Key benchmark indices edged higher after a news agency quoted an unnamed official of the India Meteorological Department as saying that conditions have turned favourable for the onset of monsoon in India in about 24 hours. The barometer index, the S&P BSE Sensex, moved past the psychological 25,000 level. The Sensex and the 50-unit CNX Nifty, both, hit their highest level in more than a week. The Sensex was provisionally up 223.70 points or 0.9%, up close to 385 points from the day's low and off about 15 points from the day's high. The market breadth indicating the overall health of the market was strong, with more than two gainers for every loser on BSE. The BSE Small-Cap index was up more than 1.4%. The BSE Mid-Cap index was up more than 1%. Both these indices outperformed the Sensex.
Steel shares were in demand with Jindal Steel & Power, JSW Steel, Tata Steel and Steel Authority of India hitting 52-week high. Sesa Sterlite and NMDC also hit 52-week high. PSU OMCs extended gains as crude oil prices declined, with BPCL scaling record high.
A bout of volatility was witnessed in initial trade as key benchmark indices regained positive terrain after slipping into the red after opening higher. Key benchmark indices edged lower and hit fresh intraday low in morning trade. The Sensex trimmed intraday losses in mid-morning trade. The Sensex regained positive terrain in early afternoon trade. Key benchmark indices extended gains and hit fresh intraday high in early afternoon trade after a news agency quoted an unnamed official of the India Meteorological Department as saying that conditions have turned favourable for the onset of monsoon in India in about 24 hours. Key benchmark indices extended gains and hit fresh intraday high in mid-afternoon trade. A bout of volatilty was witnessed as key benchmark indices recovered from lower level after trimming intraday gains in late trade. The Sensex moved past the psychological 25,000 level.
Foreign institutional investors (FIIs) bought shares worth a net Rs 192.56 crore on Wednesday, 4 June 2014, as per provisional data from the stock exchanges.
As per provisional figures, the S&P BSE Sensex was up 223.70 points or 0.9% at 25,029.53. The index jumped 238.23 points at the day's high of 25,044.06 in late trade, its highest level since 26 May 2014. The index fell 160.95 points at the day's low of 24,644.88 in morning trade, its lowest level since 3 June 2014.
The CNX Nifty was up 75.40 points or 1.02% to 7,477.65, as per provisional figures. The index hit a high of 7,484.70 in intraday trade, its highest level since 26 May 2014. The index hit a low of 7,360.50 in intraday trade, its lowest level since 3 June 2014.
The BSE Mid-Cap index was up 90.90 points or 1.03% at 8,956.84. The BSE Small-Cap index was up 136.32 points or 1.44% to 9,625.03. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 4889 crore, higher than Rs 4467.78 crore on Wednesday, 4 June 2014.
The market breadth, indicating the overall health of the market was strong, with more than two gainers for every loser on BSE. On BSE, 2,163 shares rose and 863 shares fell. A total of 100 shares were unchanged.
PSU OMCs extended gains as crude oil prices declined. HPCL (up 5.16%) and Indian Oil Corporation (IOCL) (up 3.92%) gained.
BPCL rose 6.81% to Rs 616 after hitting record high of Rs 626.80 in intraday trade.
US crude oil futures for July delivey fell 39 cents to $102.25 a barrel in electronic trade today. Lower crude oil prices could reduce under-recoveries of state-run oil marketing companies (PSU OMCs) on domestic sale of diesel, LPG and kerosene at controlled prices. The government has already freed pricing of petrol.
PSU OMCs hiked diesel prices by 50 paise a litre, excluding state levies, with effect from 1 June 2014.
The under-recovery on High Speed Diesel (HSD) applicable for first fortnight of June effective 2 June 2014 declined to Rs 2.80 per litre. This was Rs 4.41 per litre during the second fortnight of May 2014. In the case of PDS Kerosene, the under-recovery for the first fortnight of June 2014 declined to Rs 32.87 per litre, from Rs 33.84 per litre during the second fortnight of May 2014. In case of domestic LPG, the under-recovery for the first fortnight of June 2014 declined to Rs 432.71 per cylinder, from Rs 449.13 per cylinder during the second fortnight of May 2014. Oil Marketing Companies (OMCs), effective from 2nd June 2014, are incurring combined daily under-recovery of about Rs 262 crore on the sale of Diesel, PDS Kerosene and Domestic LPG. This is lower than Rs 318 crore daily under-recoveries during the second fortnight of May 2014.
Steel shares edged higher. Jindal Steel & Power was up 3.02% at Rs 338.10. The stock hit 52-week high of Rs 341.90 in intraday trade.
JSW Steel was up 1.34% at Rs 1,290.80. The stock hit 52-week high of Rs 1,304.65 in intraday trade.
Shares of Tata Steel and Steel Authority of India extended recent gains triggered by reports the two steel makers have restarted most of their iron ore mines in Odisha state after getting new permits from the Odisha state government. Iron ore is a key input in steel making.
Steel Authority of India (Sail) was up 6.93% to Rs 107.20. The stock hit 52-week high of Rs 107.45 in intraday trade.
Tata Steel was up 3.96% to Rs 557.85 after hitting 52-week high of Rs 558.20 in intraday trade.
Shares of other metal companies extended recent gains. Hindustan Copper (up 2.84%), National Aluminium Company (up 0.8%), Hindustan Zinc (up 0.09%) and Hindalco Industries (up 5.98%), edged higher.
Sesa Sterlite rose 6.6% to Rs 314.75 after hitting 52-week high of Rs 315.90 in intraday trade.
NMDC rose 1.6% to Rs 193.60 after hitting 52-week high of Rs 194.50 in intraday trade. NMDC has reportedly raised ore prices by up to 9% in June, the first increase in five months as supply has been cut by a temporary ban on some mines in Odisha state. Given the expected rise in demand for NMDC's ore, the company has raised prices for iron ore fines by 9% to Rs 3,160 per tonne and by 7% to Rs 4,600 for lumps, reports suggest.
Coal India gained 0.21% to Rs 391. The stock hit high of Rs 397.30 and low of Rs 388.
Finance Minister Arun Jaitley said in his opening remarks while holding his first Pre-Budget Consultation with the representatives of the agriculture sector today, 5 June 2014, that despite the constraints of the economy as it exist today, the government will try its best to boost the agriculture sector. He said that the concerns of agriculture sector are high on the priority of the government. Even as agriculture and its allied sector employ the largest numbers of people in the country, yet its share in the GDP has contracted over the years, Jaitley said.
The Ministry of Finance said that various suggestions were received from the different representatives of the agriculture sector. Major suggestions include establishing a Kissan TV Channel to create awareness among farmers about new technologies, government programmes and quality parameters etc among others.
Jaitley is expected to table Union Budget for 2014-15 in Lok Sabha by mid-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)'s third bi-monthly monetary policy statement is scheduled on 5 August 2014. The RBI kept its main lending rate -- repo rate -- unchanged at 8% after a monetary policy review on 3 June 2014. The central bank at that time signaled it would ease monetary policy if inflation slows faster than targeted.
European stocks edged lower on Thursday, 5 June 2014, as investors were hesitant of making any major moves ahead of the European Central Bank meeting later in the day. Key benchmark indices in Germany and UK were off 0.13% to 0.23%. France's CAC 40 rose 0.05%.
German factory orders rebounded in April from the biggest plunge in more than a year, signaling that growth in Europe's largest economy remains on track. Orders, adjusted for seasonal swings and inflation, increased 3.1% from March, when they declined 2.8%, the Federal Statistics Office in Wiesbaden said today.
There are expectations that ECB will announce new stimulus measures when the Governing Council of the ECB holds a monthly meeting on euro area interest rates today, 5 June 2014.
Bank of England's Monetary Policy Committee will probably keep its benchmark interest rate at a record-low 0.5% and leave its bond-purchase program unchanged at a monthly meeting on interest rates in UK today, 5 June 2014.
Asian stocks edged higher in choppy trade on Thursday, 5 June 2014. Key benchmark indices in China, Indonesia, Taiwan and Japan were up 0.06% to 0.79%. Key benchmark indices in Singapore, South Korea and Hong Kong were off 0.02% to 0.65%.
HSBC/Markit's measure of the China service sector eased to 50.7 in May from April's 51.4, though that was still above the 50-point level that is supposed to separate growth from contraction.
Trading in US index futures indicated that the Dow could gain 3 points at the opening bell on Thursday, 5 June 2014. US stocks edged up on Wednesday with the S&P 500 index ending at a new record as investors brushed off weaker-than-expected labor market data and focused on acceleration in services-sector growth.
Service industries in the US expanded at the fastest pace in nine months in May. The Institute for Supply Management said its services sector index rose to 56.3 last month from 55.2 in April as new orders, order backlogs and hiring increased. It was the highest reading in nine months. The Federal Reserve said in its Beige Book review of regional conditions that the world's largest economy expanded at a modest to moderate pace last month. The Beige Book, released two weeks before policy makers meet, supported Fed Chair Janet Yellen's view that the US economy is rebounding from a 1% contraction in the first quarter caused largely by harsh winter weather. The Commerce Department said the trade gap increased 6.9% to $47.2 billion in April as imports hit a record high and exports slipped. It was the largest deficit in two years.
A private report showed employment rose less than economists projected. Private employers added 179,000 jobs to their payrolls last month after hiring 215,000 workers in April, according to payrolls processor ADP.
The influential US nonfarm payroll data for May 2014 is due for release tomorrow, 6 June 2014.
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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