Sensex hits record closing high

Small gains took the barometer index, the S&P BSE Sensex, to a record closing high and the 50-unit CNX Nifty to its highest closing level in more than six weeks. The Sensex garnered 35.99 points or 0.17%, up 108.95 points from the day's low and off 36 points from the day's high. The market breadth, indicating the overall health of the market, was negative.

Indian stocks edged higher for the fourth day in a row today, 23 January 2014. The Sensex has garnered 310.04 points or 1.47% in four trading sessions from a recent low of 21,063.62 on 17 January 2014. The Sensex has risen 202.98 points or 0.95% in this month so far (till 23 January 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 3,924.95 points or 22.49%.

Coming back to today's trade, L&T rose after the company reported a strong growth in order inflow in Q3 December 2013 at the time of announcing its Q3 result after trading hours on Wednesday, 22 January 2014. Shares of other capital goods companies also edged higher after L&T reported good Q3 results. Telecom stocks edged higher after telecom towers firm Bharti Infratel said at the time of announcement of its Q3 December 2013 results today, 23 January 2013, that the regulatory environment in telecom sector is improving and more clarity will emerge after the spectrum auction on 3 February 2014.

A bout of volatility was witnessed as key benchmark indices trimmed losses after a weak start triggered by weak Asian stocks. Key benchmark indices swung alternately between positive and negative terrain near the flat line in mid-morning trade. Key benchmark indices languished in negative zone in early afternoon trade. Key benchmark indices moved into positive zone from negative zone in afternoon trade. Key benchmark indices extended gains and hit fresh intraday high in mid-afternoon trade as European stocks reversed initial losses. The Sensex hit its highest level in more than six weeks. The 50-unit CNX Nifty hit three-week high.

The market sentiment was boosted by data showing that foreign funds made heavy purchases of Indian stocks on Wednesday, 22 January 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 288.90 crore from the secondary equity markets on Wednesday, 22 January 2014, as per data from Securities & Exchange Board of India.

The S&P BSE Sensex garnered 35.99 points or 0.17% to settle at 21,373.66, a record closing high. The index rose 71.99 points at the day's high of 21,409.66 in late trade. The index dropped 72.96 points at the day's low of 21,264.71 in early trade.

The CNX Nifty advanced 6.70 points or 0.11% to settle at 6,345.65, its highest closing since 9 December 2013. The index hit a high of 6,355.60 in intraday trade. The index hit a low of 6,316.40 in intraday trade.

The total turnover on BSE amounted to Rs 1863 crore, lower than Rs 1906.20 crore on Wednesday, 22 January 2014.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1,453 shares fell and 1,255 shares rose. A total of 132 shares were unchanged.

The S&P BSE Mid-Cap index fell 0.48% and the S&P BSE Small-Cap index slipped 0.12%. Both these indices underperformed the Sensex.

The S&P BSE Consumer Durables index (up 2.33%) and the S&P BSE Capital Goods index (up 1.84%) outperformed the Sensex.

The S&P BSE FMCG index (up 0.14%), the S&P BSE Healthcare index (up 0.12%), the S&P BSE Bankex index (down 0.04%), the S&P BSE Realty index (down 0.06%), the S&P BSE Teck index (down 0.09%), the S&P BSE Power index (down 0.22%), the S&P BSE IT index (down 0.22%), the BSE PSU (down 0.41%), the S&P BSE Oil & Gas index (down 0.46%), the S&P BSE Metal index (down 0.5%) and the S&P BSE Auto index (down 1.05%) underperformed the Sensex.

L&T rose 2.66% after the company reported a strong order inflow in Q3 December 2013. The company said after market hours on Wednesday, 22 January 2014, that its recurring profit after tax rose 12% to Rs 1136 crore on 12% growth in gross revenue to Rs 14534 crore in Q3 December 2013 over Q3 December 2012. L&T said the results are excluding the performance of the hydrocarbon business segment, which has been transferred to a wholly-owned subsidiary of the company with effect from 1 April 2013. Consequently, the figures for the previous periods have been restated to make a like-to-like comparison, L&T said.

L&T said its order inflow rose 21% to Rs 21722 crore in Q3 December 2013 over Q3 December 2012, shrugging off prevailing weak investment climate. The international order inflow during the quarter at Rs 8237 crore, more than doubled on the back of major orders secured in the Middle East. The order backlog rose 13% year-on-year at Rs 171184 crore as on 31 December 2013. International order book constituted 15% of the total order book.

L&T has pruned its order inflow forecast for the year ending 31 March 2014, to 15% from 20% earlier due to the poor investment climate in India.

L&T said that while the company continues to focus on maximizing the domestic opportunities, it is strengthening its international presence in select overseas markets. Competitive value proposition to the clients and disciplined execution have helped the company sustain its profitable growth momentum, L&T said. Presence in the diverse sectors, healthy order book, proven track record and strong balance sheet are the key enablers for the company to steer through the near to medium challenges and meet its growth aspirations, L&T said in a statement.

Shares of other capital goods companies also edged higher after L&T reported good Q3 results. ABB (up 0.27%), Bhel (up 0.56%), Crompton Greaves (up 0.34%) and Thermax (up 0.62%) gained.

D B Realty rose 4.28%. The company during market hours denied media reports that it is in talks to sell its hospitality business to ITC for Rs 1300 crore.

Index heavyweight and cigarette maker ITC rose 0.73% to Rs 329.80 in volatile trade. The stock hit high of Rs 329.95 and low of Rs 325.20.

Index heavyweight Reliance Industries (RIL) fell 0.65% to Rs 866.50. The stock hit a high of Rs 871 and low of Rs 861. The company's net profit rose 0.2% to Rs 5511 crore on 10.5% growth in revenue to Rs 106383 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced on 17 January 2014.

Cairn India rose 0.99%. The company after market hours today, 23 January 2014, reported 14% fall in consolidated profit after tax (PAT) to Rs 2884 crore on 17% growth in revenue to Rs 5000 crore in Q3 December 2013 over Q3 December 2012. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 10% to Rs 3555 crore in Q3 December 2013 over Q3 December 2012. EBITDA margin fell to 71.1% in Q3 December 2013, from 75.8% in Q3 December 2012.

PAT declined 15% to Rs 2884 crore on 8% growth in revenue to Rs 5000 crore in Q3 December 2013 over Q2 September 2013. Earnings before interest, taxation, depreciation and amortization (EBITDA) fell 2% to Rs 3555 crore in Q3 December 2013 over Q3 December 2012. EBITDA margin fell to 71.1% in Q3 December 2013, from 77.8% in Q2 September 2013.

Cairn India said that the 8% growth in revenue on sequential basis in Q3 December 2013 was driven by increased volumes. The company said EBITDA fell 2% on sequential basis in Q3 December 2013 as the contribution from higher revenues was primarily offset by increased exploration costs and one time charge on account of adoption of fair value methodology of stock option valuation. The company said that the 15% decline in PAT on sequential basis in Q3 December 2013 was primarily due to a foreign exchange loss on the dollar deposits with the strengthening of the rupee against the dollar.

With regard to future business outlook, Cairn India said that the production remains on track to meet the fiscal year exit guidance of over 225,000 boepd from all producing assets, supported by continued infill drilling. Cairn India said it targets to commence implementation of Polymer Flood EOR programme by Q4 FY 2015 for enhancing ultimate recovery from the Mangala field. The company further said that it is actively working on plans to extend the EOR programme to other fields in future. The company said it remains focussed on developing and enhancing production from the already discovered and new fields through the use of advanced technology in the low permeability reservoirs.

Cairn India said it remains on track to drill out 50% of gross risked prospective resources in Rajasthan by fiscal year end including 2 high impact wells expecting to test deeper gas plays. Successful exploration outcomes in the southern part of the basin indicate potential for gas, Cairn India said.

Mr. Elango P, Whole time Director, Cairn India said: "Cairn remains committed to discover new resources and deliver accelerated value from its assets. Our focus on execution is yielding results. Production rose by over 5% compared with the previous quarter and we remain on track to meet the full year exit guidance of over 225,000 boepd. With strategic focus on increasing ultimate recovery from operating fields, we have commenced execution of Polymer Flood Enhanced Oil Recovery project at Mangala, making us one of the front runners in technology adoption. The renewed exploration and appraisal programme during 2013 resulted in 3 discoveries in Rajasthan and declaration of commerciality of Nagayalanka discovery in KG-Onshore block. Our strategy of active exploration across the portfolio opens up potential for resource accretion in the near term. We are keen on evaluating the blocks in NELP-X announced by MoPNG recently, to build on our exploration led growth in India".

Most IT stocks edged lower on profit booking after recent gains. Tata Consultancy Services (TCS) shed 0.72%. The company announced after market hours on Tuesday, 21 January 2014, the launch of the Digital Software & Solutions Group, a new business unit designed to help customers undergo critical digital transformations through modular, fully integrated, industry-tailored licensed software and solutions. Initial industries served will be Retail, Communications and Banking and Financial Services, three sectors with a particularly urgent need to adopt emerging technologies to enhance digital commerce and customer intelligence capabilities, and rapidly shift product and service offerings to compete in highly competitive and customer-centric arenas, TCS said in a statement.

The Digital Software & Solutions Group's initial offerings include 'Digital Commerce' and 'Customer Intelligence & Insights'.

HCL Technologies fell 2.1%.

Tech Mahindra fell 0.84%. The company said during market hours that media reports saying that the company is close to buying a BFSI company are speculative in nature and not issued by the company.

Wipro rose 0.23%.

Infosys extended its recent gains triggered by the company raising its revenue growth guidance for the year ending 31 March 2014 at the time of announcement of Q3 December 2013 earnings on 10 January 2014. Infosys rose 0.84% at Rs 3,798.90. The stock hit a record high of Rs 3,799 in intraday trade.

KPIT Technologies slumped 14.57% after consolidated net profit fell 8.93% to Rs 60.77 crore on 3.53% fall in net sales to Rs 677.93 crore in Q3 December 2013 over Q2 September 2013. The Q3 result was announced after market hours on Wednesday, 22 January 2014. KPIT Technologies' earnings before interest, taxation, depreciation and amortization (EBITDA) margins were 15.37% in Q3 December 2013 as compared to 15.49% in Q2 September 2013. The other income stood at Rs 1.75 crore in Q3 December 2013 as against Rs 2.31 crore in Q2 September 2013.

KPIT Technologies' revenue fell 2.3% to $109.66 million in Q3 December 2013 over Q2 September 2013. In constant currency terms, revenue was $336 million for year to date as on 31 December 2013 as against the reported $330.72 million.

Sasken Communication Technologies slumped 13% after the stock turned ex-dividend today, 23 January 2014, for a special dividend of Rs 22.50 per share for the year ending March 2014.

Most bank pivotals gained. AXIS Bank (up 2.25%), HDFC Bank (up 0.56%) and State Bank of India (up 0.51%) gained.

ICICI Bank dropped 0.92%.

Bank of India declined 2.27% as the stock turned ex-dividend today, 23 January 2014 for the interim dividend of Rs 5 per share for the year ending 31 March 2014.

IDBI Bank rose 0.16%. The stock turned ex-dividend today, 23 January 2014 for the interim dividend of Rs 0.73 per share for the year ending 31 March 2014.

Metal stocks edged lower as a private gauge of China's manufacturing in January unexpectedly contracted. China is the world's largest consumer of copper and aluminum. Hindustan Copper (down 0.59%), Hindalco Industries (down 0.96%), Tata Steel (down 1.11%), Steel Authority of India (down 0.93%) National Aluminum Company (down 0.95%), Hindustan Zinc (down 2.03%), Sesa Sterlite (down 0.64%), JSW Steel (down 0.03%) declined. But, Jindal Steel & Power rose 2.06%.

Auto stocks edged lower. Maruti Suzuki India (down 0.85%), M&M (down 2.85%) and Tata Motors (down 0.45%) declined.

Ashok Leyland rose 2.32%, with the stock extending Wednesday's gains triggered by the company's optimism about Q4 March 2014 after reporting dismal Q3 December 2013 results on Tuesday, 21 January 2014. Ashok Leyland reported a net loss of Rs 167.20 crore in Q3 December 2013 compared with a net profit of Rs 74.14 crore in Q3 December 2012. Total income fell 18.67% to Rs 1968.62 crore in Q3 December 2013 over Q3 December 2012.

Ashok Leyland said that the company gained market share in the trucks business buoyed by the success of the ICV truck BOSS in every market where it has been launched. In line with the company's policy of ensuring fiscal prudence, the company is working to lower costs, reduce debt and divest non-core assets. There has been a significant reduction in operating costs and lowered working capital; including a VRS for about 500 executives, Ashok Leyland said in a statement. The company continues to invest in network expansion with over 600 customer touch points, including retail parts stores and containerized workshops, across the country, Ashok Leyland said.

Shares of most two wheeler companies declined. Hero MotoCorp (down 0.28%) and Bajaj Auto (down 0.69%) declined. TVS Motor Company was unchanged.

Mahindra & Mahindra Financial Services lost 5.61%, with the stock extending Wednesday's losses triggered by the company reporting weak Q3 result. The company announced weak Q3 result during trading hours on Wednesday, 22 January 2014. Mahindra & Mahindra Financial Services' consolidated net profit fell 15.7% to Rs 182.36 crore on 28.4% growth in total income to Rs 1363.21 crore in Q3 December 2013 over Q3 December 2012.

Bosch shed 0.61%. The company after trading hours on Wednesday, 22 January 2014, said that the company has decided to stop production at its Nashik, Maharashtra plant for two days on 27 January and 28 January 2014 with a view to adjust production to meet the demand for products and to avoid unnecessary buildup of inventory.

Biocon fell 5.25% after consolidated net profit rose 14.42% to Rs 104.99 crore on 9.08% increase in total income to Rs 719.57 crore in Q3 December 2013 over Q3 December 2012. The company announced results after market hours on Wednesday, 22 January 2014.

Commenting on the quarterly performance and highlights, Chairman and Managing Director, Kiran Mazumdar-Shaw said: "Q3 FY14 has been a very eventful quarter for us, with several research milestones across our novel molecules and biosimilars portfolio. The key highlight was the DCGI approval for our biosimilar Trastuzumab, which paved the way for its commercial launch in India as CANMAb". CANMAb is not only the world's first biosimilar Trastuzumab, but is also the most affordable worldwide. We have also strengthened our Research and Development pipeline with 2 new alliances giving us access to novel technology platforms. The performance of the Biopharmaceuticals segment has been steady as we continue our efforts to optimise the product basket. We have witnessed sustained business momentum in Research Services, and a return to growth for our Branded Formulations vertical. Our investment efforts in Malaysia continue and we are on track to commission our insulin facility in FY15. We expect to close this financial year with a strong performance across business verticals."

Biocon said the outlook for the year ending 31 March 2014 (FY 2014) remains positive while the company strives to balance its revenue growth and Research and Development spend. The company said its portfolio and cost optimization initiatives continue, helping it manage its margins more effectively. The company also said that it continues to invest in its Research and Development pipeline, and the several milestones achieved over the course of this year are indicative of the growth opportunities ahead for the company. The Malaysia facility is on track for commissioning in the year ending 31 March 2015 (FY 2015), the company said.

In a separate announcement after market hours on Wednesday, 22 January 2014, Biocon said it has entered into an exclusive licensing agreement with Advaxis Inc., a leader in developing the next generation of cancer immunotherapies, for co-development and commercialization of ADXS-HPV, a novel cancer immunotherapy for the treatment of human papillomavirus (HPV)-associated cervical cancer in women, for India and key emerging markets.

As per the agreement, Biocon will also have access to Advaxis' innovative and proprietary immunotherapy technology that can be leveraged for the development of other novel therapeutics for various unmet medical needs.

Under the terms of the agreement, Advaxis will provide exclusive commercialization rights for ADXS-HPV to Biocon for India, and key emerging markets for all HPV-associated cancers. Advaxis will manufacture and supply ADXS-HPV to Biocon, the company said in a statement.

Telecom stocks edged higher after telecom towers firm Bharti Infratel said at the time of announcement of its Q3 December 2013 results today, 23 January 2013, that the regulatory environment in telecom sector is improving and more clarity will emerge after the spectrum auction on 3 February 2014. Bharti Airtel rose 1.66%. Idea Cellular (up 0.19%) and Reliance Communications (up 0.38%) gained.

With price hikes and with data revenue witnessing strong growth, telecom operators have started focusing on roll out of 3G networks and that this momentum will likely increase in the coming quarters, Bharti Infratel said.

Bharti Infratel rose 1.48% after consolidated net profit jumped 62% to Rs 410.50 crore on 4% growth in revenue to Rs 2731 crore in Q3 December 2013 over Q3 December 2012. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 16% to Rs 1130 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced during market hours today, 23 January 2014.

With regard to the company's dividend policy, Bharti Infratel said that the company intends to have a total dividend payout between 60% to 80% of the net profit for the year or 100% of any dividend received by the company from its investee company(ies), whichever is higher, subject to the company retaining adequate liquidity to take care of planned business activities and expansion plans including capital expenditure and other use of such funds including, but not limited to, any debt servicing requirements, acquisitions, and ensuring an acceptable credit rating, as may be determined, by the board of directors from time to time.

The company further said that the declaration of dividend will always, however, be at the sole discretion of the board of directors (subject to approval by the shareholders) who will review this policy at least once every three financial years keeping in mind the business environment and requirements of the company, its subsidiaries and joint ventures.

Essar Ports rose 0.77% after consolidated net profit rose 4% to Rs 94 crore on 9% increase in revenue to Rs 398.80 crore in Q3 December 2013 over Q3 December 2012. The result was announced during trading hours today, 23 January 2014.

Essar Ports' EBITDA (earnings before interest, taxes, depreciation and amortization) rose 10% to Rs 324.20 crore in Q3 December 2013 over Q3 December 2012.

Speaking on the key highlights for the quarter, Mr. Rajiv Agarwal, Managing Director, Essar Ports said, Our financial results highlight the consistent performance we have shown over the past few years. Ln the coming quarters, we expect to handle higher cargoes driven by increased offtake from anchor customers and an increase in third-party cargo. Our focus is on completion of existing projects, which will double our volumes in the next 2 to 3 years.

Bharat Bijlee gained 8.16% after reporting net profit of Rs 0.70 crore in Q3 December 2013 as compared to net loss of Rs 1.58 crore in Q3 December 2012. The Q3 result was announced during market hours today, 23 January 2014.

Amara Raja Batteries rose 1.66% after net profit rose 17.43% to Rs 95.01 crore on 13.69% increase in net sales to Rs 859.95 crore in Q3 December 2013 over Q3 December 2012. The result was announced during trading hours today, 23 January 2014.

Amara Raja Batteries said the automotive battery business reported double digit growth in revenue, aided by strong volume expansion in two-wheeler batteries and marginal volume growth in four-wheeler batteries. While the OEM demand continued to be sluggish, an early sign of demand slowdown in four-wheeler replacement was visible in Q3. The trading volume in home UPS business suffered due to unfavorable season. The ongoing capacity expansions in two-wheeler and four-wheeler battery product lines are progressing as envisaged, the company said.

The industrial battery business reported flat volume for the quarter compared to previous year, due to capacity constraints and subdued demand for UPS batteries. However the revenues grew in double digit owing to inflation and better product mix. The company continues to focus on enhancing the quality of business through various initiatives in the market place. In the UPS segment, the company expanded the Quanta product range with the introduction of 12V-120 Ah and 12V-150 Ah batteries. Now, the company has widest product range for optimal battery sizing by the UPS OEM's and other customers, the company said in a statement.

The company said it commissioned on 22 January 2014 the modern and fully integrated MVRLA battery plant in a new location at Chittoor, Andhra Pradesh. The trial runs and product validation processes are under way. The plant is expected to commence supplies in full scale from March 2014 to support the growth momentum.

Commenting on the Q3 performance, Mr. Jayadev Galla, Vice Chairman and Managing Director, Amara Raja Batteries said, "It's heartening to deliver a consistent good performance despite challenging economy, volatile rupee and sluggish demand in the automotive OEM and UPS sectors. However, an early sign of slowdown in growth rate of four-wheeler automotive replacement demand requires close watch and innovative approach to sustain double digit volume growth. The successful completion of MVRLA capacity expansion and other ongoing capacity expansions in various product lines, will provide enough momentum to the growth in line with our strategic plan for the five years period leading to FY19".

Raymond rose 0.65% after consolidated net profit surged 343% to Rs 57 crore on 15% rise in net sales to Rs 1207 crore in Q3 December 2013 over Q3 December 2012. The company announced results after market hours on Wednesday, 22 January 2014.

Raymond's consolidated earnings before interest taxes depreciation and amortization (EBITDA) rose 35% to Rs 164 crore in Q3 December 2013 over Q3 December 2012. EBITDA margins expanded by 202 basis points (bps) to 13.6% in Q3 December 2013 over Q3 December 2012.

Announcing the results, Gautam Hari Singhania, Chairman & Managing Director, Raymond said, "We have ended the third quarter on a positive note, despite subdued discretionary spend witnessed in the month of December 2013. Our focus on profitability through margin expansion across key business segments of the group has led to a strong bottom line growth in the current quarter as well as for the period till date. Going forward, while factors like inflation and interest rates will continue to play a role in the consumer discretionary space, we are confident that our long term sustainable initiatives in brands, retail, supply chain management and operational efficiency will enable Raymond to surge ahead."

Raymond's textile segment's consolidated sales for the quarter ended 31 December 2013 witnessed an increase of 8% at Rs 543 crore on the back of higher realization in domestic as well as in the export segment. EBITDA margins for the quarter improved by 234 bps to 21%.

The apparel segment's net sales stood at Rs 250 crore, an increase of 15% on year-on-year (Y-o-Y) basis. EBITDA margins doubled to 8%.

The retail stores count as at 31 December 2013 stood at 955 across all formats, including 41 stores in the Middle East and SAARC region covering over 1.8 million square feet of retail space. During the quarter ended 31 December 2013, like-to-like sales growth blended across all formats were flat. Secondary sales through the retail channel grew by 5% Y-o-Y.

The garmenting segment's net sales grew by 45% to Rs 104 crore during the quarter. EBITDA rose by 54% to Rs 15 crore.

The cotton shirting fabric business grew by 7% to Rs 86 crore during the quarter. However, EBITDA for the quarter was impacted due to higher input costs and lower exports.

The denim business witnessed 8% sales growth during the quarter and stood at Rs 235 crore backed by higher realisation in the domestic as well as in the export segments. EBITDA was impacted due to higher input cost.

Sales in the tools & hardware segment grew by 15% to Rs 110 crore led by both domestic as well as export markets. EBITDA grew by 90% to Rs 11 crore.

Sales in the auto component segment grew by 13% to Rs 56 crore led by both domestic as well as export markets. EBITDA improved by 65% to Rs 7 crore.

Radico Khaitan rose 2.85% to Rs 164.40 after Morgan Stanley Asia Singapore acquired 20.46 lakh shares, or 1.54% equity, of the company in bulk deals on the BSE and the NSE on Wednesday, 22 January 2014. On Wednesday, 22 January 2014, Morgan Stanley Asia Singapore PTE bought 9.80 lakh shares of Radico Khaitan at Rs 159.84 per share on the BSE and 10.65 lakh shares at Rs 159.50 per share on the NSE.

D B Corp gained 2.25% to Rs 318.10 after striking a record high of Rs 344.50 in intraday trade.

Dewan Housing Finance Corporation surged 7.25% to Rs 238.30 after striking a 52-week high of Rs 241.20 in intraday trade.

Ess Dee Aluminium surged 4.35% to Rs 669.10 after striking a 52-week high of Rs 702.05 in intraday trade.

Bond prices dropped for the second day in a row after a committee set up by the Reserve Bank of India in its report submitted to the central bank early this week recommended that the central bank should start using a consumer-price inflation target to determine monetary policy. The panel's recommendations if accepted by the central bank may result in increase in interest rates to achieve the panel's 4% consumer-price inflation target by 2016. The yield on 10-year benchmark federal paper, 8.83% GS 2023, was hovering at 8.6653%, higher than its close of 8.6085% on Wednesday, 22 January 2014. Bond yield and bond prices move in opposite direction.

The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014. The RBI kept its main lending rate viz. the repo rate unchanged after its last policy review in December and said at that time that it expected inflation to ease in the following months.

Assuring global investors that India is prepared to face the impact of the US Fed tapering, finance minister P Chidambaram on Wednesday said the country is poised to clock 5% growth in 2013-14 and over 6% in 2014-15. Addressing a meeting of the World Economic Forum (WEF), Chidambaram said the Indian economy has tabilized and it is poised to return to high-growth path and step by step we will go back to 8% growth rate.

On the impact of the calibrated tapering of bond purchases by the US central bank, Chidambaram said: We were concerned in May. But now I think we have done a lot of preparatory work. There will be some consequences in developing and emerging economies but I think we are better prepared for the taper than when we were surprised in May.

European stocks edged lower on Thursday, 23 January 2014. Key benchmark indices in Germany and UK were down 0.08% to 0.14%. France's CAC 40 was up 0.11%.

The manufacturing PMI for the euro region rose to a 32-month high in January, beating analysts' expectations and providing further evidence the region is recovering. On a country-specific level, Germany's manufacturing PMI rose to a 32-month high of 56.3, beating analyst expectations. France's manufacturing sector continued to contract, albeit at a slower pace than in December. A level above 50 signals expansion.

The preliminary euro-zone composite PMIa measure of activity in the manufacturing and services sectorsrose to 53.2 from 52.1 in December, signaling the most rapid expansion since June 2011.

Asian stocks declined on Thursday, 23 January 2014, after a private gauge of China's manufacturing in January unexpectedly contracted. Key benchmark indices in Japan, South Korea, Singapore, China, Taiwan and Hong Kong were down 0.35% to 1.51%. Indonesia's Jakarta Composite rose 0.41%.

A preliminary reading of HSBC's January China manufacturing Purchase Manufacturing Index fell to 49.6, below the 50 boundary between expansion and contraction, and down from 50.5 in the final result for December. It was the first contraction for the sector in six months, according to the HSBC data.

South Korea's economic growth slowed as expected in the final quarter of last year on weaker construction spending, despite robust exports that reaffirms a recovery in Asia's fourth-largest economy. Gross domestic product rose a seasonally adjusted 0.9% in the October-December period from the previous quarter, when the economy expanded 1.1%, the Bank of Korea said on Thursday, 23 January 2014.

Trading in US index futures indicated that the Dow could drop 48 points at the opening bell on Thursday, 23 January 2014. US stocks closed mostly higher on Wednesday after trading in a narrow range for the bulk of the session. Markets shrugged off largely disappointing earnings, but results from IBM weighed on the blue chips.

The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014. By a 9-to-1 vote, the Fed on 18 December 2013 decided to trim its asset-purchase program by $10 billion to $75 billion per month starting in January 2014.

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