Key benchmark indices edged higher in choppy trade as index heavyweights viz. Infosys, Reliance Industries and HDFC rose. The barometer index, the S&P BSE Sensex, attained record closing high. The 50-unit CNX Nifty attained its highest closing level in more than six weeks. HDFC eked out small gains after reporting a decent growth in bottom line in Q3 December 2013. Infosys extended its recent gains triggered by the company raising its revenue growth guidance for the year ending 31 March 2014 at the time of announcement of Q3 December 2013 earnings on 10 January 2014. The Sensex garnered 86.55 points or 0.41%, off 40.24 points from the day's high and up 169.24 points from the day's low. The market breadth, indicating the overall health of the market, was positive.
Indian stocks edged higher for the third day in a row today, 22 January 2014. The Sensex has garnered 274.05 points or 1.3% in three trading sessions from a recent low of 21,063.62 on 17 January 2014. The Sensex has risen 166.99 points or 0.78% in this month so far (till 22 January 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 3,888.96 points or 22.28%.
Coming back to today's trade, metal and mining stocks edged higher for the second day in a row after China's central bank on Tuesday, 21 January 2014, said it provided emergency funding support for commercial banks as they gear up to meet demands for cash ahead of the Lunar New Year. Pharma stocks edged higher.
Zee Entertainment Enterprises edged higher in choppy trade after the company's chairman Subhash Chandra said at the time of announcement of the company's Q3 results that while the overall economic environment stays challenging, Zee continues to grow its business at a healthy pace. Bharat Heavy Electricals (Bhel) fell in volatile trade on massive volume after multiple bulk deals were executed on the counter in early afternoon trade. Index heavyweight and cigarette major ITC edged lower in chopy trade. Shares of local search engine, Just Dial, surged.
The Sensex edged lower amid initial volatility after a Reserve Bank of India panel recommended that the central bank should start using a consumer-price inflation target to determine monetary policy. High volatility was witnessed as key benchmark indices alternately swung between gains and losses in morning trade. Key benchmark indices moved into positive zone from negative zone in mid-morning trade as Asian stocks rose. Key benchmark indices gave away a lion's portion of intraday gains in early afternoon trade. Key benchmark indices extended intraday gains in afternoon trade. The Sensex pared gains in mid-afternoon trade. A bout was witnessed in late trade as key benchmark indices pared gains soon after extending intraday gains.
The S&P BSE Sensex garnered 86.55 points or 0.41% to settle at 21,337.67, a record closing high. The index jumped 126.79 points at the day's high of 21,377.91 in late trade. The index dropped 82.69 points at the day's low of 21,168.43 in early trade, its lowest level since 20 January 2014.
The CNX Nifty garnered 25.15 points or 0.4% to settle at 6,338.95, its highest closing since 9 December 2013. The index hit a high of 6,349.95 in intraday trade. The index hit a low of 6,287.45 in intraday trade, its lowest level since 20 January 2014.
The total turnover on BSE amounted to Rs 1887 crore, lower than Rs 1888.43 crore on Tuesday, 21 January 2014.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,389 shares gained and 1,295 shares fell. A total of 151 shares were unchanged.
The S&P BSE Mid-Cap index rose 0.2% and the S&P BSE Small-Cap index rose 0.28%. Both these indices underperformed the Sensex.
The S&P BSE Healthcare index (up 1.31%), the S&P BSE Metal index (up 0.93%), the S&P BSE Oil & Gas index (up 0.76%) and the S&P BSE Realty index (up 0.55%) outperformed the Sensex.
The S&P BSE Power index (up 0.4%), the S&P BSE Teck index (up 0.33%), the BSE PSU (up 0.32%), the S&P BSE Auto index (up 0.28%), the S&P BSE Bankex index (up 0.25%), the S&P BSE IT index (up 0.19%), the S&P BSE FMCG index (down 0.14%) and the S&P BSE Capital Goods index (down 0.52%) underperformed the Sensex. The S&P BSE Consumer Durables index was almost unchanged for the day.
Among the 30-share Sensex pack, 19 stocks rose and rest fell.
Index heavyweight and cigarette major ITC lost 0.61% to Rs 327. The stock hit a high of Rs 329.50 and low of Rs 323.15.
Colgate Palmolive (India) edged higher in volatile trade after the company said at the time of announcement of its Q3 December 2013 results after trading hours on Tuesday, 21 January 2013, that the company further enhanced its leadership position toothpaste and toothbrush category during the period April-December 2013. The stock rose 0.87%. The company's net profit rose 1.6% to Rs 112.83 crore on 14.05% growth in total income to Rs 907.35 crore in Q3 December 2013 over Q3 December 2012. Net sales jumped 16% to Rs 884 crore in Q3 December 2013 over Q3 December 2012. The growth in bottom line lagged top line growth as advertisement expenditure surged. The company's advertisement expenditure rose 21.64% to Rs 121.46 crore in Q3 December 2013 over Q3 December 2012. The operating profit margin (OPM) declined to 16.89% in Q3 December 2013, from 19.12% in Q3 December 2012.
During the quarter, the company achieved volume growth of 10% on year on year basis, led by a strong growth of 11% in toothpaste category wherein the company further enhanced its leadership position by registering a 56% volume market share for the period January-December 2013, compared to 54.5% for the period January-December 2012. Colgate Palmolive (India) said that the company further strengthened its leadership position in the toothbrush category by registering a volume market share of 41.5% for the period January-December 2013, as against 39.8% for the period January-December 2012.
Dabur India fell 4.06% after Q3 result. The company reported a 15.04% growth in consolidated net profit to Rs 242.88 crore on 16.8% growth in net sales to Rs 1904.30 crore in Q3 December 2013 over Q3 December 2012. The company announced the result during trading hours today, 22 January 2014.
Dabur India reported a 14.5% growth in earnings before interest, taxation, depreciation and amortization (EBITDA) to Rs 331.50 crore in Q3 December 2013 over Q3 December 2012. EBITDA margin declined to 17.4% in Q3 December 2013, from 17.7% in Q3 December 2012.
Commenting on the company's Q3 performance, Dabur India's Chief Executive Officer Mr. Sunil Duggal said: "We have delivered another quarter of strong volume-led growth. Dabur has been reporting strong and consistent performance despite intensifying competitive pressures and the challenging market environment being witnessed for some quarters now. Our focus on brand-building and market expansion programs coupled with a greater degree of innovation has helped Dabur sustain strong growth in the core categories, which have been significantly ahead of the market. Going forward, our focus will be on pursuing an aggressive and profitable growth strategy".
Index heavyweight Reliance Industries (RIL) rose 0.57% to Rs 869. The stock hit a high of Rs 875.70 and low of Rs 859. The company's net profit rose 0.2% to Rs 5511 crore on 10.5% growth in revenue to Rs 106383 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced on 17 January 2014.
L&T fell 0.28%. The company after market hours today, 22 January 2014, said its recurring profit after tax rose 12% to Rs 1136 crore on 12% growth in gross revenue to Rs 14534 crore in Q3 December 2013 over Q3 December 2012. L&T said the results are excluding the performance of the hydrocarbon business segment, which has been transferred to a wholly-owned subsidiary of the company with effect from 1 April 2013. Consequently, the figures for the previous periods have been restated to make a like-to-like comparison, L&T said.
L&T said its order inflow rose 21% to Rs 21722 crore in Q3 December 2013 over Q3 December 2012, shrugging off prevailing weak investment climate. The international order inflow during the quarter at Rs 8237 crore, more than doubled on the back of major orders secured in the Middle East. The order backlog rose 13% year-on-year at Rs 171184 crore as on 31 December 2013. International order book constituted 15% of the total order book.
L&T said that while the company continues to focus on maximizing the domestic opportunities, it is strengthening its international presence in select overseas markets. Competitive value proposition to the clients and disciplined execution have helped the company sustain its profitable growth momentum, L&T said. Presence in the diverse sectors, healthy order book, proven track record and strong balance sheet are the key enablers for the company to steer through the near to medium challenges and meet its growth aspirations, L&T said in a statement.
Bharat Heavy Electricals shed 0.38% to Rs 169.50 on massive volume. On BSE, 79.63 lakh shares were traded in the counter as against average daily volume of 7.33 lakh shares in the past one quarter. The stock was volatile. It hit a high of Rs 172.30 and low of Rs 168.70. Multiple bulk deals were executed on the counter in early afternoon trade. A bulk deal of 20.55 lakh share was struck on the scrip at Rs 170.75 per share at 12:12 IST on BSE.
Thermax fell 2.55% after net profit fell 12.73% to Rs 66.64 crore on 2.13% decline in total income to Rs 1036.68 crore in Q3 December 2013 over Q3 December 2012. The company announced the results after trading hours on Tuesday, 21 January 2014.
Thermax improved its order intake at Rs 1365 crore in Q3 December 2013, as against Rs 1284 crore in Q3 December 2012.
On a consolidated basis, the order backlog of the group rose 24% to Rs 6445 crore as on 31 December 2013, from Rs 5191 crore as on 31 December 2012.
Thermax said that the company had to suspend operations, which are not significant, at its Mundra special economic zone (SEZ) plant following a recent order from the Gujarat high court. The company has approached Supreme Court with Special Leave Petition against the order.
GMR Infrastructure dropped after the company after trading hours on Tuesday, 21 January 2014, said that a meeting of the board of directors of the company will be held on Friday, 24 January 2014, inter-alia, to consider raising funds through Foreign Currency Convertible Bonds or any other securities. The stock shed 1.89% at Rs 23.30.
Metal and mining stocks edged higher for the second day in a row after China's central bank on Tuesday, 21 January 2014, said it provided emergency funding support for commercial banks as they gear up to meet demands for cash ahead of the Lunar New Year. China is the world's largest consumer of copper and aluminum. Hindustan Copper (up 0.67%), Hindalco Industries (up 2.13%), Tata Steel (up 2.32%), Steel Authority of India (up 1.16%) National Aluminum Company (up 1.37%), NMDC (up 0.35%) and JSW Steel (up 0.63%) gained. Jindal Steel & Power fell 0.04%.
Hindustan Zinc rose 0.15%, with the stock extending Tuesday's gains. Trade minister Anand Sharma on Monday, 20 January 2014, said that Union Cabinet has approved divestment of government's residual stake in Hindustan Zinc. He said the method and timing of the stake sale would be decided later. The government sold its control in Hindustan Zinc to India-born billionaire Anil Agarwal's Vedanta Resources PLC almost a decade ago. The government now still has a 29.54% stake in Hindustan Zinc. Vedanta holds 64.92% stake in Hindustan Zinc through its Indian arm Sesa Sterlite -- erstwhile Sterlite Industries. Vedanta has been seeking a larger control of the company to fast-track decision-making.
Sesa Sterlite rose 0.84%, with the stock extending Tuesday's gains.
HDFC rose 0.44% on good Q3 result. The lender's net profit rose 12.06% to Rs 1277.71 crore on 14.87% increase in total income to Rs 6030.93 crore in Q3 December 2013 over Q3 December 2012. The company announced the result during trading hours today, 22 January 2014. As on 31 December 2013, HDFC's loan book stood at Rs 192266 crore, compared with Rs 160941 crore in the corresponding period of the previous year. This is after considering the loans sold during the preceding 12 months amounting to Rs 3263 crore.
On a consolidated basis, HDFC's net profit rose 13.42% to Rs 1934.85 crore on 13.30% increase in total income to Rs 10052.98 crore in Q3 December 2013 over Q3 December 2012.
Mahindra & Mahindra Financial Services lost 5.26% after consolidated net profit fell 15.65% to Rs 182.36 crore on 28.36% growth in total income to Rs 1363.20 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced during trading hours today, 22 January 2014.
Mahindra & Mahindra Financial Services, during the 9 months ended 31 December 2013, registered disbursement growth of 14% against corresponding period last year, maintaining its leadership position for vehicles and tractors in the rural and semi urban market. The company said it witnessed pressure from certain geographies and products resulting in higher provisions. The situation is expected to improve in due course in view of the good harvest, Mahindra & Mahindra Financial Services said.
Shares of private banks rose. ICICI Bank rose 0.11%.
HDFC Bank rose marginally by 0.04%. The bank's net profit rose 25.1% to Rs 2325.70 crore on 17.75% growth in total income to Rs 12738.95 crore in Q3 December 2013 over Q3 December 2012. The bank announced Q3 results on 17 January 2014.
Kotak Mahindra Bank gained 0.42%. The bank's net profit fell 5.99% to Rs 339.98 crore on 3.85% increase in total income to Rs 2492.01 crore in Q3 December 2013 over Q3 December 2012. The bank's consolidated net profit rose 2.43% to Rs 591.25 crore on 6.43% growth in total income to Rs 4424.50 crore in Q3 December 2013 over Q3 December 2012. The result was announced during trading hours on Tuesday, 21 January 2014.
The bank's gross non-performing assets edged up to Rs 1076.18 crore as on 31 December 2013, from Rs 1005.97 crore on 31 September 2013 and Rs 740.02 crore as on 31 December 2012. The ratio of gross non-performing assets (NPA) to gross advances stood at 2.01% as on 31 December 2013, higher than 1.97% as on 30 September 2013 and 1.46% as on 31 December 2012. The ratio of net non-performing assets to net advances stood at 1.1% as on 31 December 2013, higher than 0.96% as on 30 September 2013 and 0.64% as on 31 December 2012.
AXIS Bank fell 0.43%. AXIS Bank's net profit increased 19.06% to Rs 1604.11 crore on 9.94% increase in total income to Rs 9433.55 crore in Q3 December 2013 over Q3 December 2012. The result was announced on 16 January 2014.
SBI fell 1%.
Infosys rose 0.3% to Rs 3,767.10. The stock hit a record high of Rs 3,775 in intraday trade.
Tata Consultancy Services (TCS) shed 0.37%. The company announced after market hours on Tuesday, 21 January 2014, the launch of the Digital Software & Solutions Group, a new business unit designed to help customers undergo critical digital transformations through modular, fully integrated, industry-tailored licensed software and solutions. Initial industries served will be Retail, Communications and Banking and Financial Services, three sectors with a particularly urgent need to adopt emerging technologies to enhance digital commerce and customer intelligence capabilities, and rapidly shift product and service offerings to compete in highly competitive and customer-centric arenas, TCS said in a statement.
The Digital Software & Solutions Group's initial offerings include 'Digital Commerce' and 'Customer Intelligence & Insights'.
By providing fully integrated solutions, TCS reduces the total cost of ownership for customers, due to business engagement models that are flexible and structured around a customer's consumption patterns. At the same time, TCS also offers support programs to train customers to best utilize TCS' software and solutions.
HCL Technologies fell 0.08% as the stock turned ex-dividend today, 22 January 2014, for the second interim dividend of Rs 4 per share for the year ending 30 June 2014.
Wipro rose 1.01% to Rs 577.30. The stock hit 52-week high of Rs 582 in intraday trade. The stock turned ex-dividend today, 22 January 2014 for the interim dividend of Rs 3 per share for the year ending 31 March 2014.
Zensar Technologies lost 6.31% after consolidated net profit fell 28.2% to Rs 50.71 crore on 4.5% fall in total income to Rs 588.38 crore in Q3 December 2013 over Q2 September 2013. The company announced the result after trading hours on Tuesday, 21 January 2014.
Zensar Technologies' foreign exchange loss stood at Rs 8.56 crore in Q3 December 2013 compared to foreign exchange gain of Rs 14.46 crore in Q2 September 2013.
Meanwhile, Zensar Technologies' board of directors at its meeting held on Tuesday, 21 January 2014, recommended interim dividend of Rs 4 per share for the financial year ending 31 March 2014. The company's board of directors have fixed 31 January 2014 as the record date for ascertaining shareholders entitlement for payment of interim dividend.
MphasiS lost 4.66% on turning ex-dividend today, 22 January 2014, for a final dividend of Rs 17 per share for the year ended 31 October 2013.
Shares of local search engine, Just Dial, surged. The stock rose 3.81% at Rs 1,671.55. The stock hit record high of Rs 1,774.35 in intraday trade.
Pharma stocks edged higher. Cipla (up 1.38%), Dr Reddy's Laboratories (up 1.17%), Lupin (up 2.21%), Ranbaxy Laboratories (up 0.59%) and Sun Pharmaceutical Industries (up 2.94%) gained.
Suven Life Sciences jumped 5.31% after the company said its facility in Pashamylaram near Hyderabad received approval from the US Food and Drug Administration. The company made the announcement during trading hours today, 22 January 2014. Suven Life Sciences said it underwent US Food and Drug Administration (USFDA) renewal inspection at its facility in Pashamylaram near Hyderabad for the manufacture and supply of active pharmaceutical ingredients (bulk drugs), intermediates and formulations under cGMP.
Based on the inspection and the review thereafter, USFDA has classified the Pashamylaram facility as acceptable for manufacture and supply of active pharmaceutical ingredients, intermediates and formulations, the company said in a statement.
So far, Suven Life Sciences has filed 29 Drug Master Files (DMFs) and 1 Abbreviated New Drug Application (ANDA) from this facility, which is FDA compliant under current good manufacturing practices (cGMP) and continued after renewal inspection.
Torrent Pharmaceuticals jumped 6.67% after consolidated net profit rose 41.1% to Rs 158 crore on 28.9% increase in net sales to Rs 990 crore in Q3 December 2013 over Q3 December 2012. The company announced the results after trading hours on Tuesday, 21 January 2014.
Torrent Pharmaceuticals said its domestic formulation business revenues grew 15% to Rs 297 crore in Q3 December 2013 over Q3 December 2012. As per AIOCD, Torrent grew at 12% during the quarter compared to covered market growth of 5% and Indian Pharmaceutical growth of 5%.
International revenues grew by 41% to 637 crore in Q3 December 2013 over Q3 December 2012. In the international operations, US business reported growth of 61%, Europe (incl.Heumann) 59%, Brazil growth 26% and Rest of the World, including Russia, CIS, Mexico & Canada 9%.
In Q3 December 2013, the company acquired Indian branded formulations business of Elder for a consideration of Rs 2004 crore. The transaction is subject to conditions precedent including shareholder approval and applicable regulatory approvals and is expected to close in the first half of 2014, Torrent Pharmaceuticals said in a statement.
Ashok Leyland edged higher in choppy trade as the company is optimistic about Q4 March 2014 after reporting dismal Q3 December 2013 results on Tuesday, 21 January 2014. The stock rose 2.68%.The company reported a net loss of Rs 167.20 crore in Q3 December 2013, compared with a net profit of Rs 74.14 crore in Q3 December 2012. Total income fell 18.67% to Rs 1968.62 crore in Q3 December 2013 over Q3 December 2012. The company announced result after market hours on Tuesday, 21 January 2014.
Ashok Leyland said that the company gained market share in the trucks business buoyed by the success of the ICV truck BOSS in every market where it has been launched. In line with the company's policy of ensuring fiscal prudence, the company is working to lower costs, reduce debt and divest non-core assets. There has been a significant reduction in operating costs and lowered working capital; including a VRS for about 500 executives, Ashok Leyland said in a statement.
"We look forward to the general optimism associated with Q4. Our latest offering, the CAPTAIN range of heavy trucks, brings an altogether different level of trucking experience to Indian roads and we are sure to reap its benefits. We hope orders under JNNURM will commence in Q4," said Vinod K. Dasari, Managing Director, Ashok Leyland.
The company continues to invest in network expansion with over 600 customer touch points, including retail parts stores and containerized workshops, across the country, Ashok Leyland said.
Zee Entertainment Enterprises edged higher in choppy trade after the company's chairman Subhash Chandra said at the time of announcement of the company's Q3 results that while the overall economic environment stays challenging, Zee continues to growth its business at a healthy pace. The stock rose 0.57%. The company's consolidated net profit rose 10.03% to Rs 213.59 crore on 25.8% growth in total income to Rs 1226.40 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced during market hours today, 22 January 2014.
Zee Entertainment Enterprises' advertising revenue rose 34.3% to Rs 684.30 crore in Q3 December 2013 over Q3 December 2012. Subscription revenue rose 11.4% to Rs 456.50 crore in Q3 December 2013 over Q3 December 2012.
Zee Entertainment Enterprises' consolidated operating revenue rose 26.6% to Rs 1188.40 crore in Q3 December 2013 over Q3 December 2012. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 11.3% to Rs 290.70 crore in Q3 December 2013 over Q3 December 2012. EBITDA margin contracted to 24.5% in Q3 December 2013, from 27.8% in Q3 December 2012. The company said that the contraction in EBITDA margin was due to higher losses in the sports business due to a heavy event calendar. Excluding sports business, EBITDA margin expanded to 39.6% in Q3 December 2013, from 32.5% in Q3 December 2012.
With regard to future business outlook, Punit Goenka, Manaing Director and Chief Executive Officer, Zee Entertainment Enterprises said: "The rollout of digitization, even though with some delays, is a very good development for the industry and will provide new growth opportunities. Digitization will lead to fragmentation of audiences. At Zee, we believe this presents a huge opportunity to create new products for specific segments. Barring short-term impact of reduction in inventory, advertising spends on television are expected to grow in healthy double digits over next many years. Rollout of BARC is expected to give it a positive fillip. We continue to make investments in creating excellent quality content for our existing channels. We also continue to explore growth opportunities in domestic markets, international markets and in new media space".
Finolex Cables rose 4.42% after the company said it won an advance purchase order of over Rs 200 crore for metal free optical fibre cable of the national optic fibre network backbone project. The company made the announcement after trading hours on Tuesday, 21 January 2014. The national optic fibre network backbone project is targeted at providing connectivity to over 2.5 lakh gram panchayats across the country for better e-governance, e-health services, and educational services to the people of India, Finolex Cables said in a statement.
Bond prices dropped after a Reserve Bank of India panel recommended that the central bank should start using a consumer-price inflation target to determine monetary policy. The panel's recommendations if accepted by the central bank may result in increase in interest rates to achieve the panel's 4% consumer-price inflation target by 2016. The yield on 10-year benchmark federal paper, 8.83% GS 2023, was hovering at 8.6085%, higher than its close of 8.5531% on Tuesday, 21 January 2014. Bond yield and bond prices move in opposite direction.
A Reserve Bank of India panel has recommended that the central bank should start using a consumer-price inflation target to determine monetary policy. The panelset up soon after former International Monetary Fund chief economist Raghuram Rajan took over as RBI governor last yearwas created to come up with ways to make the country's monetary policy more transparent and predictable. In a 130-page report released on Tuesday, 21 January 2014, the panel recommended using a well-defined range of consumer-price index inflation to set monetary policy. The report suggested a CPI inflation rate target within two percentage points above or below 4%. The RBI panel said the central bank should move to lower India's consumer inflation, which has been close to 10% in recent months, to 8% within the next 12 months and to 6% in 24 months, before adopting the target. "This transition path should be clearly communicated to the public," the report said.
If accepted, the report's recommendation would bring India in line with global norms by placing less emphasis on wholesale price inflation, which India has used until now as its main indicator of price movements. The wholesale price inflation measure, which excludes the massive service sector, has typically been much lower than consumer prices. The consumer price index is currently hovering near 10%, compared with about 6% for wholesale prices.
Historically, the Indian central bank has followed a multifocus approach to monetary policy, setting interest rates based on how it sees inflation, growth and currency stability. It usually didn't have an official inflation target, which often left markets surprised by its moves.
The panel also suggested monetary policy be decided by a committee headed by the governor with final decisions through a vote of the committee members, as is the practice in some developed countries like the UK. Right now in India monetary policy decisions are made by the RBI governor alone, though he gets input from an advisory committee.
The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014. The RBI kept its main lending rate viz. the repo rate unchanged after its last policy review in December and said at that time that it expected inflation to ease in the following months.
European stocks edged lower in choppy trade on Wednesday, 22 January 2014. Key benchmark indices in Germany, France and UK were down 0.09% to 0.41%.
Bank of England policy makers see no need to raise interest rates soon even as they forecast that unemployment will fall to a key level far sooner than they previously anticipated. The Monetary Policy Committee "saw no immediate need to raise bank rate even if the 7% unemployment threshold were to be reached in the near future," it said in the minutes of its Jan. 8-9 meeting, published today, 22 January 2014. It said cost pressures remain subdued and headwinds to growth would persist for some time. Central bank officials at that meeting had left the country's benchmark interest rate at a record low of 0.5% and kept its asset-purchase target at 375 billion pounds ($618 billion).
UK unemployment, as measured by International Labour Organization methods, declined to 7.1% in the three months through November from 7.4% in the quarter through October, the Office for National Statistics said in London today, 22 January 2014.
Asian stocks edged higher on Wednesday, 22 January 2014, after the Bank of Japan pledged to maintain economic stimulus and the International Monetary Fund raised its global growth forecast. Key benchmark indices in Japan, South Korea, Indonesia, China, Taiwan and Hong Kong were up 0.16% to 2.16%. Singapore's Straits Times was flat.
The Bank of Japan (BOJ) today, 22 January 2014, pledged to maintain economic stimulus after a two-day monetary policy review. The BOJ said it will keep plans to increase the monetary base annually by 60 trillion to 70 trillion yen and maintained its inflation target for 2015.
The Thai government declared a state of emergency in its capital in response to antigovernment protests that have paralyzed the city and stirred up increasingly violent attacks. Over the past week, unknown assailants have launched attacks on the protesters, killing one and injuring dozens. The unrest is also dragging on the economy, with Japanese auto companies, some of Thailand's most important investors, raising a red flag that future investment could be affected.
Trading in US index futures indicated that the Dow could drop 50 points at the opening bell on Wednesday, 22 January 2014. US stocks closed mostly higher on Tuesday, 21 January 2014, though disappointing earnings results from Verizon Communications Inc and the Travelers Cos. Inc. weighed on the Dow. The S&P 500's cyclical sectors energy and natural resources were among the biggest gainers after the People's Bank of China on Tuesday, 21 January 2014, said it provided emergency funding support for commercial banks as they gear up to meet demands for cash ahead of the Lunar New Year.
The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014. By a 9-to-1 vote, the Fed on 18 December 2013 decided to trim its asset-purchase program by $10 billion to $75 billion per month starting in January 2014.
The International Monetary Fund raised its forecast for global growth this year as expansions in the US and UK accelerate, and urged advanced economies to maintain monetary accommodation to strengthen the recovery. The global economy will grow 3.7% this year, compared with an October estimate of 3.6%, the IMF said in revisions to its World Economic Outlook released in Washington.
US gross domestic product will expand 2.8%, compared with 2.6%; Japan will gain 1.7% versus 1.2%; and the UK will increase 2.4% from 1.9%, the report showed. "In advanced economies, output gaps generally remain large and, given the risks, the monetary policy stance should stay accommodative while fiscal consolidation continues," the Washington-based organization said in the report. "In many emerging market and developing economies, stronger external demand from advanced economies will lift growth, although domestic weaknesses remain a concern." Central banks in the US, Japan and the euro area face inflation levels under their targets while trying to accelerate growth with policies including benchmark interest rates near zero and bond-buying programs. While it raised the outlook for advanced nations, the IMF said "downside risks remain," including financial-market volatility in emerging markets.
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