Key benchmark indices were trading marginally higher in mid-morning trade, having moved in a narrow range. The barometer index, the S&P BSE Sensex, was up 6.86 points or 0.03%, up close to 35 points from the day's low and off close to 40 points from the day's high. The market breadth, indicating the overall health of the market was positive.
Crompton Greaves hit 52-week high. Shares of Adani group companies rose on renewed buying.
A bout of initial volatility was witnessed as key benchmark indices regained positive terrain after slipping into the red for a brief period after opening slightly higher. Volatility continued as key benchmark indices regained positive once again after reversing intraday gains in morning trade. Key benchmark indices were trading marginally higher in mid-morning trade, having moved in a narrow range.
Foreign institutional investors (FIIs) sold shares worth a net Rs 21.63 crore on Tuesday, 15 April 2014, as per provisional data from the stock exchanges.
At 11:20 IST, the S&P BSE Sensex was up 6.86 points or 0.03% to 22,491.79. The index rose 48.69 points at the day's high of 22,533.61 in early trade. The index declined 26.41 points at the day's low of 22,458.52 in early trade.
The CNX Nifty was up 6.55 points or 0.1% to 6,739.65. The index hit a high of 6,748.65 in intraday trade. The index hit a low of 6,724.65 in intraday trade.
The BSE Mid-Cap index was up 20.10 points or 0.27% at 7,332.09. The BSE Small-Cap index was up 34.43 points or 0.46% at 7,535.93. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market was positive. On BSE, 1,219 shares gained and 888 shares fell. A total of 122 shares were unchanged.
Hindalco Industries (up 2.05%), Tata Steel (up 1.32%) and Maruti Suzuki India (up 1.5%) edged higher from the Sensex pack.
Shares of Adani group companies rose on renewed buying. Shares of Adani Power rose 2.55%. Adani Ports & Special Economic Zone gained 4.79%. Adani Enterprises surged 7.52%. The Adani group is known for its proximity to Gujarat Chief Minister and Bharatiya Janata Party's (BJP) prime ministerial candidate Narendra Modi. Investors are betting that the BJP led National Democratic Alliance (NDA) will be able to form the next government at the centre with support from some regional parties after Lok Sabha elections which conclude in mid-May this year.
Dr. Reddy's Laboratories dropped 1.14%. The company today, 16 April 2014, said that it has launched Eszopiclone Tablets (C-IV) 1 mg, 2 mg and 3 mg, a therapeutic equivalent generic version of LUNESTA (eszopiclone) tablets C-IV in the US market on 15 April 2014 following the approval of the United States Food & Drug Administration (USFDA). LUNESTA (eszopiclone) tablets C-IV brand and genric combined had US sales of approximately $887 million for twelve months ended 31 January 2014 according to IMS Health data.
Dr. Reddy's Eszopiclone Tablets (C-IV) 1 mg is available in bottle counts of 30. Eszopiclone Tablets (C-IV) 2 mg and 3 mg are available in bottle counts of 100.
Crompton Greaves rose 1.35% to Rs 180.65 after hitting 52-week high of Rs 188 in intraday The company's founding family is reportedly holding talks to sell its stake to Hitachi.
Jubilant FoodWorks rose 1.04%. The Reserve Bank of India (RBI) on Tuesday, 15 April 2014, notified that foreign institutional investors (FIIs), through primary market and stock exchanges, can now purchase up to 55% (revised from earlier limit of 49%) of the paid up capital of Jubilant FoodWorks under the Portfolio Investment Scheme (PIS). Jubilant FoodWorks has passed resolutions at the board of directors' level and a special resolution by the shareholders, agreeing for enhancing the limit from 49% to 55% for the purchase of its equity shares and convertible debentures by FIIs.
The RBI also notified on Tuesday, 15 April 2014, that the foreign share holding by FIIs in Jubilant FoodWorks has gone below the revised threshold limit stipulated under the extant Foreign Direct Investment (FDI) Policy. Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect, the RBI said in a news release.
Total shareholding of FIIs in Jubilant FoodWorks stood at in 47.38% as on 31 December 2013.
In the foreign exchange market, the rupee reversed initial losses against the dollar. The partially convertible rupee was hovering at 60.21, compared with its close of 60.23/24 on Tuesday, 15 April 2014.
Private weather forecaster Skymet on Tuesday, 15 April 2014, said it expects the June-September monsoon to be below normal this year. It has forecast the monsoon at 94% (error margin of +/-4%) of the long period average (LPA) of 896 mm for the four-month period from June to September 2014. In terms of geographical risk, Skymet suggests that peninsular India will be at less risk through June, July, August and September (JJAS). There seems to be weakness in majority subdivisions in Northwest India viz. Gujarat, Saurashtra, Kutch, Punjab, Rajasthan and Haryana and in West-Central India viz. East MP, West MP, Chhattisgarh, Vidarbha, Marathwada, Madhya Maharshtra, Konkan & Goa, North Interior Karnataka and Telangana during the whole season, Skymet said in a statement. August is expected to be the best month among the four, although negative. It appears that onset of the monsoon may be staggered this time, Skymet said.
Jatin Singh, CEO, Skymet said: "This weakness in monsoon could possibly be attributed to an evolving ENSO". The ENSO is a phenomenon wherein the Central and East Pacific ocean warms (El Ni) or cools (La Ni), in turn affecting the monsoon. El Ni is evolving as of now, but is expected to get arrested, Skymet said. There is only a 30% chance of this phenomenon getting stronger, it said. If this El Ni was amplifying, then there would be a stronger chance of drought, like in 2009, Skymet said. This does not seem to be the case at this point in time, it said. There is no clear signal about the emergence of Indian Ocean Dipole (IOD) this year during monsoon, Skymet said.
According to Skymet, rains in June are expected at 90% of LPA (LPA = 174 mm). In July, the monsoon is expected at 94% of LPA (LPA = 285 mm). Rains in August are expected at 98% of LPA (LPA = 253 mm). Rains in September are expected at 90% of LPA (LPA = 184 mm).
The rate on inflation based all India general consumer price index (CPI) combined for urban and rural India accelerated to 8.31% (provisional) in March 2014, from 8.03% (final) in February 2014, led by increase in food prices, data released by the government after trading hours on Tuesday, 15 April 2014, showed. Core CPI inflation which excludes food and fuel prices eased to 7.82% in March 2014, from 7.84% in February 2014.
CPI inflation eased to 9.5% for the year ended 31 March 2014 (FY 2014), from 10.2% for the year ended 31 March 2013 (FY 2013).
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.
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.
Asian stocks edged higher on Wednesday, 16 April 2014, as China reported data on economic growth for the January-to-March period which was better than estimated. Key benchmark indices in South Korea, Hong Kong, Japan, Singapore, Indonesia and Taiwan were up 0.08% to 2.64%.
In mainland China, the Shanghai Composite was up 0.12% in choppy trade. China's expansion slowed to the weakest pace in six quarters, testing leaders' commitment to keep reining in a credit boom and pollution as risks mount of missing a 7.5% annual growth target. However, the growth was slightly higher than market expectations. Gross domestic product rose 7.4% in the January-to-March period from a year earlier, the National Bureau of Statistics said today in Beijing.
Fixed-asset investment in non-rural areas of China rose 17.6% in the January-March period compared with the same period a year earlier, data from the National Bureau of Statistics showed. The rise in the closely watched indicator of construction activity was slower than the 17.9% increase recorded in the January-February period.
Retail sales in China rose 12.2% in March from a year earlier, accelerating from a 11.8% on-year rise for January and February, data from the National Bureau of Statistics showed. Retail sales also increased 1.23% in March from February. In February, they rose 0.71%.
Trading in US index futures indicated that the Dow could advance 53 points at the opening bell on Wednesday, 16 April 2014. US stocks rose in choppy trade on Tuesday, 15 April 2014, as earnings from Coca-Cola Co. and Johnson & Johnson overshadowed concerns that tensions in Ukraine are worsening.
The latest US economic data showed manufacturing in the New York region grew at a slower pace in April while the cost of living in the US rose more than projected in March as food and rents became more expensive. Confidence among US homebuilders rose less than forecast in April, as sales and prospective buyer traffic stagnated, showing the residential real estate market struggled to improve after a harsh winter.
The US Federal Reserve is considering further steps to force big banks to hold more capital, and sees a case for other stability-enhancing measures for more shadowy areas of Wall Street as well, Fed Chair Janet Yellen said on Tuesday. The Fed has been pushing banks to strengthen their balance sheets since the 2007-2009 financial crisis, and last week joined other regulators in requiring the eight largest US banks to increase their capital levels by some $68 billion in total.
She cited a 2010 study by the Basel Committee, an international standard-setting body, that suggested tighter standards would provide economic benefits.
The United States is in the process of implementing new international capital and liquidity standards known as Basel III, which will be phased in between 2015 and early 2019. The rules are meant to help banks weather short-term funding crises.
Yellen said the US central bank's staff was "actively considering" whether even more needed to be done to address risks in the so-called short-term wholesale funding market, which is a significant source of funding for firms.
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.
Meanwhile, Ukraine unleashed an offensive to dislodge militants from towns in its eastern Donetsk region as the authorities in Kiev said elements of Russian special forces were identified among the anti-government forces. Russia's prime minister said the country risks civil war.
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