Key benchmark indices recovered from lower level after trimming intraday gains in mid-morning trade. The barometer index, the S&P BSE Sensex, was up 241.81 points or 0.99%, up 145.43 points from the day's low and off 81.39 points from the day's high. The market breadth indicating the overall health of the market was strong, with more than 2 gainers for every loser on BSE. The BSE Small-Cap index was up more than 1.5%. The BSE Mid-Cap index was up more than 1%. Both these indices outperformed the Sensex. Indian stocks edged higher today, 23 May 2014, on growing investor confidence that new Prime Minister Narendra Modi will take steps to boost economic growth.
Index heavyweight Reliance Industries (RIL) rose in volatile trade. State Bank of India advanced in volatile trade ahead of its Q4 March 2014 result today, 23 May 2014. Shares of power finance companies edged higher, with Power Finance Corporation hitting 52-week high.
Key benchmark indices edged higher in early trade on firm Asian stocks. Key benchmark indices extended initial gains in morning trade. The Sensex and the 50-unit CNX Nifty, both, hit one-week high. Key benchmark indices recovered from lower level after trimming intraday gains in mid-morning trade.
At 12:20 IST, the S&P BSE Sensex was up 241.81 points or 0.99% to 24,616.21. The index jumped 323.20 points at the day's high of 24,697.60 in mid-morning trade, its highest level since 16 May 2014. The index rose 96.38 points at the day's low of 24,470.78 in early trade.
The CNX Nifty was up 64.85 points or 0.89% to 7,341.25. The index hit a high of 7,365.35 in intraday trade, its highest level since 16 May 2014. The index hit a low of 7,293.90 in intraday trade.
The market breadth indicating the overall health of the market was strong, with more than 2 gainers for every loser on BSE. On BSE, 2,016 shares gained and 769 shares fell. A total of 87 shares were unchanged.
The BSE Mid-Cap index was up 107.62 points or 1.26% at 8,625.84. The BSE Small-Cap index was up 152.77 points or 1.7% at 9,113.47. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2539 crore by 12:15 IST on BSE, compared with Rs 2009 crore by 11:15 IST.
Index heavyweight Reliance Industries (RIL) rose 1.56% to Rs 1,118. The stock was volatile. The stock hit high of Rs 1,120.75 and low of Rs 1,102 so far during the day.
India's biggest commercial bank in terms of branch network, State Bank of India (SBI), was up 2.52% at Rs 2,575.05. The stock hit high of Rs 2,593.80 and low of Rs 2,497.35 so far during the day. SBI is scheduled to announce its Q4 March 2014 results today, 23 May 2014.
Shares of power finance companies edged higher. Rural Electrification Corporation was up 3.01% at Rs 343.80.
Power Finance Corporation was up 2.84% at Rs 307.90. The stock hit 52-week high of Rs 309.45 in intraday trade.
CMC rose 1.59% after the Reserve Bank of India on Thursday, 22 May 2014, notified that foreign institutional investors (FIIs), through primary market and stock exchanges, can now purchase up to 35% (revised from earlier 24%) of the paid up capital of CMC under the portfolio investment scheme (PIS). CMC has passed resolutions at the board of directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs.
RBI further notified that the foreign share holding by FIIs in CMC have gone below the revised threshold limit stipulated under the extant FDI policy. Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect.
SKS Microfinance lost 2.11% to Rs 276.65, with the stock sliding on profit booking after recent rally. The stock had jumped 18% in five trading sessions to settle at Rs 282.60 on Thursday, 22 May 2014, from a recent low of Rs 239.50 on 15 May 2014.
SKS Microfinance after trading hours on Thursday, 22 May 2014, announced closure of qualified institutional placement (QIP) of 1.77 crore shares to qualified institutional buyers at Rs 225 per share aggregating to approximately Rs 400 crore. The QIP was launched on 19 May 2014, and closed on Thursday, 22 May 2014. The QIP was oversubscribed, SKS Microfinance said in a statement.
Announcing the closure, Mr. S. Dilli Raj, President, SKS Microfinance said, "The overwhelming response to our QIP endorses investors' confidence in SKS Microfinance's turnaround and the improved business prospects for the MFI sector. This is a market opening transaction, and we are delighted that the first issuance post the election of the new Central Government is from an inclusive sector like microfinance".
"The QIP will enable us to augment our member base from the present 4 million to 8.5 million over the next three years, and meet their credit requirements. This growth capital will help us fund our stable growth plans", said Mr. M.R. Rao, Managing Director and Chief Executive Officer, SKS Microfinance.
SKS Microfinance's networth of Rs 459 crore as of March 31, 2014 will cross Rs 850 crore (approximate) post the QIP, the company said in a statement.
Gitanjali Gems fell 3.67% to Rs 98.55 on profit booking after the stock surged 58.48% in the preceding four trading sessions to Rs 102.30 on 22 May 2014, from a recent low of Rs 64.55 on 16 May 2014.
Jain Irrigation Systems surged 6.56% to Rs 117.85 after net profit jumped 95% to Rs 81.60 crore on 8.9% growth in sales including other operating income and excise duty to Rs 1428.10 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced after market hours on Thursday, 22 May 2014.
Jain Irrigation Systems (Jain Irrigation)'s adjusted profit after tax before forex surged 163.23% to Rs 71.60 crore in Q4 March 2014 over Q4 March 2013.
After Bharatiya Janata Party (BJP) led National Democratic Alliance's (NDA) landslide victory in the recently concluded Lok Sabha election, investors are expecting measures from the incoming government to revive the Indian economy. There are expectations that Narendra Modi will be in a position to replicate the economic success he enjoyed in Gujarat state when he takes over as the country's Prime Minister. 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. 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 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 last week, speculation has been rife about the likely allocation of key ministerial portfolios in the Modi-led NDA government.
Modi will be sworn in as India's next Prime Minister on Monday, 26 May 2014, evening at the Rashtrapati Bhawan.
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 edged higher on Friday, 23 May 2014, on signs of growth in the world's largest economies. Key benchmark indices in China, Hong Kong, South Korea, Taiwan, Singapore, Japan and Indonesia were up 0.08% to 0.87%.
Thailand's army staged its 12th coup in eight decades on Thursday, 22 May 2014, as the army chief said he was seizing control to restore peace. Thailand's military seized control following a six-month political stalemate that has sapped economic growth.
Trading in US index futures indicated that the Dow could advance 6 points at the opening bell on Friday, 23 May 2014. US stocks built on advances from the previous session and closed modestly higher on Thursday, 22 May 2014, as data showing strength in manufacturing boosted confidence in the global economy.
The Markit Economics preliminary index of US manufacturing increased to 56.2 in May from 55.4 a month earlier as output accelerated, the London-based group said on Thursday, 22 May 2014. Readings above 50 for the purchasing managers' measure indicate expansion and the May figure was the highest in three months.
In other economic news, new applications for unemployment benefits rose sharply in mid-May, reversing a big drop earlier in the month that put initial claims at a seven-year low. Sales of existing homes rose 1.3% in April to a seasonally adjusted annual rate of 4.65 million, the National Association of Realtors reported Thursday.
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
