A bout of volatility was witnessed in morning trade as the key benchmark indices trimmed gains after hitting fresh intraday high in morning 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 59.52 points or 0.29%, off 27.28 points from the day's high and up 51.97 points from the day's low. The market breadth, indicating the overall health of the market, was strong.
Index heavyweight and cigarette major ITC extended initial gains. Reliance Industries (RIL) edged higher in volatile trade after the company in a press release issued after trading hours on Tuesday, 25 February 2014, said that neither RIL nor the company's Chairman and Managing Director (CMD) Mr. Mukesh Ambani have or had any illegitimate accounts anywhere in the world as the company denying allegations made by Aam Aadmi Party (AAP) against RIL and Mr. Ambani in the party's public meeting recently.
State Bank of India (SBI) extended initial gain after the state-run bank said after market hours on Tuesday, 25 February 2014, that a meeting of the board of directors of the bank will be held on 3 March 2014 to consider declaration of interim dividend for the year ending 31 March 2014. Capital goods stocks edged higher on renewed buying. Sanofi India rose after declaring strong Q4 result after market hours on Tuesday, 25 February 2014.
Key benchmark indices edged higher amid initial volatility. The Sensex soon extended initial gains. The Sensex and the 50-unit CNX Nifty, both, hit their highest level in more than 4-1/2 weeks. The Sensex pared gains in morning trade.
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 today, 26 February 2014, 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 10:15 IST, the S&P BSE Sensex was up 59.52 points or 0.29% to 20,911.99. The index gained 86.80 points at the day's high of 20,939.27 in morning 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 13.65 points or 0.22% to 6,213.70. The index hit a high of 6,222.90 in intraday trade, its highest level since 24 January 2014. The index hit a low of 6,202.10 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,105 shares gained and 658 shares fell. A total of 86 shares were unchanged.
The BSE Mid-Cap index was up 7.70 points or 0.12% at 6,470.02, underperforming the Sensex. The BSE Small-Cap index was up 25.14 points or 0.39% to 6,446.84, outperforming the Sensex.
The total turnover on BSE amounted to Rs 402 crore by 10:20 IST, compared with Rs 122 crore by 09:25 IST.
Among the 30-share Sensex pack, 21 stocks gained and rest of them declined.
Sesa Sterlite (down 2.09%), Coal India (down 1.5%) and ONGC (down 0.96%) edged lower from the Sensex pack.
Index heavyweight and cigarette major ITC rose 0.96% to Rs 325. The stock hit high of Rs 325.30 and low of Rs 322.40 so far during the day.
Reliance Industries (RIL) edged higher in volatile trade after the company in a press release issued after trading hours on Tuesday, 25 February 2014, said that neither RIL nor the company's Chairman and Managing Director (CMD) Mr. Mukesh Ambani have or had any illegitimate accounts anywhere in the world as the company denying allegations made by Aam Aadmi Party (AAP) against RIL and Mr. Ambani in the party's public meeting recently. The stock was up 0.06% at Rs 811. The stock hit high of Rs 813.90 and low of Rs 809.50 so far during the day. RIL said it strongly denies all allegations made by Aam Aadmi Party (AAP) against RIL and Mr. Mukesh Ambani in AAP's public meeting recently. As stated earlier it is being reiterated that neither RIL nor Mr. Mukesh Ambani have or had any illegitimate accounts anywhere in the world, RIL said. RIL has business interests in several countries with turnover of thousands of crores in rupees. As a part of the company's normal business, these international subsidiaries of RIL deal with several global banks, RIL said. These accounts are fully compliant with all regulations and are disclosed in their appropriate jurisdictions and in India, RIL said. The continued tirade of baseless allegations being made by AAP against the company appears to be instigated by vested interests, RIL said.
State Bank of India (SBI) rose 1.08%, with the stock extending initial gain. The state-run bank said after market hours on Tuesday, 25 February 2014, that a meeting of the board of directors of the bank will be held on 3 March 2014, inter alia, to consider, and if thought fit, declare interim dividend for the financial year ending 31 March 2014.
Capital goods stocks edged higher on renewed buying. ABB India (up 7.23%), BEML (up 0.54%), Crompton Greaves (up 0.19%), L&T (up 0.43%), Siemens (up 4.29%) and Thermax (up 1.23%) gained.
Bharat Heavy Electricals (Bhel) rose 1.06%.
Sanofi India rose 1.73% 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.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.96, compared with its close of 61.935/945 on Tuesday, 25 February 2014.
The 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.
Asian stocks edged higher on Wednesday, 26 February 2014. Key benchmark indices in China, Hong Kong, South Korea and Taiwan rose by 0.14% to 0.47%. Key benchmark indices in Singapore, Japan and Indonesia fell by 0.34% to 0.58%.
China's central bank The People's Bank of China on Tuesday, 25 February 2014, drained another 100 billion yuan ($16.4 billion) from money markets.
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.
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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