Key benchmark indices held firm in afternoon trade. The barometer index, the S&P BSE Sensex, was up 56 points or 0.25%, off close to 40 points from the day's high and up about 65 points from the day's low. The market breadth, indicating the overall health of the market, was strong. The BSE Small-Cap index was up more than 1%.
Mahindra & Mahindra (M&M) extended intraday gains. Interest rate sensitive realty stocks were mixed. Most pharma stocks gained. Hero MotoCorp rose after the company said that two-wheeler brand 'Hero' made its debut in Bangladesh.
Key benchmark indices edged higher in early trade after provisional data released by the stock exchanges showed that foreign funds were net buyers of Indian stocks on Thursday, 17 April 2014. The Sensex and the 50-unit CNX Nifty, both, hit their highest level in almost a week. Key benchmark indices moved in a narrow range in positive zone in morning trade. Key benchmark indices retained positive zone in mid-morning trade. A bout of volatility was witnessed as the key benchmark indices recovered from lower level after trimming intraday gains in early afternoon trade. It held firm in afternoon trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Thursday, 17 April 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 433.40 crore on Thursday, 17 April 2014, as per provisional data from the stock exchanges. The stock market was closed on Friday, 18 April 2014, on account of Good Friday.
The market may remain volatile this week 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 on Wednesday, 23 April 2014. The stock market remains closed on Thursday, 24 April 2014, on account of Parliamentary elections in Mumbai constituency.
At 13:20 IST, the S&P BSE Sensex was up 56 points or 0.25% to 22,684.84. The index jumped 98.02 points at the day's high of 22,726.86 in early trade, its highest level since 15 April 2014. The index rose 7.91 points at the day's low of 22,636.75 in early trade.
The CNX Nifty was up 14.20 points or 0.21% to 6,793.60. The index hit a high of 6,806 in intraday trade, its highest level since 15 April 2014. The index hit a low of 6,786.90 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,590 shares gained and 953 shares fell. A total of 111 shares were unchanged.
The BSE Mid-Cap index was up 53.65 points or 0.73% at 7,392.94. The BSE Small-Cap index was up 90.74 points or 1.21% to 7,614.75. Both these indices outperformed the Sensex.
Bharat Heavy Electricals (Bhel) (up 3.81%), L&T (up 3.71%) and Maruti Suzuki India (up 2.14%) edged higher from the Sensex pack.
Hero MotoCorp rose 1.3%. The company said during market hours that two-wheeler brand 'Hero' made its debut in Bangladesh through a Joint Venture (JV) with the reputed Nitol Niloy Group. This is the company's first overseas joint venture to set up a two-wheeler plant outside of India, since it commended its solo journey almost three years ago. Hero will hold majority stake of 55% in the new JV while the Nitol Niloy Group will hold the rest 45% stake. There will be a total equity injection of $ 12.6 million in a ration of 55:45 over a period of two years. The new venture will have a capital expenditure of $ 23.2 million in the first year of its operations (financial year ending 31 March 2015) and a total investment of $ 40 million over the next five years.
While the manufacturing plant will be operational by the second quarter of FY 2015-16, the Hero range of two-wheelers are already being made available in Bangladesh through the initial 50 retail outlets. The range of Hero two-wheelers being made available in the country include successful models like the entry-level segment lOOcc bikes- HF Dawn & HF Deluxe, Splendor+, Splendor Pro, Splendor iSmart, Passion Pro, the deluxe segmentl 25cc Super Splendor and Glamour and the premium segment 150cc Xtreme and Hunk, and the 100-cc scooter Pleasure.
Hero has launched an unprecedented 5-year warranty on all these models in Bangladesh - a statement of confidence in the technological superiority of its products.
Mahindra & Mahindra (M&M) rose 4.12%, with the stock extending intraday gains.
Interest rate sensitive realty stocks were mixed. D B Realty (up 1.44%), Anant Raj (up 0.42%), and Housing Development and Infrastructure (HDIL) (up 1.15%), gained. DLF (down 0.81%), Sobha Developers (down 0.01%) and Unitech (down 0.85%) declined.
Most pharma stocks gained. Dr. Reddy's Laboratories (up 1.95%), Lupin (up 0.03%), Strides Arcolab (up 2.4%), Wockhardt (up 0.35%) edged higher. Cipla (down 0.8%), Ranbaxy Laboratories (down 0.05%), and Sun Pharmaceutical Industries (down 0.02%) declined.
Glenmark Pharmaceuticals declined 0.38%. The company is reportedly recalling some 2,900 bottles of its stomach ulcer drug ranitidine in the United States after a foreign tablet was found in one of the bottles.
The lot being recalled was manufactured for Glenmark by Shasun Pharmaceuticals, and the foreign tablet was identified to be metoprolol tartrate, a drug to treat high blood pressure. The recall began on March 18.
"Corrective actions have been implemented and the recall is limited to only one lot of material, and financially, the impact of the recall is very insignificant," a Glenmark representative reportedly said in a statement.
AstraZeneca Pharma India rose 4.29% on reports US-based Pfizer has approached London-based AstraZeneca PLC for a 60 billion pound takeover. According to reports, Pfizer Inc. considered buying London-based AstraZeneca PLC in informal talks held several months ago. The now-discontinued talks were first reported late last week by a media report, which cited sources who said a takeover had been discussed that would have valued AstraZeneca at more than 60 billion pounds ($101 billion).
As on 31 March 2014, AstraZeneca held 75% stake in AstraZeneca Pharma India.
Natco Pharma surged 7.36% after the company said that Supreme Court Chief Justice Roberts has denied Teva's application for an injunction seeking to prevent launch of a generic version of Copaxone. The announcement was made during trading hours today, 21 April 2014. Natco Pharma said that Supreme Court Chief Justice Roberts has denied Teva's application for an injunction seeking to prevent launch of a generic version of Copaxone pending the Supreme Court's decision on Teva's appeal. This is the second time that the Chief Justice has denied Teva's request for such an injunction, Natco Pharma said in a statement.
Petronet LNG declined 0.32%. The company has clarified on 17 April 2014 with respect to a news item captioned "Oman may buy stake in Petronet's Planned Unit in India" that it had a visit of a delegation led by the Minister of oil & gas, Sultanate of Oman during the Foundation Day celebrations of the company on 2 April 2014.
PLL presented to the delegation the status of its various current and proposed projects with the visiting delegation, which also included a reference to the proposed LNG terminal at Gangavaram in the State of Andhra Pradesh being developed by Petronet as an SPV.
Visiting Hon'ble Minister of Oman delivered 4th Foundation Day Lecture. It seems that during discussions with certain news reporters, the Oman Minister may have spoken about Oman's interest in taking equity in Gangavaram LNG terminal. However, the company is yet to receive any formal response from the Oman Government, It added.
In the foreign exchange market, the rupee edged lower against the dollar on speculation importers will step up dollar purchases to meet month-end payments. The partially convertible rupee was hovering at 60.38, compared with its close of 60.29/30 on Thursday, 17 April 2014. The foreign exchange market was closed on Friday, 18 April 2014, on account of Good Friday.
Indian government bond prices dropped on speculation a decline in yields to a two-week low deterred buyers. The yield on 10-year benchmark federal paper, 8.83% GS 2023, was hovering at 8.8513%, higher than its close of 8.8496% on Thursday, 17 April 2014. Bond yield and bond prices move in opposite direction. Indian financial markets were closed on Friday, 18 April 2014, on account of Good Friday.
Ten-year yields slid 12 basis points in a single trading session on 17 April 2014, the biggest drop in four months, after the Reserve Bank of India (RBI) sold the Rs 20000-crore worth of debt on offer at cut-off rates that were lower than investors' predicted.
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.
European markets were closed today, 21 April 2014, for a holiday.
Asian markets edged lower on Monday, 21 April 2014, as tensions in Ukraine kept investors cautious. Key benchmark indices in Japan, China, South Korea and Taiwan were off 0.03% to 1.52%. Key benchmark indices in Singapore and Indonesia were up 0.01% to 0.08%. Markets in Hong Kong, Australia and New Zealand were closed for a holiday.
Japan's trade deficit widened to 1.45 trillion yen ($14.1 billion) in March, from 802.5 billion yen the previous month, the Ministry of Finance said today, 21 April 2014.
Trading in US index futures indicated that the Dow could advance 21 points at the opening bell on Monday, 21 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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