Key benchmark indices continued hovering in negative territory in afternoon trade. The barometer index, the S&P BSE Sensex, was down 86.86 points or 0.38%, up about 74 points from the day's low and off close to 137 points from the day's high. The market breadth, indicating the overall health of the market, was positive. Indian stocks fell today, 29 April 2014, extending their recent losses triggered by the India Meteorological Department (IMD) on Thursday, 24 April 2014, announcing that the country will likely get below-normal levels of monsoon rain this year. Investors also maintained caution ahead of the announcement of Federal Reserve's monetary policy review tomorrow, 30 April 2014. IT stocks rose on positive economic data in US.
Telecom shares edged higher on reports the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) Tuesday cleared the 3G intra-circle roaming agreements signed between Bharti Airtel, Idea Cellular and Vodafone India, saying the pacts did not violate any license conditions.
The market dropped in early trade. It extended initial losses and hit fresh intraday low in morning trade. The Sensex and the 50-unit CNX Nifty, both, hit their lowest level in almost two weeks. It languished in the negative terrain in mid-morning trade. It trimmed intraday losses in early afternoon trade. Key benchmark indices continued hovering in negative territory in afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 77.02 crore on Monday, 28 April 2014, as per provisional data from the stock exchanges.
At 13:15 IST, the S&P BSE Sensex was down 86.86 points or 0.38% to 22,544.75. The index fell 161.18 points at the day's low of 22,470.43 in morning trade, its lowest level since 17 April 2014. The index rose 50.28 points at the day's high of 22,681.89 in early trade.
The CNX Nifty was down 19.50 points or 0.29% to 6,741.75. The index hit a low of 6,711.10 in intraday trade, its lowest level since 17 April 2014. The index hit a high of 6,779.70 in intraday trade.
The BSE Mid-Cap index was up 21.55 points or 0.29% to 7,460.04. The BSE Small-Cap index was up 42.58 points or 0.56% to 7,659.86. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,264 shares rose and 1,251 shares fell. A total of 125 shares were unchanged.
Among the 30-share Sensex pack, 21 stocks declined and rest of them rose. Tata Steel (down 3.73%), Hindustan Unilever (down 2.36%), Bajaj Auto (down 1.98%), Hindalco Industries (down 1.59%), Cipla (down 1.28%), Tata Power Company (down 1.08%), Tata Motors (down 0.96%), HDFC Bank (down 0.92%), Maruti Suzuki India (down 0.86%), ICICI Bank (down 0.81%) and Coal India (down 0.73%), edged lower from the Sensex pack.
M&M (up 0.99%), Sun Pharmaceutical Industries (up 0.76%), Wipro (up 0.70%), Larsen & Toubro (up 0.39%), Bharti Airtel (up 0.31%), GAIL (India) (up 0.28%), TCS (up 0.26%), Infosys (up 0.22%) and Axis Bank (up 0.16%), edged higher from the Sensex pack.
Telecom shares edged higher. Idea Cellular (up 1.10%), MTNL (up 1.06%), Reliance Communications (up 0.42%) and Bharti Airtel (up 0.30%), edged higher.
The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) Tuesday reportedly cleared the 3G intra-circle roaming agreements signed between Bharti Airtel, Idea Cellular and Vodafone India, saying the pacts did not violate any license conditions.
According to reports, TDSAT, in its ruling, also quashed the penalties levied on the three operators by the telecom department (DoT). The DoT had hauled up Bharti Airtel, Vodafone India and Idea Cellular for forging 3G service sharing pacts that allowed them to sign up 3G customers even in service areas, or circles, where they did not have permits. DoT had said that three violated 3G license conditions.
The DoT had earlier slapped penalties of Rs 350 crore on Bharti Airtel, Rs 550 crore on Vodafone and Rs 300 crore on Idea Cellular for providing the 3G facilities outside their licensed telecom zones through the ICR agreements, reports added.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.53, compared with its close of 60.6450/65 on Monday, 28 April 2014.
The country will likely get below-normal levels of monsoon rain this year, the India Meteorological Department (IMD) said on Thursday, 24 April 2014. The IMD said that the rainfall during the June-September summer rainy season will likely be 95% of the long-term average for the country. India's weather department defines a normal monsoon as one with rainfall between 96% and 104% of the 50-year average, which is 89 centimeters this year. This year could be a below normal monsoon, the weather department said, as there is a 60% possibility of the emergence of the El Ni weather phenomenona warm weather system that starts in the southern Pacific can affect weather around the world. El Ni last affected India's monsoon in 2009 when the monsoon rainfall was 23% below normal.
Annual rains are important for India as most of its farmlands are dependent or rain for irrigation and more than half of its workforce is employed in agriculture. The monsoon rains usually arrive over the southern state of Kerala by the end of May or the first week of June, and gradually cover the entire country by July. The IMD will issue the update forecasts in June 2014 as a part of the second stage forecast. Along with the update forecast, separate forecasts for the monthly (July and August) rainfall over the country as a whole and seasonal (June-September) rainfall over the four geographical regions of India will also be issued.
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 shares were higher in early trade on Tuesday as a slew of corporate earnings helped to buoy sentiment ahead of a policy meeting by the US Federal Reserve. Key benchmark indices in UK, France and Germany were up by 0.27% to 0.82%.
Most Asian stocks edged lower on Tuesday as investors weighed corporate earnings. Key benchmark indices in Indonesia, South Korea and Singapore were off 0.21% to 0.98%. Key benchmark indices in China, Taiwan and Hong Kong rose 0.71% to 1.09%.
Trading in US index futures indicated that the Dow could gain 38 points at the opening bell on Tuesday, 29 April 2014. US stocks rose, with the Standard & Poor's 500 Index erasing an earlier slide on Monday, 28 April 2014,, as Internet and smaller companies pulled back from a selloff amid optimism over merger activity.
A report by the National Association of Realtors showed contracts to purchase previously owned US homes climbed in March by the most in almost three years, showing residential real estate was starting to stabilize entering the spring selling season. The pending home sales index rose 3.4%, the first gain in nine months, after a 0.5% drop in February that was smaller than initially reported.
A two-day meet of the Federal Open Market Committee (FOMC) on monetary policy review resumes today, 29 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.
Investors are also watching developments in Ukraine. The Obama administration imposed sanctions on seven Russian officials and 17 companies linked to Russian President Vladimir Putin's inner circle involved in banking, energy and infrastructure. The sanctions, announced by the White House, are being imposed in conjunction with the European Union, which said it is adding 15 names to its list of previously sanctioned individuals.
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