Key benchmark provisionally eked out small gain in a volatile trading session. The barometer index, the S&P BSE Sensex, was provisionally up 31.23 points or 0.15%, off 69.87 points from the day's high and up 64.94 points from the day's low. The market breadth, indicating the overall health of the market, was negative.
Metal and mining stocks edged lower. IT stocks rose on renewed buying, with HCL Technologies hitting record high and Wipro hitting 52-week high. Sugar stocks rose after raw sugar futures on ICE soared to three-month high on Monday, 25 February 2014, on worries about potential crop damage from dry weather in Brazil.
Key benchmark indices edged higher in early trade on firm Asian stocks. The Sensex and the 50-unit CNX Nifty, both, hit 4-1/2-week high. Key benchmark indices trimmed initial gains in morning trade. Key benchmark indices hovered in green in mid-morning trade. Key benchmark trimmed intraday gains in early afternoon trade as the Shanghai Composite index extends losses in late trading there. Key benchmark indices slipped into the red later. Key benchmark indices regained positive zone in mid-afternoon trade.
The market may remain volatile tomorrow, 26 February 2014, as traders roll over positions in the futures and options (F&O) segment from the near-month February 2014 series to March 2014 series. The near month February 2014 F&O contracts expire tomorrow, 26 February 2014. The stock market remains closed on Thursday, 27 February 2014, on account of Mahashivratri.
Foreign institutional investors (FIIs) bought shares worth a net Rs 266.87 crore on Monday, 24 February 2014, as per provisional data from the stock exchanges.
As per provisional closing, the S&P BSE Sensex was up 31.23 points or 0.15% to 20,842.67. The index jumped 101.10 points at the day's high of 20,912.54 in early trade, its highest level since 24 January 2014. The index fell 33.71 points at the day's low of 20,777.73 in afternoon trade.
The CNX Nifty was up 10.95 points or 0.18% to 6,197.05. The index hit a high of 6,216.85 in intraday trade, its highest level since 24 January 2014. The index hit a low of 6,176.60 in intraday trade.
The BSE Mid-Cap index was up 18.63 points or 0.29% at 6460.23, outperforming the Sensex. The BSE Small-Cap index was up 6.36 points or 0.1% at 6,421.99, underperforming the Sensex.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,343 shares fell and 1,315 shares rose. A total of 162 shares were unchanged.
The total turnover on BSE amounted to Rs 1829 crore, lower than Rs 1904 crore on Monday, 24 February 2014.
Coal India (down 2.36%), GAIL (India) (down 1.42%) and NTPC (down 1.32%) edged lower form the Sensex pack. Bajaj Auto (up 2.14%), Bharat Heavy Electricals (Bhel) (up 2.01%) and Cipla (up 1.74%) edged higher from the Sensex pack.
IT stocks were in demand on renewed buying. TCS was up 0.32%.
Wipro rose 2.82% to Rs 594.40 after hitting a 52-week high of Rs 596.80 in intraday trade.
HCL Technologies gained 1.24% to Rs 1,549.90 after hitting record high of Rs 1,553.50 in intraday trade.
Infosys rose 0.79%. Infosys on 22 February 2014 announced that it has commenced work on its new campus in Mohali, Punjab. The new campus at SAS Nagar, Mohali, will be spread over 50 acres of land allocated by the Government of Punjab and will see construction undertaken in phases. In the first phase of construction, the company will make an investment of Rs 425 crore to create a built-up area of 6.5 lakh sq. ft. to seat 5,000 software professionals. Phase I of this state-of-the-art facility is likely to be completed in the next 24 months.
Tech Mahindra rose 0.65%. Tech Mahindra during market hours today, 25 February 2014, announced that the company has signed a formal teaming agreement with Sierra Wireless to work collaboratively to develop and deploy end-to-end M2M solutions for customers worldwide. The collaboration leverages Sierra Wireless device-to-cloud offerings and Tech Mahindra's system integration and application development expertise to offer cost-effective, turnkey solutions tailored for prospective M2M customers in markets such as energy, transportation, industrial, and healthcare.
As part of the collaboration, Sierra Wireless will provide prospective joint customers with AirPrime embedded wireless modules or AirLink gateways and modems, along with enterprise platform and device management capability through AirVantage M2M Cloud. Tech Mahindra will provide consulting and solutions integration services.
Tech Mahindra after market hours on Monday, 24 February 2014, announced the launch of its Near Field Communication (NFC) test lab in Bangalore, India. The NFC Testing and Consulting capabilities in the lab will cater to the fast-growing needs of chipset manufacturers, OEMs, Service Providers, Acquires and Issuers from the banking industry.
Speaking on the occasion, Sirisha Voruganti, Head, Device Testing, Tech Mahindra said: "The convergence of payments schemes on the smartphones from leading banks has caused a lot of interoperability and compliance issues in the network as well. With this test lab, we are geared to help the Chipset manufacturers, OEMs and Service Providers to reduce the failure rates to NIL in the field and hasten their market growth. Our Lab focuses on troubleshooting and consulting with global clients while providing cost-effective test solution".
Many metal and mining stocks edged lower. Sesa Sterlite (down 2.37%), NMDC (down 2.66%), JSW Steel (down 2.69%), Hindustan Zinc (down 1.13%), Steel Authority of India (Sail) (down 3.67%), National Aluminum Company (down 0.93%), Jindal Steel & Power (JSPL) (down 1.33%) and Tata Steel (down 2.38%) declined. Hindustan Copper (up 0.86%) and Hindalco Industries (up 1.28%) gained.
Sugar stocks rose after raw sugar futures on ICE soared to three-month high on Monday, 25 February 2014, on worries about potential crop damage from dry weather in Brazil. Dwarikesh Sugar Industries (up 2.7%), Balrampur Chini Mills (up 2.65%), Sakthi Sugars (up 1.77%), Bajaj Hindusthan (up 1.47%) edged higher.
Raw sugar futures on ICE soared to three-month highs on Monday on worries about potential crop damage from dry weather in Brazil. Raw-sugar futures for May delivery rose 3.6% to 17.68 cents a pound on ICE, after touching 17.79 cents, the highest for a most-active contract since 19 November 2013.
Rising global sugar prices will help domestic sugar companies increase exports and offset the impact of falling production.
India's sugar output fell over 13% to 14.4 million tonnes so far this year on delayed crushing. Mills had manufactured 16.58 million tonnes of sugar in the corresponding period of the 2012-13 marketing year (October-September), according to industry body Indian Sugar Mills Association (ISMA).
On exports, ISMA said about 850,000 tonnes of sugar has been sold in the overseas market till January of this year. Of this, 450,000 tonnes was raw sugar and the rest refined. Another 1.2 to 2 lakh tonnes, mostly raw sugar, are in transit for getting exported, it added.
The country had sugar stock of 11.7 million tonnes till January this year. ISMA, which has pegged sugar output at 25 million tonnes for this year, said it will soon review the estimate figures.
In the foreign exchange market, the rupee edged higher against the dollar, tracking gains in other Asian currencies versus the dollar. The partially convertible rupee was hovering at 61.98, compared with its close of 62.07/08 on Monday, 24 February 2014.
Reserve Bank of India (RBI) Governor Raghuram Rajan in a television interview which was broadcast on Monday, 24 February 2014, said the government and the central bank shared similar views on inflation management, while reiterating a call for the US Federal Reserve to be more sensitive to emerging economies. Rajan's comments come after Finance Minister P. Chidambaram last week chided the central bank over its focus on fighting inflation, saying the RBI needed to abide by government policy to promote economic growth. "It's not as if the government is on a different page on what we've been doing on inflation thus far. They may have different views on what they would like to see done, but there is a process, there is a conversation. I think there is fair amount of coordination at the highest level," Rajan said.
Rajan said the central bank panel report on inflation was consistent with the government's stance. "We have a committee which has suggested a target, which is also by the way, consistent with the process the finance ministry's committee has suggested, so there is no disagreement about the broader need to get a framework in place. I think in terms of how I see the process, is really that the government sets the objective, and the central bank delivers on that objective," Rajan said.
Rajan said he believes India is likely to continue with its major economic policies irrespective of the government at the Centre after the upcoming general elections. "My sense is if there is a stable coalition post election, no matter which persuasion it is, the broad policies will continue. There may be difference in details but they are all for passing the Goods and Services Tax, all for a number of actions that the current government is taking," Rajan said. The central bank is likely to continue the level of coordination and discussion with the government after the elections, Rajan said.
Rajan also reiterated his call for the Federal Reserve to take into account the impact of its withdrawal of monetary stimulus on emerging economies, despite saying he was comfortable with the current pace of tapering. "I actually welcome a measured pace of tapering. The only thing I have been calling for is that in the communication there should be some sensitivity to conditions in emerging markets. And this is not from our perspective, this is broadly emerging markets, some of whom have been in trouble in the last few months. But I am fully prepared for a tapering that continues at this measured pace," Rajan said.
The Reserve Bank of India next undertakes monetary policy review on 1 April 2014. Citing price pressures, 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.
European stocks edged lower on Tuesday, 25 February 2014, with mining firms sliding as metals prices weakened and Vivendi SA dropping after an earnings report. Key benchmark indices in UK, Germany and France were off 0.35% to 0.57%.
In Germany, gross domestic product rose 0.4% in the fourth quarter from the previous three months, final figures showed today, 25 February 2014, confirming a Feb. 14 estimate.
French business confidence in industry remained steady in February, at the same level recorded in the two previous months, a measure from statistics bureau Insee showed Tuesday. The indicator of French business confidence came in at 100, the long-term average for the index.
The monthly survey by Insee found that entrepreneurs in industry are more confident about recent levels of production in February, but their order books fell back a little and their outlook for production in the sector weakened slightly. Insee's wider measure of business confidence--including wholesale, construction, retail and the services sector--was also stable in February at 94.
In Italy, Prime Minister Matteo Renzi won a confidence vote in the Senate, giving his new coalition government a first indication of its backing in parliament.
Ukraine's acting president, Oleksandr Turchynov, told parliament he expects lawmakers to vote today, 25 February 2014, on a national unity government led by a prime minister people would trust. Turchynov indicated on Monday, 24 February 2014, that he expects to move quickly to fill the government vacuum so officials can seek the economic aid needed to fend off default.
Chinese stocks led decline in Asian markets on Tuesday, 25 February 2014, amid speculation a weaker property market and falling yuan will curb corporate earnings in the world's second biggest economy. In mainland China, the Shanghai Composite index lost 2.04%. Hong Kong's Hang Seng index lost 0.32%. China's Industrial Bank Co. on Monday, 24 February 2014, said it will delay loans for property projects until the end of March, fueling speculation that a weaker housing market will erode demand for everything from electric appliances to cars.
In other Asian markets, key benchmark indices in Indonesia and Singapore were off 0.07% to 1%. Key benchmark indices in Japan, Taiwan and South Korea were up 0.18% to 1.44%.
Trading in US index futures indicated that the Dow drop 20 points at the opening bell on Tuesday, 25 February 2014. US stocks climbed on Monday, 24 February 2014, boosted by M&A activity, an upbeat German confidence report and bets that the S&P 500's foray into new high ground could spur further buying. The main indexes finished with solid gains, although they ended well off their session highs as buying momentum faded.
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.
Powered by Capital Market - Live News
