A bout of volatility was witnessed as key benchmark indices trimmed losses after hitting fresh intraday low in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was down 149.55 points or 0.69%, up about 50 points from the day's low and off close to 90 points from the day's high. The market breadth, indicating the overall health of the market, was weak. Weakness in Asian and European stocks hit sentiment on the domestic bourses adversely.
Metal and mining stocks were mixed.
The market edged lower in early trade on weak Asian stocks. The Sensex languished in negative terrain in morning trade. 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.
The stock market remains closed on Monday, 17 March 2014, on account of Holi.
Asian and European 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. A standoff between Russia and Ukraine over Crimea also weighed on global stocks as investors awaited a weekend referendum that may lead to Crimea's secession from Ukraine.
At 14:20 IST, the S&P BSE Sensex was down 149.55 points or 0.69% to 21,625.06. 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 index dropped 60.17 points at the day's high of 21,714.44 in morning trade.
The CNX Nifty was down 45.20 points or 0.7% to 6,447.90. The index hit a low of 6,432.70 in intraday trade, its lowest level since 7 March 2014. The index hit a high of 6,472.95 in intraday trade.
The BSE Mid-Cap index was off 44.71 points or 0.67% at 6,626.83, outperforming the Sensex. The BSE Small-Cap index was off 47.64 points or 0.72% at 6,602.55, underperforming the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,662 shares fell and 934 shares rose. A total of 149 shares were unchanged.
Among the 30 Sensex shares, 20 declined and rest rose. Bharti Airtel (down 3.1%), AXIS Bank (down 3.1%), and Wipro (down 2.38%) edged lower from the Sensex pack.
Metal and mining stocks were mixed. Sesa Sterlite (down 1.74%), Hindalco Industries (down 1.69%), Hindustan Zinc (down 0.93%), Bhushan Steel (down 0.11%), Sail (down 0.17%), National Aluminum Company (down 0.13%) and Hindustan Copper (down 1.7%) declined. JSW Steel (up 0.47%), Tata Steel (up 0.5%), NMDC (up 1.9%), and Jindal Steel & Power (up 0.47%) gained.
Lambodhara Textile fell 3.03% after the company said its board has given its consent to the issue of equity shares on preferential basis to promoters upto an amount of Rs 2.38 crore. The announcement was made after market hours on Thursday, 13 March 2014.
Lambodhara Textile said that its board of directors at its meeting held on 12 March 2014, has given its consent to the issue of equity shares on preferential basis to promoters upto an amount of Rs 2.38 crore in accordance with Section 81(1A) and all other applicable provisions, if any, of the Companies Act, 1956, Companies Act, 2013 (to the extent notified) and the provisions contained in the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 including any statutory modifications and amendments from time to time for the time being in force.
The approval of the members shall be sought for the same by way of voting through postal ballot, Lambodhara Textile said.
Astrazeneca Pharma India jumped 7.69% after the company scheduled a board meeting on Saturday, 15 March 2014, to consider voluntary delisting proposal. The announcement was made after market hours on Thursday, 13 March 2014.
In the foreign exchange market, the rupee edged lower against the dollar on global risk-off sentiment. The partially convertible rupee was hovering at 61.27, compared with its close of 61.17/18 on Thursday, 13 March 2014.
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 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 fell 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 shed 0.35% to 1.86%.
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 0.52% to 3.3%. Indonesia's Jakarta Composite rose 0.13%.
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 drop 8 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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