Key benchmark indices extended gains and hit fresh intraday high in mid-morning trade. The barometer index, the S&P BSE Sensex, hit over one-week high above the psychological 25,000 level. The 50-unit CNX-Nifty also hits its highest level in more than a week. The Sensex was up 398.62 points or 1.61%, up close to 180 points from the day's low. The market breadth indicating the overall health of the market was strong, with more than 2 gainers for every loser on BSE. The BSE Mid-Cap index and the BSE Small-Cap index, both, were up more than 1.7% each.
Indian stocks surged today, 26 May 2014, on speculation Narendra Modi will choose a cabinet capable of reviving economic growth. Modi takes oath as Prime Minister today, 26 May 2014, evening. As per reports, the Modi led government will have smaller cabinet, with one cabinet member heading a cluster of ministries. Media reports suggested that Arun Jaitley, 61, a former trade minister, is the frontrunner to become finance minister even though he failed to win a seat in the lower house of parliament.
Power generation stocks rose on renewed buying with NTPC, Reliance Power, Reliance Infrastructure and Tata Power Company hitting 52-week high. Coal India hit 52-week high. ONGC hit record high after its wholly owned subsidiary -- ONGC Videsh -- on Saturday, 24 May 2014, signed a Memorandum of Understanding (MOU) for cooperation in exploration, appraisal and hydrocarbon production on the continental shelf of the Russian Federation.
Indian stocks surged in early trade ahead of Prime Minister designate Narendra Modi's swearing in ceremony today, 26 May 2014, evening. Firmness continued on the bourses in morning trade. Key benchmark indcies extended gains and hit fresh intraday high in mid-morning trade. The Sensex hit over one-week high above the psychological 25,000 level. The 50-unit CNX-Nifty also hit its highest level in more than a week.
The market sentiment was boosted by data showing that foreign funds were net buyers of Indian stocks on Friday, 23 May 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 416.80 crore on Friday, 23 May 2014, as per provisional data from the stock exchanges.
The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month May 2014 series to June 2014 series. The near month May 2014 derivatives contract expire on Thursday, 29 May 2014.
At 11:26 IST, the S&P BSE Sensex was up 398.62 points or 1.61% to 25,091.97. The index surged 400.90 points at the day's high of 25,037.54 in mid-morning trade, its highest level since 16 May 2014. The index rose 219.22 points at the day's low of 24,912.57 in early trade.
The CNX Nifty was up 116.05 points or 1.58% to 7,483.15. The index hit a high of 7,483.50 in intraday trade, its highest level since 16 May 2014. The index hit a low of 7,428.55 in intraday trade.
The BSE Mid-Cap index was up 154.23 points or 1.78% at 8,822.55. The BSE Small-Cap index was up 156.19 points or 1.71% at 9,284.23. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong, with more than 2 gainers for every loser on BSE. On BSE, 1,965 shares gained and 714 shares fell. A total of 79 shares were unchanged.
Among the 30-share Sensex pack, 26 stocks gained and rest of them declined. Mahindra & Mahindra (M&M) (up 4.83%), L&T (up 4.53%) and Maruti Suzuki India (up 3.61%) edged higher from the Sensex pack.
Power generation stocks rose on renewed buying. JSW Energy (up 1.44%), and Adani Power (up 2.68%) edged higher.
Reliance Power gained 4.01% to Rs 99.85 after hitting 52-week high of Rs 100.60 in intraday trade.
Reliance Infrastructure gained 3.79% to Rs 755.50 after hitting 52-week high of Rs 763.70 in intraday trade.
India's largest power generation firm by capacity NTPC gained 2.9% to Rs 165 after hitting 52-week high of Rs 167.55 in intraday trade.
Tata Power Company rose 2.41% to Rs 108.30 after hitting a 52-week high of Rs 109.20 in intraday trade.
ONGC gained 3.79% to Rs 422.95 after hitting record high of Rs 424.80 in intraday trade. ONGC's wholly owned subsidiary -- ONGC Videsh -- on Saturday, 24 May 2014, signed a Memorandum of Understanding (MoU) for cooperation in exploration, appraisal and hydrocarbon production on the continental shelf of the Russian Federation. The parties will jointly consider forming a consortium led by Rosneft and involving other partners, ONGC said in a statement.
Coal India gained 3.94% to Rs 413.20 after hitting 52-week high of Rs 415.90 in intraday trade.
Hindustan Motors was locked at 10% lower circuit at Rs 11.97 on BSE after the company declared suspension of work at its Uttarpara Plant. The company made the announcement on Saturday, 24 May 2014. Hindustan Motors has declared suspension of work at its Uttarpara Plant with effect from 6:00 IST of Saturday, 24 May 2014. The company has been transparent in sharing updates about the worsening conditions at its Uttarpara Plant which include very low productivity, growing indiscipline, critical shortage of funds, lack of demand for its core product the Ambassador and large accumulation of liabilities. Given the present circumstances it has no alternative but to declare a suspension of work at its Uttarpara Plant till further notice. The suspension of work will enable the company in restricting mounting liabilities and restructure its organisation and finances and bring in a situation conducive to reopening of the plant, the company said.
Narendra Modi will be sworn in as India's next Prime Minister today, 26 May 2014, evening at the Rashtrapati Bhawan.
After Bharatiya Janata Party (BJP) led National Democratic Alliance's (NDA) landslide victory in the Lok Sabha election, investors are expecting measures from the incoming government to revive the Indian economy. India's GDP growth slowed sharply at 4.7% in Q3 December 2013. Investors hope that the BJP-led government would be able to accelerate policy reforms and overhaul the country's poor infrastructure.
Modi is favored by business leaders because of his record in Gujarat, which he's led since 2001. With Modi at the helm of affairs, Gujarat's economy expanded by 10.1% a year, on average and adjusting for inflation, from 2001 and 2012, compared with 7.7% growth a year for India's economy as a whole.
Modi has pledged to fight inflation by cracking down on food hoarders, creating a national agriculture market and improving rural infrastructure.
Ever since NDA's victory in the election, speculation has been rife about the likely allocation of key ministerial portfolios in the Modi-led NDA government.
The first budget of the new government is expected 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.
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 1 April 2014, as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar.
Asian stocks rose on Monday, 26 May 2014, after China's premier said policy will be fine tuned as needed to support the economy. Key benchmark indices in China, Taiwan, Singapore and Japan were up 0.21% to 0.64%. Key benchmark indices in Hong Kong, Indonesia and South Korea were off 0.12% to 0.42%.
China's Premier Li Keqiang said Asia's largest economy will adjust policy to address problems in the real economy, according to a statement on the government's website May 23.
Bank of Japan policy makers said the economy will probably grow above potential from summer, according to the minutes released today from an April 30 meeting.
Japan and China on Sunday accused each other's air forces of dangerous behaviour over the East China Sea, with Japan saying Chinese aircraft had come within a few dozen metres of its warplanes.
US stock markets remain closed today, 26 May 2014, on account of Memorial Day.
US stocks edged higher on Friday with the S&P 500 index closing at a record high, buoyed by a rally in housing stocks after better-than-expected home sales and a jump in Hewlett-Packard shares a day after the personal computer maker said it would cut more jobs.
Data from the Commerce Department showed sales of new US single-family homes rose more than expected in April and the supply of houses on the market hit a 3-1/2 year high.
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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