Volatility ruled the roost as key benchmark indices regained positive terrain in morning trade. The barometer index, the S&P BSE Sensex, regained the psychological 22,000 mark. The 50-unit CNX Nifty scaled a record high. The Sensex was up 66.79 points or 0.3%, up about 90 points from the day's low and off close to 20 points from the day's high. The market breadth, indicating the overall health of the market, was positive. The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Monday, 10 March 2014. Gains in Asian stocks also boosted sentiment on the domestic bourses.
Bank shares extended their recent strong gains. Shares of footwear retailer Bata India scaled record high.
The market edged higher in early trade on firm Asian stocks. The Sensex fell below the psychological 22,000 mark after regaining that level in early trade. Volatility ruled the roost as key benchmark indices regained positive terrain in morning trade. The Sensex regained the psychological 22,000 mark. The 50-unit CNX Nifty scaled a record high.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Monday, 10 March 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 1253.65 crore on Monday, 10 March 2014, as per provisional data from the stock exchanges.
At 10:20 IST, the S&P BSE Sensex was up 66.79 points or 0.3% to 22,001.62. The index jumped 83.69 points at the day's high of 22,018.52 in morning trade. The index shed 23.88 points at the day's low of 21,910.95 in early trade.
The CNX Nifty was up 20.75 points or 0.32% to 6,558. The index hit a high of 6,562.85 in intraday trade, a record high. The index hit a low of 6,534.05 in intraday trade.
The BSE Mid-Cap index was up 26.47 points or 0.39% at 6,749.21. The BSE Small-Cap index rose 27.50 points or 0.41% to 6690.60. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,107 shares rose and 875 shares dropped. A total of 113 shares were unchanged.
Tata Power Company (up 3.48%), TCS (up 1.47%) and Bhel (up 1.38%) edged higher from the Sensex pack.
Bank shares extended their recent strong gains. Among private sector banks, ICICI Bank (up 1.94%), Yes Bank (up 0.33%), Federal Bank (up 1.4%), and AXIS Bank (up 0.36%), gained. Kotak Mahindra Bank fell 0.91%.
HDFC Bank dropped 0.32% to Rs 732, with the stock reversing direction after hitting record high of Rs 740 in intraday trade.
Among PSU bank stocks, Canara Bank (up 3.28%), Union Bank of India (up 0.98%), Bank of India (up 1.74%), Bank of Baroda (up 0.27%) and Punjab National Bank (up 0.84%) gained.
State Bank of India (SBI) rose 0.67%. The stock turned ex-dividend today, 11 March 2014, for interim dividend of Rs 15 per share for the year ending 31 March 2014.
Bata India rose 2.68% to Rs 1,122.80 after hitting record high of Rs 1,122.90 in intraday trade.
Engineers India gained 3.31% after the company scheduled a meeting of the board of directors on 15 March 2014, to consider declaration of interim dividend for the financial year ending 31 March 2014. The announcement was made after market hours on Monday, 10 March 2014. Engineers India has fixed 21 March 2014 as the record date for the interim dividend, if declared.
In the foreign exchange market, the rupee edged higher against the dollar on global risk-on sentiment. The partially convertible rupee was hovering at 60.65, compared with its close of 60.85/86 on Monday, 10 March 2014.
On the macro front, the government will unveil industrial production data for January 2014 tomorrow, 12 March 2014. Industrial output fell 0.6% in December 2013 after contracting a revised 1.3% in November 2013.
The government also unveils data on inflation based on the combined consumer price index (CPI) for urban and rural India for February 2014 tomorrow, 12 March 2014. CPI inflation eased to 24-month low of 8.79% in January 2014.
The data on inflation based on the wholesale price index (WPI) for February 2014 is due on Friday, 14 March 2014. WPI inflation stood at 5.05% (provisional) in January 2014 as compared to 6.16% (provisional) for December 2013.
The Reserve Bank of India next undertakes monetary policy review on 1 April 2014. Citing price pressures, 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 next major trigger for the stock market is the outcome of the upcoming Lok Sabha elections. Lok Sabha elections will be held between 7 April 2014 and 12 May 2014 in nine phases. The counting of votes will be take place on 16 May 2014. The term of the current Lok Sabha expires on June 1 and the new House has to be constituted by May 31. Along with the Lok Sabha election, Andhra Pradesh (AP), including the regions comprising Telangana, Odisha and Sikkim will go to polls to elect new assemblies. AP, Odisha and Sikkim assemblies come to end on June 2, June 7 and May 7 respectively.
With the election code of conduct coming into force, government authorities will not be able to announce any major policy initiatives. However, they can announce routine or unavoidable policy measures after taking the approval of the election commission.
Asian stocks edged higher on Tuesday, 11 March 2014, after the Bank of Japan kept monetary policy unchanged. Key benchmark indices in China, Indonesia, South Korea, Hong Kong, Taiwan, Singapore and Japan were up 0.17% to 0.53%.
The Bank of Japan (BoJ) maintained record easing, keeping ammunition as an April sales-tax bump threatens to trigger the deepest one-quarter contraction since the March 2011 earthquake. The BoJ kept a pledge to expand the monetary base at a pace of 60 trillion to 70 trillion yen ($677 billion) per year, the central bank said in a statement in Tokyo today, 11 March 2014, after a monetary policy review.
A report yesterday, 10 March 2014, showed aggregate financing in China dropped to 938.7 billion yuan ($153 billion) last month amid a crackdown on shadow lending, down from January's record 2.58 trillion yuan. Central Bank Governor Zhou Xiaochuan said today, 11 March 2014, that China's deposit rates will be liberalized in one to two years. Zhou commented at a press briefing in Beijing as part of sessions of the annual meeting of the National People's Congress. He also said that interest rates will initially rise as controls are removed.
Trading in US index futures indicated a flat opening of US stocks on Tuesday, 11 March 2014. US stocks slid on Monday, pulling the Standard & Poor's 500 Index down from a record, as a slowdown in Chinese exports fueled concern about global economic growth.
The Federal Reserve will continue to trim its monthly asset purchases at a $10 billion pace, Charles Evans, president of the Chicago Fed and among the most dovish US policymakers said on Monday as he also detailed how the US central bank might rewrite its plan for keeping interest rates low. "We're at a point now where we're, moving away from purchasing assets, we're tapering, and our balance sheet continues to be very large but we're not going to add to it as much," Evans told a gathering at Columbus State University. "The last two meetings we reduced the purchase flow rate by $10 billion and we're going to continue to do that," he said flatly.
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.
Ukraine began military drills as Russian forces tightened their hold on the Crimean peninsula and the Foreign Ministry in Moscow warned of "lawlessness" in the former Soviet republic's eastern provinces.
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