Key benchmark indices languished in negative zone in early afternoon trade. The market breadth, indicating the overall health of the market was negative. The barometer index, the S&P BSE Sensex, was down 36.83 points or 0.16%, off 99.60 points from the day's high and up 33.17 points from the day's low. The market sentiment was hit adversely after the India Meteorological Department (IMD) said on Thursday, 24 April 2014 said that the country will likely get below-normal levels of monsoon rain this year. Weakness in Asian stocks also hit sentiment on the domestic bourses adversely.
Realty stocks rose on renewed buying. Bharti Infratel gained after declaring strong Q4 result on Thursday, 24 April 2014. Wockhardt fell after the company said the regulator in Himachal Pradesh has suspended the manufacture and sale of a product.
High volatility was witnessed as the barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit record high at the onset of the trading session. Volatility continued in morning trade as key benchmark alternately swung between positive and negative zone. Key benchmark indices languished in negative zone in mid-morning trade. Key benchmark indices languished in negative zone in early afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 767.61 crore on Wednesday, 23 April 2014, as per provisional data from the stock exchanges. The stock market was closed on Thursday, 24 April 2014, on account of Parliamentary elections in Mumbai constituency.
At 12:15 IST, the S&P BSE Sensex was down 36.83 points or 0.16% to 22,839.71. The index gained 62.77 points at the day's high of 22,939.31 in early trade, a lifetime high for the barometer index. The index fell 70 points at the day's low of 22,806.54 in morning trade.
The CNX Nifty was down 18.05 points or 0.26% to 6,822.75. The index hit a high of 6,869.85 in intraday trade, a lifetime high for the index. The index hit a low of 6,818 in intraday trade, its lowest level since 22 April 2014.
The market breadth, indicating the overall health of the market was negative. On BSE, 1,233 shares dropped and 1,169 shares rose. A total of 114 shares were unchanged.
The BSE Mid-Cap index was up 12.69 points or 0.17% at 7,407.75. The BSE Small-Cap index was down 1.78 points or 0.02% at 7,647.88. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1397 crore by 12:15 IST on BSE, compared with Rs 1069 crore by 11:15 IST.
Realty stocks rose on renewed buying. Indiabulls Real Estate (up 7.24%), Housing Development and Infrastructure (up 6.5%), D B Realty (up 6.71%), Unitech (up 1.76%), and Parsvnath Developers (up 0.6%) gained.
DLF advanced 3.02%. DLF after market hours on Wednesday, 23 April 2014, announced that its offices leasing and management arm, DLF Offices, has created a benchmark by leasing 3 million square feet (sq. ft.) of office space during the year ended 31 March 2014 (FY 2014) with many marquee MNCs and Indian companies. This includes 1.3 million sq.ft. of spaces that were re-leased. The incremental leasing of 1.7 million sq.ft. done during the year was better than the guidance of 1 to 1.5 million sq.ft. DLF said.
Out of the total 3 million sq. ft. leased out in FY 2014, a record 1.7 million sq. ft. has been leased out in Gurgaon alone. This has been achieved despite intense competition in the office leasing space and a subdued economic environment, DLF said.
The lease rentals witnessed stable to healthy increases in various micro markets, DFL said.
Significantly most tenants who are completing the 9 year lease term in DLF CyberCity, Gurgaon chose to renew their leases reinforcing their faith and relationship with DLF, the company said. DLF Offices has approximately 27 million sq.ft of leasable space pan India with certain projects having achieved above 95% occupancy.
Bharti Infratel gained 3.55% after consolidated net profit jumped 64.43% to Rs 472.40 crore on 3.97% increase in total income to Rs 2934.40 crore in Q4 March 2014 over Q4 March 2013. The company announced the result on Thursday, 24 April 2014.
Bharti Infratel's earnings before interest, taxes, depreciation and amortization (EBITDA) rose 16% to Rs 1160 crore in Q4 March 2014 over Q4 March 2013.
On a consolidated basis, net profit jumped 51.41% to Rs 1517.90 crore on 6.27% increase in total income to Rs 11275.40 crore in the year ended March 2014 over the year ended March 2013. EBITDA rose 16% to Rs 4412 crore in the year ended March 2014 over the year ended March 2013.
Bharti lnfratel crossed sharing factor of 2 as at 31 March 2014 (with average sharing factors of 1.96 on consolidated basis).
Akhil Gupta, Chairman, Bharti lnfratel said: "The regulatory environment in telecom sector has improved significantly post the spectrum auctions conducted in February 2014. Operators have made large investments, primarily for data networks using 3G and 4G (LTE) technologies. We believe that faster roll out of networks will happen over coming years in order to monetize these investments. The Telecom Industry is entering a new phase and data proliferation will be the key driver for tower and co-location demand in future. Bharti lnfratel is well positioned to cater to this demand and garner a major share thereof."
L&T Finance Holdings fell 0.58%. Yes Bank surged 5.35%. With reference to the news item appearing in a financial daily on 23 April 2014 regarding L&T Finance Holdings is in talks on buying a Stake in Yes Bank, L&T Finance Holdings during market hours today, 25 April 2014, today said that the company, as a policy, does not comment on speculative news appearing in the media. As a part of its normal course of business, the company keeps evaluating opportunities on both organic and inorganic basis. The investors/stock exchanges would be informed as and when definitive developments take place, L&T Finance Holdings said.
L&T Finance Holdings' consolidated net profit rose 8.81% to Rs 186.54 crore on 24.89% rise in total income to Rs 1431.35 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Wednesday, 23 April 2014. The result was announced after market hours on Wednesday, 23 April 2014.
L&T Finance Holdings said that, given the challenging environment, the company continues to focus on building a quality portfolio by being cautious in credit selection and containing credit costs on existing assets through aggressive asset monitoring. While growth may be slightly muted in FY 2015, the company expects to maintain overall book growth at 15% to 20%, L&T Finance Holdings said. Improved margins with a stable opex, lower credit costs and increase in gearing are expected to result in better return ratios for the business, the company said.
Wockhardt fell 2.88% after the company said the regulator in Himachal Pradesh has suspended the manufacture and sale of a product. The company made the announcement after market hours on Wednesday, 23 April 2014.
Wockhardt announced that the State Drug Controller, Himachal Pradesh, has suspended the manufacture, sale or distribution of Fixed Dose Combination (FDC) Dicyclomine Hydrochloride IP 10 milligram (mg), Tramadol Hydrochloride IP 50 mg and Acetamenophen IP 325 mg. Wockhardt did not give the reason for the suspension.
The company in order to revoke the said suspension is filing an appeal before the State Government under the provisions of applicable law. The product contributed less than 3% of the consolidated sales of Wockhardt during the financial year ended 31 March 2014 (FY 2014), the company said in a statement.
In the foreign exchange market, the rupee reversed intraday losses against the dollar. The partially convertible rupee was hovering at 60.95, compared with its close of on 61.07/08 on Wednesday, 23 April 2014. Indian financial markets were closed on Thursday, 24 April 2014, on account of Parliamentary elections in Mumbai constituency.
The country will likely get below-normal levels of monsoon rain this year, the India Meteorological Department (IMD) said on Thursday, 24 April 2014. The IMD said that the rainfall during the June-September summer rainy season will likely be 95% of the long-term average for the country. India's weather department defines a normal monsoon as one with rainfall between 96% and 104% of the 50-year average, which is 89 centimeters this year. This year could be a below normal monsoon, the weather department said, as there is a 60% possibility of the emergence of the El Ni weather phenomenona warm weather system that starts in the southern Pacific can affect weather around the world. El Ni last affected India's monsoon in 2009 when the monsoon rainfall was 23% below normal.
Annual rains are important for India as most of its farmlands are dependent or rain for irrigation and more than half of its workforce is employed in agriculture. The monsoon rains usually arrive over the southern state of Kerala by the end of May or the first week of June, and gradually cover the entire country by July. The IMD will revise its update in June.
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 declined on Friday, 25 April 2014, on fears of escalating tensions in Ukraine. Key benchmark indices in China, South Korea, Taiwan, Hong Kong and Singapore were off 0.4% to 1.92%. Key benchmark indices in Indonesia and Japan were up 0.17% to 0.39%.
In Japan, consumer prices rose 2.7% in April from a year earlier, the biggest jump since 1992, driven by a sales-tax increase and stimulus from the Bank of Japan. Inflation excluding fresh food accelerated from 1% in the previous month, while nationally the same price gauge rose 1.3% in March from a year earlier, statistics bureau data showed today, 25 April 2014.
Trading in US index futures indicated that the Dow could drop 11 points at the opening bell on Friday, 25 April 2014. US stock markets finished Thursday's volatile session generally higher as positive earnings and stronger-than-expected data outweighed worries over military escalation near Ukrainian border.
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.
US Secretary of State John Kerry on Thursday, 24 April 2014, warned that Russia is running out of time to comply with an accord to ease tensions in Ukraine, as Russian forces began new military exercises on the two countries' border.
Standard & Poor's Ratings Services today, 25 April 2014, cut its rating on Russia to one notch above junk, citing large capital outflows in the first quarter. S&P cut its rating one level, to BBB-minus from BBB. It kept its outlook on the country negative, where it has been since March 20, when the ratings firm lowered it from stable in light of heightened tension in Ukraine and the prospect of economic sanctions.
"In our view, the tense geopolitical situation between Russia and Ukraine could see additional significant outflows of both foreign and domestic capital from the Russian economy and hence further undermine already weakening growth prospects," S&P wrote in its report.
S&P also said the downgrade reflects the risks that the large outflows seen in the first quarter, during which the size of Russia's financial account deficit was almost twice that of the current account surplus, would continue.
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