Key benchmark indices extended gains in early afternoon trade. The barometer index, the S&P BSE Sensex, hit fresh record high. The Sensex was up 130.47 points or 0.57%, up 108.71 points from the day's low and off 4.31 points from the day's high. The market breadth, indicating the overall health of the market was positive. The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Tuesday, 22 April 2014.
Bank stocks edged higher on renewed buying. Shares of private sector bank Kotak Mahindra Bank hit record high. ICICI Bank hit 52-week high. State-run Bank of Baroda hit 52-week high. HDFC Bank edged higher in volatile trade. Shares of both Deepak Fertilisers and Petrochemicals (DFP) and Mangalore Chemicals & Fertilizers (MCF) surged after the former announced open offer to acquiring 26% stake from the public shareholders of Mangalore Chemicals & Fertilizers (MCF).
The market opened on a positive note after provisional data released by the stock exchanges after trading hours on Tuesday, 22 April 2014, showed that foreign funds remained net buyers of Indian stocks on Tuesday, 22 April 2014. The Sensex and the 50-unit CNX Nifty, both, hit record high. Key benchmark indices extended initial gains in morning trade. Firmness continued on the bourses in mid-morning trade. Key benchmark indices extended gains and hit fresh intraday high in early afternoon trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Tuesday, 22 April 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 162.93 crore on Tuesday, 22 April 2014, as per provisional data from the stock exchanges.
Indian stocks may remain volatile today, 23 April 2014, as traders roll over positions in the futures & options (F&O) segment from the near month April 2014 series to May 2014 series. The April 2014 F&O contracts expire today, 23 April 2014. The stock market remains closed tomorrow, 24 April 2014, on account of Parliamentary elections in Mumbai constituency.
At 12:15 IST, the S&P BSE Sensex was up 130.47 points or 0.57% at 22,888.84. The index jumped 134.78 points at the day's high of 22,893.15 in early afternoon trade, a lifetime high for the barometer index. The index rose 21.76 points at the day's low of 22,780.13 in early trade.
The CNX Nifty was up 32.10 points or 0.47% at 6,847.45. The index hit a high of 6,861.60 in intraday trade, a lifetime high for the index. The index hit a low of 6,820.75 in intraday trade.
The market breadth, indicating the overall health of the market was positive. On BSE, 1,419 shares gained and 1,004 shares fell. A total of 131 shares were unchanged.
The BSE Mid-Cap index was up 41.03 points or 0.56% at 7,427.20, underperforming the Sensex. The BSE Small-Cap index was up 43.54 points or 0.57% at 7,672.64, matching the Sensex's gains in percentage terms.
The total turnover on BSE amounted to Rs 1123 crore by 12:15 IST, compared with Rs 819 crore by 11:15 IST.
Bank stocks edged higher on renewed buying. Among private bank stocks, Federal Bank (up 1.34%), Axis Bank (up 1.93%) and Yes Bank (up 1.92%) gained.
Shares of private sector banking giant ICICI Bank were up 0.73% at Rs 1,297.30. The stock hit a 52-week high of Rs 1,300 in intraday trade.
Shares of another private sector bank Kotak Mahindra Bank were up 1.9% at Rs 816.90. The stock hit a record high of Rs 817.50 in intraday trade.
HDFC Bank was up 0.19% at Rs 727.80. The stock was volatile. The stock hit high of Rs 734 and low of Rs 723.50 so far during the day. HDFC Bank's net profit rose 23.1% to Rs 2326.52 crore on 14.94% increase in total income to Rs 12789.98 crore in Q4 March 2014 over Q4 March 2013. The result was announced during trading hours on Tuesday, 22 April 2014.
IndusInd Bank rose 0.26%. IndusInd Bank's net profit rose 28.83% to Rs 396.05 crore on 23.35% rise in total income to Rs 2702.19 crore in Q4 March 2014 over Q4 March 2013. IndusInd Bank is targeting 25% to 30% annual loan growth during 2014-17. IndusInd Bank announced Q4 result on 16 April 2014.
Among PSU bank stocks, State Bank of India (SBI) (up 0.96%), Union Bank of India (up 1.83%), Bank of India (up 1.41%), Canara Bank (up 1.75%) and Punjab National Bank (up 2.14%) edged higher.
Bank of Baroda gained 2.11% to Rs 797.10 after hitting a 52-week high of Rs 800 in intraday trade.
Mangalore Chemicals & Fertilizers (MCF) spurted 12.51% to Rs 69.70. Deepak Fertilisers and Petrochemicals (DFP) surged 6.24% at Rs 127.75. SCM Soilfert together with DFP as persons acting in concert (PAC) today, 23 April 2014, announced an open offer to acquire 26% stake from the public shareholders of MCF. The open offer is for acquiring up to 3.08 crore fully paid up equity shares of MCF, constituting 26% of the voting share capital. The offer price is Rs 61.75 per share.
SCM Soilfert currently holds 2.89 crore shares, or 24.5% stake, in MCF. SCM Soilfert and DFP announced that they proposes to purchase up to 20 lakh additional equity shares of MCF, representing up to 1.7% stake, at a price not exceeding Rs 63 per equity share today, 23 April 2014. In the event, the acquirer acquires equity shares of MCF at a price higher than the offer price pursuant to the purchase order, the offer price will be revised to such price paid for the acquisition, the public announcement for the open offer stated. Assuming purchase of the entire quantity of shares as indicated, the combined stake of SCM Soilfert and DFP in MCF will rise to 26.1%. Hence, it triggers a mandatory open offer for further purchase of equity shares by DFP in MCF.
Rallis India rose 4.74% after consolidated net profit jumped 71.40% to Rs 19.30 crore on 16.35% increase in net total income from operations to Rs 331.46 crore in Q4 March 2014 over Q4 March 2013. The company announced the results after market hours on Tuesday, 22 April 2014.
Rallis India said in a statement that the quarter performance was driven by both increase in volumes as well as value improvements due to price adjustments necessitated by the cost increases through the year. The margin improvement also reflected the gains from operating efficiencies, better cash management, tighter working capital control and lower interest costs. During the quarter the farmer relationship programs such as Rallis Kisan Kutumba, Samrudh Krishi, etc gained momentum and investments were made into both field and development activities.
On a consolidated basis, Rallis India's net profit rose 27.60% to Rs 151.87 crore on 19.78% increase in total income from operations (net) to Rs 1746.56 crore in the year ended March 2014 over the year ended March 2013.
Commenting on the performance, Mr. V Shankar, Managing Director and CEO, Rallis India said, I am pleased that the Company has scaled a new milestone of Rs 1800 crore in gross revenues. While this has been a good monsoon year overall, the rainfall conditions through the agricultural seasons have not been conducive throughout. With intense farmer level activities our key brands have continued to serve well the needs of the farming community driving our relationships forward. The year saw good growth in volumes in both domestic and international businesses, and we also saw value firm-up as the year progressed."
In the foreign exchange market, the rupee edged lower against the dollar on importers' dollar purchases and on concern a decline in China's factory output will damp demand for the region's assets. The partially convertible rupee was hovering at 61.085, compared with its close of 60.76/77 on Tuesday, 22 April 2014.
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 edged lower on Wednesday, 23 April 2014, after Chinese manufacturing data signaled persisting weakness in the world's second-largest economy. Key benchmark indices in Taiwan, China, Indonesia, South Korea, Singapore and Hong Kong were off 0.19% to 0.94%. In Japan, the Nikkei 225 index was up 1.09%.
China's Purchasing Managers' Index for manufacturing was at 48.3 in April, compared with 48 in March, according to a preliminary reading published by HSBC Holdings Plc and Markit Economics today, 23 April 2014. A figure below 50 signals a contraction.
On Tuesday, 22 April 2014, China's central bank lowered reserve ratios at some rural lenders in the latest in a series of measures to help combat a slowing economy.
Trading in US index futures indicated that the Dow could advance 9 points at the opening bell on Wednesday, 23 April 2014. US stock markets edged higher Tuesday, 22 April 2014, with the S&P 500 extending its winning streak to six days, the longest streak of gains since September 2013. Investors welcomed better-than-expected results from Comcast Corp. and Harley-Davidson, Inc., while a flurry of deal news in the health-care sector added to positive sentiment.
In economic data, the sales pace of existing homes ticked down in March to the slowest rate since July 2012, according to data released Tuesday, 22 April 2014.
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.
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