Key benchmark indices retained positive zone in mid-morning trade. The barometer index, the S&P BSE Sensex, was up 78.39 points or 0.35%, off 19.63 points from the day's high and up 70.48 points from the day's low. The market breadth, indicating the overall health of the market, was strong. The BSE Small-Cap index was up more than 1%.
Hindustan Unilever (HUL) fell in volatile trade. Shares of Adani group companies gained on renewed buying, with Adani Ports & Special Economic Zone hitting 52-week high.
Key benchmark indices edged higher in early trade after provisional data released by the stock exchanges showed that foreign funds were net buyers of Indian stocks on Thursday, 17 April 2014. The Sensex and the 50-unit CNX Nifty, both, hit their highest level in almost a week. Key benchmark indices moved in a narrow range in positive zone in morning trade. Key benchmark indices retained positive zone in mid-morning trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Thursday, 17 April 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 433.40 crore on Thursday, 17 April 2014, as per provisional data from the stock exchanges. The stock market was closed on Friday, 18 April 2014, on account of Good Friday.
The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month April 2014 series to May 2014 series. The April 2014 F&O contracts expire on Wednesday, 23 April 2014. The stock market remains closed on Thursday, 24 April 2014, on account of Parliamentary elections in Mumbai constituency.
At 11:15 IST, the S&P BSE Sensex was up 78.39 points or 0.35% to 22,707.23. The index jumped 98.02 points at the day's high of 22,726.86 in early trade, its highest level since 15 April 2014. The index rose 7.91 points at the day's low of 22,636.75 in early trade.
The CNX Nifty was up 21.50 points or 0.32% to 6,800.90. The index hit a high of 6,806 in intraday trade, its highest level since 15 April 2014. The index hit a low of 6,787.90 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,456 shares gained and 751 shares fell. A total of 121 shares were unchanged.
The BSE Mid-Cap index was up 58.51 points or 0.8% at 7,397.80. The BSE Small-Cap index was up 76.80 points or 1.02% to 7,600.81. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 821 crore by 11:15 IST compared to Rs 579 crore by 10:25 IST.
India's largest FMCG company by sales Hindustan Unilever (HUL) fell 1.14% to Rs 602.55 in volatile trade. The stock hit a high of Rs 610.95 and low of Rs 602 so far during the day.
Reliance Industries (RIL) was up marginally by 0.03% to Rs 959.10. The stock was volatile. The stock hit a high of Rs 970 and low of Rs 958.80 so far during the day. RIL on Friday, 18 April 2014, said its net profit rose 0.8% to Rs 5631 crore on 12.9% growth in turnover to Rs 97807 crore in Q4 March 2014 over Q4 March 2013. RIL's non-operational income dropped 9.22% to Rs 2036 crore in Q4 March 2014 over Q4 March 2013.
RIL's net profit rose 2.2% to Rs 5631 crore on 8.1% decline in turnover to Rs 97807 crore in Q4 March 2014 over Q3 December 2013. RIL's non-operational income dropped 11.67% to Rs 2036 crore in Q4 March 2014 over Q3 December 2013.
RIL's gross refining margin (GRM) dropped to $9.3 a barrel in Q4 March 2014, from $10.1 a barrel in Q4 March 2013. The GRM, however, rose on sequential basis from $7.6 a barrel in Q3 December 2013.
RIL's net profit rose 4.7% to a record Rs 21984 crore on 8.1% growth in turnover to a record Rs 401302 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013). Non-operational income rose 11.72% to Rs 8936 crore in FY 2014 over FY 2013. RIL said that the increase in non-operational income in FY 2014 was mainly on account of higher liquid investments.
The company's outstanding debt as on 31 March 2014 was Rs 89968 crore, higher than Rs 72427 crore as on 31 March 2013. RIL had cash and cash equivalents of Rs 88190 crore as on 31 March 2014. These were in bank deposits, mutual funds, CDs and Government securities/bonds.
The net addition to fixed assets for the year ended 31 March 2014 was Rs 35210 crore including exchange rate difference capitalization. Capital expenditure was principally on account of ongoing expansions projects in the petrochemicals and refining business at Jamnagar, Dahej, Silvassa and Hazira, RIL said in a statement.
RIL's consolidated net profit rose 7.7% to Rs 22493 crore on 9.3% growth in revenue to Rs 446339 crore in FY 2014 over FY 2013.
Commenting on the company's financial performance, Mukesh D. Ambani, Chairman and Managing Director, RIL said: "FY 2013-14 was a satisfying year for RIL. Refining business delivered the highest ever profits with a sharp recovery in GRMs towards the end of the year. Petrochemical earnings grew sharply with margin expansion across polymers and downstream polyester products. While we continue to face technical challenges in growing domestic upstream production, the US shale gas business grew significantly during the year and has become a material contributor to our earnings. Retail business has turned around and is now India's largest retail chain. We have also accelerated efforts to roll-out our state-of-the-art 4G services across the country which will add an exciting new dimension to our consumer facing service offerings".
In a separate announcement, RIL before market hours today, 21 April 2014, said that its telecom unit Reliance Jio Infocomm (Reliance Jio) has signed a tower sharing agreement with ATC India, one of the leading independent tower companies in India. Under the agreement, Reliance Jio would utilize the telecom tower infrastructure of ATC India to launch its services across the country, RIL said. ATC has a portfolio of 11,000 towers in India.
Sanjay Mashruwala, Managing Director, Reliance Jio said: "We at Reliance Jio, want to provide innovative and empowering products, services and content to every Indian. To this end, we are committed to creating a cutting edge network for high speed 4G. Our relationship with ATC will accelerate the rollout of these services across India".
ATC's Chief Operating Officer, B. Ramanand said: "There is considerable pent up demand for data and 4G has tremendous growth potential. We, at ATC India, are delighted to offer our countrywide network infrastructure to help Reliance Jio in its aggressive nationwide roll-out. This master contract recognizes ATC's high level of customer service and operational efficiency. We believe this will strengthen our foothold as the leading independent tower company in India".
In another separate announcement on Sunday, 20 April 2014, RIL said that its synthetic rubber business group -- Relflex Elastomers -- inaugurated a elastomers customer support center (ECSC) at its petrochemicals complex in Vadodara. This initiative is in line with RIL's endeavor to become not only a significant synthetic rubber supplier but also to provide intangible technical support to its customers and play a catalytic role in helping them grow their business, increase value additions and reduce import dependence, RIL said in a statement.
Relflex ECSC would serve as a springboard for mutual collaborative efforts, value additions and joint product development between Relflex Elastomers and its customers. The facility will service tyre as well non tyre industry. Reliance Elastomer supplies polybutadiene rubber (PBR) to the tyre industry and enjoys excellent relationship with Indian tyre manufacturers across all segments, RIL said.
Capital goods stocks were mixed. ABB India (down 0.57%), BEML (down 1.41%), Bharat Electronics (down 0.22%), Thermax (down 0.84%) fell.
Bharat Heavy Electricals (Bhel) (up 2.23%), L&T (up 1.9%) and Siemens (up 1.11%) gained.
Crompton Greaves rose 0.53% to Rs 189.85 after hitting a 52-week high of Rs 192.70 in intraday trade.
Shares of Adani group companies gained on renewed buying. Adani Enterprises gained 2.45% to Rs 450. Adani Power rose 1.82% to Rs 53.05.
Adani Ports & Special Economic Zone jumped 4.74% to Rs 207.65 after hitting a 52-week high of Rs 209.40 in intraday trade.
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.
Edelweiss Financial Services jumped 5.32% after the company said its board of directors will meet on Wednesday, 23 April 2014, to consider buy-back of equity shares of the company. The announcement was made after market hours on Thursday, 17 April 2014.
In the foreign exchange market, the rupee edged lower against the dollar on speculation importers will step up dollar purchases to meet month-end payments. The partially convertible rupee was hovering at 60.33, compared with its close of 60.29/30 on Thursday, 17 April 2014. The foreign exchange market was closed on Friday, 18 April 2014, on account of Good Friday.
Indian government bond prices dropped on speculation a decline in yields to a two-week low deterred buyers. The yield on 10-year benchmark federal paper, 8.83% GS 2023, was hovering at 8.8591%, higher than its close of 8.8496% on Thursday, 17 April 2014. Bond yield and bond prices move in opposite direction. Indian financial markets were closed on Friday, 18 April 2014, on account of Good Friday.
Ten-year yields slid 12 basis points in a single trading session on 17 April 2014, the biggest drop in four months, after the Reserve Bank of India (RBI) sold the Rs 20000-crore worth of debt on offer at cut-off rates that were lower than investors' predicted.
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 markets were trading mixed on Monday, 21 April 2014. Key benchmark indices in Singapore, Japan and Indonesia were up 0.08% to 0.15%. Key benchmark indices in China, South Korea and Taiwan were off 0.08% to 0.32%. Markets in Hong Kong, Australia and New Zealand were closed for a holiday.
Japan's trade deficit widened to 1.45 trillion yen ($14.1 billion) in March, from 802.5 billion yen the previous month, the Ministry of Finance said today, 21 April 2014.
Trading in US index futures indicated that the Dow could advance 19 points at the opening bell on Monday, 21 April 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 decided after the conclusion of a monetary policy review to trim its monthly bond purchases by $10 billion to $55 billion.
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