MUMBAI: Key benchmark indices trimmed gains after hitting record high at the onset of the trading session. The barometer index, the S&P BSE Sensex, was up 68.29 points or 0.31%, off 48.60 points from the day's high and up 4.03 points from the day's low. The market breadth, indicating the overall health of the market, was strong. The market sentiment was boosted by data showing that foreign institutional investors (FIIs) made substantial purchases of Indian stocks on Tuesday, 25 March 2014. Gains in Asian stocks also boosted sentiment on the domestic bourses.
IT stocks were mixed. Reliance Power (RPower) and Dewan Housing Finance Corporation gained after large block deals were executed on both these counters in early trade on BSE.
The market opened on a firm note on higher Asian stocks. The Sensex and the 50-unit CNX Nifty, both, hit record high. Key benchmark indices trimmed initial gains in morning trade.
Asian shares edged higher on Wednesday, 26 March 2014, after US consumer confidence climbed to a six-year high, buoying investor optimism about the outlook for the world's biggest economy.
Indian stocks may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near-month March 2014 series to April 2014 series. The near-month March 2014 F&O contracts expire tomorrow, 27 March 2014.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1223.28 crore on Monday, 25 March 2014, as per provisional data from the stock exchanges.
At 10:15 IST, the S&P BSE Sensex was up 68.29 points or 0.31% to 22,123.50. The index jumped 116.89 points at the day's high of 22172.10 in early trade, record high for the barometer index. The index rose 64.26 points at the day's low of 22,119.47 in morning trade.
The CNX Nifty was up 21.35 points or 0.32% to 6,611.10. The index hit a high of 6,623.35 in intraday trade, a record high. The index hit a low of 6,607.70 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,210 shares gained and 748 shares fell. A total of 99 shares were unchanged.
The BSE Mid-Cap index was up 46.19 points or 0.68% at 6,888.35. The BSE Small-Cap index was up 52.78 points or 0.77% at 6,905.89. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1936 crore by 10:20 IST, compared with Rs 1460 crore by 09:25 IST.
Among the 30-share Sensex pack, 23 stocks gained and rest of them declined.
Hindalco Industries (up 2.45%), GAIL (India) (up 2.21%) and Tata Motors (up 2.06%) edged higher from the Sensex pack.
IT stocks were mixed. TCS (down 1%) and HCL Technologies (down 0.06%) edged lower. Wipro (up 1.01%) and Infosys (up 0.42%) rose.
Tech Mahindra shed 0.12%. Tech Mahindra announced after market hours on Tuesday, 25 March 2014, the launch of Managed Data Service (MDS), a fully managed end-to-end reference data management Business Process as a Service (BPaaS) solution for the financial services industry in North America. This solution has already witnessed a significant traction in European markets, Tech Mahindra said.
The Managed Data Service (MDS) solution is designed around a utility model and comprises 3 integrated components - technology infrastructure, operational outsourcing and specialized software IP. The key benefits include assured data quality, operating cost reduction, CAPEX to OPEX transformation and improved operational efficiency.
Ram Chatty, Head - BFSI (North America), Tech Mahindra said: The process of managing securities data and pricing has evolved towards platform-based offerings. Financial institutions in the North America are increasingly looking to acquire these services from best-in-class service providers. By leveraging the Tech Mahindra's MDS solution, we can provide substantial cost savings and process efficiencies while maintaining our focus on delivering high quality services to our financial services clients.
Reliance Power gained 2.21% to Rs 67.05 on massive early volume of 6.55 crore shares. A block deal of 6.5 crore shares was executed on the scrip at Rs 66.05 per share in opening trade on BSE today, 26 March 2014.
Dewan Housing Finance Corporation rose 2.36% to Rs 218.70 on massive early volume of 4.13 crore shares. First block deal of 1.37 crore shares was executed on the scrip at Rs 217.10 per share in opening trade on BSE today, 26 March 2014. Second block deal of 1.37 crore shares was executed on the scrip at Rs 215.15 per share in opening trade on BSE today, 26 March 2014. Third block deal of 1.37 crore shares was executed on the scrip at Rs 216.70 per share in opening trade on BSE today, 26 March 2014.
In the foreign exchange market, the rupee edged higher against the dollar, helped by hopes of continued foreign fund inflows while gains in other Asian currencies also underpinned sentiment. The partially convertible rupee was hovering at 60.205, compared with its close of 60.48/49 on Tuesday, 25 March 2014.
Indian government bond prices rose after the Reserve Bank of India (RBI) on Tuesday, 25 March 2014, said it has decided to conduct a 7 day term repo variable rate auction for a notified amount of Rs 10000 crore on Wednesday, 26 March 2014. The reversal of the 7 day term repo will take place on 2 April 2014, the RBI said on Tuesday, 25 March 2014. The yield on 10-year benchmark federal paper, 8.83% GS 2023, was hovering at 8.7677%, lower than its close of 8.7878% on Tuesday, 25 March 2014. Bond yields and bond prices move in opposite direction.
The Reserve Bank of India will announce the First Bi-monthly Monetary Policy Statement, 2014-15 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 the political front, the ruling Congress at the Centre will release its 2014 manifesto today, 26 March 2014. The Congress president, Sonia Gandhi, and Prime Minister Manmohan Singh would be present during the release function.
The next 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 be 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.
Asian shares edged higher on Wednesday, 26 March 2014, after US consumer confidence climbed to a six-year high, buoying investor optimism about the outlook for the world's biggest economy. Key benchmark indices in Taiwan, Hong Kong, Singapore, Japan, Indonesia and South Korea were up 0.38% to 1.15%. In mainland China, the Shanghai Composite was off 0.14%.
Trading in US index futures indicated that the Dow could advance 18 points at the opening bell on Wednesday, 26 March 2014. US stocks Tuesday finished a choppy trading session higher, boosted by stronger-than-expected consumer confidence data. The main indexes recorded small gains after two days of losses.
Markets were reassured by comments from Philadelphia Fed president Charles Plosser, who said in a television interview that short-term interest rates should hit 4% at the end of 2016. He also said the market reaction to Federal Reserve Chairwoman Janet Yellen's comments after last week's Federal Open Market Committee meeting was "puzzling." He said her timetable of a rate hike six months after the end of bond buying "wasn't a wildly unexpected time frame."
Led by rosier expectations, a gauge of US consumer confidence jumped in March 2014 to the highest level in more than six years. The Conference Board on Tuesday reported that its gauge of consumer confidence reached 82.3 in March the highest level since January 2008 compared with an upwardly revised 78.3 in February.
US home prices slipped in January for a third straight month after a particularly harsh winter, according to data released Tuesday, as strong year-over-year appreciation showed signs of moderating. New US homes sold at an annual rate of 440,000 in February, down 3.3% from January's one-year high, the government said Tuesday.
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.
US President Barack Obama on Tuesday, 25 March 2014, urged Russia to de-escalate the crisis over Ukraine or face the consequences of more sanctions if it encroaches further into the east of the country after its annexation of Crimea. Russian President Vladimir Putin "has to understand that there's a choice to be made here," Obama told reporters after a 53-nation nuclear-security summit in The Hague, saying there's "another path open" to the Russian leader. "It is now up to Russia to act responsibly and show itself once again willing to abide by international rules and international norms," Obama said.