Sensex, Nifty hit record high
The two key benchmark indices — the barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty — trimmed gains after both hit record high in early trade. The Sensex fell below the psychological 22,000 mark after hitting record high above that mark in early trade. The Sensex was up 188.51 points or 0.86%, off close to 40 points from the day’s high and up about 150 points from the day’s low. The market breadth, indicating the overall health of the market, was strong. The BSE Mid-Cap index was up more than 1%. Except the BSE IT index, all the other sectoral indices on BSE were in the green. The market sentiment was boosted by data showing that foreign institutional investors (FIIs) remained net buyers of Indian stocks on Friday, 14 March 2014. Gains in Asian stocks also boosted sentiment on the domestic bourses.
United Bank of India rose after the state-run bank announced reduction in base rate by 25 basis points. In auto pack, Mahindra & Mahindra (M&M) scaled record high. Index heavyweight Reliance Industries (RIL) edged higher on reports that its telecommunications unit — Reliance Jio Infocomm — has agreed to lease mobile phone masts from infrastructure provider Viom Networks.
The market edged higher in early trade on firm Asian stocks. The Sensex and the 50-unit CNX Nifty, both, hit new record high. Key benchmark indices trimmed gains in morning trade. The Sensex fell below the psychological 22,000 mark after hitting record high above that mark in early trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Friday, 14 March 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 982.19 crore on Friday, 14 March 2014, as per provisional data from the stock exchanges. The stock market was closed on Monday, 17 March 2014, on account of Holi.
Asian stocks edged higher on Tuesday, 18 March 2014, as an improvement in US factory output boosted optimism for the world’s biggest economy.
At 10:20 IST, the S&P BSE Sensex was up 188.51 points or 0.86% to 21,998.31. The index jumped 230.92 points at the day’s high of 22,040.72 in early trade, a new record high for the barometer index. The index rose 39.85 points at the day’s low of 21,849.65 in opening trade.
The CNX Nifty was up 52.35 points or 0.8% to 6,556.55. The index hit a high of 6,574.95 in intraday trade, a new record high. The index hit a low of 6,531.90 in intraday trade.
The BSE Mid-Cap index was up 70.08 points or 1.05% at 6,726.26, outperforming the Sensex. The BSE Small-Cap index was up 56.31 points or 0.85% at 6,683.99, underperforming the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,312 shares rose and 656 shares fell. A total of 104 shares were unchanged.
Maruti Suzuki India (up 7.3%), Bharat Heavy Electricals (Bhel) (up 2.27%) and State Bank of India (up 2.26%) edged higher from the Sensex pack.
Index heavyweight Reliance Industries (RIL) rose 1.72%. RIL’s telecommunications unit — Reliance Jio Infocomm — which holds nationwide 4G permits has reportedly agreed to lease mobile phone masts from infrastructure provider Viom Networks. Viom has 42,000 mobile phone towers. Viom Networks is a joint venture between India’s SREI Infrastructure and mobile carrier Tata Teleservices.
The agreement with Viom comes after Reliance Jio’s tower-leasing pacts with Reliance Communications and Bharti Infratel. Reliance Jio also has an agreement with Bharti Infratel’s parent Bharti Airtel to share network.
M&M rose 2.23% to Rs 1,048.65 after hitting record high of Rs 1,054 in intraday trade.
United Bank of India rose 3.33% after the bank announced before market hours that it has decided to reduce the base rate of the bank from 10.50% to 10.25% from 24 March 2014.
In the foreign exchange market, the rupee edged higher against the dollar as equities surged. The partially convertible rupee was hovering at 60.95, compared with its close of 61.19/20 on Friday, 14 March 2014. Indian financial markets were closed on Monday, 17 March 2014, on account of Holi.
The government has extended the last date for payment of final installment of advance tax for financial year 2013-14 to 18 March from 15 March earlier. “To facilitate payment of final installment of advance tax for the financial year 2013-14, the Central Board of Direct taxes (CBDT) has issued an order to extend the time limit to make such payments of advance tax, from 15 March to 18 March,” the finance ministry said in a statement.
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.
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 stocks edged higher on Tuesday, 18 March 2014, as an improvement in US factory output boosted optimism for the world’s biggest economy. Key benchmark indices in South Korea, Taiwan, Singapore, Hong Kong, Japan and China rose 0.07% to 1.38%. Indonesia’s Jakarta Composite fell 1.12%.
Trading in US index futures indicated that the Dow could drop 2 points at the opening bell on Tuesday, 18 March 2014. US stocks surged on Monday, 17 March 2014, as investors shrugged off the narrow scope of EU and US sanctions following the vote in Crimea in favor of leaving Ukraine. Industrials and technology stocks lead broad-based gains after better-than-expected economic data, including industrial production and manufacturing activity in the New York region. However, stocks rose amid the lowest trading volumes this year.
Factory production in the US rose in February by the most in six months, indicating the industry started to recover from severe winter weather. The 0.8% gain at manufacturers followed a revised 0.9% slump in the prior month that was the biggest since May 2009, figures from the Federal Reserve showed. A separate gauge of manufacturing in the New York area rose less than forecast last month, climbing to 5.61 from 4.48. Separately, a gauge of confidence among home builders ticked up in March, but remained close to the lowest level since May and signaled that builders, generally, are pessimistic about sales trends.
The Federal Open Market Committee’s (FOMC) two-day monetary policy review starts today, 18 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.
European Union foreign ministers on Monday, 17 March 2014, agreed to freeze assets and impose visa bans on 21 Russian and Crimean political figures, while the US put similar sanctions on seven Russian government officials and four Ukrainians, including former President Viktor Yanukovych, who was ousted after protests last month. Russian President Vladimir Putin responded by recognizing Crimea as a sovereign state.