Key benchmark indices extended gains and hit fresh intraday high in early afternoon trade after a news agency quoted an unnamed official of the India Meteorological Department as saying that conditions have turned favourable for the onset of monsoon in India in about 24 hours. The 50-unit CNX Nifty hit its highest level in more than a week. The barometer index, the S&P BSE Sensex, was up 53.27 points or 0.21%, up 214.22 points from the day's low and off 31.09 points from the day's high. The market breadth indicating the overall health of the market was strong, with more than two gainers for every loser on BSE. The BSE Mid-Cap and Small-Cap indices were up more than 1% each.
Shares of Reliance Anil Dhirubhai Ambani (ADA) group edged higher on renewed buying, with Reliance Infrastructure and Reliance Capital hitting 52-week high. Steel shares were in demand. FMCG stocks rose after reports monsoon could arrive on India's southeast coast in the next 24 hours.
A bout of volatility was witnessed in initial trade as key benchmark indices regained positive terrain after slipping into the red after opening higher. Key benchmark indices edged lower and hit fresh intraday low in morning trade. The Sensex trimmed intraday losses in mid-morning trade. The Sensex regained positive terrain in early afternoon trade. Key benchmark indices extended gains and hit fresh intraday high in early afternoon trade after a news agency quoted an unnamed official of the India Meteorological Department as saying that conditions have turned favourable for the onset of monsoon in India in about 24 hours. The 50-unit CNX Nifty hit its highest level in more than a week.
Foreign institutional investors (FIIs) bought shares worth a net Rs 192.56 crore on Wednesday, 4 June 2014, as per provisional data from the stock exchanges.
At 13:17 IST, the S&P BSE Sensex was up 53.27 points or 0.21% at 24,859.10. The index rose 84.36 points at the day's high of 24,890.19 in early afternoon trade. The index fell 160.95 points at the day's low of 24,644.88 in morning trade, its lowest level since 3 June 2014.
The CNX Nifty was up 23.80 points or 0.32% to 7,426.05. The index hit a high of 7,437.25 in intraday trade, its highest level since 26 May 2014. The index hit a low of 7,360.50 in intraday trade, its lowest level since 3 June 2014.
The BSE Mid-Cap index was up 92.01 points or 1.04% at 8,957.95. The BSE Small-Cap index was up 136.93 points or 1.44% to 9,625.64. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market was strong, with more than two gainers for every loser on BSE. On BSE, 1,989 shares rose and 812 shares fell. A total of 96 shares were unchanged.
Shares of Reliance Anil Dhirubhai Ambani (ADA) group edged higher on renewed buying.
Reliance Infrastructure was up 6.18% at Rs 777.05. The stock hit hits 52-week high of Rs 789.90 in intraday trade.
Reliance Capital was up 2.5% at Rs 636. The stock hit 52-week high of Rs 644.85 in intraday trade.
Reliance Power was up 1.47% at Rs 103.50. Reliance Communications was up 1.8% at Rs 146.
FMCG stocks rose after reports monsoon could arrive on India's southeast coast in the next 24 hours. FMCG firms derive substantial revenue from rural India. Godrej Consumer Products (up 5.4% to Rs 828), Marico (up 2.3% at Rs 249), Hindustan Unilever (up 1.3% at Rs 613.25), Nestle India (up 1.1% at Rs 4,837) and Dabur India (up 0.6% at Rs 185.45) edged higher.
Shares of cigarette major ITC edged lower in volatile trade. The stock was off 0.6% at Rs 328.90. The stock hit high of Rs 333 and low of Rs 330.95) so far during the day.
Steel shares edged higher. Jindal Steel & Power was up 2.7% at Rs 337.50. The stock hit 52-week high of Rs 340.50 in intraday trade.
JSW Steel was up 1.1% at Rs 1,288.80. The stock hit 52-week high of Rs 1,304.65 in intraday trade.
Shares of Tata Steel and Steel Authority of India extended recent gains triggered by reports the two steel makers have restarted most of their iron ore mines in Odisha state after getting new permits from the Odisha state government. Iron ore is a key input in steel making.
Steel Authority of India (Sail) was up 4.3% to Rs 104.50. The stock hit 52-week high of Rs 105 in intraday trade.
Tata Steel was up 2% to Rs 547.80 after hitting 52-week high of Rs 550.90 in intraday trade.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 59.265, compared with its close of 59.33/34 on Wednesday, 4 June 2014.
The Reserve Bank of India (RBI)'s third bi-monthly monetary policy statement is scheduled on 5 August 2014. The RBI kept repo rate, its main lending 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.
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.
European stocks edged lower on Thursday, 5 June 2014, as investors were hesitant of making any major moves ahead of the European Central Bank meeting later in the day. Key benchmark indices in France, Germany and UK were off 0.01% to 0.19%.
German factory orders rebounded in April from the biggest plunge in more than a year, signaling that growth in Europe's largest economy remains on track. Orders, adjusted for seasonal swings and inflation, increased 3.1% from March, when they declined 2.8%, the Federal Statistics Office in Wiesbaden said today.
There are expectations that ECB will announce new stimulus measures when the Governing Council of the ECB holds a monthly meeting on euro area interest rates today, 5 June 2014.
Bank of England's Monetary Policy Committee will probably keep its benchmark interest rate at a record-low 0.5% and leave its bond-purchase program unchanged at a monthly meeting on interest rates in UK today, 5 June 2014.
Asian stocks edged lower on Thursday, 5 June 2014, as investors await a European Central Bank policy decision later in the global day. Key benchmark indices in Indonesia, Singapore, South Korea and Hong Kong were off 0.1% to 0.65%. Key benchmark indices in China, Taiwan and Japan were up 0.08% to 0.79%.
HSBC/Markit's measure of the China service sector eased to 50.7 in May from April's 51.4, though that was still above the 50-point level that is supposed to separate growth from contraction.
Trading in US index futures indicated that the Dow could gain 8 points at the opening bell on Thursday, 5 June 2014. US stocks edged up on Wednesday with the S&P 500 index ending at a new record as investors brushed off weaker-than-expected labor market data and focused on acceleration in services-sector growth.
Service industries in the US expanded at the fastest pace in nine months in May. The Institute for Supply Management said its services sector index rose to 56.3 last month from 55.2 in April as new orders, order backlogs and hiring increased. It was the highest reading in nine months. The Federal Reserve said in its Beige Book review of regional conditions that the world's largest economy expanded at a modest to moderate pace last month. The Beige Book, released two weeks before policy makers meet, supported Fed Chair Janet Yellen's view that the US economy is rebounding from a 1% contraction in the first quarter caused largely by harsh winter weather. The Commerce Department said the trade gap increased 6.9% to $47.2 billion in April as imports hit a record high and exports slipped. It was the largest deficit in two years.
A private report showed employment rose less than economists projected. Private employers added 179,000 jobs to their payrolls last month after hiring 215,000 workers in April, according to payrolls processor ADP.
The influential US nonfarm payroll data for May 2014 is due for release tomorrow, 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.
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