Key benchmark indices reversed intraday gains in late trade as European stocks slipped into the red from green. The barometer index, the S&P BSE Sensex, was provisionally down 53.17 points or 0.23%, off close to 145 points from the day's high and up about 5 points from the day's low. The market breadth, indicating the overall health of the market was positive.
Shares of power generation and power distribution companies edged higher. Kotak Mahindra Bank and UltraTech Cement hit record high. Hindalco Industries reversed direction after scaling 52-week high. L&T hit 52-week high.
The Sensex edged higher in early trade after overnight rally in US stocks. The Sensex and the 50-unit CNX Nifty, both, hit record high. A bout of volatility was witnessed as the Sensex regained positive zone after a sudden slide pushed the barometer index into negative zone from positive zone in morning trade. The Sensex hovered in positive terrain in mid-morning trade. Key benchmark indices extended gains in early afternoon trade as Asian stocks rose. Key benchmark indices moved in a narrow range in positive zone in afternoon trade. Key benchmark indices regained positive terrain soon after slipping into the red for a brief period in mid-afternoon trade. Key benchmark indices reversed intraday gains in late trade as European stocks slipped into the red from green.
As per provisional figures, the S&P BSE Sensex was down 53.17 points or 0.23% to 22,649.17. The index fell 57.91 points at the day's low of 22,644.43 in late trade. The index jumped 90.15 points at the day's high of 22,792.49 in early trade, a lifetime high for the index.
The CNX Nifty was down 17.25 points or 0.25% at 6,778.95, as per provisional figures. The index hit a low of 6,777.98 in intraday trade. The index hit a high of 6,819.05 in intraday trade, a lifetime high for the index.
The BSE Mid-Cap index was up 45.89 points or 0.63% at 7,331.28. The BSE Small-Cap index was up 46.53 points or 0.63% at 7,473.88. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 3388 crore, higher than Rs 2407.59 crore on Wednesday, 9 April 2014.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,545 shares rose and 1,255 shares fell. A total of 146 shares were unchanged.
Dr. Reddy's Laboratories (down 2.96%), Hero MotoCorp (down 2.3%), and Sun Pharmaceutical Industries (down 2.21%), edged lower from the Sensex pack.
GMR Infrastructure declined 0.78%. The company today, 10 April 2014, said that GMR Highways has completed the Chennai Outer Ring Road Phase I project. The state government of Tamil Nadu and all concerned agencies issued a provisional certificate for completion with effect from 15 June 2013 for the GMR Group's Chennai Outer Ring Road project. The milestone will add to the cash flow of GMR by Rs 118 crore for the next 17 and half years, GMR Infrastructure said in a statement.
Completed on Design, Build, Finance, Operate and Transfer basis, the GMR Chennai Outer Ring Road project connects Vandalur on NH-45 to Nemillicheri on NH-205 via Nazaratpet on NH-4. GMR won this prestigious 29.65 Km project through international competitive bidding. The concession period of the project is 20 years including 30 months of construction. The commissioning of the project will significantly ease traffic congestion along the western periphery of Chennai city. The Outer Ring Road connects the northern and southern suburbs of Chennai and will be a catalyst for expansion of the city and help growth of the industrial hubs in this region through better connectivity, GMR Infrastructure said.
Commenting on the commissioning of the project Mr. BVN Rao, Business Chairman of GMR Urban Infrastructure & Highways said: "The Chennai Outer Ring Road is GMR Group's 9th highway project. Over the years we have developed significant expertise in design, construction and operation of highway projects. With growing urbanization and more cities planning ring roads and peripheral roads to enable better connectivity, the GMR Group is ideally placed to partner with state governments in similar projects."
Hindalco Industries lost 1.19% to Rs 141. The scrip stock reversed direction after hitting 52-week high of Rs 145.15 in intraday trade.
Kotak Mahindra Bank rose 2.38% to Rs 802.75 after hitting record high of Rs 811 in intraday trade.
UltraTech Cement rose 0.97% to Rs 2242 after hitting record high of Rs 2253.80 in intraday trade.
L&T gained 0.51% to Rs 1306 after hitting 52-week high of Rs 1325.80 in intraday trade.
Shares of power generation and power distribution companies edged higher. Tata Power Company (up 4.12%), NTPC (up 2.57%), NHPC (up 2.28%), Adani Power (up 1.35%), Reliance Infrastructure (up 8.76%), Torrent Power (up 1.81%), Power Grid Corporation of India (up 0.94%), JSW Energy (up 3.34%), and Reliance Power (up 1.98%) gained.
Index heavyweight and cigarette maker ITC shed 1.42% to Rs 342.55. The stock hit high of Rs 349 and low of Rs 342.55.
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.
The next major trigger for the stock market is Q4 March 2014 and year ended 31 March 2014 (FY 2014) corporate earnings. Investors and analysts will closely watch the management commentary that would accompany the results to see if there is any revision in their future earnings forecast of the company for the year ending 31 March 2015 (FY 2015) and/or for the year ending 31 March 2016 (FY 2016). Indian companies will start reporting their Q4 and full year results from mid-April 2014, with Infosys announcing its results on 15 April 2014. The results season will conclude in end-May 2014.
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.
European stocks reversed initial gains on Thursday, 10 April 2014, as mining companies fell after a report showed Chinese imports unexpectedly slumped last month. Key benchmark indices in UK, France and Germany were down 0.13% to 0.52%.
Greece's first bond sale since its 2010 bailout will raise 3 billion euros ($4.15 billion) at a yield of 4.95%, according to media reports.
The outcome of a monthly meeting of the Monetary Policy Committee (MPC) of the Bank of England's (BoE) is due today, 10 April 2014. The BoE is expected to leave its key interest rate at a record low of 0.5% as policy makers try to gauge the amount of spare capacity in the economy. The MPC is also expected to keep its asset-purchase program on hold at 375 billion pounds ($629 billion).
Asian stocks edged higher in choppy trade on Thursday, 10 April 2014, as China's central bank pumped money into the banking system for the first time in nine weeks. Key benchmark indices in China, Hong Kong, South Korea and Taiwan were up 0.2% to 1.51%. Japan's Nikkei Average ended almost unchanged of the day. In Singapore, the Straits Times index was off 0.2%.
Stocks tumbled in Indonesia after the nation's early legislative vote results showed the opposition party favored by investors failed to win enough support to run for the presidency without forming a coalition. The Jakarta Composite index was off 3.8%.
Chinese exports fell 6.6% in March, extending the steepest drop since 2009 in February and missing the estimate. China's imports plunged 11.3% last month down from growth of 10.1% in February and below the estimates. China's export data have been distorted by inflated numbers in early 2013, when some companies filed fake invoices to disguise capital inflows.
China's Premier Li Keqiang today, 10 April 2014, said China will not take any forceful stimulus measures to counter short-term fluctuations in its economic growth, stressing again that authorities have flexibility in achieving the 2014 growth target. Sustaining healthy growth in China's labour market is most important for the government, Li told an investment forum in China's southern island of Hainan. Whether China's annual economic growth comes in slightly above or below a targeted 7.5% is less important in comparison, he said.
Li said China plans to create conditions that will link the stock exchanges in Hong Kong and Shanghai to deepen the nation's capital markets.
The Bank of Korea left its key rate unchanged at its first policy meeting under Lee Ju Yeol, as low inflation gives the new governor room to support growth in Asia's fourth-biggest economy. The central bank held the seven-day repurchase rate at 2.5% for an 11th straight month, it said in a statement in Seoul today, 10 April 2014.
Trading in US index futures indicated that the Dow could drop 55 points at the opening bell on Thursday, 10 April 2014. US stocks rallied on Wednesday, 9 April 2014, with technology shares gaining the most in two months, as minutes from the Federal Reserve's last meeting eased concern about the timing of future interest-rate increases.
Several Fed policy makers said a rise in their median projection for the main interest rate exaggerated the likely speed of tightening, according to minutes of their March 18-19 meeting released on Wednesday, 9 April 2014. Federal Reserve officials fretted last month that investors would overreact to policymakers' fresh forecasts on interest rates that appeared to map out a more aggressive cycle of rate hikes than was actually anticipated.
The published rate forecasts of the current 16 Fed policymakers, known as the "dots" charts, suggested the federal funds rate would end 2016 at 2.25%, a half percentage point above Fed officials' projections in December. In minutes of the March 18-19 meeting published on Wednesday, several of the meeting's participants said the charts "overstated the shift in the projections," suggesting the Fed is not as eager to tighten policy as the dots had seemed to suggest. The minutes also showed that officials wanted to emphasize that the official policy statement, and not the dots charts, give a better indication of the likely path of rates.
After its March meeting, the Fed said in a statement that it would wait a "considerable time" following the end of its bond-buying program before finally raising interest rates.
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.
Powered by Capital Market - Live News
