Key benchmark indices extended losses and hit fresh intraday low in mid-morning trade. The barometer index, the S&P BSE Sensex, hit one-week low. The market breadth, indicating the overall health of the market turned negative from positive. The Sensex was down 175.30 points or 0.71%, off about 150 points from the day's high and up close to 15 points from the day's low.
Telecom stocks declined. Hero MotoCorp declined after announcing weak Q4 results. Shares of other two-wheeler makers were mixed.
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.
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 11:20 IST, the S&P BSE Sensex was down 175.30 points or 0.71% to 24,380.79. The index dropped 189.71 points at the day's low of 24,366.38 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 44.25 points or 0.6% to 7,285.40. The index hit a low of 7,281.25 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 down 6.81 points or 0.08% at 8,456.28. The BSE Small-Cap index was down 4.38 points or 0.05% at 9,024.46. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market turned negative from positive in mid-morning trade. On BSE, 1,271 shares fell and 1,190 shares rose. A total of 95 shares were unchanged.
Among the 30-share Sensex pack, 18 stocks fell and rest of them rose. Sesa Sterlite (down 1.73%), Cipla (down 1.07%) and Reliance Industries (RIL) (down 1.07%) edged lower from the Sensex pack.
Telecom stocks declined. MTNL (down 0.66%), Tata Teleservices (Maharashtra) (down 1.23%), Reliance Communications (down 0.58%) and Idea Cellular (down 0.41%) declined. Bharti Airtel rose 1.29%.
Hero MotoCorp fell 0.98% to Rs 2327.20 after announcing weak Q4 results. The stock as volatile. The stock hit high of Rs 2,351.90 and low of Rs 2,268.90 so far during the day. Hero MotoCorp's net profit declined 3.45% to Rs 554.43 crore on 6.31% rise in net sales to Rs 6455.70 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Wednesday, 28 May 2014. Hero MotoCorp's net profit declined 0.43% to Rs 2109.08 crore on 6.54% rise in net sales to Rs 25124.91 crore in the year ended March 2014 over the year ended March 2013.
Earnings before interest, taxes, depreciation and amortization (EBITDA) margin for the quarter stood at a healthy 13.73%, Hero MotoCorp said. The company's EBITDA margin stood at 14.01% in FY 2014.
There is only 30% tax exemption this year, it being the sixth year of the company's operations at Haridwar. The company was entitled to 100% exemption in the first five years of operation at its plant located in Haridwar, which expired last year.
Pawan Munjal, Managing Director & Chief Executive Officer, said: "These numbers are reflective of our new strategic approach focused on bringing path-breaking technologies and consolidating our leadership. FY 2014 was all about setting new benchmarks, which culminated with the sales of 6.25 million during the year - our highest-ever sales for any financial year. However, the industry continued to witness tepid growth during FY 2014, although the sentiments did improve in the second half of the year, starting with the festival season in October. In the fiscal year ending March 2015 (FY 2015), we have an action-packed year ahead of us with a slew of new products lined up for launch and further expansion of our global footprint. The country has just entered a new era of governance. After three long decades, a single political party has come to power with such a huge majority, and it is clearly a mandate for good governance, development and inclusive growth. With the new government expected to speed up the reforms process and improve the investment climate, we look forward to a revival of the economy and the industry this year."
Shares of other two-wheeler makers were mixed. Bajaj Auto declined 0.5%. TVS Motor Company rose 0.51%.
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 8.6798%, 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 58.84, compared with its close of 58.93/94 on Wednesday, 28 May 2014.
As per media reports, Prime Minister Narendra Modi will unveil top 10 policy priorities of the government today, 29 May 2014. The newly named principal private secretary in the Prime Minister's Office Nripendra Misra said in a newspaper interview that the policy priorities would focus on overcoming delays to major infrastructure projects and addressing why India has become a coal importer. A meeting of the Union Cabinet has been scheduled today, 29 May 2014, media reports said. On the agenda is finalising dates of the Parliament session.
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 Singapore, China, and Hong Kong were up 0.05% to 1.07%. Key benchmark indices in South Korea and Taiwan were off 0.14% to 0.31%. Japan's Nikkei Average was flat.
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 21 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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