Key benchmark indices extended gains and hit fresh intraday high in afternoon trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both hit their highest level in more than 4-1/2 weeks. The Sensex was up 96.09 points or 0.46%, up close to 90 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 positive. The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Tuesday, 25 February 2014.
Pharma stocks edged higher, with Dr. Reddy's Laboratories scaling record high.
Key benchmark indices edged higher amid initial volatility. The Sensex soon extended initial gains. The Sensex pared gains in morning trade. Key benchmark indices hovered in positive zone in early afternoon trade. Key benchmark indices extended gains and hit fresh intraday high in afternoon trade. The Sensex and the 50-unit CNX Nifty, both, hit their highest level in more than 4-1/2 weeks.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Tuesday, 25 February 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 423.41 crore on Tuesday, 25 February 2014, as per provisional data from the stock exchanges.
The market may remain volatile during the remaining part of the trading session as traders roll over positions in the futures and options (F&O) segment from the near-month February 2014 series to March 2014 series. The near month February 2014 F&O contracts expire today, 26 February 2014. The stock market remains closed tomorrow, 27 February 2014, on account of Mahashivratri.
At 13:20 IST, the S&P BSE Sensex was up 96.09 points or 0.46% to 20,948.56. The index jumped 109.16 points at the day's high of 20,961.63 in afternoon trade, its highest level since 24 January 2014. The index rose 7.55 points at the day's low of 20,860.02 in early trade.
The CNX Nifty was up 24.40 points or 0.39% to 6,224.45. The index hit a high of 6,228.90 in intraday trade, its highest level since 24 January 2014. The index hit a low of 6,202.10 in intraday trade.
The BSE Mid-Cap index was up 2.53 points or 0.04% at 6,464.85 and the BSE Small-Cap index was up 18.15 points or 0.28% at 6,428.37. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,240 shares gained and 1,189 shares fell. A total of 147 shares were unchanged.
Among the 30-share Sensex pack, 22 stocks gained and rest of them declined. GAIL (India) (up 2.77%), Wipro (up 1.97%) and ITC (up 1.65%) edged higher from the Sensex pack.
Pharma stocks edged higher. Sun Pharmaceutical Industries (up 2.73%), Ipca Laboratories (up 1.89%), Wockhardt (up 1.51%), Glenmark Pharmaceuticals (up 1.25%), Cadila Healthcare (up 1.06%), Lupin (up 0.69%), Fortis Healthcare (up 0.33%), Cipla (up 0.32%) and Glaxosmithkline Pharma (up 0.27%) gained
Dr. Reddy's Laboratories rose 1.25% to Rs 2,808.50 after hitting record high of Rs 2,823 in intraday trade. Dr. Reddy's Laboratories announced on Tuesday, 25 February 2014, that it has launched Sumatriptan Injection USP, Autoinjector System 6 mg/0.5 mL, for subcutaneous use in the US market on 25 February 2014. The announcement was made after market hours on Tuesday, 25 February 2014.
The IMITREX STATdose Pen (Sumatriptan succinate) brand and generic combined had US sales of approximately $169 million for the most recent twelve months ending in December 2013 according to IMS Health.
Dr Reddy's Sumatriptan Injection USP, Autoinjector System 6 mg/0.5 mL is available in a carton containing 2 single-dose prefilled syringes.
Sanofi India rose 1.89% after net profit surged 106.92% to Rs 92.70 crore on 15.49% increase in total income from operations to Rs 488.30 crore in Q4 December 2013 over Q4 December 2012. The company announced the results after market hours on Tuesday, 25 February 2014.
Sanofi India's net profit jumped 50.08% to Rs 265.20 crore on 14.99% increase in total income from operations to Rs 1808.90 crore in the year ended December 2013 over the year ended December 2012.
Divi's Laboratories fell 0.65% to Rs 1,418.05, with the stock reversing direction after hitting record high of Rs 1,445 in intraday trade.
JSW Steel fell 0.43%. The company said during market hours that its crude steel production rose 17% to 11.09 lakh tonnes in January 2014 over January 2013. Poduction of flat rolled products rose 2% to 8.35 lakh tonnes in January 2014 over January 2013. Production of long rolled products rose 15% to 1.68 lakh tonnes in January 2014 over January 2013. These year-on-year growth figures for January 2014 are adjusted figures after giving effect to the merger of JSW Ispat Steel with the company.
Polaris Financial Technology jumped 5.16%. The company issued clarification during market hours regarding media reports "US based Fiserv in talks to acquire stake in Polaris", that the company is not for sale. It further said that during its 3rd Quarter results in January 2013, the board of directors authorised the management team to explore options that would provide an impetus to the company for the next stage of its growth. The context was around leveraging untapped potential in its growth engines i.e. Services, Products and the canvas of opportunities that are available to it as a leading Specialist in the global Financial Technology arena. In line with the stringent Governance principles the company follows, stakeholders have been updated on progress. As announced, the major legs of the restructuring process have been completed last quarter in Q3 2014, Polaris said. With its singular focus on Banking & Financial Technology for over 2 decades, Polaris has built very robust and comprehensive assets to spearhead transformational projects for the BFSI vertical. The restructuring exercise has been misconstrued by a certain section of stakeholders with repeated mention of possible sale. Despite the company clarifications, these rumours continue to surface, impacting customer relationships, distracting Management and employees, Polaris said. The company said that it is poised to leverage its rich assets in banking and technology to accelerate growth of its two distinct businesses - Products (Intellect) business and IT Services business.
In the foreign exchange market, the rupee edged lower against the dollar with month-end dollar demand from importers including oil firms weighing on domestic currency. The partially convertible rupee was hovering at 61.975, compared with its close of 61.935/945 on Tuesday, 25 February 2014.
The government will unveil data on gross domestic product (GDP) for Q3 December 2013 after trading hours on Friday, 28 February 2014. The GDP grew at improved pace of 4.8% in Q2 September 2013, from 4.4% growth recorded in Q1 June 2013.
Reserve Bank of India next undertakes monetary policy review 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.
On the political front, eleven regional parties formed an alliance on Tuesday, 25 February 2014, to contest general elections, presenting themselves as an alternative to the ruling Congress party and the opposition Bharatiya Janata Party. Prakash Karat, a leader of the Communist Party of India (Marxist), which is part of the new coalition, said the partnership was forged in an effort to keep the country's two major national parties out of power. Mr. Karat accused the incumbent Congress of corruption and misrule, and declared the BJP unfit to run the country because of its controversial prime ministerial candidate Narendra Modi, who Mr. Karat denounced as a "challenge to the very secular edifice" of India. "We need an alternative," Mr. Karat said.
Among members of the new bloc are the Communist Party of India (Marxist), the Communist Party of India, Janata Dal (United), Samajwadi Party, Biju Janata Dal and the All India Anna Dravida Munnetra Kazhagam. The alliance includes regional chieftains from the politically crucial states of Bihar, Uttar Pradesh, Tamil Nadu and Orissa. The two notable exceptions are Mamata Banerjee, the powerful chief minister of West Bengal, and Kumari Mayawati, a resurgent lower caste leader in Uttar Pradesh.
Asian stocks edged higher on Wednesday, 26 February 2014, as energy shares advanced, countering declines by raw-material companies. Key benchmark indices in China, Hong Kong, South Korea and Taiwan were up 0.29% to 0.63%. Key benchmark indices in Singapore, Japan and Indonesia were off 0.54% to 1.03%.
China's central bank the People's Bank of China cut the yuan's fixing by 0.01% to 6.1192 per dollar, the weakest since Dec. 20 amid speculation it is looking to counter one-way appreciation bets on the currency.
The People's Bank of China on Tuesday, 25 February 2014, drained another 100 billion yuan ($16.4 billion) from money markets.
A meeting of China's lawmakers to set economic policy and growth targets begins next week in Beijing.
Trading in US index futures indicated that the Dow could advance 39 points at the opening bell on Wednesday, 26 February 2014. US stocks finished a choppy trading session lower on Tuesday, 25 February 2014, as gloomy reports on home prices and consumer confidence dampened the mood. The pace of US home-price growth slowed down at the end of 2013, but despite this the year saw the fastest calendar-year price growth in eight years, according to data released on Tuesday. The US consumer confidence index also dipped primarily because Americans are less certain about the economy in the next six months, even though they view the current environment as much improved, the Conference Board said on Tuesday.
About $1.7 billion was taken out of US equity exchange-traded funds on 24 February 2014, bringing total withdrawals to almost $6 billion this month, according to reports.
Federal Reserve Chair Janet Yellen will testify for the US Senate on monetary policy tomorrow, 27 February 2014.
The US Federal Reserve bought $2.66 billion of Treasuries due from February 2023 to November 2023 on Tuesday, 25 February 2014, under its quantitative-easing stimulus strategy to hold down borrowing costs and fuel economic growth.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review on 18-19 March 2014. After a monetary policy review, the FOMC on 29 January 2014 announced it will reduce monthly bond purchases by another $10 billion to $65 billion.
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