Firmness continued on the bourses in early afternoon trade after the barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit fresh record high. The Sensex was up 109.96 points or 0.5%, up 110.97 points from the day's low and off 16.91 points from the day's high. The market breadth, indicating the overall health of the market, was strong. The BSE Small-Cap was up more than 1%. The market sentiment was boosted by data showing that foreign institutional investors (FIIs) made substantial purchases of Indian stocks on Wednesday, 26 March 2014. Gains in Asian stocks also boosted sentiment on the domestic bourses.
ICICI Bank hit 52-week high in volatile trade. Among auto stocks, Hero MotoCorp hit 52-week high. Motherson Sumi Systems scaled record high. NTPC rose after the company said its two power units of 500 megawatts (MW) each commences commercial operation. PSU OMCs edged higher on renewed buying. Telecom stocks also edged higher.
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 early afternoon trade.
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 today, 27 March 2014, 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 12:15 IST, the S&P BSE Sensex was up 109.96 points or 0.5% to 22,205.26. The index jumped 126.87 points at the day's high of 22,222.17 in early 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 38.35 points or 0.58% to 6,639.75. 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 market breadth, indicating the overall health of the market, was strong. On BSE, 1,496 shares gained and 913 shares fell. A total of 156shares were unchanged.
The BSE Mid-Cap index was up 57.69 points or 0.84% at 6,925.76. The BSE Small-Cap was up 73.51 points or 1.07% at 6,921.90. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1064 crore by 12:15 IST, compared with to Rs 658 crore by 11:15 IST.
Among the 30-share Sensex pack, 21 stocks gained and rest of them declined.
ICICI Bank rose 0.85% to Rs 1,267.60 in volatile trade. The stock hit a 52-week high of Rs 1,269 in intraday trade. The stock hit a low of Rs 1,246.50 so far during the day.
Hero MotoCorp gained 2.03% to Rs 2,220.95 after hitting a 52-week high of Rs 2,220.20 in intraday trade.
Motherson Sumi Systems surged 4.19% to Rs 246.30 after hitting a record high of Rs 250.40 in intraday trade.
NTPC rose 1.13%. NTPC during market hours today, 27 March 2014, said that the company has declared its Unit 6 of 500 megawatts (MW) of Rihand Super Thermal Power Station (STPS) and Unit 12 of 500 MW of Vindhyachal Super Thermal Power Station (STPS) for commercial operation with effect from today, 27 March 2014. With the declaration of commercial operation of these two units, the commercial capacity of the NTPC Group has risen to 41,304 MW, NTPC said.
The Supreme Court on Wednesday, 26 March 2014, told NTPC to continue supplying power to New Delhi while it waits for money it is owed by a distribution company, avoiding a possible blackout in the country's capital. State-run NTPC had threatened in February to cut off power supply to BSES Yamuna Power, one of the three distributors in Delhi, if the company did not pay its bill. The Supreme Court reiterated that NTPC must maintain power supply even while it is owed money, and ordered BSES, part of billionaire Anil Ambani's Reliance Infrastructure, to pay the dues it owes since 1 January 2014. It did not specify the amount BSES must pay. The Supreme Court said that over coming weeks it will seek information from the Delhi Electricity Regulatory Commission and BSES on how to resolve the revenue shortfall, and asked the commission to ensure there is no unnecessary delay in paying the gap.
Shares of Reliance Infrastructure edged higher in choppy trade. The stock was up 0.77% at Rs 425.25. The scrip hit high of Rs 425.80 and low of Rs 418.20 so far during the day.
PSU OMCs edged higher on renewed buying. BPCL (up 4.01%), HPCL (up 4.31%) and Indian Oil Corporation (up 3.16%) gained.
Telecom stocks rose on renewed buying. Idea Cellular (up 1.26%), MTNL (up 3.17%), Tata Teleservices (Maharashtra) (up 1.42%) and Reliance Communications (up 1.11%) gained.
Bharti Airtel gained 3.05% to Rs 307.85, with the stock extending intraday gain. The stock hit high of Rs 308.25 and low of Rs 299.80 so far during the day.
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.
Asian stocks edged higher in choppy trade on Thursday, 27 March 2014. Key benchmark indices in China, Taiwan, Japan, Indonesia, Singapore and South Korea were up 0.34% to 1.01%. In Hong Kong, the Hang Seng index was off 0.15%.
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 31 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. Obama, speaking in Brussels, warned of consequences of complacency in Ukraine and said Russia's actions must be met with condemnation. Ukraine and the International Monetary Fund are nearing the end of bailout talks today, 27 March 2014, as the US and its European allies warned they'll further penalize Russia if it intensifies the crisis after annexing 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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