Key benchmark indices recovered and swung between gains and losses in mid-morning trade. The barometer index, the S&P BSE Sensex, was down 10.30 points or 0.05%, up close to 30 points from the day's low and off close to 70 points from the day's high. The market breadth, indicating the overall health of the market, was strong.
Steel stocks rose for the second day in a row triggered by ArcelorMittal, the world's biggest steelmaker, announcing strong Q4 December 2013 results and said earnings will continue to climb in 2014. NMDC rose ahead of its Q3 December 2013 results today, 10 February 2014. Hindalco Industries rose ahead of its US subsidiary, Novelis Inc.'s Q3 December 2013 results today, 10 February 2014.
The market edged higher in early trade. The 50-unit CNX Nifty hit highest level in over one-week. It reversed initial gains and hit fresh intraday low in morning trade. It swung between gains and losses in mid-morning trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 267.26 crore on Friday, 7 February 2014, as per provisional data from the stock exchanges.
At 11:28 IST, the S&P BSE Sensex was down 10.30 points or 0.05% to 20,366.43. The index fell 40.41 points at the day's low of 20,336.15 in morning trade. The index rose 57.94 points at the day's high of 20,434.50 in early trade.
The CNX Nifty was up 2 points or 0.03% to 6,065.20. The index hit a low of 6,051.30 in intraday trade. The index hit a high of 6,083.05 in intraday trade, its highest level since 31 January 2014.
The BSE Mid-Cap index was up 26.54 points or 0.42% at 6,363.68. The BSE Small-Cap index was up 37.86 points or 0.6% at 6,366.62. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,150 shares rose and 771 shares fell. A total of 115 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks rose and rest fell. Bharti Airtel (down 1.74%), Hindustan Unilever (down 1.8%) and GAIL (India) (down 1.25%) edged lower from the Sensex pack.
Steel stocks rose for the second day in a row triggered by ArcelorMittal, the world's biggest steelmaker, announcing strong Q4 December 2013 results and said earnings will continue to climb in 2014. Tata Steel (up 1.02%), Steel Authority of India (Sail) (up 0.55%), JSW Steel (up 0.5%) and Jindal Steel and Power (JSPL) (up 0.82%) gained.
ArcelorMittal said its earnings before interest, taxes, depreciation and amortization (EBITDA) rose to $1.91 billion in Q4 December 2013, from $1.56 billion in Q4 December 2012. The result was announced on Friday, 7 February 2014. The company said earnings will continue to climb in 2014, forecasting full-year EBITDA of about $8 billion.
Among metal stocks, Sesa Sterlite (up 0.37%), National Aluminum Company (up 1.07%), Hindustan Copper (up 0.16%), and Hindustan Zinc (up 1.2%) gained.
NMDC rose 1.21% ahead of its Q3 December 2013 results today, 10 February 2014.
NMDC said on Saturday, 8 February 2014 that on a provisional basis, its iron ore production rose 12.16% to 23.23 million tonnes in the ten months ended 31 January 2014 over the ten months ended 31 January 2013. Iron ore despatches on a provisional basis rose 15.45% to 24.28 million tonnes in the ten months ended 31 January 2014 over the ten months ended 31 January 2013.
The company also said that it has rolled over the January 2014 prices of lump ore of Rs 4500 per WMT to the month of February 2014. It increased the prices of iron ore fines by Rs 100 per WMT to Rs 2910 per WMT for the month of February 2014.
Hindalco Industries rose 0.33% ahead of its US subsidiary Novelis Inc. Q3 December 2013 results today, 10 February 2014.
Puravankara Projects lost 5.37% after consolidated net profit fell 68.78% to Rs 20.1 crore on 13.67% decline in revenue to Rs 268.30 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced after market hours on Friday, 7 February 2014.
Commenting on the company's Q3 performance, Ashish Puravankara, Joint MD, Puravankara Projects said, "We have focused on new launches in the last quarter, the response of which has been very good with consistent sales. The impact of these sales will be realized on our cash flows and profitability in the coming quarters and we expect to continue this momentum".
Area sold in Q3 December 2013 was at 0.90 million square feet (msf) compared to 0.91 msf in Q3 December 2012. Sales value rose 9% to Rs 402.80 crore in Q3 December 2013 over Q3 December 2012. Puravankara's sales realization for ongoing projects rose 10% to Rs 5,042 per square feet (psft) in Q3 December 2013 over Q3 December 2012. Provident realization stood at Rs 3,702 psft in Q3 December 2013.
Puravankara said that immediate launches of the group in Q4 March 2014 totals 2.73 msf under both Puravankara and Provident. Of this, Puravankara has already pre-launched 1.92 msf in Bengaluru which has met with an excellent response from the market, the company said in a statement.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.20, higher than its close of 62.28 on Friday, 7 February 2014.
The Union Cabinet on Friday, 7 February 2014 cleared the Bill for the creation of Telangana. The Bill will be introduced in the Parliament on 11 or 12 February 2014. The Bill will be presented in the Rajya Sabha in the present form and the government will move 32 amendments when it is taken up for consideration. The Bill will be tabled along with a summary of 30-odd pages on the proceedings in the Andhra Pradesh Assembly and Council, along with a number of amendments proposed by the State legislators.
The Indian economy is expected to continue to expand at a pace of less than 5% in the year ending 31 March 2014, according to a government forecast released after trading hours on Friday, 7 February 2014. In the latest official forecast for the fiscal year ending next month, the Ministry of Statistics & Programme Implementation projected a 4.9% expansion for 2013-14. The weak growth projection underscores the severity of the slowdown in the south Asian economy which grew close to 9% as recently as in the year ended 31 March 2011. The statistics ministry's estimates show that the manufacturing output is expected to contract 0.2% during the current fiscal year while mining output is expected to fall 1.9%. However, farm output growth is expected to be much better this year on the back of higher-than-usual rainfall. The ministry estimates a 4.6% expansion in farm output, compared with the 1.4% increase in the last fiscal year. Output of services, which contribute about 60% to India's GDP, is expected to grow 6.9% this year, almost the same as the 7% expansion last fiscal year.
On 31 January 2014, the statistics ministry revised down GDP growth for the previous fiscal year to 4.5%, from an earlier estimate of 5%.
Finance Minister P Chidambaram will present the Vote-on-Account or interim budget on 17 February 2014. The objective of a Vote-on-Account is to get Parliament's nod for expenditure to be incurred in the months prior to elections. The next full-fledged budget will be presented by the new government which comes to power after the Lok Sabha polls in April-May 2014.
The government will unveil data on inflation based on the combined consumer price index (CPI) for urban and rural India for the month of January 2014 on Wednesday, 12 February 2014. The CPI inflation slowed to 9.87% in December 2013, from 11.16% in November 2013.
The government will unveil data on inflation based on the wholesale price index (WPI) for the month of January 2014 on Friday, 14 February 2014. The WPI inflation eased to 6.16% in December 2013, from 7.52% in November 2013.
Data on industrial production for December 2013 will be out on Wednesday, 12 February 2014. Industrial output declined 2.1% in November 2013, recording decline for second consecutive month after 1.6% dip in October 2013.
The Reserve Bank of India next undertakes monetary policy review on 1 April 2014. Sighting elevated consumer price inflation, 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 rose on Monday after US jobs data spurred the biggest two-day rally for US equities since October. Key benchmark indices in China, Indonesia, South Korea, Japan, and Taiwan rose 0.08% to 1.79%. Key benchmark indices in Hong Kong and Singapore fell 0.04% to 0.1%.
China's central bank signaled volatility in money-market interest rates will persist and borrowing costs will rise, underscoring the risk of defaults that could weigh on confidence and drag down growth.
Japan's current-account deficit widened to a record in December on soaring imports, adding to Prime Minister Shinzo Abe's challenges as he tries to drive a recovery in the world's third-biggest economy. The 638.6 billion yen ($6.2 billion) shortfall surpassed November's gap of 592.8 billion yen, the finance ministry said in Tokyo today.
Business activity across emerging markets expanded in January at the slowest pace in four months, dragged down by sluggish services sectors in the BRIC quartet of big developing countries, a survey showed on Monday. HSBC's composite emerging markets index of manufacturing and services purchasing managers' surveys slipped for the second month running to 51.4 in January. It stayed under the 2013 average of 51.7 and well below the score of 64.1 posted last January.
But the monthly index remained above the 50 threshold which marks the difference between expansion and contraction. Based on data from purchasing managers at about 8,000 firms in 17 countries, the survey showed signs of manufacturing and export revival in some countries but Chinese factory output fell below the 50 mark, Brazilian manufacturing growth slowed and output fell in Russia and Indonesia. Growth was stronger in India, Poland, Taiwan and Mexico. January services activity in the biggest emerging markets was at a six-month low. India and Brazil both posted declines, while growth rates in China and Russia were weak, HSBC said.
Trading in US index futures indicated that the Dow could gain 3 points at the opening bell on Monday, 10 February 2014. US stocks surged on Friday amid optimism economic growth is robust enough to weather stimulus cuts even as data showed weaker-than-forecast hiring.
Payrolls rose less than projected in January and the jobless rate unexpectedly dropped to the lowest level in more than five years, clouding the outlook for the US economy and Federal Reserve. The 113,000 gain in hiring fell short of the estimates and followed a 75,000 increase the prior month, Labor Department data showed in Washington. Unemployment declined to 6.6%, the least since October 2008, from 6.7% in December.
Federal Reserve chairman Janet Yellen takes center stage on Capitol Hill tomorrow, delivering her first semi-annual monetary testimony as markets weigh how mixed economic reports last week will affect the central bank's plan for reducing stimulus.
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. The Fed also signaled that it is likely to keep reducing bond purchases in the coming months, citing a pickup in US economic activity and improvement in the US labor market.
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