Immense volatility was during the second half of the trading session as key benchmark indices trimmed strong intraday gains. The barometer index, the S&P BSE Sensex, regained positive zone after slipping into the red from green. The Nifty provisionally ended in the red. The Sensex was provisionally up 26.65 points or 0.11%, off close to 455 points from the day's high and up about 285 points from the day's low. The barometer index jumped as much 481.87 points or 1.95% at the day's high of 25,175.22 in early afternoon trade. The Sensex lost as much as 259.45 points or 1.05% at the day's low of 24,433.90 in late trade. The market breadth indicating the overall health of the market turned negative from positive in late trade. The BSE Mid-Cap and Small-Cap indices, both, slumped over 2% each.
Today's high intraday volatility on the bourses came ahead of Narendra Modi taking oath as India's next Prime Minister today, 26 May 2014, evening, with investors awaiting the composition of the Modi-led government and key ministerial portfolios.
Realty stocks slumped. Shares of IT companies rose on positive economic data in US, the biggest outsourcing market for the Indian IT firms.
Indian stocks surged in early trade ahead of Prime Minister designate Narendra Modi's swearing in ceremony today, 26 May 2014, evening. Firmness continued on the bourses in morning trade. Key benchmark indcies extended gains and hit fresh intraday high in mid-morning trade. The Sensex hit over one-week high above the psychological 25,000 level. The 50-unit CNX-Nifty also hit its highest level in more than a week. Key benchmark indices trimmed gains after hitting fresh intraday high in early afternoon trade. Key benchmark indices further trimmed intraday gains in mid-afternoon trade. Immense volatility was during the second half of the trading session as key benchmark indices trimmed strong intraday gains.
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.
As per provisional figures, the S&P BSE Sensex was up 26.65 points or 0.11% to 24,720. The index jumped 481.87 points at the day's high of 25,175.22 in early afternoon trade, its highest level since 16 May 2014. The index fell 259.45 points at the day's low of 24,433.90 in late trade, its lowest level since 22 May 2014.
The CNX Nifty was down 8.05 points or 0.11% to 7,359.05, as per provisional figures. The index hit a high of 7,504 in intraday trade, its highest level since 16 May 2014. The index hit a low of 7,269.05 in intraday trade, its lowest level since 22 May 2014.
The BSE Mid-Cap index was off 183.26 points or 2.11% at 8,485.06. The BSE Small-Cap index was off 204.39 points or 2.24% at 8,923.65. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 6100 crore, higher than Rs 5,449.88 crore on Friday, 23 May 2014.
The market breadth indicating the overall health of the market turned negative from positive in late trade. On BSE, 1,660 shares declined and 1,362 shares rose. A total of 108 shares were unchanged.
Among the 30-share Sensex pack, 18 stocks declined and rest of them rose. Mahindra & Mahindra (M&M) (up 6.23%), Sesa Sterlite (up 4.24%) and Tata Motors (up 2.76%) edged higher from the Sensex pack.
Realty stocks declined. D B Realty (down 10.19%), Sobha Developers (down 1.31%), Unitech (down 4.9%) and Housing Development & Infrastructure (down 9.16%) declined.
DLF shed 5.63% to Rs 204.35. The company said after market hours on Friday, 23 May 2014 that DLF Emporio, a subsidiary of DLF, has successfully placed India's first Commercial Mortgage Backed Security (CMBS) issuance of Rs 525 crore, with a coupon rate of 10.90% per annum (p.a.) and legal maturity of 7.5 years. DLF Emporio owns and operates approximately 3 lakh square feet (sq. ft) of a Luxury Mall in New Delhi, India. The CMBS issue is rated CRISIL AA (SO). This is a landmark issuance, being the first of its kind in the country at a competitive pricing. This shall pave way for more such issuances in future, DLF said in a statement.
Shares of IT companies rose on positive economic data in US, the biggest outsourcing market for the Indian IT firms. TCS (up 1.23%), HCL Technologies (up 4.01%), Wipro (up 3.18%), Infosys (up 0.89%), and Tech Mahindra (up 1.39%) edged higher.
Lakshmi Machine Works advanced 3.57% after net profit jumped 88.4% to Rs 53.70 crore on 27.5% growth in total income to Rs 679.34 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced after market hours on Friday, 23 May 2014. On a consolidated basis, Lakshmi Machine Works (LMW)'s net profit surged 45.9% to Rs 189.06 crore on 17% growth in total income to Rs 2448.41 crore in the year ended 31 March 2014 over the year ended 31 March 2013.
Lanco Infratech fell by maximum permissible 10% lower circuit at Rs 13.45 on BSE after the company declared weak result for Q4 and year ended 31 March 2014 after market hours on Friday, 23 May 2014. On consolidated basis, Lanco Infratech reported a net loss of Rs 584.29 crore in Q4 March 2014, higher than net loss of Rs 31.59 crore in Q4 March 2013. Net sales declined 24% to Rs 2803.39 crore in Q4 March 2014 over Q4 March 2013.
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. India's GDP growth slowed sharply at 4.7% in Q3 December 2013. Investors hope that the BJP-led government would be able to accelerate policy reforms and overhaul the country's poor infrastructure.
Modi is favored by business leaders because of his record in Gujarat, which he's led since 2001. With Modi at the helm of affairs, Gujarat's economy expanded by 10.1% a year, on average and adjusting for inflation, from 2001 and 2012, compared with 7.7% growth a year for India's economy as a whole.
Modi has pledged to fight inflation by cracking down on food hoarders, creating a national agriculture market and improving rural infrastructure.
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.
European stocks edged higher on Monday, 26 May 2014. Key benchmark indices in Germany and France were up 0.34% to 0.9%. The stock market in UK was closed for a holiday.
European Central Bank President Mario Draghi signaled policy makers are ready to take action in June should they see low inflation becoming entrenched. "What we need to be particularly watchful for at the moment is, in my view, the potential for a negative spiral to take hold between between low inflation, falling inflation expectations and credit, in particular in stressed countries," Draghi said in a speech at the ECB Forum in Sintra, Portugal. The key issue today, however, is timing, he added. We are not resigned to allowing inflation to remain too low for too long, he said today. There is no debate about our goal, which is to return inflation toward 2% in the medium-term, in line with our mandate.
German consumer confidence is due to stabilize at a high level in June, suggesting that the continuing tension in Ukraine has yet to have a noticeable impact on German consumer sentiment. The Nuremberg-based GfK institute's forward-looking indicator is due to be 8.5 in June, the group reported Monday, matching the previous month.
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, Hong Kong and Japan were up 0.15% to 0.97%. Key benchmark indices in Indonesia and South Korea were off 0.01% to 0.34%.
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, 26 May 2014, 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.
Powered by Capital Market - Live News
