Volatility ruled the roost as the key benchmark indices regained positive zone in afternoon trade after data released by the government today, 15 May 2014, showed that inflation based on monthly wholesale price index eased to 5.2 in April 2014 from 5.7% in March 2014. The barometer index, the S&P BSE Sensex, was up 44.95 points or 0.19%, up 117.32 points from the day's low and off 111.71 points from the day's high. The market breadth, indicating the overall health of the market was negative.
Index heavyweight Reliance Industries (RIL) edged higher in volatile trade. Index heavyweight and cigarette major ITC also edged higher. Asian Paints dropped, with the stock reversing direction after scaling record high at the onset of the trading session. Many realty stocks declined. But, shares of realty major DLF rose in volatile trade.
The Sensex edged higher amid initial volatility. Key benchmark indices trimmed initial gains in morning trade. While the barometer index, the S&P BSE Sensex, retained positive zone in mid-morning trade, the 50-unit CNX Nifty slipped into the red. Key benchmark indices hovered in negative zone in early afternoon trade. Volatility ruled the roost as the key benchmark indices regained positive zone in afternoon trade after data released by the government today, 15 May 2014, showed that inflation based on monthly wholesale price index eased to 5.2 in April 2014 from 5.7% in March 2014.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1520.08 crore on Wednesday, 14 May 2014, as per provisional data from the stock exchanges.
At 13:16 IST, the S&P BSE Sensex was up 44.95 points or 0.19% at 23,860.07. The index shed 72.37 points at the day's low of 23,742.75 in early afternoon trade, its lowest level since 13 May 2014. The index jumped 156.66 points at the day's high of 23,971.78 in early trade, its highest level since 13 May 2014.
The CNX Nifty was up 5.35 points or 0.08% at 7,114.10. The index hit a low of 7,082.55 in intraday trade. The index hit a high of 7,152.55 in intraday trade, its highest level since 13 May 2014.
The BSE Mid-Cap index was off 22.93 points or 0.3% at 7,681.17. The BSE Small-Cap index was down 39.98 points or 0.51% at 7,819.05. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market was negative. On BSE, 1,609 shares dropped and 1,084 shares rose. A total of 152 shares were unchanged.
The total turnover on BSE amounted to Rs 1949 crore by 13:15 IST.
Among the 30-share Sensex pack, 18 stocks gained and rest of them declined. ICICI Bank (down 1.22%), TCS (down 1.06%) and Coal India (down 1.02%) edged lower from the Sensex pack.
Index heavyweight Reliance Industries (RIL) was up 0.19% at Rs 1,047.55. The stock hit a high of Rs 1,057.90 and a low of Rs 1,040 so far during the day.
Index heavyweight and cigarette major ITC was up 0.63% at Rs 367.85. The stock hit high of Rs 369.40 and low of Rs 364.45 so far during the day.
Asian Paints lost 4.87% to Rs 529.85, with the stock reversing direction after scaling record high of Rs 565 at the onset of the trading session. The stock hit low of Rs 524.45 so far during the day.
Asian Paints reported 14.45% rise in consolidated net profit to Rs 287.42 crore on 21.5% rise in total income to Rs 3338.19 crore in Q4 March 2014 over Q4 March 2013. The company's consolidated net profit rose 9.4% to Rs 1218.81 crore on 16.2% rise in total income to Rs 12849.03 crore in the year ended 31 March 2014 over the year ended 31 March 2013. The Q4 result was announced after market hours on Wednesday, 14 May 2014.
Asian Paints said that the results for the quarter and twelve months ended 31 March 2014 include consolidated financials of Sleek International in which the company acquired 51% stake on 8 August 2013. In view of this, the results for the quarter and twelve months ended 31 March 2014 are not comparable with the corresponding previous periods, the company said.
Asian Paints said that the Board of Directors of the company at its meeting held Wednesday, 14 May 2014, approved the reappointment of Shri K B S Anand as Managing Director & CEO of the company for a further period of three years with effect from 1 April 2015 i.e. for the period 1 April 2015 to 31 March 2018. The re-appointment will be subject to approval by the shareholders of the company at the ensuing Annual General Meeting.
Asian Paints said at the fag end of trading session on Wednesday, 14 May 2014, that the company has entered into a binding agreement with Ess Ess Bathroom Products (Ess Ess) and its promoters to acquire its entire front end sales business including brands, network and sales infrastructure, subject to satisfaction of certain conditions precedents and applicable statutory approvals. Ess Ess is a prominent player in the bath and wash business segment in India and has high quality products in this segment.
Many realty stocks declined. Indiabulls Real Estate (down 3.05%), Housing Development and Infrastructure (down 1.51%), D B Realty (down 2.28%), Unitech (down 0.83%), and Parsvnath Developers (down 1.96%) declined. Oberoi Realty gained 4.26%.
Realty major DLF rose 1.43% to Rs 162.85 in volatile trade. The stock hit high of Rs 169 and low of Rs 160.55 so far during the day.
Bank of India declined 2.37% after net profit fell 26.31% to Rs 557.51 crore on 21.68% increase in total income to Rs 11274.09 crore in Q4 March 2014 over Q4 March 2013. The result was announced during trading hours today, 15 May 2014.
Bank of India's net profit fell 0.73% to Rs 2729.27 crore on 18.30% increase in total income to Rs 42201.94 crore in the year ended March 2014 over the year ended March 2013.
Bank of India's ratio of net non-performing assets (NPAs) to net advances stood at 2% as on 31 March 2014, compared with 1.75% as on 31 December 2013 and 2.06% as on 31 March 2013.
The bank's ratio of gross NPAs to gross advances stood at 3.15% as on 31 March 2014, compared with 2.81% as on 31 December 2013 and 2.99% as on 31 March 2013.
Provisions and contingencies rose 2.43% to Rs 1547.27 crore in Q4 March 2014 over Q4 March 2013. The provisioning coverage ratio as on 31 March 2014 stood at 58.68%.
The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 9.97% as on 31 March 2014, compared with 10.84% as on 31 December 2013.
Shakti Pumps India surged 15.35% after net profit jumped 99.4% to Rs 9.71 crore on 90.6% increase in net sales to Rs 98.14 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced after market hours on Wednesday, 14 May 2014.
On a consolidated basis, Shakti Pumps India's net profit rose 48.5% to Rs 24.98 crore on 39.9% increase in net sales to Rs 292.09 crore in the year ended 31 March 2014 over the year ended 31 March 2013.
In the foreign exchange market, the rupee edged higher against the dollar on signs Lok Sabha election results due tomorrow, 16 May 2014, will show a clear winner. The partially convertible rupee was hovering at 59.33, compared with its close of 59.66/67 on Tuesday, 13 May 2014. The foreign exchange market was closed on Wednesday, 14 May 2014, on account of a bank holiday.
Indian government bond prices rose after the latest data showed that the annual rate of inflation based on monthly wholesale price index eased to 5.2 in April 2014 from 5.7% in March 2014. The yield on 10-year benchmark federal paper, 8.83% GS 2023, was hovering at 8.7775%, lower than its close of 8.7833% on Tuesday, 13 May 2014. Bond yield and bond prices move in opposite direction. The Indian bond market was closed on Wednesday, 14 May 2014, on account of a bank holiday.
The annual rate of inflation based on monthly wholesale price index (WPI) eased to 5.2% for the month of April 2014 from 5.7% in March 2014, data released by the government today, 15 May 2014, showed. Simultaneously, the government revised upwards the rate of WPI inflation for February 2014 to 5.03%, from 4.68% reported on 14 March 2014.
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.
Indian stocks may see high intraday volatility tomorrow, 16 May 2014, as trends and actual results of wins by candidates/parties are announced during the process of counting of votes for the recently concluded Lok Sabha elections. The counting of votes will begin at 8:00 IST tomorrow, 16 May 2014, and results are expected by tomorrow itself. Various exit polls have predicted that the Bharatiya Janata Party (BJP) led National Democratic Alliance (NDA) would win a majority in the Lok Sabha elections which concluded on Monday, 12 May 2014. If exit polls prove correct, NDA's prime ministerial candidate Narendra Modi will become India's next Prime Minister. The term of the current Lok Sabha ends on 1 June and the new House has to be constituted by 31 May.
Modi is perceived as being more business-friendly and decisive by the business community. As chief minister for the fast-growing state of Gujarat, Modi has built a reputation for getting things done. While campaigning for the Lok Sabha elections, Modi has pledged to reinvigorate the country's manufacturing sector, create more jobs and overhaul the country's inadequate infrastructure. Investors are hoping that the BJP-led government will be better at getting things done and more business-friendly than the current Congress-party-led coalition government.
Investors are hoping that when the results of the Lok Sabha elections are out tomorrow, 16 May 2014, a stable government which will complete its full term of five years in office comes to power. A party or a pre-poll alliance will need 272 MPs to form government at the Centre, which is a simple majority in 543-member Lok Sabha. Investors are expecting measures for revival of the economy, business-friendly policies and good governance from the new government that comes to power after the elections. Investors expect policy measures from the new government to put India on a high-growth path on a sustainable basis.
The BJP in its Lok Sabha polls manifesto has promised more business-friendly policies if the party comes to power after elections. The BJP has said that measures for the revival of the economy are its priority if the party comes to power after elections. India's GDP growth has slowed to a decade low of below 5%. The GDP grew 4.7% in Q3 December 2013.
European stock markets were slightly higher at the open on Thursday, 15 May 2014, as investors waited for first-quarter economic growth data for the euro zone and the final inflation reading for April. Key benchmark indices in UK, Germany and France were up 0.1% to 0.52%.
German economic growth accelerated more than forecast in first quarter as mild weather boosted construction and domestic demand countered weaker exports. Gross domestic product expanded 0.8% from the fourth quarter, when it rose 0.4%, the Federal Statistics Office in Wiesbaden said today. Germany, as the euro area's largest economy, is key to the 18-nation currency bloc's drive to sustain a recovery from its longest-ever recession.
France's economic recovery stalled in the first quarter as tax increases used by President Francois Hollande to cut the budget deficit squeezed consumers. Gross domestic product was unchanged in the period, compared with a revised 0.2% gain in the previous three months, national statistics office Insee said.
Asian stocks were mixed on Thursday, 15 May 2014. Key benchmark indices in China, South Korea, and Japan were off 0.03% to 1.12%. Key benchmark indices in Taiwan, Singapore and Hong Kong were up 0.06% to 0.45%.
Japan's economy grew at the fastest pace since 2011 in the first quarter as companies stepped up investment and consumers splurged before the first sales-tax rise in 17 years last month. Gross domestic product grew an annualized 5.9% from the previous quarter, the Cabinet Office said today in Tokyo.
Trading in US index futures indicated that the Dow could gain 6 points at the opening bell on Thursday, 15 May 2014. US stocks fell on Wednesday, with the Dow Jones Industrial Average and the S&P 500 index retreating from recent record highs, as small caps resumed their sell-off and consumer discretionary shares lagged.
Prices paid to American factories and service producers rose in April by the most in more than a year, indicating a diminishing risk of deflation as demand improves. The 0.6% increase in the producer price index was the biggest since September 2012 and exceeded all estimates, figures from the Labor Department showed.
Federal Reserve Chair Janet Yellen will speak later in the global day today, 15 May 2014, after saying last week the world's biggest economy still requires a strong dose of stimulus.
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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