A bout of volatility was witnessed as key benchmark indices regained positive terrain after slipping into the red for a brief period after opening slightly higher. The barometer index, the S&P BSE Sensex, was up 35.07 points or 0.16%, up close to 60 points from the day's low. The market breadth, indicating the overall health of the market was strong. Firmness in Asian stocks supported domestic bourses.
IndusInd Bank rose ahead of its Q4 results today, 16 April 2014. Tata Consultancy Services (TCS) dropped ahead of its Q4 results today, 16 April 2014. Glenmark Pharmaceuticals rose after the company said that Glenmark Generics Inc USA, a subsidiary of Glenmark Generics has been granted final abbreviated new drug approval (ANDA) from the USFDA for Eszopiclone Tablets.
Foreign institutional investors (FIIs) sold shares worth a net Rs 21.63 crore on Tuesday, 15 April 2014, as per provisional data from the stock exchanges.
At 9:32 IST, the S&P BSE Sensex was up 35.07 points or 0.16% to 22,520. The index rose 36.22 points at the day's high of 22,521.15 in early trade. The index declined 26.41 points at the day's low of 22,458.52 in early trade.
The CNX Nifty was up 8.50 points or 0.13% to 6,741.60. The index hit a high of 6,741.80 in intraday trade. The index hit a low of 6,724.65 in intraday trade.
The BSE Mid-Cap index was up 27.97 points or 0.38% at 7,339.96. The BSE Small-Cap index was up 25.30 points or 0.34% at 7,526.80. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market was strong. On BSE, 629 shares gained and 334 shares fell. A total of 41 shares were unchanged.
Sun Pharmaceutical Industries (up 0.92%), Tata Steel (up 0.88%) and GAIL (India) (up 0.72%) edged higher from the Sensex pack.
Glenmark Pharmaceuticals rose 0.95% after the company said at the onset of the trading session that Glenmark Generics Inc USA, a subsidiary of Glenmark Generics has been granted final abbreviated new drug approval (ANDA) from the USFDA for Eszopiclone Tablets. Glenmark will commence distribution of the product immediately. Eszopiclone Tablets are Glenmark's generic version of Sunovion's Lunesta. Lunesta garnered annual sales of $ 824 million according to IMS Health.
TCS dropped 0.6% ahead of its Q4 results today, 16 April 2014.
IndusInd Bank rose 0.82% ahead of its Q4 results today, 16 April 2014.
DLF declined 0.87%. With reference to the news report titled 'Sebi sniffs misuse of FII a/c by cos.' published in The Times of India on 15 April 2014 has requested Mr. Partha Sinha, Sr. Assistant Editor (Market), Times of India to publish a rejoinder as per the letter attached. In letter to the editor the company said "When you had contacted us last week regarding this, we had explicitly denied receiving any such query from Sebi. We wish to reiterate that at no stage have we ever indulged in the activities mentioned in your news item, or been the subject of any investigation in this regard or received any query from Sebi on this matter. The news reports also suggest that investigation predates to investments made about eight years ago. DLF has been listed for little under seven years, having done its IPO in July 2007. We hold TOI Group in high esteem and are anguished to note that you have published our name in the news item despite a specific denial having been issued by us to you in this regard. We once again reiterate that DLF follows the highest standards of corporate governance and has always acted strictly in compliance with all applicable laws, rules and regulations. We would request you to kindly publish this rejoinder to clarify the same to your esteemed readers at the earliest", it added.
Tata Steel gained 0.45%. The company said after market hours on Tuesday, 15 April 2014 in its revised press release that it completed the financial year ended 31 March 2014 (FY 2014) with an overall increase in production and sales volumes. The year registered its best performance in hot metal, crude steel, saleable steel production and total sales. Production of hot metal rose 8% to 2.65 million tonnes in Q4 March 2014 over Q4 March 2013. Production of hot metal rose 12% to 9.89 million tonnes in FY 2014 over FY 2013. Production of crude steel rose 8% to 2.47 million tonnes in Q4 March 2014 over Q4 March 2013. Production of crude steel rose 13% to 9.15 million tonnes in FY 2014 over FY 2013. Production of saleable steel rose 7% to 2.43 million tonnes in Q4 March 2014 over Q4 March 2013. Production of saleable steel rose 12% to 8.93 million tonnes in FY 2014 over FY 2013. Sales rose 6% to 2.27 million tonnes in Q4 March 2014 over Q4 March 2013. Sales rose 14% to 8.51 million tonnes in FY 2014 over FY 2013.
Private weather forecaster Skymet on Tuesday, 15 April 2014, said it expects the June-September monsoon to be below normal this year. It has forecast the monsoon at 94% (error margin of +/-4%) of the long period average (LPA) of 896 mm for the four-month period from June to September 2014. In terms of geographical risk, Skymet suggests that peninsular India will be at less risk through June, July, August and September (JJAS). There seems to be weakness in majority subdivisions in Northwest India viz. Gujarat, Saurashtra, Kutch, Punjab, Rajasthan and Haryana and in West-Central India viz. East MP, West MP, Chhattisgarh, Vidarbha, Marathwada, Madhya Maharshtra, Konkan & Goa, North Interior Karnataka and Telangana during the whole season, Skymet said in a statement. August is expected to be the best month among the four, although negative. It appears that onset of the monsoon may be staggered this time, Skymet said.
Jatin Singh, CEO, Skymet said: "This weakness in monsoon could possibly be attributed to an evolving ENSO". The ENSO is a phenomenon wherein the Central and East Pacific ocean warms (El Ni) or cools (La Ni), in turn affecting the monsoon. El Ni is evolving as of now, but is expected to get arrested, Skymet said. There is only a 30% chance of this phenomenon getting stronger, it said. If this El Ni was amplifying, then there would be a stronger chance of drought, like in 2009, Skymet said. This does not seem to be the case at this point in time, it said. There is no clear signal about the emergence of Indian Ocean Dipole (IOD) this year during monsoon, Skymet said.
According to Skymet, rains in June are expected at 90% of LPA (LPA = 174 mm). In July, the monsoon is expected at 94% of LPA (LPA = 285 mm). Rains in August are expected at 98% of LPA (LPA = 253 mm). Rains in September are expected at 90% of LPA (LPA = 184 mm).
The rate on inflation based all India general consumer price index (CPI) combined for urban and rural India accelerated to 8.31% (provisional) in March 2014, from 8.03% (final) in February 2014 led by increase in food prices, data released by the government after trading hours on Tuesday, 15 April 2014, showed. Core CPI inflation which excludes food and fuel prices eased to 7.82% in March 2014, from 7.84% in February 2014.
CPI inflation eased to 9.5% for the year ended 31 March 2014 (FY 2014), from 10.2% for the year ended 31 March 2013 (FY 2013).
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.
A major near term trigger for the stock market is the outcome of the upcoming Lok Sabha elections. The 36 days long voting process began on 7 April 2014 and will conclude on 12 May 2014. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.
Asian stocks gained on Wednesday, as China reported data on economic growth for the January-to-March period which was better than estimated. Key benchmark indices in South Korea, Hong Kong, Japan, Singapore, Indonesia and Taiwan were up 0.01% to 2.26%.
China's Shanghai Composite rose 0.26% in choppy trade. China's expansion slowed to the weakest pace in six quarters, testing leaders' commitment to keep reining in a credit boom and pollution as risks mount of missing a 7.5% annual growth target. However the growth was slightly higher than market expectations. Gross domestic product rose 7.4% in the January-to-March period from a year earlier, the National Bureau of Statistics said today in Beijing.
US stocks rose for a second day on Tuesday, after equities posted the worst week since 2012, as earnings from Coca-Cola Co. and Johnson & Johnson overwhelmed concerns that tensions in Ukraine are worsening.
Economic data showed manufacturing in the New York region grew at a slower pace in April while the cost of living in the US rose more than projected in March as food and rents became more expensive. Confidence among US homebuilders rose less than forecast in April, as sales and prospective buyer traffic stagnated, showing the residential real estate market struggled to improve after a harsh winter. An S&P index of homebuilders fell 0.6%.
The US Federal Reserve is considering further steps to force big banks to hold more capital, and sees a case for other stability-enhancing measures for more shadowy areas of Wall Street as well, Fed Chair Janet Yellen said on Tuesday.
The Fed has been pushing banks to strengthen their balance sheets since the 2007-2009 financial crisis, and last week joined other regulators in requiring the eight largest S. banks to increase their capital levels by some $68 billion in total.
She cited a 2010 study by the Basel Committee, an international standard-setting body, that suggested tighter standards would provide economic benefits.
The United States is in the process of implementing new international capital and liquidity standards known as Basel III, which will be phased in between 2015 and early 2019. The rules are meant to help banks weather short-term funding crises.
Yellen said the U.S. central bank's staff was "actively considering" whether even more needed to be done to address risks in the so-called short-term wholesale funding market, which is a significant source of funding for firms.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 29-30 April 2014. The Federal Reserve on 19 March 2014 decided after the conclusion of a monetary policy review to trim its monthly bond purchases by $10 billion to $55 billion.
Meanwhile, Ukraine unleashed an offensive to dislodge militants from towns in its eastern Donetsk region as the authorities in Kiev said elements of Russian special forces were identified among the anti-government forces. Russia's prime minister said the country risks civil war.
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