Key benchmark indices retained positive zone in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was up 50.59 points or 0.25%, off close to 15 points from the day's high and up about 55 points from the day's low. The market breadth, indicating the overall health of the market was positive.
Sun Pharmaceutical Industries rose on reports the company has received approval from the US Food and Drug Administration to sell a drug to treat Osteoporosis. ABB India extended Tuesday's rally triggered by the company's strong Q4 December 2013 earnings. Sugar shares surged.
The market edged higher amid initial volatility. The Sensex pared gains after hitting fresh intraday high in morning trade. The Sensex and the 50-unit CNX Nifty, both, hit 3-week high. Key benchmark indices moved in a narrow range in positive zone in early afternoon trade. A bout of volatility was witnessed as key benchmark indices trimmed gains after hitting fresh intraday high in afternoon trade. Key benchmark indices retained positive zone in mid-afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 292.23 crore on Tuesday, 18 February 2014, as per provisional data from the stock exchanges.
At 14:20 IST, the S&P BSE Sensex was up 50.59 points or 0.25% to 20,684.80. The index gained 66.95 points at the day's high of 20,701.16 in afternoon trade, its highest level since 29 January 2014. The index fell 4.65 points at the day's low of 20,629.56 in early trade.
The CNX Nifty was up 13.90 points or 0.23% to 6,141. The index hit a high of 6,144.80 in intraday trade, its highest level since 29 January 2014. The index hit a low of 6,125.75 in intraday trade.
The BSE Mid-Cap index was up 23.19 points or 0.37% at 6,368.65. The BSE Small-Cap index was up 35.44 points or 0.56% at 6,366.16. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market was positive. On BSE, 1,331 shares rose and 1,208 shares fell. A total of 140 shares were unchanged.
Among the 30-share Sensex pack, 15 stocks rose and rest fell. M&M (up 1.1%), Infosys (up 1.72%) and GAIL (India) (up 1.11%) edged higher from the Sensex pack.
Sugar shares surged. Bajaj Hindusthan, Balrampur Chini Mills, Shree Renuka Sugars, EID Parry (India), Sakthi Sugars, Rana Sugars, Simbhaoli Sugars, Triveni Engineering & Industries and Dwarikesh Sugar rose 2.41% to 7.97%
ABB India rose 2.98%, with the stock extending Tuesday's rally triggered by the company's strong Q4 December 2013 earnings. The result was announced during market hours on Tuesday, 18 February 2014. Shares of ABB India had surged 12.80% to Rs 666.65 on that day. ABB India's net profit surged 249.37% to Rs 58.59 crore on 5.72% rise in total income to Rs 2204.56 crore in Q4 December 2013 over Q4 December 2012.
The company said it generated a healthy operating cash flow in the midst of a tight liquidity in the market.
The company received orders worth Rs 1666 crore in Q4 December 2013, which was higher than the order intake of Rs 1579 crore in the corresponding quarter of the previous year. The order intake for the full year 2013 stood at Rs 6717 crore. Base orders from a wider spectrum of customers helped offset dearth of large projects in the market, ABB India said in a statement on Tuesday. The company said its exports grew, annulling the effect of a contraction in the domestic market opportunities. The company continued to tap sectors like renewable energy, data center, railways, grid stability, mining, oil and gas that look increasingly promising, the company said in a statement.
The company said it is well positioned with an order backlog of Rs 7709 crore as on 31 December 2013, providing necessary visibility to future revenue.
Sun Pharmaceutical Industries rose 1.98% on reports the company received US Food and Drug Administration approval to sell a drug to treat Osteoporosis. Currently the drug, Ibandronate Sodium, is marketed by Roche under the brand name Bovina. Ibandronate Sodium is indicated in the treatment of osteoporosis, a bone-weakening disease, in postmenopausal women.
According to reports, Sun Pharmaceutical Industries (Sun Pharma) is currently the only generic player to have final approval for this product. Bovina generated an annual sales of $82 million in 2012, reports said. More players would be able to sell the drug after its patent expiry on 2 September 2014, reports added.
The Reserve Bank of India on Tuesday, 18 February 2014, said it will conduct term repo auctions of appropriate amount and tenor during March 2014 to address liquidity tightness. In order to address the anticipated tightening in liquidity conditions on account of advance tax payments by corporates commencing mid-March 2014 and with a view to providing flexibility to the banking system in its liquidity management towards March-end 2014, the Reserve Bank of India (RBI) will conduct term repo auctions of appropriate amount and tenor during March 2014, the RBI said in a press release issued on Tuesday. The details of the term repo auctions will be announced in due course, the RBI said.
The Reserve Bank of India next undertakes monetary policy review on 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.
On political front, the Lok Sabha passed a contentious proposal to split Andhra Pradesh and create the new state of Telangana on Tuesday amid chaotic scenes and uproar in parliament from opponents of the bill. The state capital Hyderabad will remain the common capital for the two states for a period of 10 years if the bill is passed in the upper house.
The decision to break up the state was made ahead of elections due by May 2014. The Bharatiya Janata Party, which is the frontrunner in the national election race, voted in favor of the bill, allowing it to pass. It still needs approval in the upper house by Friday, when parliament's final session before the election ends. The new state would account for 17 seats in parliament.
European stocks were mostly higher on Wednesday, 19 February 2014, ahead of a report on US housing starts. Key benchmark indices in France, Germany and UK were up 0.03% to 0.9%. France's CAC 40 was currently almost unchanged for the day.
Asian stocks edged higher on Wednesday, 19 February 2014, after China's overnight money-market rate dropped to a nine-month low as an ample supply of cash offset the impact of the central bank draining funds. Key benchmark indices in Indonesia, Taiwan, Hong Kong, China and Singapore were up 0.24% to 1.11%. Key benchmark indices in Japan and South Korea were off 0.2% to 0.52%.
The People's Bank of China withdrew 48 billion yuan ($7.9 billion) by selling 14-day repurchase contracts at 3.8 percent yesterday, 18 February 2014. That was the first repo auction since June. The central bank said it will sell 50 billion yuan of nine-month treasury deposits on behalf of the Ministry of Finance tomorrow, 20 February 2014.
A preliminary report on China's manufacturing is due tomorrow, 20 February 2014.
Trading in US index futures indicated that the Dow could drop 17 points at the opening bell on Wednesday, 19 February 2014. US stocks settled mostly higher on Tuesday with the Nasdaq Composite recording its eighth consecutive session of gains, the longest since July 2013.
Manufacturing activity in the New York region gave up most of the strong gains made during the prior month although it remained in positive territory, according to data released Tuesday. The report fits a picture of a manufacturing sector struggling with severe winter weather. The ISM index for the US showed manufacturers suffered from the January chill last month.
A gauge of confidence among home builders plunged in February, dropping to the lowest level in nine months, led by weaker views on present sales of single-family homes, according to data released Tuesday. The housing-market index dropped to 46 this month from 56 in January 2014.
Minutes of the Federal Reserve's January meeting will be released later in the global day today, 19 February 2014. Federal Reserve Chairwoman Janet Yellen said last week that US growth has strengthened and that only a "notable change in the outlook" for the economy would prompt policy makers to slow the pace of cuts to the monthly bond-buying program.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review on 18-19 March 2014. After a monetary policy review, the FOMC on 29 January 2014 announced it will reduce monthly bond purchases by another $10 billion to $65 billion. The Fed also signaled that it is likely to keep reducing bond purchases in the coming months, citing a pickup in US economic activity and improvement in the US labor market.
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