Key benchmark indices finished almost unchanged for the day after staging a strong intraday rebound. The market breadth, indicating the overall health of the market turned positive from negative in late trade. Intraday recovery in European shares and gains in US index futures which pointed to a recovery for US stocks later in the global day aided intraday recovery on the domestic bourses after the barometer index, the S&P BSE Sensex, hit its lowest level in nearly 17 weeks below the psychological 20,000 level and the 50-unit CNX Nifty hit its lowest level in nearly 17 weeks below the psychological 6,000 level. The Sensex garnered 2.67 points or 0.01%, up 248.81 points from the day's low and off 43.59 points from the day's high.
The Sensex has lost 301.92 points or 1.47% in this month so far (till 4 February 2014). From a record high of 21,483.74 on 9 December 2013, the Sensex has declined 1,271.81 points or 5.92%. From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 2,763.22 points or 15.83%.
Coming back to today's trade, IT stocks edged lower on weak economic data in the US. Realty shares edged higher. Bank stocks gained. Index heavyweight and cigarette maker ITC rose in volatile trade.
Key benchmark indices edged lower in early trade on weak Asian stocks and after sharp decline in US stocks on Monday, 3 February 2014. The 50-unit CNX Nifty fell below the psychological 6,000 level. The Sensex and the Nifty, both, hit their lowest level in almost 17 weeks. The Sensex trimmed intraday losses in mid-morning trade. The barometer index regained the psychological 20,000 level. The Sensex languished in red in early afternoon trade. Key benchmark indices traded off the day's low in afternoon trade. The Sensex moved into positive zone from negative zone in mid-afternoon trade. The Nifty regained the psychological 6,000 level. Key benchmark indices alternately swung between the positive and negative terrain in late trade.
The S&P BSE Sensex garnered 2.67 points or 0.01% to settle at 20,211.93, its highest closing level since 31 January 2014. The index rose 46.26 points at the day's high of 20,255.52 in late trade. The index tumbled 246.14 points at the day's low of 19,963.12 in early trade, its lowest level since 9 October 2013.
The CNX Nifty lost 0.90 points or 0.01% to settle at 6,000.90, its lowest closing level since 22 November 2013. The index hit a high of 6,017.80 in intraday trade. The index hit a low of 5,933.30 in intraday trade, its lowest level since 9 October 2013.
The total turnover on BSE amounted to Rs 1801 crore, higher than Rs 1747.45 crore on Monday, 3 February 2014.
The market breadth, indicating the overall health of the market turned positive from negative in late trade. On BSE, 1,269 shares rose and 1,238 shares fell. A total of 146 shares were unchanged.
The BSE Mid-Cap index rose 24.51 points or 0.39% to settle at 6,281.98. The BSE Small-Cap index rose 11.98 points or 0.19% to settle at 6,245.72. Both these indices outperformed the Sensex.
The S&P BSE Bankex index (up 0.9%), the S&P BSE FMCG index (up 0.78%), the S&P BSE Power index (up 0.7%), the S&P BSE Auto index (up 0.57%), the S&P BSE Realty index (up 0.57%), the S&P BSE Consumer Durables index (up 0.46%), the BSE PSU (up 0.42%) and the S&P BSE Capital Goods index (up 0.16%) outperformed the Sensex.
The S&P BSE Oil & Gas index (down 0.12%), the S&P BSE Metal index (down 0.5%), the S&P BSE Healthcare index (down 0.62%), the S&P BSE Teck index (down 0.98%) and the S&P BSE IT index (down 1.78%) underperformed the Sensex.
Index heavyweight and cigarette maker ITC rose 1.61% to Rs 325.65. The stock hit high of Rs 325.90 and low of Rs 316.35.
Index heavyweight Reliance Industries rose 0.38% to Rs 824.45 in volatile trade. The stock hit high of Rs 826.25 and low of Rs 813.25.
Metal stocks extended Monday's losses triggered concerns of slowdown in Chinese economy. China is the world's largest consumer of copper and aluminum. Sesa Sterlite (down 0.78%), Steel Authority of India (Sail) (down 2.82%), JSW Steel (down 0.93%), Hindustan Copper (down 0.25%), NMDC (down 2.95%), Hindustan Zinc (down 1.08%) and Hindalco Industries (down 0.72%) edged lower. Tata Steel rose 0.47%.
Jindal Steel and Power (JSPL) lost 0.41%. JSPL after market hours today, 4 February 2014, said that as per Regulation 14(3) of the Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998, as amended (the "Buy-Back Regulations"), the company has utilized at-least 50% of the amount earmarked for buy-back as specified in the resolution passed by the board of directors at its meeting held on 30 August 2013, i.e., the minimum buy-back Size of Rs 500 crore. Accordingly, the duly authorized Sub-Committee of Directors of the company at its meeting held today, 4 February 2014, unanimously approved that the buy-back offer of equity shares of the company be closed on 18 February 2014, being a date earlier than the last date for the completion of buy-back mentioned in the announcement, i.e. 15 March 2014. Subject to the maximum buy-back price of Rs 261 per share, the company will not place buy orders under the buy-back after 13 February 2014, JSPL said.
JSPL after market hours on Monday, 3 February 2014, said that its power generation unit -- Jindal Power -- has acquired a stake in the company owning the Kineta power project in Andhra Pradesh. The Kineta Power project is not under construction and is not an operational power plant. This project has only land and statutory clearances. The acquisition value is not significant and there are no immediate plans for starting construction, Jindal Steel and Power said. "As and when, the plans are made in the future the same will be appropriately disclosed as required," Jindal Steel and Power said.
National Aluminium Company (NALCO) shed 1.05%. The company has set up its 2nd Wind Power Plant at Ludarva in Jaisalmer district of Rajasthan with a capacity of 47.6 megawatts (MW). NALCO has successfully commissioned this wind power project on 29 January 2014. As part of its diversification plans, National Aluminium Company (NALCO), A Navratna PSU, has been foraying into other metals and energy sectors.
This Rs 283 crore Wind Power Project was executed through Gamesa Wind Turbines, which involved erection of 56 Wind Turbines, each of 850 KW rating. In the first phase of commissioning, 36 turbines were erected. Now, in the second phase, the remaining 20 turbines have been successfully commissioned. This is the second green initiative of NALCO towards promoting sustainable development by harnessing the unconventional and renewable energy sources, which would credit the company with incentives from the Government.
Earlier, the company commissioned its first Wind Power Plant of 50.4 MW capacity at a cost of Rs 274 crore at Gandikota in Kadapa district of Andhra Pradesh in December, 2012.
Besides, the company is also planning to set up the third wind power plant in its own mined out area of Panchpatmali Bauxite deposit in Koraput.
IT stocks edged lower on weak economic data in the US, the biggest outsourcing market for the Indian IT firms. Infosys (down 1.45%), TCS (down 1.58%), Wipro (down 1.93%), and HCL Technologies (down 3.42%) declined.
Tech Mahindra rose 0.54%. The company after market hours today, 4 February 2014, said its consolidated profit after tax (PAT) jumped 40.6% to Rs 1010 crore on 2.7% increase in revenue to Rs 4899 crore in Q3 December 2013 over Q2 September 2013. The sharp rise in net profit on sequential basis in Q3 December 2013 was due write back of excess provision for contingencies of Rs 120 crore provided in earlier years in Q3 December 2013. This is non-recurring item. Another reason for the sharp surge in net profit on sequential basis in Q3 December 2013 was a reversal of tax provision of Rs 226.60 crore no longer required.
Operating profit (EBITDA) rose 2.3% to Rs 1136 crore in Q3 December 2013 over Q2 September 2013. EBITDA margin declined to 23.19% in Q3 December 2013, from 23.28% in Q2 September 2013.
Commenting on the financial performance, Vineet Nayyar, Executive Vice Chairman, Tech Mahindra, said: "We are pleased to report another successful quarter where growth has come from our main verticals -- Telecom, Manufacturing and BFSI. We remain confident of the success of our differentiated offerings."
C P Gurnani, Managing Director & CEO, Tech Mahindra said: "Our results are a testimony to the fact that our strategy and investments are aligned with market drivers and demands. Our focus on connected solutions for digital enterprises will continue to drive this momentum".
Meanwhile, Tech Mahindra's board of directors of the company at its meeting held today, 4 February 2014, approved increase in limit of investment by FIIs from the existing 45% to 48% of the paid up capital of the company.
Financial Technologies (India) (FTIL) galloped 4.99% to Rs 289.10. FTIL announced during trading hours today, 4 February 2014, that the transaction relating to sale of Singapore Mercantile Exchange (SMX) and Singapore Mercantile Exchange Clearing Corporation (SMX CC) by Financial Technologies Singapore (FTSPL), Singapore to ICE Singapore Holdings (ICE) has been completed.
Tata Motors gained 2.82% to Rs 346.10, with the stock reversing intraday fall in volatile trade. The stock hit a high of Rs 346.90 and low of Rs 331.05. Tata Motors on Monday, 3 February 2014, unveiled two all-new cars -- the classy sedan, ZEST and the sporty, dynamic premium hatchback, BOLT that look to redefine the passenger car market with new design aesthetics, segment-defining drive experience and high-tech Infotainment system, the auto major said in a statement. These cars will be launched in 2014 in India and subsequently in other countries. ZEST and BOLT have been designed and developed based on three key fundamental principles, namely, DesigNext, DriveNext, ConnectNext, Tata Motors said. ZEST and BOLT, a result of the collaborative design inputs from the three Tata Motors design studios in Pune, Coventry (UK) and Turin ( Italy), come with several segment first features and a new design language on the exterior and the interior of the car, the company said.
Speaking on the occasion of the launch, Mr. Ranjit Yadav, President, Passenger Vehicles, Tata Motors, said: "We at Tata Motors are delighted to showcase to the global market the much awaited next generation cars -- the ZEST, a stunning and exciting new compact sedan and the BOLT, a dynamic hatch. These cars have been engineered for global markets, through global teams across India, UK and Korea to set new standards in their respective segments. These cars are a true representation of our Horizonext philosophy, with best-in-class offerings for performance that yet offers economy and efficiency."
Mahindra & Mahindra (M&M) declined 3.05%. M&M on Saturday, 1 February 2014, said its total auto sales declined 13.77% to 42,685 units in January 2014 over January 2013. Domestic sales declined 15.71% to 40,324 units in January 2014 over January 2013. Exports surged 42.05% to 2,361 units in January 2014 over January 2013.
The sales of Passenger Vehicles segment declined 25.46% to 19,792 units in January 2014 over January 2013. The four-wheeler commercial vehicle sales rose 4.49% to 15,100 units in January 2014 over January 2013. Three-wheeler sales declined 18.94% to 4,710 units in January 2014 over January 2013.
Separately, the company on Saturday, 1 February 2014, said its total tractor sales rose 15% to 20,109 units in January 2014 over January 2013. Domestic tractor sales rose 18% to 19,389 units in January 2014 over January 2013. Exports declined 33% to 720 units in January 2014 over January 2013.
Maruti Suzuki India (MSIL) fell 0.1%, with the stock extending Monday's losses. The company reported 10.3% decline in total sales at 102,416 vehicles in January 2014 over January 2013. Domestic sales declined 6.3% to 96,569 units in January 2014 over January 2013. Export sales declined 47.7% to 5,847 units in January 2014 over January 2013. The company unveiled January sales numbers on Saturday, 1 February 2014.
Ashok Leyland gained 3.46%, with the stock reversing intraday fall. The company's total sales declined 26% to 7,847 units in January 2014 over January 2013. The sales numbers were announced during trading hours on Monday, 3 February 2014. Ashok Leyland's sales of medium & heavy commercial vehicles (M&HCV) declined 19% to 5,530 units in January 2014 over January 2013. Sales of light commercial vehicles (LCVs) dropped 37% to 2,317 units in January 2014 over January 2013.
Bajaj Auto rose 1.91%, with the stock reversing intraday fall. The company said during market hours on Monday, 3 February 2014, that its total sales fell 8% to 3.18 lakh units in January 2014 over January 2013. Exports rose 7% to 1.37 lakh units in January 2014 over January 2013. Motorcycle sales declined 7% to 2.81 lakh units in January 2014 over January 2013. Commercial vehicles sales dropped 20% to 36,781 units in January 2014 over January 2013.
TVS Motor Company jumped 7.12%, with the stock reversing intraday fall. The company on Saturday, 1 February 2014 said its total sales rose 6% to 186,313 units in January 2014 over January 2013.
The company's total exports surged 39% to 28,875 units in January 2014 over January 2013. Two wheeler exports registered a growth of 35% to 23,438 units in January 2014 over January 2013.
Total two wheeler sales increased 5% to 179,576 units in January 2014 over January 2013. Domestic two wheeler sales accounted for 156,138 units in January 2014 as against 154,107 units registered in January 2013.
Scooters sales grew 19% to 45,198 units in January 2014 over January 2013. Motorcycles sales grew marginally increasing from 64,555 units in January 2013 to 65,449 units in January 2014.
Three wheeler sales surged 52% to 6,737 units in January 2014 over January 2013.
Hero MotoCorp rose 1.82%. The company said during market hours that its total sales rose 0.61% to 5.61 lakh units in January 2014 over January 2013. Riding on record sales in the festive months of October and November, the company had closed 2013 with sales of 61.83 lakh units, its highest ever sales for any calendar year.
Mr. Anil Dua, Sr. Vice President (Marketing & Sales), Hero MotoCorp said: "The year 2014 is going to be a defining year for Hero MotoCorp in terms of technological breakthroughs and new launches. Clocking over five-and-half-lakh sales in the first month of the calendar, therefore, is a good way to begin the New Year. Going forward, we are expecting to excite the market further as our new launches keep rolling out in a phased manner. We have already given a glimpse of our new line-up with models like the HX25OR and Xtreme Sports and also futuristic concepts like the RNT model. We will showcase these, and several more, at the upcoming Auto Expo later this week".
Delivering on its commitment to bring revolutionary products in the two-wheeler market, Hero MotoCorp recently unveiled a slew of game-changing two-wheelers across-the-spectrum. The next-generation range of two-wheelers includes the new 250-cc sports bike 'HX25OR', the break-through Liquid-cooled Turbocharged Diesel Concept Bike 'RNT'; India's first series hybrid scooter 'LEAP', 110cc scooter 'Dash' and the all-new 150-cc Xtreme Sports, the company said in a statement.
Bharat Forge fell 1.65% after net profit fell 2.5% to Rs 94 crore on 1.5% fall in total revenue to Rs 832.10 crore in Q3 December 2013 over Q2 September 2013. The result was announced during trading hours today, 4 February 2014.
Bharat Forge's net profit rose 97.9% to Rs 94 crore on 23.7% increase in total revenue to Rs 832.10 crore in Q3 December 2013 over Q3 December 2012.
Pharma stocks were mostly lower. Dr Reddy's Laboratories (down 2.21%), Lupin (down 1%), Glenmark Pharmaceuticals (down 0.71%), and Sun Pharmaceutical Industries (down 1.14%) declined. Cipla rose 0.41%. Ranbaxy Laboratories gained 2.04%.
Divi's Laboratories rose 2.04% after net profit rose 51.84% to Rs 219.02 crore on 25.24% increase in total income to Rs 697.18 crore in Q3 December 2013 over Q3 December 2012. The company announced the result after trading hours on Monday, 3 February 2014. Divi's Laboratories' forex loss amounted to Rs 5 crore in Q3 December 2013 compared with a forex gain of Rs 16 crore in Q3 December 2012.
Capital goods stocks edged lower. ABB (down 0.23%), Bhel (down 1.79%), Punj Lloyd (down 0.74%) and Thermax (down 0.32%) declined. L&T rose 0.52%.
Power Grid Corporation of India rose 0.42% after the central bank raised foreign institutional investors' investment limit in the company to 30% of its paid up capital. Foreign Institutional Investors (FIIs), through primary market and stock exchanges, can now purchase up to 30% of the paid up capital of Power Grid Corporation of India (PGCIL) under the portfolio investment scheme (PIS), the Reserve Bank of India (RBI) said in a notification on Monday, 3 February 2014.
PGCIL has passed resolutions at the board of directors' level and a special resolution by the shareholders, agreeing to enhance the limit for the purchase of its equity shares and convertible debentures by FIIs, RBI said.
As at 31 December 2013, FIIs held 25.37% stake in PGCIL.
Cummins India rose 0.06%. The company after market hours today, 4 February 2014, reported 37.1% fall in net profit to Rs 147.23 crore on 6.09% fall in total income from operations (net) to Rs 1023.01 crore in Q3 December 2013 over Q3 December 2012.
The sharp fall in net profit was due to base effect. The company's bottom line in Q3 December 2012 was boosted by exceptional profit of Rs 47.50 crore on sale of long term (trade) investments. The operating profit declined 5.3% to Rs 197.56 crore in Q3 December 2013 over Q3 December 2012. The operating profit margin edged up to 19.31% in in Q3 December 2013, from 19.14% in Q3 December 2012.
Pipavav Defence & Offshore Engineering Company climbed 4.82% to Rs 33.70 on bargain hunting after the stock slumped about 29% in the preceding fifteen trading sessions to Rs 32.15 on 3 February 2014, from a recent high of Rs 45 on 13 January 2014.
Telecom stocks reversed intraday fall. Idea Cellular jumped 7.7%. The Department of Telecommunications (DoT) has on 1 February 2014 transferred the licenses for Punjab and Karnataka service areas held by erstwhile Spice Communications to Idea. This is subject to final outcome of Idea petition at TDSAT challenging penalties imposed by DoT in connection with acquisition of erstwhile Spice which remain stayed, Idea Cellular said in a statement issued today, 4 February 2014. Spice Communications was merged with Idea Cellular with effect from 1 March 2010. The merger was reconfirmed vide a Delhi High Court Division Bench order dated 13 July 2012.
The long pending issue of transfer of Punjab and Karnataka licenses of erstwhile Spice pending since March 2010, thus now stands resolved, Idea Celllur said. The transfer of licenses would enable Idea, the commercial use of 3G spectrum won by it in 2010 auction conducted by DoT and for which it had paid Rs 322 crore to the DoT, Idea Cellular said.
Tata Teleservices (Maharashtra) (up 1.27%) Reliance Communications (up 2.44%), Bharti Airtel (up 3.28%) gained. MTNL fell 1.97%.
The auction of spectrum in the 1800 MHz and 900 MHz band that began on Monday, 3 February 2014, has completed ten rounds. Auction recommenced with the 8th round today at 9:00 IST and bidding is continuing, the Ministry of Communications & Information Technology said in a statement issued at 17:04 today, 4 February 2014.
Reliance Infrastructure rose 0.78%. Tata Power Company gained 0.14%.
The Aam Aadmi Party (AAP) led Delhi state government has asked state's power regulator to scrap the licences of two electricity distribution companies in the state viz. BSES Rajdhani Power and BSES Yamuna Power, both units of billionaire Anil Ambani-led Reliance Infrastructure, if they fail to supply power to the city. In a letter to P.D. Sudhakar, chairman of Delhi Electricity Regulatory Commission, Delhi's Power Secretary Puneet Goel asked the regulator to suspend the licenses if it finds the two companies won't be able to supply power in the city. BSES Rajdhani Power and BSES Yamuna Power have been put on notice by state-run power producer NTPC for nonpayment of dues. NTPC is threatening to cut power supplies to the companies from 11 February 2014, if the dues aren't paid. Blackouts could cover most of the capital and last for up to 10 hours. Mr. Goel said if their distribution licenses are going to be suspended then the regulator also needs to quickly start the process of appointing government officers to run the two companies.
Delhi Chief Minister Arvind Kejriwal last month asked private electricity distributors -- which includes Tata Power Delhi Distribution as well as the two BSES companies -- to open their books for an audit by the Comptroller and Auditor General. The distributors have challenged this demand in the Delhi High court as they say their books are already audited by competent authorities.
The AAP came into power in December promising to cut electricity tariffs while providing a regular power supply. It has already announced a 50% cut in electricity tariff for a small percentage of consumers who use little power. The distribution companies will be reimbursed by the Delhi government for the tariff cuts.
Bank stocks gained. Among PSU bank stocks, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank gained 1.38% to 3.63%.
State Bank of India rose 1.99% to Rs 1519.50, with the stock reversing initial losses. The state-run bank announced after market hours on Monday, 3 February 2014, that in respect of the issue of equity shares to Qualified Institutional Buyers in terms of Chapter VIII of the ICDR Regulations, the duly authorized Committee of Directors of the bank for the QIP (the Committee) has, in its meeting held on 3 February 2014, decided to issue and allot 5.13 crore shares at a price of Rs 1,565 per share (including a premium of Rs 1,555 per share), aggregating Rs 8031.64 crore.
HDFC Bank rose 1.29%. ICICI Bank gained 0.74%. AXIS Bank rose 0.13%.
Kotak Mahindra Bank rose 1.6%. The private sector bank announced after market hors on Monday, 3 February 2014, that it has raised interest rates on domestic term deposits of less than Rs 1 crore for select tenor buckets by upto 25 basis points (bps), with effect from 6 February 2014. The bank now offers 9.25% per annum (p.a.) for the 390 day deposit and 9% p.a. for deposits of 181 days-269 days tenor. Senior citizens deposits of less than Rs 1 crore enjoy an additional 50 basis points across maturities. Kotak Mahindra Bank attributed its decision to raise the deposit rates to hike in key policy rates announced by the Reserve Bank of India after monetary policy review on 28 January 2014.
Realty shares edged higher. HDIL (up 4.36%), Unitech (up 2.6%), DLF (up 0.11%) and Sobha Developers (up 0.49%) gained.
Tata Chemicals lost 1.25% after the company reported a consolidated net loss of Rs 15.93 crore in Q3 December 2013 compared to net profit of Rs 224.07 crore in Q3 December 2012. The Q3 result was announced after market hours on Monday, 3 February 2014.
Tata Chemicals' consolidated total income rose 6.65% to Rs 4598.13 crore in Q3 December 2013 over Q3 December 2012.
Commenting on the Company's Q3 performance, Mr. R Mukundan, Managing Director, Tata Chemicals said, "The company has embarked on executing twin strategy of restructuring its commodity business on one hand and focused growth in the consumer and farm business on the other hand. During the quarter our growth platforms of Consumer business and Non-subsidy farm business revenue grew at 20% and 21% respectively as compared to corresponding quarter of previous year. Consumer business continued to grow the Tata I-shakti and Swach franchise and have grown nearly to Rs 1000 crore sales (sales Rs 972 crore) year to date. Followed by Mumbai and Delhi launches, 'Dal on Call' facility was extended to Bangalore city during the quarter. The non-bulk farm business continued its growth on back of better farm conditions and focus on productivity improvement at farm level. We launched Farmgro and Farmgro G in the previous quarter and product is well received in the market. European restructuring is on track and should yield positive results from FY 2014-15. Current quarter results were impacted by one time charge of Rs 82 crore due to restructuring of European operation. Background work on restructuring Magadi facility continues, plan is expected to be finalised in the Q4 FY 2013-14. We remain positive on demand scenario going forward domestically as well as internationally. Prices internationally are stable. Subsidy outstanding continues to stress the working capital and is a challenge in the near term. Overall while we restructure our commodity businesses, on the strategic front; we continue to focus on building farm and consumer business portfolio".
Chambal Fertilisers & Chemicals lost 1.56% after net profit declined 6% to Rs 90.28 crore on 13% growth in net sales to Rs 2359.25 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced after market hours on Monday, 3 February 2014.
Kingfisher Airlines (KFA) fell 1.82% after the company said that the High Court of Karnataka has passed an order admitting a winding-up petition filed by Aerotron, an unsecured creditor of the company against the company. The company is in the process of filing an appeal against the aforesaid order of admission, KFA said in a statement.
Aksh Optifibre lost 2.06% after net profit fell 58.9% to Rs 2.53 crore on 11.4% decline in net sales to Rs 46.07 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced after market hours on Monday, 3 February 2014.
Whirlpool of India rose 3.68% after net profit jumped 111.02% to Rs 21.25 crore on 8.73% growth in total income from operations to Rs 672.77 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced during trading hours today, 4 February 2014.
Bond prices rose as the government's borrowing program draws to a close and potentially boosts demand for existing debt. The finance ministry will sell a total of Rs 10000 crore of notes maturing in 2020, 2023 and 2032 on Friday, 7 February 2014, at the final auction for the year through March. The yield on 10-year benchmark federal paper, 8.83% GS 2023, was hovering at 8.6792%, lower than its close of 8.7343% on Monday, 3 February 2014. Bond yield and bond prices move in opposite direction.
On macro front, the Reserve Bank of India next undertakes monetary policy review on 1 April 2014. Sighting elevated consumer price inflation, the Reserve Bank of India raised its key lending rates by 25 basis points after Third Quarter Review of Monetary Policy for 2013-14 on 28 January 2014.
The second part of the Winter Session of Parliament begins tomorrow, 5 February 2014. The session, subject to exigencies of business, may conclude on 21 February 2014. The UPA hopes to approve the splitting of the state of Andhra Pradesh into two states as well as a number of corruption bills during the Winter Session of Parliament.
The Finance Ministry will present the Vote-on-Account or interim budget during the Winter Session of Parliament. The objective of a Vote-on-Account is to get Parliament's nod for expenditure to be incurred in the months prior to elections. The next full-fledged budget will be presented by the new government which comes to power after the Lok Sabha polls in April-May 2014.
European stocks were off intraday low on Tuesday, 4 February 2014, after the latest data showed that euro zone producer price rose in December 2014. Key benchmark indices in Germany, France and UK were off 0.22% to 0.95%.
The European Union's statistics agency Tuesday said euro zone producer prices rose 0.2% in December 2013 from November 2013, but were 0.8% lower than in December 2012. Energy prices rose most sharply over the month. Excluding energy, producer prices were flat on the month and fell 0.3% when compared with December 2012.
Asian stocks fell on Tuesday, 4 February 2014, after data showing weaker-than-expected growth in US manufacturing worsened already sour sentiment. Key benchmark indices in Hong Kong, Indonesia, Japan, Singapore and South Korea were off 0.78% to 4.18%
The stock market in Taiwan was closed for the Lunar New Year holiday. Stock markets in mainland China remain closed until 7 February 2014 for the Lunar New Year holiday.
Australia's central bank -- the Reserve Bank of Australia (RBA) -- kept its key interest rate at a record low 2.5% after a monetary policy review today, 4 February 2014. RBA also indicated that it is no longer leaning toward cutting interest rates. "In the board's judgement, monetary policy is appropriately configured ... On present indications, the most prudent course is likely to be a period of stability in interest rates," said RBA Gov. Glenn Stevens in the statement accompanying the decision.
Trading in US index futures indicated that the Dow could advance 40 points at the opening bell on Tuesday, 4 February 2014. The US stock market closed with sharp losses on Monday, 3 February 2014, after a much weaker-than-expected reading on manufacturing data as well as concerns over a slowdown in China, triggered the worst selloff in several months. The implied volatility as measured by the CBOE Vix index, which moves inversely to the S&P 500, jumped 14.6% to 21.09, a level not seen since Dec. 28 2012, when the markets confronted the fiscal cliff.
Data showed factory activity in the US expanded in January at the weakest pace in eight months as orders slumped, a sign manufacturing cooled at the start of the year along with the weather. The Institute for Supply Management's factory index decreased to 51.3 from 56.5 the prior month, the Tempe, Arizona-based group's report showed. Readings above 50 indicate expansion.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review on 18-19 March 2014. After a monetary policy review, the FOMC on 29 January 2014 announced it will reduce monthly bond purchases by another $10 billion to $65 billion. The Fed also signaled that it is likely to keep reducing bond purchases in the coming months, citing a pickup in US economic activity and improvement in the US labor market.
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