Key benchmark indices further trimmed intraday gains in early afternoon trade. The barometer index, the S&P BSE Sensex, was up 43.08 points or 0.18%, off about 75 points from the day's high and up close to 110 points from the day's low. The market breadth, indicating the overall health of the market was positive.
Reliance Industries edged higher in volatile trade after company after market hours on Thursday, 29 May 2014, said that the company's board of directors has approved funding of upto Rs 4000 crore to Independent Media Trust (IMT), of which RIL is the sole beneficiary, for acquisition of control in Network18 Media & Investments (NW18) including its subsidiary TV18 Broadcast (TV18). Metal and mining stocks gained. NMDC gained ahead of its Q4 results today, 30 May 2014. But, National Aluminium Company (Nalco) extended Thursday's losses triggered by weak Q4 result. Telecom stocks gained.
The Sensex slipped into the red in early trade after opening higher. The Sensex hit its lowest level in more than a low. The 50-unit CNX Nifty hit its lowest level in more than two weeks. Key benchmark indices regained positive terrain in morning trade. Volatility continued as key benchmark indices trimmed intraday gains in mid-morning trade. The Sensex further trimmed intraday gains in early afternoon trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 522.90 crore on Thursday, 29 May 2014, as per provisional data from the stock exchanges.
At 12:20 IST, the S&P BSE Sensex was up 43.08 points or 0.18% to 24,277.23. The index jumped 119.44 points at the day's high of 24,353.59 in early trade. The index fell 66.21 points at the day's low of 24,167.94 in early trade, its lowest level since 21 May 2014.
The CNX Nifty was up 13.95 points or 0.19% to 7,249.60. The index hit a high of 7,272.50 in intraday trade. The index hit a low of 7,118.45 in intraday trade, its lowest level since 15 May 2014.
The BSE Mid-Cap index was up 46.08 points or 0.55% to 8,480.48. The BSE Small-Cap index was up 74.96 points or 0.83% to 9,060.33. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market was positive. On BSE, 1,541 shares rose and 1,080 shares fell. A total of 111 shares were unchanged.
Among the 30-share Sensex pack, 21 stocks rose and rest of them fell. Hindustan Unilever (up 3.95%), NTPC (up 1.81%) and Dr Reddy's Laboratories (up 1.6%) edged higher from the Sensex pack.
Kotak Mahindra Bank rose 0.33%. The private sector bank during market hours today, 30 May 2014, said that Kotak Trustee Company, a promoter group entity of Kotak Mahindra Bank, has today, 30 May 2014, sold 2.49 crore shares of the bank. After the sale of the shares, the shareholding of promoters in the bank has declined to 40.33%. The sale of shares by the promoters was undertaken pursuant to RBI's requirement to reduce promoter shareholding in the bank as communicated on 26 May 2014, Kotak Mahindra Bank said.
Reliance Industries edged higher in volatile trade after company after market hours on Thursday, 29 May 2014, said that the company's board of directors has approved funding of upto Rs 4000 crore to Independent Media Trust (IMT), of which RIL is the sole beneficiary, for acquisition of control in Network18 Media & Investments (NW18) including its subsidiary TV18 Broadcast (TV18). The stock was up 0.38% at Rs 1,077.10. The scrip hit high of Rs 1,089.60 and low of Rs 1,075.20 so far during the day. Shares of NW18 were up 6% at Rs 47.90. Shares of TV18 were off 4.4% at Rs 33.40.
NW18 is the owner of a suite of premier digital internet properties, e-commerce businesses and differentiated broadcast content. IMT would use the funds to acquire control over NW18 and TV18 resulting in ownership of about 78% in NW18 and 9% in TV18 and to acquire shares tendered in the open offers.
This acquisition will differentiate RIL's 4G business by providing a unique amalgamation at the intersect of telecom, web and digital commerce via a suite of premier digital properties, RIL said.
Reliance Industries and Independent Media Trust have announced an open offer to acquire up to 22.99 crore shares of NW18 at a price of Rs 41.04 per share. Reliance Industries and Independent Media Trust have also announced open offer to acquire of up to 44.65 crore shares of TV18 at Rs 30.18 per share.
Separately, RIL during market hours today, 30 May 2014, today issued a clarification regarding news item 'RIL faces $1.1billion hit on KG-D6 revenue'. At the outset, the company denies all of the contents as reported to be of CAG's contention, RIL said. RIL further said that the company will take appropriate actions, including legal remedy at the appropriate time to protect its reputational and economic interests.
Metal and mining stocks gained. Steel Authority of India (up 1.59%), Hindustan Zinc (up 2.07%), Sesa Sterlite (up 1.04%), Hindalco Industries (up 0.54%), JSW Steel (up 2.54%), Hindustan Copper (up 2.47%), Jindal Steel & Power (up 3.38%) and Tata Steel (up 1.9%) gained.
NMDC gained 1.2% ahead of its Q4 results today, 30 May 2014.
National Aluminium Company (Nalco) declined 0.68%, with the stock extending Thursday's losses triggered by weak Q4 result. The company's net profit fell 29.9% to Rs 172.45 crore on 0.63% decline in total income to Rs 1973.59 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Wednesday, 28 May 2014.
Nalco's net profit rose 8.35% to Rs 642.35 crore on 1.19% decline in total income to Rs 7338.56 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013).
Telecom stocks gained. Bharti Airtel (up 1.77%), Idea Cellular (up 1.05%), MTNL (up 3.98%), and Tata Teleservices (Maharashtra) (up 1.7%) gained.
Reliance Communications fell 0.54%.
The government will announce data on gross domestic product (GDP) for Q4 March 2014 and the year ended 31 March 2014 (FY 2014) today, 30 May 2014. India's GDP grew 4.7% in Q3.
Reserve Bank of India (RBI) Governor Raghuram Rajan today, 30 May 2014, said he expected to join hands with the country's new government to bring down high inflation. Rajan, speaking at a seminar in Tokyo, said the new government's plan to curb food inflation seems sensible and that he expected the public's inflation expectations to fall in the future. "There is a sense of conviction about our plan to bring inflation down to 8% this year and 6% next year," Rajan said. "This information has gotten out to the public. The public's inflation expectations have fallen and I think expectations will fall further in the future," Rajan said.
Rajan said India's current account deficit could fall to 2% to 2.5% of gross domestic product in medium term. Rajan said he was worried about non-performing assets in India's banking sector but wanted to work with the new government to solve this problem quickly.
The Reserve Bank of India (RBI) undertakes a monetary policy review on Tuesday, 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.
At a meeting of his Cabinet on Thursday Prime Minister Narendra Modi reportedly asked his ministers to prepare a list of issues that they will take up in the first 100 days in office, with a focus on efficiency, delivery systems and implementation. The PM also has a list of top 10 priorities, which include among others to remove hurdles in economic growth which includes containing inflation as a priority, to prioritize education, energy and water, to bring in reforms in infrastructure, to revive growth and investor confidence, to provide a people-oriented government and governance, to ensure time-bound implementation of policy, to maintain consistency in policy, to promote e-auctioning in government tenders and other government work, to improve inter-ministerial co-ordination, to build confidence in the bureaucracy and to empower and provide freedom to the bureaucracy.
The inaugural session of the new Lok Sabha will commence on 4 June 2014 and end on 11 June 2014. The seven-day-long session has been convened to enable the newly-elected MPs to be sworn in. This will be followed by the election of the Speaker of the 16th Lok Sabha. The special session will be followed by a full-fledged budget session after a gap.
Finance Minister Arun Jaitley is expected to table Union Budget for 2014-15 in Lok Sabha by 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.
Asian stocks edged lower in choppy trade on Friday, 30 May 2014. Key benchmark indices in Indonesia, Japan, Singapore, South Korea and Taiwan were off 0.11% to 1.01%. Key benchmark indices in China and Hong Kong rose 0.04% to 0.22%.
Price growth in Japan excluding fresh food rose to 3.2% in April, up from 1.3% in March.
Trading in US index futures indicated that the Dow could fall 20 points at the opening bell on Friday, 30 May 2014. US stocks rose for the fifth time in six days on Thursday, driving the Standard & Poor's 500 Index to a record, after Tyson Foods Inc. offered to buy Hillshire Brands (HSH) Co. and investors speculated the economy is improving following a contraction in the first quarter.
US economy suffered its first contraction since 2011 last quarter. Gross domestic product fell at a 1% annualized rate revised Commerce Department figures showed in Washington. Stockpiles grew at less than half the pace than in the final three months of 2013, lopping 1.6 percentage points off GDP while businesses cut back on investment. Demand picked up entering the second quarter, giving weight to the Federal Reserve's view that the economy is recovering.
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.
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