Key benchmark indices alternately swung between positive and negative zone near the flat line in early afternoon trade. The barometer index, the S&P BSE Sensex, was currently up 8.35 points or 0.04%, off close to 55 points from the day's high and up about 45 points from the day's low. The market breadth, indicating the overall health of the market was positive.
Telecom stocks were in demand. Pharma stocks also gained. Among auto shares, Eicher Motors scaled record high. Index heavyweight and cigarette maker ITC edged higher in volatile trade.
A bout of volatility was witnessed in early trade as key benchmark indices regained strength after slipping into the red for the brief period after opening higher. Intraday volatility continued as key benchmark indices alternately swung between positive and negative zone in morning trade. Volatility continued as key benchmark indices trimmed gains after hitting fresh intraday high in mid-morning trade. Key benchmark indices alternately swung between positive and negative zone near the flat line in early afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1011.95 crore on Tuesday, 18 March 2014, as per provisional data from the stock exchanges.
At 12:20 IST, the S&P BSE Sensex was up 8.35 points or 0.04% to 21,840.96. The index gained 63.22 points at the day's high of 21,895.83 in mid-morning trade. The index fell 36.67 points at the day's low of 21,795.94 in morning trade.
The CNX Nifty was up 10.45 points or 0.16% to 6,527.10. The index hit a high of 6,541.20 in intraday trade. The index hit a low of 6,506 in intraday trade.
The BSE Mid-Cap index was up 26.61 points or 0.4% at 6,745.98. The BSE Small-Cap index was up 30.05 points or 0.45% at 6,721.73. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,277 shares rose and 1,101 shares fell. A total of 172 shares were unchanged.
AXIS Bank (up 2.11%), Tata Steel (up 3.9%) and Sesa Sterlite (up 2.7%) edged higher from the Sensex pack.
Hindalco Industries jumped 5.09%, with the stock extending intraday gains.
Index heavyweight and cigarette maker ITC rose 0.76% to Rs 358.60. The stock hit high of Rs 359.85 and low of Rs 355.60 so far during the day.
Telecom stocks were in demand. Idea Cellular (up 1.1%), MTNL (up 0.49%) Tata Teleservices (Maharashtra) (up 0.86%) and Reliance Communications (up 3.58%) gained.
Bharti Airtel rose 1.64%. Eight major mobile operator groups covering 551 million mobile connections across Africa and the Middle East plan to cooperate on network infrastructure sharing initiatives that aim to enhance the use of network infrastructure to connect underserved communities across these regions, said GSMA which represents the interests of mobile operators worldwide. The announcement was made in London on Tuesday, 18 March 2014. The initial group of senior leaders from mobile operator groups who support this initiative includes Christian de Faria, CEO Africa, Bharti Airtel, Ahmad Julfar, Group CEO, Etisalat Group, Sifiso Dabengwa, CEO and President, MTN Group, Dr. Nasser Marafih, Group CEO, Ooredoo Group, Marc Rennard, Senior Executive Vice President, Africa, Middle East and Asia, Orange, Abdulaziz A. Alsugair, Chairman and Managing Director, STC Group, Serpil Timuray, CEO, Africa, Middle East and Asia Pacific Region, Vodafone Group and Scott Gegenheimer, CEO, Zain Group. The participating operators have made this commitment in order to provide Internet and mobile broadband access to unserved rural communities and drive down the cost of mobile services for all sections of the population, GSMA said in a statement. They collectively manage 79 mobile network operations across 47 countries in Africa and the Middle East, where many of the unconnected population live in rural areas. The GSMA's position is that telecom regulatory frameworks should encourage flexible commercial sharing arrangements and facilitate access to government-owned assets at preferential rates to help speed up the roll-out of new networks and support the business case to extend mobile networks into rural areas, the GSMA said.
Pharma stocks edged higher. Dr. Reddy's Laboratories (up 0.92%), Lupin (up 1.54%), Ranbaxy Laboratories (up 0.43%) and Sun Pharmaceutical Industries (up 1%) gained. Cipla fell 0.16%.
Eicher Motors rose 3.23% to Rs 5,731.70 after hitting record high of Rs 5,740 in intraday trade.
State Bank of Travancore surged 7.18% after the bank scheduled a board meeting on 21 March 2014 to consider preferential issue, rights issue and declaration of interim dividend. State Bank of Travancore (SBT) after market hours on Tuesday, 18 March 2014, said its board of directors will meet on Friday, 21 March 2014 to consider preferential allotment of shares and also to consider rights issue to the shareholders of the bank. The board will also consider declaration of interim dividend to the shareholders of the bank. The bank has fixed 4 April 2014 as the record date for the purpose of payment of interim dividend, if declared.
In the foreign exchange market, the rupee edged higher against the dollar as foreign banks sell dollars, likely for FII clients. The partially convertible rupee was hovering at 61.045, compared with its close of 61.19/20 on Tuesday, 18 March 2014.
Global credit rating agency Standard & Poor's Ratings Services today, 19 March 2014, said that Indian companies are improving their credit profile by selling equity and assets, or using free operating cash flows to reduce debt. The quest to improve credit profiles comes after a weak economy and high interest rates have adversely impacted their cash flows, while companies are also refocusing on cutting debt after years of fast expansion. S&P also said that infrastructure companies with high leverage are also considering selling assets or stakes in subsidiaries to cut down on their debt levels.
The Reserve Bank of India will announce the First Bi-monthly Monetary Policy Statement, 2014-15 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.
The next major trigger for the stock market is the outcome of the upcoming Lok Sabha elections. Lok Sabha elections will be held between 7 April 2014 and 12 May 2014 in nine phases. The counting of votes will be take place on 16 May 2014. The term of the current Lok Sabha expires on June 1 and the new House has to be constituted by May 31. Along with the Lok Sabha election, Andhra Pradesh (AP), including the regions comprising Telangana, Odisha and Sikkim will go to polls to elect new assemblies. AP, Odisha and Sikkim assemblies come to end on June 2, June 7 and May 7 respectively.
Asian stocks edged lower on Wednesday, 19 March 2014, as investors weighed the prospect of further sanctions against Russia and awaited the Federal Reserve's policy statement. Key benchmark indices in China, Hong Kong, Taiwan, Singapore and South Korea were off 0.13% to 0.69%. Key benchmark indices in Indonesia and Japan were up 0.28% to 0.36%.
Japan's trade deficit exceeded estimates in February, underscoring drags on the nation's recovery ahead of a sales-tax increase in April that will weigh on domestic demand. The 800 billion yen ($7.9 billion) shortfall reported by the finance ministry in Tokyo today. Imports expanded 9% from a year earlier, and exports rose 9.8%.
Trading in US index futures indicated a flat opening of US stocks on Wednesday, 19 March 2014. US stocks edged higher on Tuesday, 18 March 2014, as housing data bolstered confidence in the economy.
A Commerce Department report showed housing starts were little changed in February after declining less than previously estimated a month earlier, indicating the home-building industry is stabilizing after bad winter weather curbed construction. Permits filed for future projects increased 7.7% to a 1.02 million pace in February, the most since October.
Consumer prices in the US rose slightly in February because of higher food and housing costs, but overall inflation remained quiet, according to the latest government figures.
The Federal Reserve's two-day policy-setting meeting concludes today, 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 US and Europe pledged more sanctions against Russia while Russian President Vladimir Putin, pushing to annex Crimea, said his country didn't intend to further split Ukraine. Russia cemented its claim to Crimea as Putin showed no sign of backing down in the standoff over Ukraine's breakaway Black Sea region, prompting Western leaders to vow further sanctions this week.
Putin on Tuesday, 18 March 2014, signed a treaty to annex Crimea after an overwhelming majority of its citizens on Sunday, 16 March 2014, voted to leave Ukraine. In his prepared remarks, Putin also said he does not want to partition Ukraine.
Leaders of Poland and Estonia, two of the countries on the front line of turmoil in Ukraine, told US Vice President Joe Biden they want a more aggressive stance toward Russia. Biden is on a two-day trip to the region aimed at assuring North Atlantic Treaty Organization allies that the US will support them against any attempt by Russia to encroach on their territory.
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