1.44%. Sobha Developers announced after market hours on Thursday, 3 April 2014 that at the close of the financial year ended March 2014 (FY2014), the company has registered new sales area of 3.59 Million Square Feet valued at Rs 2343 crore at an average price realisation of Rs 6534 per square feet. The new sales value has increased by 5.78% and average price realisation has registered a growth of 10.80% yearon-year.
The growth in sales volume and new sales value, excluding NCR Gurgaon, is 6.47% and 28.32% respectively as compared to the fiscal year ending March 2013 (FY2013). The sharp slowdown in the NCR~Gurgaon market saw its contribution to the company's performance declining to 3.59% (Sales Volumes) and 6.01% (Sales Value) in FY2014 as compared to 13.56% (Sales Volume) and 22.52% (Sales Value) respectively in FY2013.
At the beginning of FY2014, the company had set a guidance of new sales valued at Rs 2600 crore comprising of 4.20 Million Square Feet for FY2014. Owing to the tough economic conditions and its consequent impact on the real estate market, particularly, in NCRGurgaon, the Company achieved 3.59 Million Square Feet of news sales area valued at Rs 2343 crore, the company said.
Capital goods shares extended Thursday's losses. Bharat Heavy Electricals (Bhel) (down 2.49%), Bharat Electronics (down 2.3%), and Siemens (down 0.84%) edged lower.
Shares of engineering and construction major L&T extended Thursday's losses triggered by reports that the company is likely to write off Rs 15000-crore worth of slow-moving orders when it announces earnings for the year ended 31 March 2014. The stock shed 1.61%. L&T clarified during trading hours on Thursday, 3 April 2014, that the company evaluates its order book on a regular basis. The slow moving orders in that process may be removed to enable carry forward of healthy backlog of orders, L&T said. There is no negotiation with the clients for this process, L&T said. Removal of such orders has no impact on revenue, L&T said. The new orders which the company has received has compensated for any such removal of orders, L&T said. The company as part of its communication to the press in January 2014 during the announcement of results had disclosed this aspect, L&T said.
S. Kumars Nationwide was locked at 5% upper circuit at Rs 4.52 on BSE after the company said its board has approved issuing 9.74 crore equity shares to the promoters and promoter group companies on preferential basis. The announcement was made after market hours on Thursday, 3 April 2014. S. Kumars Nationwide's board of directors at its meeting held on Thursday, 3 April 2014, approved issuing 9.74 crore equity shares to the promoters and promoter group companies on preferential basis as per applicable laws subject to approval from the members/other stakeholders and of the regulatory authorities.
Adani Power rose 0.63% after the company said it has become the largest private power producer in India. The company made the announcement after market hours on Thursday, 3 April 2014.
Adani Power, a subsidiary of Adani Enterprises and part of the Adani Group, a global integrated infrastructure player, announced the commissioning of the fourth unit of 660 megawatts (MW) at its power plant at Tiroda in Maharashtra, thus emerging as the largest private power producer in India with an overall installed capacity of 8,620 MW.
This is an important milestone in the history of Indian power generation as Adani Power has added 2,640 MW in the last financial year, accounting for nearly 15% of the overall capacity addition of about 17,000 MW in the country. The company has commissioned two 660 MW units in the first quarter, one 660 MW unit in third quarter and one 660 MW unit in fourth quarter of the fiscal year ended March 2014 (FY14), two each at Tiroda in Maharashtra and at Kawai in Rajasthan, the company said in a statement.
"It is a proud event and a momentous occasion for everyone at Adani Power, as we are now the largest private power producer in India. This achievement is a testimony to our efforts in increasing electricity generation in the country, and only reflects our commitment towards nation building. It is a significant milestone in the path to achieve Adani Power's target of generating 20,000 MW by 2020," said Mr. Gautam Adani, Chairman, Adani Group.
"The company's project management team has acquired and assimilated expertise that enables speedy and reliable execution of large power generation projects. This has allowed us to add capacity at the given pace, and address the nation's electricity demand," said Mr. Vneet Jaain, CEO, Adani Power.
Post commissioning of Unit 4 at Adani Power's Tiroda power plant in Maharashtra, the company added 660 MW to its existing installed thermal capacity of 7920 MW. Apart from this, the Adani Group has also installed a 40 MW Solar power plant in Kutch district, Gujarat, taking the overall installed capacity to 8,620 MW - the highest amongst private sector producers, across all fuels, the company said.
In the foreign exchange market, the rupee edged lower against the dollar on weakness in domestic bourses. The partially convertible rupee was hovering at 60.385, compared with its close of 60.16 on Thursday, 3 April 2014.
On the political front, the Bharatiya Janata Party (BJP) on Thursday, 3 April 2014, said that the party will release its poll manifesto on 7 April 2014, the day the 9-phase Lok Sabha election begins. The party on Thursday, 3 April 2014, issued its manifesto for the North East region, wherein it stated that it will develop the area as a BPO hub if voted to power. The BJP has already released a Delhi-specific manifesto wherein it has made an array of promises like granting full statehood, reducing power tariff by 30% and controlling price rise within one month if BJP is voted to power. The party, which had lost all the seats in the national capital to Congress in 2009 Lok Sabha polls, said it will set up a helpline for the national capital to receive complaints of corruption. It also promised to bring police, DDA and other land-owning agencies under one roof to streamline governance in the national capital.
On economic front, 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 Tuesday, 1 April 2014.
The next major trigger for the stock market is Q4 March 2014 and year ended 31 March 2014 (FY 2014) corporate earnings. Investors and analysts will closely watch the management commentary that would accompany the results to see if there is any revision in their future earnings forecast of the company for the year ending 31 March 2015 (FY 2015) and/or for the year ending 31 March 2016 (FY 2016). Indian companies will start reporting their Q4 and full year results from mid-April 2014. The result season will conclude in end-May 2014.
A major near term 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 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.
Business activity across emerging markets fell for the fourth straight month in March, with output contracting in three of the four biggest economies, a survey showed on Friday. HSBC's composite emerging markets index of manufacturing and services purchasing managers' surveys slipped to 50.3 from 51.1 in February, teetering on the 50 threshold that marks the difference between expansion and contraction.
Asian stocks declined on Friday as investors await data on US jobs growth later in the global day today. Key benchmark indices in South Korea, Taiwan Hong Kong, Indonesia, Japan and Singapore were down 0.17% to 0.88%. China's Shanghai Composite rose 0.36%.
Trading in US index futures indicated that the Dow could gain 18 points at the opening bell on Friday, 4 April 2014. US stocks slipped on Thursday, as investors turned cautious ahead of Friday's monthly jobs report.
On the economic front, the US trade deficit unexpectedly widened in February to $42.3 billion as exports hit a five-month low, suggesting that first-quarter growth could be much weaker than initially expected.
A bright spot came from the services sector, where growth accelerated in March after being hampered by unusually cold weather, according to the Institute for Supply Management's services-sector index.
The influential US non-farms payroll data for March 2014 will be released today, 4 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 said after the conclusion of a monetary policy review that it will trim its monthly bond purchases by $10 billion to $55 billion. The Federal Reserve will end its bond-buying program before the end of the year with an interest-rate increase likely to follow in "around six months," Chair Janet Yellen said on 19 March 2014. Quarterly Fed forecasts on 19 March 2014 showed more officials predicting that the benchmark interest rate, now close to zero, will rise to at least 1% by the end of 2015 and 2.25% a year later.
In Europe, the Governing Council of the European Central Bank (ECB) decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.25%, 0.75% and 0.00% respectively.
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