Key benchmark indices extended initial gains and hit fresh intraday high in mid-morning trade. The barometer index, the S&P BSE Sensex, was up 190.66 points or 0.86%, up close to 155 points from the day's low and off about 30 points from the day's high. The market breadth, indicating the overall health of the market was strong. Gains in Asian stocks and overnight rally in US stocks underpinned sentiment on the domestic bourses. All the sectoral indices on BSE were in the green. The BSE Small-Cap index was up more than 1%.
Interest rate sensitive realty stocks edged higher. Metal and mining stocks extended Wednesday's gains triggered by better-than-expected economic growth data in China.
The market edged higher in early trade on firm Asian stocks. Key benchmark indices retained positive terrain in morning trade. The Sensex extended gains and hit fresh intraday high in mid-morning trade.
The stock market remains closed tomorrow, 18 April 2014, on account of Good Friday.
At 11:20 IST, the S&P BSE Sensex was up 190.66 points or 0.86% to 22,467.89. The index jumped 219.27 points at the day's high of 22,496.50 in mid-morning trade. The index rose 34.96 points at the day's low of 22,312.19 in early trade.
The CNX Nifty was up 57.80 points or 0.87% to 6,733.10. The index hit a high of 6,741.65 in intraday trade. The index hit a low of 6,684.40 in intraday trade.
The BSE Mid-Cap index was up 59.63 points or 0.82% at 7,292.39, underperforming the Sensex. The BSE Small-Cap index was up 85.32 points or 1.15% at 7,503.54, outperforming the Sensex.
The market breadth, indicating the overall health of the market was strong. On BSE, 1,373 shares gained and 732 shares fell. A total of 137 shares were unchanged.
ICICI Bank (up 2.34%), Wipro (up 2.14%) and Axis Bank (up 1.98%) edged higher from the Sensex pack.
Interest rate sensitive realty stocks edged higher. D B Realty (up 4.74%), Anant Raj (up 2.44%), DLF (up 1.33%), Housing Development and Infrastructure (HDIL) (up 5.37%), Sobha Developers (up 1.06%) and Unitech (up 3.32%) gained.
Metal and mining stocks extended Wednesday's gains triggered by better-than-expected economic growth data in China. China is the world's largest consumer of copper and aluminum.
Tata Steel (up 0.27%), Sesa Sterlite (up 0.82%), Steel Authority of India (Sail) (up 0.79%), NMDC (up 1.34%), Hindustan Copper (up 1.87%), Hindustan Zinc (up 0.77%), Jindal Steel & Power (up 1.36%), and Hindalco Industries (up 1.66%) edged higher. National Aluminium Company fell 0.63%.
JSW Steel gained 1.49% after the company after trading hours on Wednesday, 16 April 2014, said it has raised its stake in Vallabh Tinplate Private Limited (VTPL) to 50% from 26%. JSW Steel had on 7 April 2014 acquired 26% equity stake in VTPL. Earlier, the company had on 21 February 2014 had announced that it intends to acquire 26% equity stake in VTPL immediately and increase it to 50% in due course.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade on dollar selling triggered by US Federal Reserve Chairwoman Janet Yellen's dovish comments on Wednesday, 16 April 2014. The partially convertible rupee was hovering at 60.365, compared with its close of 60.37/38 on Wednesday, 16 April 2014.
The United States on Wednesday, 16 April 2014, urged the Indian government that emerges from ongoing elections to follow economic policies that encourage investment, saying Washington would like to see bilateral trade grow to $500 billion a year. Nisha Biswal, US assistant secretary of state for South and Central Asia, said future economic growth in South Asia hinged on India as the region's growth engine. However, Biswal said that while Indian leaders had targeted $1 trillion in infrastructure investment over five years to close gaps preventing growth in manufacturing, policies still inhibited foreign investment. She said India ranked a poor 134 out of 189 countries as a place to invest and start a business.
Biswal said India had the potential to exceed all expectations economically, but needed to adopt investment and tax policies designed to lure, not deter, capital flows and a system of timely regulatory approvals and contract enforcement. It also needed to protect intellectual property rights, she said. "The more integrated India is into global markets and into the economic architecture of Asia, the more India's economy will grow and benefit the entire global economic system," she said. Biswal said the United States wanted to see bilateral trade grow to $500 billion a year. It is about $100 billion currently.
Biswal also said an improved climate between India and Pakistan could "pay enormous economic dividends."
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. Voting in Maharashtra in the crucial fifth phase of the Lok Sabha elections takes place today, 17 April 2014. Nineteen seats are going for elections in this phase. Voting has also begun in Madhya Pradesh with 142 candidates in the fray in 10 Lok Sabha constituencies. 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 Thursday, 17 April 2014, after US industrial production increased more than forecast in March and Federal Reserve Chair Janet Yellen said the central bank remains committed to supporting the economic recovery. Key benchmark indices in Japan, Singapore, Indonesia, Hong Kong and Taiwan were up 0.06% to 0.24%. Key benchmark indices in South Korea, and China were off 0.08% to 0.29%.
China's Premier Li Keqiang said China isn't considering strong stimulus, and reiterated that economic growth a bit higher or lower than 7.5% is a reasonable range, according to a statement posted on the central government's website. The government said it will lower reserve ratios at some rural lenders.
Trading in US index futures indicated that the Dow could drop 31 points at the opening bell on Thursday, 17 April 2014. US stocks rose to their highest level in a week on Wednesday, 16 April 2014, encouraged by a crop of corporate earnings and reassuring US and Chinese economic data.
The US economy continued to expand in most regions as businesses benefited from a rebound from harsh winter weather earlier in the year. Eight of 12 Fed districts characterized growth as modest or moderate, the Fed said in its Beige Book business survey, based on reports gathered before April 7. Industrial production rose more than forecast in March after a February gain that was twice as big as previously estimated. A Commerce Department report showed the pace of US home construction rebounded less than forecast in March.
In her first major speech on her policy framework as Fed chair, Janet Yellen said US central bankers must be mindful of how short the Fed is of its goals of full employment and price stability. The larger the shortfall of employment or inflation from their respective objectives, and the slower the projected progress toward those objectives, the longer the current target range for the federal funds rate is likely to be maintained, Yellen said to the Economic Club of New York.
The gap, in both cases, is large, with a jobless rate of 6.7% more than a percentage point higher than the top end of the Federal Open Market Committee's estimate of full employment. Inflation, by the Fed's preferred measure, is more than a percentage point below its 2% goal. It will take more than two years for the economy to close in on the Fed's goals, she said, adding that the Fed's forecasts in the past were disrupted by negative surprises, not positive ones.
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.
Meanwhile, Ukraine accused Russia of fueling terrorism in its eastern regions as a move against separatists in the town of Kramatorsk stalled on the eve of an international conference aimed at defusing the crisis. Ukrainian government troops attempted to press on with an anti-separatist offensive that freed an airfield near Kramatorsk. Authorities sent armored vehicles into the Donetsk region town, only to have some of them seized by pro-Russian activists who also disarmed a number of soldiers. NATO is strengthening its military footprint along its eastern border immediately in response to Russia's aggression in Ukraine, the alliance's chief said on Wednesday.
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