Key benchmark indices extended intraday gains in afternoon trade as European stocks edged higher in early trade there. The barometer index, the S&P BSE Sensex, was up 76.62 points or 0.34%, up about 40 points from the day's low and off close to 59 points from the day's high. The market breadth, indicating the overall health of the market, was strong. The BSE Mid-Cap index was up more than 1%. The BSE Small-Cap index was up more than 1.5%. Both these indices outperformed the Sensex.
Among auto stocks, Eicher Motors hit a record high. Bharat Forge hit 52-week high. Bank stocks were in demand. Tata Communications rose after the company announced that it is providing Official F1 licensee/broadcaster Chello DMC live Formula 1 video feeds via its wholly-owned fibre network for the first time this season.
The market edged higher in early trade on firm Asian stocks. Key benchmark indices extended initial gains and hit fresh intraday high in morning trade. The Sensex trimmed gains in mid-morning trade. The Sensex further pared gains in early afternoon trade. Key benchmark indices extended intraday gains in afternoon trade as European stocks edged higher in early trade there.
Foreign Institutional Investors (FIIs) bought shares worth a net Rs 703.71 crore on Monday, 7 April 2014, as per provisional data from the stock exchanges. The stock markets was closed on Tuesday, 8 April 2014, on account of Ram Navami.
At 13:15 IST, the S&P BSE Sensex was up 76.62 points or 0.34% to 22,420.07. The index jumped 135.62 points at the day's high of 22,479.07 in morning trade. The index rose 36.50 points at the day's low of 22,379.95 in early afternoon trade.
The CNX Nifty was up 21.40 points or 0.32% to 6,716.45. The index hit a high of 6,733.60 in intraday trade, its highest level since 4 April 2014. The index hit a low of 6,705.10 in intraday trade.
The BSE Mid-Cap index was up 86.08 points or 1.2% at 7,251.44. The BSE Small-Cap index was up 110.19 points or 1.51% at 7,391.26. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,617 shares rose and 909 shares fell. A total of 121 shares were unchanged.
Among the 30 Sensex shares, 19 rose and 11 shares declined. Sun Pharmaceuticals Industries (up 6.72%), Hindalco Industries (up 4.19%), Tata Motors (up 2.64%), Tata Steel (up 2.36%), GAIL (India) (up 1.43%), Maruti Suzuki India (up 1.26%), Coal India (up 1.16%), Tata Power (up 0.96%) and Cipla (up 0.76%), edged higher from the Sensex pack.
TCS (down 1.93%), Infosys (down 1.57%), ONGC (down 1.52%), Hero MotoCorp (down 0.94%), Bajaj Auto (down 0.92%), Wipro (down 0.84%), Hindustan Unilever (down 0.31%), Larsen & Toubro (down 0.27%), ITC (down 0.04%) and Dr Reddy's Laboratories (down 0.01%), edged lower from the Sensex pack.
Bank stocks were in demand. Bank of Baroda (up 3.68%), Federal Bank (up 3.23%), Union Bank of India (up 2.81%), Bank of India (up 2.51%), Punjab National Bank (up 2.46%), Canara Bank (up 2.35%), Yes Bank (up 2.31%), IDBI Bank (up 1.95%), State Bank of India (up 1.75%), Axis Bank (up 1.15%), IndusInd Bank (up 0.87%), ICICI Bank (up 0.82%) and Kotak Mahindra Bank (up 0.27%), edged higher. HDFC Bank was down 0.06%.
Eicher Motors rose 2.70% to Rs 6,196. The stock hit a record high of Rs 6,239 in intraday today, 9 April 2014.
Bharat Forge rose 2.13% to Rs 445.35. The stock hit a 52-week high of Rs 446.55 in intraday today, 9 April 2014.
Tata Communications rose 0.94% to Rs 295.35. Tata Communications announced during trading hours today, 9 April 2014, that it is providing Official F1 licensee/broadcaster Chello DMC live Formula 1 video feeds via its whollyowned fibre network for the first time this season. The high quality video feeds, broadcast on Dutch sports channel, Sport1 will be used for the channel's full 2014 race season coverage.
The partnership builds on Tata Communications' proven capability as the Official Connectivity Provider of Formula 1 by giving Chello DMC access to the highest quality video content thanks to Tata Communications' global fibre network. Six live feeds and an additional unilateral feed from all 19 races this season will be distributed via the fibre network for broadcast on the Sport1 channels and via the Sport1 app, the company said in a statement.
The investment in fibre by Chello DMC is in line with its wider strategy to provide clients, such as Sport1, with the expertise and technology to increase the value of its broadcast content through improved quality, choice and cost efficiencies. By using Tata Communications' fibre network for delivery, Sport1 now has the opportunity to provide its subscribers with not only a complete race overview, but also additional services, such as onsite commentary, across all devices.
Tata Communications said that consumer demand for high quality, live content across different platforms is growing, and at the heart of this change is the transition towards fibre networks to deliver the highest quality live and file-based video, securely and to numerous devices (televisions, tablets, smartphones and laptops). The secure and massive bandwidth provided by our fibre helps broadcasters to effectively monetise their rights, especially for live events.
In the foreign exchange market, the rupee edged higher against the dollar, tracking gains in most other Asian units versus the greenback. The partially convertible rupee was hovering at 60.095, compared with its close of 60.11/12 on Monday, 7 April 2014. India's financial markets were closed on Tuesday, 8 April 2014, on account of Ram Navami.
The Securities and Exchange Board of India (Sebi) on Monday, 7 April 2014, partially reversed curbs on dollar-rupee forward contracts that were imposed last year after the rupee hit record low against the dollar. Sebi had doubled the margin requirement on the domestic dollar-rupee forward trades last year in a bid to arrest the steep decline of the rupee. The stock market regulator on Monday, 7 April 2014, asked stock exchanges and clearing corporations to restore the initial margins and extreme loss margin for dollar-rupee trades to pre 8 July 2013 levels from 15 April 2014.
The Reserve Bank of India (RBI) on Monday, 7 April 2014, said that with a view to further liberalising the existing facilities the RBI has decided to allow all resident individuals, firms and companies, who have actual or anticipated foreign exchange exposures to book foreign exchange forward contracts up to $250,000 on the basis of a simple declaration without any requirement of further documentation, the RBI said in a circular issued to Authorised Dealer Category-I (AD Category-I) banks. This is higher than the existing limit of $100,000. The existing facilities in terms of this circular for Small and Medium Enterprises (SMEs) having direct and/or indirect exposures to foreign exchange risk permitting them to book/cancel/roll over forward contracts without production of underlying documents to manage their exposures effectively subject to conditions specified therein shall remain unchanged, the RBI said.
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.
The next major trigger for the stock market is Q4 March 2014 and year ended 31 March 2014 (FY 2014) corporate earnings. Investors and analysts will closely watch the management commentary that would accompany the results to see if there is any revision in their future earnings forecast of the company for the year ending 31 March 2015 (FY 2015) and/or for the year ending 31 March 2016 (FY 2016). Indian companies will start reporting their Q4 and full year results from mid-April 2014. The result season will conclude in end-May 2014.
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 June 1 and the new House has to be constituted by May 31.
Polling began for the lone parliamentary seat in Nagaland in the second phase of Lok Sabha elections today, 9 April 2014. The poll will decide the fate of Chief Minister Neiphiu Rio, who is the candidate from his Naga Peoples Front party.
European stocks edged higher in early trade on Wednesday, 9 April 2014, as US stocks on Tuesday, 8 April 2014, snapped three straight sessions of losses. Key benchmark indices in UK, France and Germany were up 0.22% to 0.37%.
A monthly meeting of the Monetary Policy Committee of the Bank of England's (BoE) for monetary policy review is scheduled tomorrow, 10 April 2014.
Asian stocks outside Japan rose on Wednesday, 9 April 2014, as consumer companies advanced. Key benchmark indices in Hong Kong, Singapore, China, Taiwan and South Korea were up 0.18% to 0.91% Japanese equities fell after the yen rose against the dollar. The Nikkei 225 Average lost 2.1%.
The Bank of Japan (BOJ) refrained from adding to unprecedented monetary stimulus after a monetary policy review on Tuesday, 8 April 2014, as Governor Haruhiko Kuroda said the blow to the economy from last week's sales-tax increase will fade during the summer. The central bank will continue to expand the monetary base at a pace of 60 trillion yen to 70 trillion yen ($682 billion) per year, it said in a statement in Tokyo. At a press briefing, Kuroda said the BOJ would always adjust policy without hesitation as needed, including easing or tightening. The economy has continued to recover moderately, "albeit with some fluctuations due to the consumption tax hike," the BOJ said in its statement. Kuroda said he will adjust record easing that the BOJ began in April last year should prospects for achieving the price target be jeopardized.
Indonesia's central bank kept its key interest rate unchanged after a monetary policy review on Tuesday, 8 April 2014, extending a pause in monetary tightening as inflation slowed. Bank Indonesia Governor Agus Martowardojo and his board maintained the reference rate at 7.5%, the central bank said in Jakarta. It also kept the deposit facility rate unchanged at 5.75%.
Trading in US index futures indicated that the Dow could advance 16 points at the opening bell on Wednesday, 9 April 2014. US stocks snapped three-day losing streak on Tuesday, 8 April 2014, on bargain-hunting as investors picked up stocks that had fallen the most in the slump over the previous three days.
The US Federal Reserve releases minutes of its March 18-19 gathering today, 9 April 2014. The Federal Reserve on 19 March 2014 said after the conclusion of a monetary policy review that it will trim its monthly bond purchases by $10 billion to $55 billion. The Federal Reserve will end its bond-buying program before the end of the year with an interest-rate increase likely to follow in "around six months," Chair Janet Yellen said on 19 March 2014. Quarterly Fed forecasts on 19 March 2014 showed more officials predicting that the benchmark interest rate, now close to zero, will rise to at least 1% by the end of 2015 and 2.25% a year later.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 29-30 April 2014.
Stronger US growth this year and next will help the world economy withstand weaker recoveries in emerging markets including Brazil and Russia, the International Monetary Fund (IMF) said in a report yesterday, 8 April 2014. The IMF predicted global growth of 3.6% this year, compared with a January estimate of 3.7%. Next year, the expansion will accelerate to 3.9%, unchanged from the prior forecast. Developing Asian economies are forecast to grow 6.7% this year, the IMF said.
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