Key benchmark indices extended gains in late trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit one-week high. The Sensex was provisionally up 338.24 points or 1.39%, up 241.86 points from the day's low and off 33.22 points from the day's high. The market breadth indicating the overall health of the market was strong, with more than 2 gainers for every loser on BSE. The BSE Small-Cap index was up more than 1.8%. The BSE Mid-Cap index was up more than 1.7%. Both these indices outperformed the Sensex. Indian stocks edged higher today, 23 May 2014, on growing investor confidence that new Prime Minister Narendra Modi will take steps to boost economic growth.
Index heavyweight and cigarette major ITC declined in volatile trade after declaring Q4 result during trading hours. Index heavyweight Reliance Industries (RIL) rose in volatile trade. India's biggest commercial bank in terms of branch network, State Bank of India (SBI), surged to 52-week high in volatile trade as the bank's sticky loans declined on sequential basis in Q4. Shares of a number of other PSU banks rose after SBI's Q4 results, with Punjab National Bank hitting 52-week high.
Maruti Suzuki India scaled record high, with the stock extending Thursday's rally triggered by a foreign brokerage putting an aggressive three-year target on the stock. Bharat Heavy Electricals (Bhel) rose after the company commissioned the fourth and final 130 megawatts hydro generating unit at Parbati III Hydro Electric Project in Himachal Pradesh.
Key benchmark indices edged higher in early trade on firm Asian stocks. Key benchmark indices extended initial gains in morning trade. The Sensex and the 50-unit CNX Nifty, both, hit one-week high. Key benchmark indices recovered from lower level after trimming intraday gains in mid-morning trade. A bout of volatility was witnessed as key benchmark indices trimmed intraday gains in afternoon trade. Key benchmark indices recovered from lower level after trimming intraday gains in afternoon trade. Key benchmark indices extended gains in late trade.
As per provisional closing, the S&P BSE Sensex was up 338.24 points or 1.39% to 24,712.64. The index jumped 371.46 points at the day's high of 24,745.86 in late trade, its highest level since 16 May 2014. The index rose 96.38 points at the day's low of 24,470.78 in early trade.
The CNX Nifty was up 98.85 points or 1.36% to 7,375.25. The index hit a high of 7,381 in intraday trade, its highest level since 16 May 2014. The index hit a low of 7,293.90 in intraday trade.
The BSE Mid-Cap index was up 150.10 points or 1.76% at 8,668.32. The BSE Small-Cap index was up 167.34 points or 1.87% at 9,128.04. 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, 2,202 shares gained and 834 shares fell. A total of 92 shares were unchanged.
The total turnover on BSE amounted to Rs 5425 crore, higher than Rs 5390.67 crore on Thursday, 22 May 2014.
Among the 30-share Sensex pack, 23 stocks gained and rest of them declined.
Tata Power Company (up 6.89%), NTPC (up 5.27%) and ONGC (up 3.8%) edged higher from the Sensex pack.
Index heavyweight and cigarette major ITC shed 1.25% to Rs 340.50. The stock was volatile. The stock hit high of Rs 349.30 and low of Rs 340.35. ITC's net profit rose 18.15% to Rs 2278.01 crore on 11.67% increase in total income to Rs 9505.23 crore in Q4 March 2014 over Q4 March 2013. The result was announced during trading hours today, 23 May 2014.
The company's net profit rose 18.42% to Rs 8785.21 crore on 11.37% increase in total income to Rs 34345.74 crore in the year ended March 2014 over the year ended March 2013.
On a consolidated basis, net profit rose 16.87% to Rs 8891.38 crore on 11.64% increase in total income to Rs 36288.03 crore in the year ended March 2014 over the year ended March 2013.
Index heavyweight Reliance Industries (RIL) rose 2.52% to Rs 1,129. The stock was volatile. The stock hit high of Rs 1,131 and low of Rs 1,102.
PSU bank stocks rose across the board. Canara Bank (up 14.05%), Union Bank of India (up 7.05%), Bank of India (up 7.66%) and Bank of Baroda (up 3.57%) gained.
Punjab National Bank gained 4.2% to Rs 1,026.90 after hitting 52-week high of Rs 1,041.20 in intraday trade.
India's biggest commercial bank in terms of branch network, State Bank of India (SBI), surged 10.36% at Rs 2,772. The stock was volatile. The stock hit 52-week high of Rs 2,775 in intraday trade. The stock hit an intraday low of Rs 2,497.35. The bank's net profit fell 7.83% to Rs 3040.74 crore on 16.82% rise in total income to Rs 42443.27 crore in Q4 March 2014 over Q4 March 2013. The result was announced during market hours today, 23 May 2014.
The bank's gross non-performing assets stood at Rs 61605.35 crore as on 31 March 2014, lower than Rs 67799.33 crore as on 31 December 2013 and higher than Rs 51189.39 crore on 31 March 2013. The ratio of gross non-performing assets (NPA) to gross advances stood at 4.95% as on 31 March 2014, lower than 5.73% as on 31 December 2013 but higher than 4.75% as on 31 March 2013. The bank's ratio of net non-performing assets (NPA) to net advances stood at 2.57% as on 31 March 2014, lower than 3.24% as on 31 December 2013 but higher than 2.1% as on 31 March 2013.
SBI's provision coverage ratio stood at 62.86% as on 31 March 2014.
Shares of SBI associate banks also gained. State Bank of Mysore (up 7.9%), State Bank of Bikaner and Jaipur (up 11.22%) and State Bank of Travancore (up 12.8%) surged.
Maruti Suzuki India jumped 5.55% to Rs 2,390.10 after hitting a record high of Rs 2,400.70 in intraday trade. The stock extended Thursday's 4.44% rally triggered by a foreign brokerage putting an aggressive three-year target on the stock.
Bharat Heavy Electricals (Bhel) rose 3.17%. Bhel today, 23 May 2014, said that the company has commissioned the fourth and final 130 megawatts hydro generating unit at Parbati III Hydro Electric Project in Himachal Pradesh. With this, Bhel has successfully commissioned all the four units of the 520 MW underground hydro power plant of NHPC, Bhel said. The first three units at Parbati III HEP were commissioned by Bhel in February and March 2014.
Bhel is presently executing three more hydro projects of NHPC viz. 3x110 MW Kishanganga HEP in J&K, 4x40 MW Teesta Low Dam IV HEP in West Bengal and 4x200 MW Parbati II in Himachal Pradesh, which are in different stages of execution. Bhel is presently executing hydro power projects of around 5,000 MW which are under various stages of implementation. In Himachal Pradesh, another hydro project at Rampur, being set up by Bhel is in an advanced stage of commissioning.
So far, more than 500 hydro generating sets of various ratings have been contracted on Bhel in India and abroad, with a cumulative capacity of more than 26,000 MW, out of which, equipment for about 5,000 MW generating capacity has been contracted outside India, Bhel said.
After Bharatiya Janata Party (BJP) led National Democratic Alliance's (NDA) landslide victory in the recently concluded Lok Sabha election, investors are expecting measures from the incoming government to revive the Indian economy. There are expectations that Narendra Modi will be in a position to replicate the economic success he enjoyed in Gujarat state when he takes over as the country's Prime Minister. 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. 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 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 last week, speculation has been rife about the likely allocation of key ministerial portfolios in the Modi-led NDA government.
Modi will be sworn in as India's next Prime Minister on Monday, 26 May 2014, evening at the Rashtrapati Bhawan.
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.
European stocks reversed initial losses on Friday, 23 May 2014. Key benchmark indices in France and Germany were up 0.12% to 0.2%. In UK, the FTSE 100 was off 0.28%.
German business confidence declined more than economists forecast, a report showed today, 23 May 2014. The Ifo institute's business climate index, based on a survey of 7,000 executives, fell to 110.4 in May from 111.2 in April.
Greece's credit rating was increased one level by Fitch Ratings, which cited an improving economic and fiscal outlook for the country that sparked the euro area's sovereign-debt crisis. Fitch raised the Mediterranean nation's long-term debt to B, five levels below investment grade, from B-.
Standard & Poor's upgraded Spain's rating one level to BBB from BBB-. The change follows similar moves by Fitch last month and by Moody's Investors Service in February.
Asian stocks edged higher on Friday, 23 May 2014, on signs of growth in the world's largest economies. Key benchmark indices in China, Indonesia, Hong Kong, South Korea, Taiwan, Singapore and Japan were up 0.05% to 0.87%.
Thailand's army staged its 12th coup in eight decades on Thursday, 22 May 2014, as the army chief said he was seizing control to restore peace. Thailand's military seized control following a six-month political stalemate that has sapped economic growth.
Trading in US index futures indicated that the Dow could advance 9 points at the opening bell on Friday, 23 May 2014. US stocks built on advances from the previous session and closed modestly higher on Thursday, 22 May 2014, as data showing strength in manufacturing boosted confidence in the global economy.
The Markit Economics preliminary index of US manufacturing increased to 56.2 in May from 55.4 a month earlier as output accelerated, the London-based group said on Thursday, 22 May 2014. Readings above 50 for the purchasing managers' measure indicate expansion and the May figure was the highest in three months.
In other economic news, new applications for unemployment benefits rose sharply in mid-May, reversing a big drop earlier in the month that put initial claims at a seven-year low. Sales of existing homes rose 1.3% in April to a seasonally adjusted annual rate of 4.65 million, the National Association of Realtors reported Thursday.
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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