A bout of volatility was witnessed as the key benchmark indices recovered from lower level after trimming intraday gains in early afternoon trade. The barometer index, the S&P BSE Sensex, was up 81.89 points or 0.36%, off 16.13 points from the day's high and up 73.98 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%.
Auto shares edged higher with Maruti Suzuki India hitting record high. Tyre stocks edged higher for the second day in a row with Apollo Tyres hitting record high.
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.
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 12:18 IST, the S&P BSE Sensex was up 81.89 points or 0.36% to 22,710.73. 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 19.35 points or 0.29% to 6,798.75. 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, 1,522 shares gained and 897 shares fell. A total of 108 shares were unchanged.
The BSE Mid-Cap index was up 57.03 points or 0.78% at 7,396.32. The BSE Small-Cap index was up 83.83 points or 1.11% to 7,607.84. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1110 crore by 12:15 IST, compared with Rs 821 crore by 11:20 IST.
Wipro (down 5.15%), Hindustan Unilever (down 1.76%) and Cipla (down 0.65%) edged lower from the Sensex pack.
Bharat Heavy Electricals (Bhel) (up 3.21%), L&T (up 2.34%) and Sesa Sterlite (up 2.34%) edged higher from the Sensex pack.
Auto stocks edged higher. Tata Motors (up 0.22%), Mahindra & Mahindra (M&M) (up 3.27%) and Ashok Leyland (up 3.47%) gained.
Maruti Suzuki India gained 2.17% to Rs 1,988.45 after hitting record high of Rs 1,999.30 in intraday trade.
Shares of two wheeler makers also gained. TVS Motor Company (up 1.63%), Hero MotoCorp (up 0.69%) and Bajaj Auto (up 0.58%) gained.
Tyre stocks edged higher for the second day in a row. CEAT (up 4.11%), Goodyear India (up 0.16%), and TVS Srichakra (up 0.65%) gained.
JK Tyre & Industries surged 7.25% to Rs 220.35 after hitting 52-week high of Rs 224.20 in intraday trade.
Apollo Tyres gained 2.83% to Rs 177.90 after hitting 52-week high of Rs 178.90 in intraday trade.
MRF shed 0.52%.
Shasun Pharmaceuticals was locked at 20% upper circuit at Rs 105.30 after the company said its board will meet on Wednesday, 23 April 2014, to consider issuing convertible warrants/equity shares on preferential basis to promoters and others subject to the approval of the shareholders. The company made the announcement after market hours on Thursday, 17 April 2014.
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 60.355, 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 8.8646%, 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.
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 0.44%. Key benchmark indices in Singapore and Indonesia were up 0.06% to 0.11%. 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 22 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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