Key benchmark indices trimmed gains in mid-morning trade as Asian stocks edged lower in choppy trade. The barometer index, the S&P BSE Sensex, was up 41.98 points or 0.18%, off 46.22 points from the day's high and up 52.30 points from the day's low. The market breadth, indicating the overall health of the market, was positive.
PSU OMCs rose on renewed buying with shares of BPCL scaling record high and HPCL hitting 52-week high.
Key benchmark indices edged higher amid initial volatility. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit record high. Key benchmark indices extended initial gains and hit fresh intraday high in morning trade. Key benchmark indices trimmed intraday gains in mid-morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 212.85 crore on Monday, 21 April 2014, as per provisional data from the stock exchanges.
Extended weakness in Chinese shares, driven by worries over liquidity and earnings, put a brake on other Asian stock markets on Tuesday, 22 April 2014, despite Wall Street stocks rallying into a fifth session overnight.
Indian stocks may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near month April 2014 series to May 2014 series. The April 2014 F&O contracts expire tomorrow, 23 April 2014. The stock market remains closed on Thursday, 24 April 2014, on account of Parliamentary elections in Mumbai constituency.
At 11:15 IST, the S&P BSE Sensex was up 41.98 points or 0.18% to 22,806.81. The index gained 88.20 points at the day's high of 22,853.03 in morning trade, a lifetime high for the barometer index. The index fell 10.32 points at the day's low of 22,754.51 in early trade.
The CNX Nifty was up 5.60 points or 0.08% to 6,823.25. The index hit a high of 6,838 in intraday trade, a lifetime high for the index. The index hit a low of 6,813 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,288 shares gained and 958 shares fell. A total of 117 shares were unchanged.
The BSE Mid-Cap index was up 25.60 points or 0.35% at 7,423.01. The BSE Small-Cap index was up 45.70 points or 0.6% at 7,673.67. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 926 crore by 11:15 IST, compared with Rs 574 crore by 10:20 IST.
Sesa Sterlite (down 2.75%), Hindalco Industries (down 1.46%) and Wipro (down 1.4%) edged lower from the Sensex pack.
GAIL (India) (up 2.53%), ONGC (up 2.26%) and Reliance Industries (up 1.74%) edged higher from the Sensex pack.
PSU OMCs gained on renewed buying. Indian Oil Corporation rose 3.06%.
BPCL gained 3.26% to Rs 478.85 after hitting a record high of Rs 481.55 in intraday trade.
HPCL advanced 3.73% to Rs 330.60 after hitting a 52-week high of Rs 331 in intraday trade.
South Indian Bank rose 3.46% after the central bank allowed foreign investors to buy shares in South Indian Bank as the foreign shareholding in the bank has gone below caution limit stipulated under the extant FDI policy. The Reserve Bank of India (RBI) on Monday, 21 April 2014, notified that the aggregate share holding by foreign institutional investors (FIIs)/non-resident indians (NRIs)/persons of Indian origin (PIOs)/foreign direct investment (FDI)/American depository receipt (ADR)/global depository receipts (GDRs) under the portfolio investment scheme (PIS) in South Indian Bank have gone below the prescribed threshold caution limit stipulated under the extant FDI policy. Hence the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect.
Equity shares of South Indian Bank can now be purchased through primary market and stock exchanges, RBI said in a statement.
Currently, FIIs are allowed to invest upto 49% of the paid-up capital of South Indian Bank under the portfolio investment scheme (PIS). As at 31 March 2014, FIIs held 41.69% stake in South Indian Bank.
IL&FS Engineering and Construction Company was locked at 10% upper circuit at Rs 50.90 after the company said its subsidiary has received letter of award for road drainage works in Saudi Arabia worth Rs 268 crore. The company made the announcement after market hours on Monday, 21 April 2014.
IL&FS Engineering and Construction Company announced that its subsidiary, Maytas Infra Saudi Arabia Co. (MISA), has received a Letter of Award (LoA) from Saudi Binladin Group for Road Drainage Works for King Abdul-Aziz International Airport Development Project-Phase1, Jeddah in Kingdom of Saudi Arabia (KSA).
The total value of the contract is Saudi Riyals 166.89 million (equivalent to Rs 268 crore approximately). The scope of work involves construction of Road Drainage Works including excavation, steel reinforcement, concrete works, erection, and backfilling.
Supreme Petrochem fell 3.84% after net profit slumped 62.84% to Rs 9.78 crore on 4.23% increase in net total income from operations to Rs 823.40 crore in Q3 March 2014 over Q3 March 2013. The company made the announcement after market hours on Monday, 21 April 2014.
In a separate announcement on Monday, 21 April 2014, Supreme Petrochem said that its board has approved buyback of the company's fully paid-up equity shares from open market through the stock exchange mechanism, for an amount not exceeding Rs 33.75 crore. The maximum buyback price is set at Rs 70 per equity share. The company said it would buyback a maximum of 60 lakh equity shares and a minimum of 24.10 lakh equity shares. The company said it would utilise minimum of Rs 16.875 crore, which is 50% of the buyback size, for the buyback plan.
In the foreign exchange market, the rupee edged lower against the dollar on speculation importers stepped up dollar purchases to meet month-end payments. The partially convertible rupee was hovering at 60.645, compared with its close of 60.59/60 on Monday, 21 April 2014.
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.
A major near term trigger for the stock market is the outcome of the upcoming Lok Sabha elections. The 36 days long voting process began on 7 April 2014 and will conclude on 12 May 2014. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.
Extended weakness in Chinese shares, driven by worries over liquidity and earnings, put a brake on other Asian stock markets on Tuesday, 22 April 2014, despite Wall Street stocks rallying into a fifth session overnight. Key benchmark indices in Indonesia, Japan, China and Hong Kong were off 0.3% to 0.57%. Key benchmark indices in Taiwan, Singapore, and South Korea were up 0.19% to 0.45%.
A provisional reading of HSBC Holdings Plc and Markit Economics Ltd.'s China manufacturing purchasing managers' index is due tomorrow, 23 April 2014.
Trading in US index futures indicated that the Dow could drop 9 points at the opening bell on Tuesday, 22 April 2014. US stocks closed modestly higher on Monday, 21 April 2014, helping the S&P 500 to extend its winning streak to the longest in six months. Estimate-beating results from a number of companies on Monday boosted sentiment amid thin volumes on Wall Street.
In economic news, the Chicago Fed National Activity Index decreased slightly in March. However, the Conference Board's leading economic index rose in March and February, signaling that growth could accelerate in coming months.
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 decided after the conclusion of a monetary policy review to trim its monthly bond purchases by $10 billion to $55 billion.
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