Key benchmark indices retained positive zone in afternoon trade. The barometer index, the S&P BSE Sensex, was up 182.02 points or 0.82%, up 147.06 points from the day's low and off 37.36 points from the day's high. The market breadth, indicating the overall health of the market was positive. The BSE Mid-Cap and BSE Small-Cap indices were up more than 1% each.
Index heavyweight and cigarette major ITC edged higher in volatile trade. TCS rose amid high volatility after the company's CEO and MD Mr Chandrasekaran said at the time of announcement of the company's Q4 March 2014 results on Wednesday, 16 April 2014, that the management is upbeat that the next 12 months will bring many more opportunities for growth across multiple industries and markets. Capital goods stocks were in demand on renewed buying.
The market edged higher in early trade on firm Asian stocks. Key benchmark indices retained positive terrain in morning trade. The Sensex extended gains and hit fresh intraday high in mid-morning trade. Firmness continued on the bourses in early afternoon trade. Key benchmark indices retained positive zone in afternoon trade
The stock market remains closed tomorrow, 18 April 2014, on account of Good Friday.
At 13:15 IST, the S&P BSE Sensex was up 182.02 points or 0.82% to 22,459.25. The index jumped 219.38 points at the day's high of 22,496.61 in mid-morning trade. The index rose 34.96 points at the day's low of 22,312.19 in early trade.
The CNX Nifty was up 52.20 points or 0.78% to 6,727.50. The index hit a high of 6,741.65 in intraday trade. The index hit a low of 6,684.40 in intraday trade.
The BSE Mid-Cap index was up 75.41 points or 1.04% at 7,308.18 and the BSE Small-Cap index was up 75.78 points or 1.02% at 7,494. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market was positive. On BSE, 1,455 shares gained and 1,095 shares fell. A total of 149 shares were unchanged.
The total turnover on BSE amounted to Rs 1683 crore by 13:15 IST.
Tata Motors (up 2.73%), Wipro (up 2.44%) and ICICI Bank (up 2.27%) edged higher from the Sensex pack.
HDFC Bank (down 1.93%), Coal India (down 1.07%) and NTPC (down 1.02%) edged lower from the Sensex pack
Index heavyweight and cigarette major ITC rose 1.3% to Rs 350.40 in volatile trade. The stock hit high of Rs 350.50 and low of Rs 344 so far during the day.
Capital goods stocks were in demand on renewed buying. ABB India (up 1.36%), Bharat Heavy Electricals (Bhel) (up 0.29%), BEML (up 0.86%), Crompton Greaves (up 2.65%), L&T (up 0.33%), Siemens (up 0.97%) and Thermax (up 3.96%) edged higher.
TCS gained 0.9% to Rs 2,214.65. The stock was volatile. The stock hit high of Rs 2,230 and low of Rs 2,143.10 so far during the day. TCS' consolidated net profit rose 2.3% to Rs 5297 crore on 1.2% growth in revenue to Rs 21551 crore in Q4 March 2014 over Q3 December 2013. The results are as per International Financial Reporting Standards. Net profit jumped 37.5% to Rs 19117 crore on 29.9% growth in revenue to Rs 81809 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013). The result was announced after market hours on Wednesday, 16 April 2014.
Commenting on the company's FY 2014 performance, N. Chandrasekaran, CEO and MD, TCS said: "We have delivered strong growth and strengthened our competitive positioning in the market. We have maintained our momentum, improved our quality of growth, deepened our relationship with customers and expanded our presence in newer markets like Europe during the past 12 months. Our strategic investments including those in Digital Technologies are providing a compelling value proposition as well as helping us anticipate and shape new market trends successfully".
Looking forward to financial year 2014-15, Mr Chandrasekaran added: "We are upbeat that the next 12 months will bring many more opportunities for growth across multiple industries and markets. As an organization, we remain focused on disciplined execution of our strategy as well as on energizing 300,000 TCSers to ensure they make a difference to their customers, their colleagues and the community".
Rajesh Gopinathan, Chief Financial Officer, TCS said: "Our focus has been to stay disciplined in operations while supporting business growth across multiple markets, industries and technologies. We enhanced our profitability to industry leading levels despite macro and currency volatility through the year. We are continuously investing to stay ahead of the curve".
TCS said that there was holistic growth across markets and industries during the financial year. Europe led growth in major markets, while UK and North America continue to grow in line with the company average, the company said. All major industry verticals grew in double digits led by Retail, Manufacturing, Life Sciences & Healthcare and BFSI during FY 2014, the company said in a statement.
TCS' full service capabilities continue to be leveraged by customers with new service lines growing at a fast pace led by Infrastructure Services, Assurance Services, Global Consulting and Enterprise Solutions, the company said in a statement.
TCS' board of directors at its meeting held on Wednesday, 16 April 2014, recommended a final dividend of Rs 20 per share for FY 2014.
Dhanuka Agritech rose 4.06% to Rs 256.15 after HDFC Midcap Opportunity Fund bought 1.80% stake in the company through a bulk deal on Wednesday, 16 April 2014. On Wednesday, 16 April 2014, HDFC Midcap Opportunity Fund acquired 8.99 lakh equity shares, or 1.80% equity, of Dhanuka Agritech at Rs 231 per share on BSE. Shares were acquired from 2020 Equity Investors, which sold 10 lakh equity shares of Dhanuka Agritech at Rs 231 per share on BSE.
Shasun Pharmaceuticals rose 1.36%. Shares of Sequent Scientific fell 1.34%
Shasun Pharmaceuticals said that Ascent Capital Advisors India, a private equity investor has taken a minority stake in Alivira Animal Health. Alivira Animal Health is a joint venture between Shasun Pharmaceuticals and Sequent Scientific engaged in developing, manufacturing and sale of veterinary products inclusive of both API (Active Pharmaceuticals Ingredients) and Formulations in the global market.
Bayer CropScience rose 1.89% to Rs 1,460 after 5.14% equity changed hands in a bulk deal on BSE today, 17 April 2014. A bulk deal of 18.84 lakh shares was executed on the Bayer CropScience counter at Rs 1,430 per share at 09:26 IST on BSE today, 17 April 2014.
In the foreign exchange market, the rupee edged lower against the dollar on heavy buying of the greenback by state-run oil companies. The partially convertible rupee was hovering at 60.42, compared with its close of 60.37/38 on Wednesday, 16 April 2014.
Global credit rating agency Standard & Poor's (S&P) today, 17 April 2014, said it may upgrade India's rating outlook if the government that is elected next month address some of the country's fiscal and economic challenges through steps such as passing a goods and services tax. "If in the future they implement policies that effectively addresses some of the credit weaknesses that I have highlighted, we could revise the outlook to stable again," said S&P senior director Kim Eng Tan in a webcast. "In the absence of effective policy action, we could lower the ratings on the sovereign," he added. S&P rates India at "BBB-minus" and is the only of the three major credit agencies to have a "negative" outlook.
The United States on Wednesday, 16 April 2014, urged the Indian government that emerges from ongoing elections to follow economic policies that encourage investment, saying Washington would like to see bilateral trade grow to $500 billion a year. Nisha Biswal, US assistant secretary of state for South and Central Asia, said future economic growth in South Asia hinged on India as the region's growth engine. However, Biswal said that while Indian leaders had targeted $1 trillion in infrastructure investment over five years to close gaps preventing growth in manufacturing, policies still inhibited foreign investment. She said India ranked a poor 134 out of 189 countries as a place to invest and start a business.
Biswal said India had the potential to exceed all expectations economically, but needed to adopt investment and tax policies designed to lure, not deter, capital flows and a system of timely regulatory approvals and contract enforcement. It also needed to protect intellectual property rights, she said. "The more integrated India is into global markets and into the economic architecture of Asia, the more India's economy will grow and benefit the entire global economic system," she said. Biswal said the United States wanted to see bilateral trade grow to $500 billion a year. It is about $100 billion currently.
Biswal also said an improved climate between India and Pakistan could "pay enormous economic dividends."
The United Nations' World Meteorological Organization early this week said its weather model forecasts show a fairly large potential for the occurrence of a weather phenomenon known as El Ni by mid-year, threatening to hinder production of various food crops around the globe. An El Ni phenomenon is associated with above-average water temperatures in the central and eastern Pacific and can in its worst form bring drought to West Africa (the world's largest cocoa producing region), less rainfall to India during its vital monsoon season and drier conditions for the cultivations crops such as sugar and cotton in major grower Australia.
"Model forecasts indicate a fairly large potential for an El Ni, most likely by the end of the second quarter of 2014," the World Meteorological Organization said on 15 April 2014. "For the June to August period, approximately two-thirds of the models surveyed predict that El Ni thresholds will be reached, while the remaining models predict a continuation of neutral conditions. A few models predict an earlier El Ni onset, such as in May. No model suggests a La Ni in 2014," said the weather body.
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. Voting in Maharashtra in the crucial fifth phase of the Lok Sabha elections takes place today, 17 April 2014. Nineteen seats are going for elections in this phase. Voting has also begun in Madhya Pradesh with 142 candidates in the fray in 10 Lok Sabha constituencies. 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.
European stocks edged lower in early trade on Thursday, 17 April 2014, with investors assessing a crop of quarterly corporate updates and monitoring diplomatic talks in Geneva about the crisis in Ukraine. Key benchmark indices in UK and Germany were off 0.04% to 0.12%. In France, the CAC 40 Index was up 0.1%.
Three pro-Russian protesters were killed and 13 wounded in an overnight clash with Ukrainian authorities at a military installation in the southeastern city of Mariupol, the country's Interior Ministry said today, 17 April 2014. The violence marked the bloodiest altercation yet since the start of an "antiterrorist" military operation by the Ukrainian government to drive out pro-Russian militants who have seized control of 10 cities in the largely Russian-speaking east.
Pro-Russian partisans took control of the Mariupol city council over the weekend as part of a wave of government building seizures in 10 eastern cities where armed militants demanded a referendum on granting the region greater independence.
Asian stocks edged lower on Thursday, 17 April 2014, on concern over the escalating crisis in Ukraine. Key benchmark indices in Singapore, South Korea and China were off 0.01% to 0.3%. In Japan, the Nikkei 225 average lost 0.15 points to settle at 14,417.53. Key benchmark indices in Indonesia, Hong Kong and Taiwan were up 0.01% to 0.31%.
China's Premier Li Keqiang said China isn't considering strong stimulus, and reiterated that economic growth a bit higher or lower than 7.5% is a reasonable range, according to a statement posted on the central government's website. The government said it will lower reserve ratios at some rural lenders.
Trading in US index futures indicated that the Dow could drop 35 points at the opening bell on Thursday, 17 April 2014. US stocks rose to their highest level in a week on Wednesday, 16 April 2014, encouraged by a crop of corporate earnings and reassuring US and Chinese economic data.
The US economy continued to expand in most regions as businesses benefited from a rebound from harsh winter weather earlier in the year. Eight of 12 Fed districts characterized growth as modest or moderate, the Fed said in its Beige Book business survey, based on reports gathered before April 7. Industrial production rose more than forecast in March after a February gain that was twice as big as previously estimated. A Commerce Department report showed the pace of US home construction rebounded less than forecast in March.
In her first major speech on her policy framework as Fed chair, Janet Yellen said US central bankers must be mindful of how short the Fed is of its goals of full employment and price stability. The larger the shortfall of employment or inflation from their respective objectives, and the slower the projected progress toward those objectives, the longer the current target range for the federal funds rate is likely to be maintained, Yellen said to the Economic Club of New York.
The gap, in both cases, is large, with a jobless rate of 6.7% more than a percentage point higher than the top end of the Federal Open Market Committee's estimate of full employment. Inflation, by the Fed's preferred measure, is more than a percentage point below its 2% goal. It will take more than two years for the economy to close in on the Fed's goals, she said, adding that the Fed's forecasts in the past were disrupted by negative surprises, not positive ones.
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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