Key benchmark indices trimmed gains in mid-afternoon trade as European markets dropped in early trade there. The barometer index, the S&P BSE Sensex, was up 83.06 points or 0.38%, off 43.81 points from the day's high and up 84.07 points from the day's low. The market breadth, indicating the overall health of the market, was strong. Pharma stocks edged lower. The market sentiment was boosted by data showing that foreign institutional investors (FIIs) made substantial purchases of Indian stocks on Wednesday, 26 March 2014.
Key benchmark indices edged higher amid initial volatility. Key benchmark indices extended initial gains and hit fresh intraday high in morning trade as Asian stocks rose. Key benchmark indices extended gains and hit fresh intraday high in mid-morning trade. The Sensex and the 50-unit CNX Nifty, both, hit record high. Firmness continued on the bourses in afternoon trade. Key benchmark indices trimmed gains in mid-afternoon trade as European markets dropped in early trade there.
The market sentiment was boosted by data showing that foreign institutional investors (FIIs) made substantial purchases of Indian stocks on Wednesday, 26 March 2014. FIIs bought shares worth a net Rs 1004.52 crore on Wednesday, 26 March 2014, as per provisional data from the stock exchanges.
Indian stocks may remain volatile during the remaining part of the trading session as traders roll over positions in the futures & options (F&O) segment from the near-month March 2014 series to April 2014 series. The near-month March 2014 F&O contracts expire today, 27 March 2014.
At 14:15 IST, the S&P BSE Sensex was up 83.06 points or 0.38% to 22,178.36. The index jumped 127.35 points at the day's high of 22,222.65 in afternoon trade, a record high for the barometer index. The index fell 1.01 points at the day's low of 22,094.29 in early trade.
The CNX Nifty was up 32.70 points or 0.5% to 6,634.10. The index hit a high of 6,646.20 in intraday trade, a record high for the index. The index hit a low of 6,599.50 in intraday trade.
The BSE Mid-Cap index was up 57.35 points or 0.84% at 6,925.42. The BSE Small-Cap was up 65.12 points or 0.95% at 6,913.51. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,621 shares gained and 1,055 shares fell. A total of 154 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks gained and rest of them declined.
State Bank of India (up 3.96%), Bharti Airtel (up 3.77%) and Bharat Heavy Electricals (Bhel) (up 3.05%) edged higher from the Sensex pack.
ONGC (down 1.51%), Tata Motors (down 0.88%) and TCS (down 0.91%) edged lower from the Sensex pack.
Infosys shed 0.39% to Rs 3,232 in volatile trade. The stock hit high of Rs 3,262 and low of Rs 3,226.10 so far during the day. Infosys and Zain Bahrain -- a telecom operator in Bahrain -- today, 27 March 2014, said that the two companies have co-created Zain Self-Care, an application that is radically transforming user experience for Zain's subscribers, through self-service. Zain Self-Care is an innovative mobile application for smart phones and tablets that is built using Infosys AssistEdge, a product that transforms customer experience across channels. The application functions on all operating systems including iOS, Android, Windows and Blackberry.
Launched in February 2013, Zain Self-Care is a first-of-its-kind mobile telecom application from an operator in Bahrain. It currently enjoys wide-spread adoption across the company's customer base and offers Zain's subscribers unparalleled convenience in managing their telecom service needs, Infosys and Zain said in a joint statement.
Pharma stocks edged lower. Cipla (down 0.49%), Glenmark Pharmaceuticals (down 0.59%), Ranbaxy Laboratories (down 0.13%) and Sun Pharmaceutical Industries (down 1.61%) declined.
Dr. Reddy's Laboratories lost 1.96%. Dr. Reddy's Laboratories during market hours today, 27 March 2014, announced that it has launched Amlodipine Besylate and Atorvastatin Calcium Tablets 2.5/10 mg, 2.5/20mg, 2.5/40mg, 5/10mg, 5/20mg, 5/40mg, 5/80mg, 10/10mg, 10/20mg, 10/40mg and 10/80 mg a therapeutic equivalent generic version of CADUET (amlodipine Besylate and atorvastatin calcium) tablets, in the US market on Wednesday, 26 March 2014, following the approval by the United States Food & Drug Administration (USFDA).
The CADUET tablets brand and its generic had US sales of approximately $163 million for the most recent twelve months period ended 31 January 2014, according to IMS Health data. Dr. Reddy's Amlodipine Besylate and Atorvastatin Calcium Tablets are available in bottle counts of 30 and 90, the company said.
Lupin edged lower in choppy trade after the company announced the acquisition of 100% equity stake in Laboratorios Grin, S.A. De C.V. (Grin), Mexico, subject to certain closing conditions. The stock was off 0.56% at Rs 931.40. The scrip hit high of Rs 946.05 and low of Rs 923.55 so far during the day. The acquisition of Laboratorios Grin marks Lupin's foray into the high growth Mexican and the larger Latin American pharmaceuticals market, Lupin said. Mexico is one of the fastest growing pharmaceutical markets in the world valued at over $13.5 billion and growing at 9-10% annually.
Incorporated in 1955, Grin is a specialty pharmaceutical company engaged in the development, manufacturing & commercialization of branded Ophthalmic products. Grin is a leading Ophthalmic player and a trusted brand in Mexico. Laboratorios Grin recorded revenue of approximately $28 Million in calendar year 2013 and has over 275 employees.
Commenting on the acquisition, Ms. Vinita Gupta, Chief Executive Officer, Lupin said: "We are very pleased with our entry into the Mexican market through Laboratorios Grin. This acquisition is a reflection of Lupin's commitment to expand into the Latin American market and build its global specialty business. We see a lot of synergies in this acquisition and plan to bring our Ophthalmic pipeline to build the Grin business as well as leverage their commercial presence to enter other promising therapy segments".
Mr. Victor Fregoso, President of Grin commented: "I am delighted with Grin's association with Lupin. Having nurtured and built Grin for so long, I firmly believe that the future and growth of Grin would be best handled by the management and technology expertise that Lupin brings to table. I wish Grin and Lupin the very best in their future endeavors".
VST Tillers Tractors jumped 3.57% after the company said that commercial production and sales at its tractor plant in Hosur, Tamil Nadu will commence from today, 27 March 2014. The company made the announcement during trading hours today, 27 March 2014.
IFCI rose 2.23% after the company said that the Government of India has authorized the company to issue tax free, secured, redeemable, non-convertible bonds upto to Rs 430 crore during the current financial year. The announcement was made during trading hours today, 27 March 2014.
The Reserve Bank of India will announce the First Bi-monthly Monetary Policy Statement, 2014-15 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 declined Thursday, 27 March 2014, on concern that the crisis in Ukraine may escalate. Key benchmark indices in UK, France and Germany were off 0.27% to 0.48%.
US President Barack Obama, in a speech in Brussels, on Wednesday, 26 March 2014, called for further economic sanctions against Russia over its annexation of Crimea. Obama, speaking in Brussels, warned of consequences of complacency in Ukraine and said Russia's actions must be met with condemnation.
The US and European Union have imposed financial sanctions on Russian and Ukrainian officials as well associates of Russian President Vladimir Putin, leaving open the threat of broader sanctions targeting the Russian economy, including its energy and financial sectors.
Asian stocks edged higher in choppy trade on Thursday, 27 March 2014, as utilities advanced. Key benchmark indices in Taiwan, Japan, Indonesia, Singapore and South Korea were up 0.48% to 1.01%. Key benchmark indices in China and Hong Kong were off 0.24% to 0.83%.
Data today, 27 March 2014, showed mainland China industrial profits increased 9.4% in the two months through February year-on-year, compared with 17% growth a year earlier.
Trading in US index futures indicated that the Dow could advance 23 points at the opening bell on Thursday, 27 March 2014. US stocks edged lower on Wednesday, 26 March 2014, after mid-afternoon selling intensified when US President Barack Obama, in a speech in Brussels, called for further economic sanctions against Russia over its annexation of Crimea.
In US economic news, orders for big-ticket items rose 2.2% in February, powered by higher bookings for autos and aircraft. Stripping out the volatile transportation sector, orders rose a smaller 0.2%.
St. Louis Federal Reserve Bank President James Bullard today, 27 March 2014, said that the key risk for the US economy would be a bubble forming as the central bank removes monetary-policy accommodations, while he also raised concerns about financial stability in the US economy. "I don't see a major bubble right now, but one will form as we are trying to remove the accommodation in the years ahead, because that's what exactly had happened in the 2004-2006 period," Bullard told the Credit Suisse Asian Investment Conference in Hong Kong. "I do think that's a key risk going forward," he said. Bullard related the risk to the situation in 2006, the housing prices had already started to peak at the same time as the central bank was in a tightening cycle. "Just because you are moving away accommodation doesn't mean the risk of bubble forming is going away," he said. Bullard also emphasized that financial stability concerns are "looming large," as policy makers are thinking about how to accommodate those concerns. He said macroprudential tools, which have been strengthened, can be used to address emerging bubbles. Bullard is a non-voting member of Federal Open Market Committee this year.
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.
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