Firmness continued on the bourses in morning trade. The barometer index, the S&P BSE Sensex, was up 326.41 points or 1.32%, up close to 105 points from the day's low and off close to 20 points from the day's high. The market breadth indicating the overall health of the market was strong, with almost 3 gainers for every loser on BSE. The BSE Mid-Cap index and the BSE Small-Cap index, both, rose over 1%. Both these indices outperformed the Sensex.
Capital goods stocks edged higher on renewed buying, with L&T hitting record high and Siemens and Thermax scaling 52-week high. Auto stocks edged higher on renewed buying with Mahindra & Mahindra and Maruti Suzuki India scaling record high and Ashok Leyland scaling 52-week high.
The market surged in early trade ahead of Prime Minister designate Narendra Modi's swearing in ceremony today, 26 May 2014, evening. The Sensex hit over one-week high above the psychological 25,000 level. The 50-unit CNX-Nifty also scaled over one-week high. Firmness continued on the bourses in morning trade.
The market sentiment was boosted by data showing that foreign funds were net buyers of Indian stocks on Friday, 23 May 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 416.80 crore on Friday, 23 May 2014, as per provisional data from the stock exchanges.
The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month May 2014 series to June 2014 series. The near month May 2014 derivatives contract expire on Thursday, 29 May 2014.
At 10:20 IST, the S&P BSE Sensex was up 326.41 points or 1.32% to 25,019.76. The index surged 344.19 points at the day's high of 25,037.54 in morning trade, its highest level since 16 May 2014. The index rose 219.22 points at the day's low of 24,912.57 in early trade.
The CNX Nifty was up 89.30 points or 1.21% to 7,456.40. The index hit a high of 7,458 in intraday trade, its highest level since 16 May 2014. The index hit a low of 7,428.55 in intraday trade.
The BSE Mid-Cap index was up 116.82 points or 1.35% at 8,785.14. The BSE Small-Cap index was up 129.57 points or 1.42% at 9,257.61. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong, with almost 3 gainers for every loser on BSE. On BSE, 1,784 shares gained and 615 shares fell. A total of 84 shares were unchanged.
Among the 30-share Sensex pack, 26 stocks gained and rest of them declined. Coal India (up 4.31%), ONGC (up 2.27%) and NTPC (up 3.21%) edged higher from the Sensex pack.
Capital goods stocks edged higher on renewed buying. Bharat Heavy Electricals (Bhel) (up 0.94%), ABB (India) (up 0.55%), Punj Lloyd (up 1.72%), and Crompton Greaves (up 1.46%), gained.
L&T rose 3.07% to Rs 1,557.95 after hitting record high of Rs 1,566 in intraday trade.
Siemens gained 0.82% to Rs 971.55 after hitting 52-week high of Rs 979.90 in intraday trade.
Thermax gained 0.32% to Rs 909 after hitting 52-week high of Rs 922 in intraday trade.
Auto stocks edged higher on renewed buying. Tata Motors rose 3.3%.
Mahindra & Mahindra (M&M) rose 2.15% to Rs 1,183 after hitting a record high of Rs 1,193.05 in intraday trade.
Maruti Suzuki India rose 3.81% to Rs 2,475.65 after hitting a record high of Rs 2,505.30 in intraday trade. The stock extended recent rally triggered by a foreign brokerage putting an aggressive three-year target on the stock.
Ashok Leyland jumped 6.24% to Rs 34.90 after hitting 52-week high of Rs 35.15 in intraday trade. The stock extended Friday's 13.67% rally triggered by company's strong Q4 result. Ashok Leyland's net profit surged 142.2% to Rs 363.39 crore on 17.31% fall in total income to Rs 3092.51 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Thursday, 22 May 2014.
Shares of two-wheeler makers were mostly lower. TVS Motor Company (down 1.51%) and Hero MotoCorp (down 0.74%) declined. Bajaj Auto rose 1.1%.
Sun Pharmaceuticals Industries rose 1.77% and Ranbaxy Laboratories gained 2.4% on reports the Andhra Pradesh High Court on Saturday, 24 May 2014, lifted a temporary stay it imposed on Sun Pharma's acquisition of Ranbaxy, paving the way for the completion of the $3.2 billion deal. Disposing off the writ petition filed against Sun Pharma's acquisition of Ranbaxy by certain retail investors who accused insider trading in the shares of Ranbaxy days before announcement of the deal, the High Court directed market regulator Securities & Exchange Board of India (Sebi) to probe into the allegations. Earlier, during last week of April, the High Court had issued status quo orders on the merger while admitting a writ petition by a group of retail investors. The court had directed stock exchanges not to approve the merger until it decides on the petition.
MOIL rose 3.29% after the company reported good Q4 results. The company's net profit surged 35.67% to Rs 149.35 crore on 9.44% growth in net sales to Rs 292.01 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Friday, 23 May 2014. MOIL's net profit rose 18.03% to Rs 509.56 crore on 5.6% growth in net sales to Rs 1021.28 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
Vardhman Textiles jumped 10.42% after net profit rose 33.90% to Rs 154.32 crore on 13.85% rise in net sales to Rs 1282.22 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Friday, 23 May 2014. Vardhman Textiles' net profit rose 101.37% to Rs 651.88 crore on 24.32% rise in net sales to Rs 5171.31 crore in the year ended March 2014 over the year ended March 2013.
Prime Minister designate Narendra Modi will be sworn in as India's next Prime Minister today, 26 May 2014, evening at the Rashtrapati Bhawan.
After Bharatiya Janata Party (BJP) led National Democratic Alliance's (NDA) landslide victory in the Lok Sabha election, investors are expecting measures from the incoming government to revive the Indian economy. Investors hope that the BJP-led government would be able to accelerate policy reforms and overhaul the country's poor infrastructure.
Narendra 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, speculation has been rife about the likely allocation of key ministerial portfolios in the Modi-led NDA government.
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.
Asian stocks rose on Monday, 26 May 2014, after China's premier said policy will be fine tuned as needed to support the economy. Key benchmark indices in China, Taiwan, Singapore and Japan were up 0.36% to 0.54%. Key benchmark indices in Hong Kong, Indonesia and South Korea were off 0.15% to 0.29%.
China's Premier Li Keqiang said Asia's largest economy will adjust policy to address problems in the real economy, according to a statement on the government's website May 23.
Bank of Japan policy makers said the economy will probably grow above potential from summer, according to the minutes released today from an April 30 meeting.
Japan and China on Sunday accused each other's air forces of dangerous behaviour over the East China Sea, with Japan saying Chinese aircraft had come within a few dozen metres of its warplanes.
US stock markets remain closed today, 26 May 2014, on account of Memorial Day.
US stocks edged higher on Friday with the S&P 500 index closing at a record high, buoyed by a rally in housing stocks after better-than-expected home sales and a jump in Hewlett-Packard shares a day after the personal computer maker said it would cut more jobs.
Data from the Commerce Department showed sales of new US single-family homes rose more than expected in April and the supply of houses on the market hit a 3-1/2 year high.
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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