Key benchmark indices edged higher on last trading session of Q4 March 2014 and the fiscal year ended 31 March 2014 (FY 2014), with the market sentiment boosted by data showing that foreign institutional investors (FIIs) made substantial purchases of Indian stocks on Friday, 28 March 2014. With small gains, the barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, attained record closing high. The Sensex garnered 46.30 points or 0.21%, up 132.49 points from the day's low and off 80.94 points from the day's high. The market breadth, indicating the overall health of the market was strong. The BSE Mid-Cap and Small-Cap indices gained more than 1% each, with both these indices outperforming the Sensex.
Indian stocks rose for the fourth day in a row today, 31 March 2014. From a recent low of 22,055.21 on Tuesday, 25 March 2014, the Sensex has garnered 331.06 points or 1.5% in four trading sessions. The Sensex garnered 1,266.15 points or 5.99% in March 2014. The Sensex advanced 1,215.59 points or 5.74% in Q4 March 2014. The Sensex advanced 3,550.50 points or 18.84% in the year ended 31 March 2014 (FY 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 4,937.56 points or 28.29%.
Coming back to today's trade, shares of metal and mining stocks extended recent gains triggered by growing expectations that China will take steps to stimulate its sagging economy. Shares of aluminium major Hindalco Industries hit 52-week high. Steel stocks surged. Index heavyweight and cigarette major ITC declined. Another index heavyweight Reliance Industries (RIL) edged higher in choppy trade. ABB India and Siemens hit a 52-week high. Among auto components makers, shares of Motherson Sumi Systems hit record high while Bharat Forge hit 52-week high. Shares of fast moving electrical goods (FMEG) company Havells India hit record high.
The market opened on a firm note after provisional data released by the stock exchanges after trading hours on Friday, 28 March 2014, showed that foreign institutional investors (FIIs) made substantial purchases of Indian stocks on that day. The Sensex, and the 50-unit CNX Nifty, both, hit record high. The Sensex trimmed initial gains in mid-morning trade. The Sensex erased almost entire intraday gains in early afternoon trade. A bout of volatility was witnessed as key benchmark indices reversed intraday gains in mid-afternoon trade. Intraday volatility continued as key benchmark indices regained positive zone in late trade.
The market sentiment was boosted by data showing that foreign institutional investors (FIIs) made substantial purchases of Indian stocks on Friday, 28 March 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 1362.87 crore on Friday, 28 March 2014, as per provisional data from the stock exchanges.
The S&P BSE Sensex garnered 46.30 points or 0.21% to settle at 22,386.27, a record closing high for the barometer index. The index jumped 127.24 points at the day's high of 22,467.21 in early trade, a lifetime high for the barometer index. The index fell 86.19 points at the day's low of 22,253.78 in mid-afternoon trade.
The CNX Nifty garnered 8.30 points or 0.12% to settle at 6,704.20, a record closing high. The index hit a high of 6,730.05 in intraday trade, a lifetime high for the index. The index hit a low of 6,662.40 in intraday trade.
The BSE Mid-Cap index garnered 72.57 points or 1.04% to settle at 7,082.86. The BSE Small-Cap index garnered 72.90 points or 1.04% to settle at 7,071.96. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2596 crore, lower than Rs 2923.48 crore on Friday, 28 March 2014.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,706 shares gained and 1,024 shares fell. A total of 149 shares were unchanged.
The S&P BSE Metal index (up 3.87%), the S&P BSE Realty index (up 2.83%), the S&P BSE Consumer Durables index (up 2.62%), the S&P BSE Auto index (up 1.05%), the S&P BSE Oil & Gas index (up 0.32%) outperformed the Sensex.
The S&P BSE IT index (up 0.17%), the S&P BSE Teck index (up 0.15%), the S&P BSE Healthcare index (up 0.11%), the S&P BSE Bankex (down 0.09%), the S&P BSE Capital Goods index (down 0.47%), the S&P BSE Power index (down 0.6%) and the S&P BSE FMCG index (down 0.64%) underperformed the Sensex.
Among the 30-share Sensex pack, 16 stocks declined and rest of them rose.
Index heavyweight and cigarette major ITC fell 1.81% to Rs 352.50 in volatile trade. The stock hit high of Rs 361.05 and low of Rs 349.75 so far during the day.
Another index heavyweight Reliance Industries (RIL) gained 1.68% to Rs 929.50 after the company announced on Saturday, 29 March 2014, that it has been awarded two contracts for exploration of oil and gas in Myanmar. The stock hit 52-week high of Rs 939.30 in intraday trade. Both these blocks are located offshore Myanmar and are spread across an area of 27,600 square kilometers, RIL said.
RIL said that the Myanmar government awarded the contracts to companies based on the expertise and willingness of companies to invest the required money for discovery of oil and gas and carrying out proposed work programme. RIL will now sign a production sharing contract with Myanmar government which will provide for the profit sharing mechanism between government and RIL. For the past few years, RIL is focused on expanding its oil and gas business internationally. RIL's participation in Myanmar's oil & gas discovery is in line with this strategy.
Shares of metal and mining stocks extended their recent gains triggered by growing expectations that China will take steps to stimulate its sagging economy. China is the world's largest consumer of copper and aluminum. NMDC (up 0.98%), Sesa Sterlite (up 2.54%), National Aluminum Company (up 2.98%) and Hindustan Copper (up 2.09%) gained.
Hindalco Industries galloped 8.75% to Rs 141.75 after hitting 52-week high of Rs 142.70 in intraday trade.
Hindustan Zinc rose 3.14%. The company after market hours on Friday, 28 March 2014, said it has commissioned the first sewage treatment plant (STP) in Udaipur. It is the first sustainable development project of its kind in Rajasthan and has been constructed as per a tripartite agreement between Hindustan Zinc, Udaipur Municipal Corporation and Urban Improvement Trust. The STP will treat 20 million litres of sewage per day. The project has been constructed in a record time of 14 months at a cost of over Rs 70 crore, Hindustan Zinc said.
Hindustan Zinc said during market hours today, 31 March 2014, that the board of directors at its meeting held on 29 March 2014 has further extended the tenure of Mr. Akhilesh Joshi as CEO & Whole-time director for a period of 18 months from 1 April 2014 to 30 September 2015.
Steel stocks rallied. Tata Steel (up 3.33%), Steel Authority of India (Sail) (up 10.05%), JSW Steel (up 5.6%) surged.
Jindal Steel & Power (JSPL) gained 4.07%. Jindal Steel & Power after market hours today, 31 March 2014, said that Jindal Power (JPL), a company promoted by the company has commissioned the second unit of 600 MW of the 4x600 MW expansion project at Tamnar in Raigarh district of Chattisgarh on Sunday, 30 March 2014. The Tamnar plant is the country's first mega power project in IPP (Independent Power Plant). The unit has been declared available for commercial operation (COD) within a time frame of 28 months from the Boiler Erection stage which is a record for a unit of this size - a new benchmark in the Power sector in India, Jindal Steel & Power said. The total capacity of Jindal Power has now reached 2,200 MW.
The company in a statement also informed that the third unit of 600 MW is completed and ready for synchronization, while the company plans to commission its fourth unit of 600MW by October 2014.
Speaking on the commissioning Mr. Ravi Uppal, MD & CEO, JSPL, said: "The company has achieved this impressive feat by adopting the best practices in project construction, IT enabled and web based project management tools and most innovative commissioning methods thereby achieving unprecedented operational efficiencies. On completion of the expansion project of (600X4) 2400 MW- JPL will have a total capacity of 3,400 MW in Tamnar. We intend to become a significant thermal power player in India over the next two years. We have a vision of having installed capacity of 10,000 MW by the year 2020 with a unique approach of amalgamating diverse forms of power including thermal, hydro, solar and wind energy".
Auto stocks rose as the Reserve Bank of India (RBI) is widely expected to keep its main lending rate viz. the repo rate unchanged after a monetary policy review tomorrow, 1 April 2014, as inflation has eased. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing.
Small car maker Maruti Suzuki rose 1.97% to Rs 1,970 after hitting record high of Rs 1,976 in intraday trade.
Tata Motors rose 0.32% on reports the company will increase prices of its vehicles in April 2014 due to inflationary pressure and higher input costs. The media quoted Tata Motors' spokeswoman as saying that the company will increase passenger vehicle prices by 1-2% and commercial vehicle prices by about 1% in April 2014.
Mahindra & Mahindra (M&M) rose 1.12%. The company said before market hours today, 31 March 2014, said that the scheme of arrangement between Mahindra Trucks and Buses, a wholly owned subsidiary of M&M and its shareholders and creditors and the company became effective from 30 March 2014. Accordingly the demerger of the trucks undertaking of MBTL and transfer and vesting thereof into M&M stands completed, M&M said.
Ashok Leyland gained 4.63%.
Shares of two wheeler makers also gained. Hero MotoCorp rose 1.06% to Rs 2,270.40 after hitting a record high of Rs 2,298 in intraday trade.
Bajaj Auto (up 0.91%) and TVS Motor Company (up 1.88%) gained.
Motherson Sumi Systems rose 2.88% to Rs 257 after hitting a record high of Rs 259.95 in intraday trade.
Bharat Forge rose 3.15% to Rs 422 after hitting a 52-week high of Rs 424.75 in intraday trade.
NTPC fell 0.91% to Rs 119.75 in volatile trade. The stock hit high of Rs 123.70 and low of Rs 118.80. NTPC today, 31 March 2014, said that Unit 2 of 500 megawatts (MW) of Mouda Super Thermal Power Station, Stage-I is declared for commercial operation from 30 March 2014. With this the total commercial capacity of Mouda Super Thermal Power Station has become 1,000 MW.
Earlier during the day, NPTC said that it has declared commercial operation of a 5 MW Solar PV Power Station at Faridabad, a 10 MW Solar PV Power Station at Unchahar and a 30 MW Solar PV Power Station at Rajgarh with effect from today, 31 March 2014. With the commissioning and commercial declaration of these units, the total capacity of non-conventional energy projects of the company has become 75 MW and the total commissioned and commercial capacity of NTPC group has become 43,019 MW and 41,859 MW respectively, the company said.
L&T fell 1.54% to Rs 1268.50, with the stock reversing direction after hitting 52-week high of Rs 1,301 in intraday trade. The company said before market hours today, 31 March 2014, that its construction division won new orders worth Rs 1009 crore across various business segments in March 2014.
Separately, the company clarified that the ongoing strike by some of the workers at the company's Hazira Campus, Gujarat has no material adverse impact on the operations and performance of the company.
Bharat Heavy Electricals (Bhel) dropped 1.3%. The company said during market hours today, 31 March 2014, that the company has secured a prestigious contract for setting up a 120 megawatts (MW) Hydro Electric Project (HEP) valued at Rs 125 crore in Uttarkhand. Significantly, this is the major order for electro-mechanical equipment in the hydro sector, to be finalised by a government utility company in Uttarkhand, after the devastating floods, Bhel said.
Shares of fast moving electrical goods (FMEG) company Havells India gained 2.96% to Rs 935.90 after hitting a record high of Rs 910.80 in intraday trade.
Siemens advanced 3.6% to Rs 774 after hitting a 52-week high of Rs 775 in intraday trade.
Power Grid Corporation of India (PGCIL) slipped 1.73%. The company's board of directors at its meeting held on Thursday, 27 March 2014, approved the investment approval for 'Augmentation of transformers in Northern Region - Part B' at an estimated cost of Rs 155.57 crore, with commissioning schedule of 24 months from the date of investment approval.
GMR Infrastructure rose 1.39% after the company said its subsidiary, GMR Energy, filed for initial public offering with Securities and Exchange Board of India on 28 March 2014. The company made the announcement before trading hours today, 31 March 2014. GMR Infrastructure announced that the Draft Red Herring Prospectus (DRHP) has been filed on 28 March 2014 by GMR Energy, a subsidiary of the company, with the Securities and Exchange Board of India for its initial public offering (IPO).
ABB India rose 4.64% to Rs 854.95 after hitting 52-week high of Rs 858 in intraday trade.
Suzlon Energy was up 12.44% after the company clarified on a media report suggesting that the firm may list its German subsidiary on the London Stock Exchange. According to a media report, Suzlon Energy is planning to sell shares in its German subsidiary Senvion SE (erstwhile RE Power) to raise Rs 10000 crore by listing it on the London Stock Exchange (LSE). The company will have to dilute 25% stake in Senvion to meet the UK listing norms and expects a Rs 40000 crore valuation for the unit. The share sale is likely to be the biggest offering in rupee terms by an Indian firm in the global market in recent years, the report added.
Report suggested that Suzlon, with a debt of Rs 13000 crore, has been making losses for the last three years. It has also been unable to pay its bondholders due to the slowdown in the global markets. However, with a recovery in the global economy and upturn in the wind energy markets, Suzlon wants to cash in on this opportunity to sell Senvion shares, which has surplus cash, to reduce its debt and turn profitable.
Suzlon Energy clarified to the stock exchanges during trading hours today, 31 March 2014, that it is exploring various options to rebalance its capital structure and accordingly would relook at its capital structure during the next financial year ending March 2015.
Further, with regard to a news item, "Suzlon to acquire US based company," the company clarified that it is merely buying a US based special purpose vehicle (SPV) company, Big Sky, owning certain assets that were sold by Suzlon to Big Sky, and which were partially financed by Suzlon through a loan and which is now in default. A formal announcement in this regard will be made shortly, the company said.
The company said it remains committed to the highest standards of corporate governance, and will communicate to the stock exchanges on developments as they happen.
HCL Technologies shed 1.2%. The Avaloq group, a leader in integrated and comprehensive banking solutions today, 31 March 2014, announced a strategic partnership with HCL Technologies. The highlight of the partnership will be the foundation of an off-shore Centre of Excellence in Bangalore, India. The centre will offer flexible and scalable capabilities in implementation, systems integration, migration and testing on the Avaloq Banking Suite's range of wealth management products, the two companies said in a joint statement.
The global partnership will provide flexible and scalable access to Avaloq know-how and the ability to deliver from off-shore, near-shore and on-site, leveraging HCL global delivery centres. As a consequence of the strategic partnership, current and future Avaloq customers will benefit from improved service, delivery and support for their international implementation projects. HCL will invest in skills development and training programs for employees of the newly created off-shore Centre of Excellence. The partnership focuses on a global delivery model during and after implementation of the Avaloq Banking Suite. The Centre of Excellence will be capable of providing support on the product level as well as for bank side services.
Tech Mahindra dropped 1.96% after the company clarified after market hours on Friday, 28 March 2014, that media report reading "Tech Mahindra may buy stake in social biz startup", is speculative in nature and not issued by the company.
Sun Pharmaceutical Industries rose 1.86%. The company during market hours today, 31 March 2014, that the company has entered into a preliminary understanding with Standard Chartered Bank for purchase of Standard Chartered Bank's property in Mumbai, subject to successful outcome of its due diligence and compliance/satisfaction of other conditions. Sun Pharma has its corporate office in Mumbai and the purchase of any property for the company's official use does not directly affect the earnings/earning capacity of the company and further the amount which may be paid by the company for the purchase of the said property will amount to minor percentage of its net worth/our asset base, Sun Pharma said while reacting to media reports in this regard.
Cement shares rose on renewed buying. UltraTech Cement advanced 2.48% to Rs 2,190 after hitting a record high of Rs 2,194 in intraday high.
ACC rose 2.07% to Rs 1,390 after hitting a 52-week high of Rs 1,399.25 in intraday high.
Ambuja Cements advanced 1.13%.
PSU OMCs rose on renewed buying. HPCL (up 1.04%) and Indian Oil Corporation (up 1.93%) gained.
BPCL rose 0.65% to Rs 460 after hitting record high of Rs 468.80 in intraday trade.
PSU OMCs will review the fuel prices tomorrow, 1 April 2014, based on the average imported oil price in the previous fortnight. PSU OMCs review fuel prices on 1st and 16th of every month based on the average imported oil price in the previous fortnight.
Punjab National Bank fell 1.46%. The bank said during market hours that the bank has raised Rs 500 crore capital through Tier-2 (Basel III compliant) bonds.
Realty stocks edged higher as the Reserve Bank of India (RBI) is widely expected to keep its main lending rate viz. the repo rate unchanged after a monetary policy review tomorrow, 1 April 2014, as inflation has eased. Purchases of both residential and commercial property are largely driven by finance. D B Realty (up 7.19%), Sobha Developers (up 7.36%), Housing Development & Infrastructure (HDIL) (up 5.69%), Unitech (up 15.47%), Godrej Properties (up 5.11%) and Indiabulls Real Estate (up 4.11%) edged higher.
DLF was unchanged for the day at Rs 176.10.
India's fiscal deficit in the first eleven months of the 2013/14 financial year touched Rs 5.99 lakh crore, or 114.3% of the full year target, government data showed today, 31 March 2014. The deficit was 97.4% during April-February a year ago. In the interim budget in February, the Congress-led government had revised the full-year fiscal deficit target to Rs 5.25 lakh crore, or 4.6% of gross domestic product (GDP), from Rs 5.42 lakh crore, or 4.8%, earlier.
The government will raise Rs 3.68 lakh crore ($61.4 billion) through bond sales in the first half of the fiscal beginning 1 April 2014, which is 61.6% of the total borrowing scheduled for fiscal year 2014-15. The borrowing programme for the first half of the fiscal year 2014-15 was announced by economic affairs secretary Arvind Mayaram and later notified by the Reserve Bank of India (RBI) on Friday, 28 March 2014. In the interim budget for the year 2014-2015, finance minister P. Chidambaram had announced that the government plans to borrow Rs 4.65 lakh crore from the market in 2014-15 against the Rs 4.54 lakh crore it borrowed in the current fiscal. The gross borrowing programme for the next fiscal will be Rs 5.97 lakh crore, while bonds worth about Rs 1.40 lakh crore are to be paid back to investors in the year to March, Chidambaram said. The gross borrowing plan for 2013-14 was at Rs 5.64 lakh crore.
In a separate announcement, RBI on Friday, 28 March 2014, said it will borrow Rs 1.9 lakh crore through issuance of short-term bills in the market in the April-June 2014 quarter.
The Reserve Bank of India will announce the First Bi-monthly Monetary Policy Statement, 2014-15 at 11:00 IST tomorrow, 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 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. The result season will conclude in end-May 2014.
Another 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 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.
European stocks edged lower on Monday, 31 March 2014, after a larger-than-expected drop in euro-zone inflation reignited deflation fears, adding more pressure on the European Central Bank to ease monetary policy at its meeting on Thursday. Key benchmark indices in UK and Germany were down 0.09% to 0.24%. France's CAC 40 was up 0.56%.
Inflation fell to 0.5% in the currency union in March, below analysts' expectations and marking the lowest level since late 2009.
Data out on Friday, 28 March 2014, showed Spain fell into deflation in March, as high unemployment and weak demand for goods among households and businesses added pressure on consumer prices.
In Germany, a report today, 31 March 2014, showed that retail sales rose 1.3% last month after a revised 1.7% gain in January.
A policy meeting of the Governing Council of the European Central Bank (ECB) will be held on Thursday, 3 April 2014, in Frankfurt to decide euro zone interest rates. ECB President Mario Draghi has consistently reassured listeners that the euro zone isn't heading for deflation, but that the central bank stands ready to act if needed.
Asian stocks edged higher on Monday, 31 March 2014, with investors holding out hopes that China would take steps to stimulate its economy. Key benchmark indices in Hong Kong, Singapore, South Korea, Japan and Taiwan were up 0.23% to 0.9%. China's Shanghai Composite shed 0.41%.
South Korea reportedly on Monday returned fire into North Korean waters after shells from a North Korean live-fire drill fell south of the rivals' disputed western sea boundary. Residents on one South Korean island near the artillery exchange have been evacuated, according to reports. Reports said North Korean forces had fired into the South's sea territory as part of a live-fire exercise, prompting South Korea to return fire.
Trading in US index futures indicated that the Dow could advance 48 points at the opening bell on Monday, 31 March 2014. US stocks climbed after a two-day slide on Friday, 28 March 2014, as consumer shares rebounded amid data showing household purchases rose the most in three months. Household purchases, which account for almost 70% of the US economy, climbed 0.3% in February 2014 after a 0.2% gain in January 2014 that was smaller than previously estimated, Commerce Department figures showed.
The influential US non-farms payroll data for March 2014 will be released this Friday, 4 April 2014.
Federal Reserve Chair Janet Yellen is scheduled to deliver remarks at a conference in Chicago today, 31 March 2014.
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 said after the conclusion of a monetary policy review that it will trim its monthly bond purchases by $10 billion to $55 billion. The Federal Reserve will end its bond-buying program before the end of the year with an interest-rate increase likely to follow in "around six months," Chair Janet Yellen said on 19 March 2014. Quarterly Fed forecasts on 19 March 2014 showed more officials predicting that the benchmark interest rate, now close to zero, will rise to at least 1% by the end of 2015 and 2.25% a year later.
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