Key benchmark indices extended initial gains and hit fresh intraday high in morning trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit fresh record high. The market sentiment was boosted by comments from Bharatiya Janata Party (BJP) led National Democratic Alliance's (NDA) prime ministerial candidate Narendra Modi in a newspaper interview that protecting investor sentiment will be a top priority if NDA comes to power after Lok Sabha elections which conclude in mid-May this year. Modi's comments on investor sentiment acquire significance because his stress on policy continuity suggests both a more nuanced approach to FDI issues as well as a hint that investor concerns about issues such as taxation may get high priority if NDA comes to power after Lok Sabha elections. The S&P BSE Sensex was up 83.35 points or 0.37%, up 93.67 points from the day's low and off 4.85 points from the day's high. The market breadth, indicating the overall health of the market, was strong. The market sentiment was also boosted by data showing that foreign funds remained net buyers of Indian stocks on Monday, 21 April 2014. Gains in Asian stocks also underpinned sentiment on the domestic bourses.
While Modi reiterated the BJP manifesto's reservations on foreign direct investment in retail, he also said if the NDA comes to power after elections his government will ensure that there's no lack of continuity and that no message is sent out that adversely impacts foreign investor sentiment.
The BJP in its Lok Sabha polls manifesto has promised more business-friendly policies if the party comes to power after elections.
Index heavyweight Reliance Industries (RIL) extended initial gains, with the stock hitting 52-week high. Capital goods shares were in demand with shares of engineering and construction major L&T 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.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Monday, 21 April 2014. 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.
Asian stocks edged higher on Tuesday, 22 April 2014, after US stocks edged higher on Monday, 21 April 2014.
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 10:15 IST, the S&P BSE Sensex was up 83.35 points or 0.37% to 22,848.18. 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 19.35 points or 0.28% to 6,837. 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 strong. On BSE, 1,229 shares gained and 655 shares fell. A total of 76 shares were unchanged.
The BSE Mid-Cap index was up 40.36 points or 0.55% at 7,437.77. The BSE Small-Cap index was up 61.28 points or 0.8% at 7,689.25. Both these indices outperformed the Sensex. a
The total turnover on BSE amounted to Rs 574 crore by 10:15 IST, compared with Rs 152 crore by 09:25 IST.
Among the 30-share Sensex pack, 17 stocks gained and rest of them declined.
Index heavyweight Reliance Industries (RIL) gained 2.77% to Rs 986. The stock hit a 52-week high of Rs 986.45 in intraday trade. The stock hit a low of Rs 956.90 so far during the day. RIL on Friday, 18 April 2014, said its net profit rose 0.8% to Rs 5631 crore on 12.9% growth in turnover to Rs 97807 crore in Q4 March 2014 over Q4 March 2013. RIL's non-operational income dropped 9.22% to Rs 2036 crore in Q4 March 2014 over Q4 March 2013.
RIL's net profit rose 2.2% to Rs 5631 crore on 8.1% decline in turnover to Rs 97807 crore in Q4 March 2014 over Q3 December 2013. RIL's non-operational income dropped 11.67% to Rs 2036 crore in Q4 March 2014 over Q3 December 2013.
RIL's gross refining margin (GRM) dropped to $9.3 a barrel in Q4 March 2014, from $10.1 a barrel in Q4 March 2013. The GRM, however, rose on sequential basis from $7.6 a barrel in Q3 December 2013.
Capital goods stocks rose. ABB India (up 1.07%), Bharat Heavy Electricals (Bhel) (up 1.07%), BEML (up 2.03%), Bharat Electronics (up 2.08%), Siemens (up 0.26%) and Thermax (up 0.13%) gained. Crompton Greaves fell 0.81%.
Engineering and construction major Larsen & Toubro (L&T) rose 1.12% to Rs 1,336.85 after hitting a 52-week high of Rs 1,346.50 in intraday trade. L&T after trading hours on Monday, 21 April 2014 said L&T General Insurance (LTGI) and Future Generali Insurance (FGI) have decided to call off a proposal for forming a joint venture due to inordinate delay in finalising the transaction documents and obtaining permissions. L&T had on 26 March 2013 announced that its general insurance subsidiary L&T General Insurance (LTGI) had initiated talks with Future Generali Insurance (FGI) for the formation of a joint venture (JV) that would combine and continue the business of general insurance in India. At that time L&TGI and FGI had entered into a non-binding agreement to jointly examine the terms of a potential transaction. The parties have now decided mutually to call off the discussions around the proposed joint venture, L&T said. LTGI will continue its focus on expanding its business footprint in the areas of both general and health insurance, L&T said.
L&T General Insurance Company commenced business operations in 2010-11. The company operates out of 17 branches spread over India and earned gross written premium of Rs 253 crore during the financial year ended 31 March 2014, indicating a growth of 39% over the previous financial year as against an industry growth of 12% for the same period. The said premium includes around Rs 207 crore from property and casualty insurance and Rs. 46 crore from health insurance.
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 60.675, 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.
Asian stocks edged higher on Tuesday, 22 April 2014, after US stocks edged higher on Monday, 21 April 2014. Key benchmark indices in Taiwan, Singapore, Japan, and South Korea were up 0.15% to 0.45%. Key benchmark indices in Indonesia, China and Hong Kong were off 0.05% to 0.53%.
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 5 points at the opening bell on Tuesday, 22 April 2014. US stocks closed modestly higher 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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