Key benchmark indices languished in negative terrain in early afternoon trade. The market breadth, indicating the overall health of the market once again turned positive from negative. The barometer index, the S&P BSE Sensex, was down 145.45 points or 0.59%, off about 120 points from the day's high and up close to 55 points from the day's low.
Infosys slumped after the company after market hours on Wednesday, 28 May 2014, announced the resignation of its President and Member of the Board B. G. Srinivas. Index heavyweight Reliance Industries (RIL) declined. Shares of private sector banks edged lower. PSU bank stocks gained. Tata Global Beverages dropped on weak Q4 results. Escorts fell after announcing weak quarterly result.
The market edged lower in early trade. Key benchmark indices languished in negative terrain in morning trade. Key benchmark indices extended losses and hit fresh intraday low in mid-morning trade. The Sensex hit one-week low. Key benchmark indices languished in negative terrain in early afternoon trade.
The market sentiment was hit adversely by data showing that foreign funds were net sellers of Indian stocks on Wednesday, 28 May 2014. Foreign institutional investors (FIIs) sold shares worth a net Rs 286.54 crore on Wednesday, 28 May 2014, as per provisional data from the stock exchanges.
The market may remain volatile today, 29 May 2014, as traders roll over positions in the futures & options (F&O) segment from the near month May 2014 series to June 2014 series. The May 2014 derivatives contracts expire today, 29 May 2014.
At 12:20 IST, the S&P BSE Sensex was down 145.45 points or 0.59% to 24,410.64. The index dropped 198.14 points at the day's low of 24,357.95 in mid-morning trade, its lowest level since 22 May 2014. The index fell 27.89 points at the day's high of 24,528.20 in early trade.
The CNX Nifty was down 35.60 points or 0.49% to 7,294.05. The index hit a low of 7,279.90 in intraday trade, its lowest level since 27 May 2014. The index hit a high of 7,325.40 in intraday trade.
The BSE Mid-Cap index was up 38.69 points or 0.46% at 8,501.78. The BSE Small-Cap index was up 20.42 points or 0.23% at 9,049.24. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market once again turned positive from negative. Earlier, the breadth had turned negative from positive in mid-morning trade. On BSE, 1,360 shares rose and 1,304 shares dropped. A total 98 shares were unchanged.
Among the 30-share Sensex pack, 15 stocks fell and rest of them rose.
Infosys slumped after the company after market hours on Wednesday, 28 May 2014, announced the resignation of its President and Member of the Board B. G. Srinivas. The stock was off 7.07%. The resignation of Srinivas is effective 10 June 2014, Infosys said in a statement.
The Board of Directors placed on record their deep sense of appreciation for the services rendered by B. G. Srinivas during his tenure as Member of the Board and for his contribution to the company, Infosys said in a statement.
Srinivas, who joined Infosys in 1999, was the head of some of the largest businesses at Infosys, including the groups that do programming for financial services and manufacturing businesses. His resignation comes at a time when Infosys is the process of appointing a new CEO after current CEO, S.D. Shibulal, retires next January. Infosys said last month that it had hired external agencies to search for a new CEO. Infosys has been struggling with a string of senior management resignations ever since its founder N.R. Narayana Murthy returned to the company in June. Infosys had called back Murthy from retirement, hoping he could revive growth at the IT major.
Meanwhile, the Infosys stock turned ex-dividend today, 29 May 2014, for final dividend of Rs 43 per share for the year ended 31 March 2014 (FY 2014).
Infosys during market hours today, 29 May 2014, said that Al Hilal Bank, one of the fastest growing banks in the UAE has successfully implemented the award winning Infosys Finacle e-banking solution.
Shares of private sector banks edged lower. ICICI Bank (down 0.36%), HDFC Bank (down 0.66%) and IndusInd Bank (down 0.1%) declined. Axis Bank (up 0.91%) and Kotak Mahindra Bank (up 0.68%) gained.
PSU bank stocks gained. Punjab National Bank (up 3.39%), Union Bank of India (up 3.4%), Canara Bank (up 3.3%), Bank of India (up 4.3%) and Bank of Baroda (up 2.78%) gained.
State Bank of India (SBI) rose 1.03%. The stock turned ex-dividend today, 29 May 2014 for dividend of Rs 15 per share for the year ended 31 March 2014 (FY 2014).
Index heavyweight Reliance Industries (RIL) fell 0.97% to Rs 1,078. The stock hit high of Rs 1,093.90 and low of Rs 1,072.50 so far during the day.
Tata Global Beverages lost 4.64% on weak Q4 results. The company's consolidated net profit fell 27.63% to Rs 69.30 crore on 3.25% increase in total income to Rs 1926.15 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Wednesday, 28 May 2014. Tata Global Beverages said net profit declined in Q4 March 2014 over Q4 March 2013 due to higher expenditure on brands, new initiatives and exceptional items. During Q4 March 2014, Tata Global Beverages continued to create magical beverage moments for consumers, across tea, coffee and water. On a consolidated basis, Tata Global Beverages' net profit rose 28.9% to Rs 480.51 crore on 5.14% increase in total income to Rs 7819.41 crore in the year ended 31 March 2014 (FY 2014) over the year ended March 2013 (FY 2013).
Excel Crop Care jumped 8.23% after net profit surged 338.27% to Rs 10.65 crore on 18.90% increase in net sales to Rs 210.90 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Wednesday, 28 May 2014. Excel Crop Care's net profit surged 213.96% to Rs 67.25 crore on 25.56% increase in net sales to Rs 937.16 crore in the year ended March 2014 over the year ended March 2013.
Indian government bond prices rose after the latest data showed that overseas investors raised holdings of local bonds this month by the most since January 2012. The yield on 10-year benchmark federal paper, 8.83% GS 2023, was hovering at 8.6814%, lower than its close of 8.7025% on Wednesday, 28 May 2014. Bond yield and bond prices move in opposite direction. Foreign institutional investors bought Indian government and corporate notes aggregating Rs 1683.10 crore on Tuesday, 27 May 2014, as per data from Securities & Exchange Board of India.
In the foreign exchange market, the rupee edged higher against the dollar after the latest data showed that overseas investors raised holdings of local bonds this month by the most since January 2012. The partially convertible rupee was hovering at 58.88, compared with its close of 58.93/94 on Wednesday, 28 May 2014.
The inaugural session of the new Lok Sabha will commence on 4 June 2014 and end on 11 June 2014, Parliamentary Affairs Minister Venkaiah Naidu announced today, 29 May 2014, and added that this was decided today by the Narendra Modi-led Union Cabinet. The seven-day-long session has been convened to enable the newly-elected MPs to be sworn in. This will be followed by the election of the Speaker of the 16th Lok Sabha. President Pranab Mukherjee will also address a joint sitting of the two Houses during the session. The special session will be followed by a full-fledged budget session after a gap.
Finance Minister Arun Jaitley is expected to table Union Budget for 2014-15 in Lok Sabha by July 2014. An interim budget was presented by P. Chidambaram in February this year. Essentially, in the nature of a vote on account, the interim budget was intended to get Parliament approval for expenditure to be incurred during the first few months of fiscal year 2014-15 due to Lok Sabha elections.
The Reserve Bank of India (RBI) undertakes a 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.
Asian stocks rose in choppy trade on Thursday, 29 May 2014, as phone carriers and electronics manufacturers advanced. Key benchmark indices in China, Japan and Hong Kong were up 0.02% to 0.98%. Key benchmark indices in Singapore, South Korea and Taiwan were off 0.14% to 0.38%.
Japan's retail sales dropped at the fastest pace in at least 14 years last month after the first consumption-tax increase since 1997 depressed consumer spending. Sales in April declined 13.7% from the previous month, the trade ministry reported today
Data released by the Bank of Korea today showed the nation's current account surplus narrowed to $7.12 billion in April from a revised $7.29 billion in March.
Philippine economic growth in first quarter eased to below 6% for the first time in nine quarters, giving the central bank scope to keep interest rates at a record low. Gross domestic product increased 5.7% in the three months through March from a year earlier, the Philippine Statistics Authority said in Manila today, after a 6.3% gain in the previous quarter.
Trading in US index futures indicated that the Dow could gain 19 points at the opening bell on Thursday, 29 May 2014. US stocks fell on Wednesday, 28 May 2014, as losses among retailers overshadowed gains in phone shares and utilities before a report that may show the economy contracted in the first quarter.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 17-18 June 2014. The Fed on 30 April 2014 said after a monetary policy review that it will keep the benchmark interest-rate target at almost zero for a "considerable time" after its bond-buying program ends. The FOMC also reduced monthly debt purchases to $45 billion, its fourth straight $10 billion cut, and said further reductions are likely in "measured steps" if the economy continues to improve.
Russia called for unspecified emergency measures to halt the violence in eastern Ukraine after separatist militias suffered the heaviest casualties of their insurgency. Ukraine stepped up air patrols over the eastern city of Donetsk yesterday as a convoy of pro-Russian rebels moved through the city with an anti-aircraft gun in tow, threatening renewed violence after dozens of militants were killed in a government operation to retake the area's biggest airport. Both sides suffered casualties as rebels stormed a National Guard base in Luhansk last night, the Interior Ministry said on its website, without further details. President-elect Petro Poroshenko has vowed to wipe out the insurgents and re-establish order after winning office May 25.
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