Key benchmark indices trimmed initial gains in morning trade. The barometer index, the S&P BSE Sensex, was up 64.71 points or 0.31%, off 36.39 points from the day's high and up 6.19 points from the day's low. The market breadth, indicating the overall health of the market, was strong. Gains in Asian stocks and overnight rally in US stocks underpinned sentiment on the domestic bourses.
Index heavyweight and cigarette major ITC edged higher. IT stocks were in demand on renewed buying. HCL Technologies hit record high. Tech Mahindra edged higher after the company on Monday, 24 February 2014, announced the launch of its Near Field Communication (NFC) test lab in Bangalore, India.
Key benchmark indices edged higher in early trade on firm Asian stocks. The Sensex and the 50-unit CNX Nifty, both, hit 4-1/2-week high. Key benchmark indices trimmed initial gains in morning trade.
The market may remain volatile in the near future as traders roll over positions in the futures and options (F&O) segment from the near-month February 2014 series to March 2014 series. The near month February 2014 F&O contracts expire tomorrow, 26 February 2014. The stock market remains closed on Thursday, 27 February 2014, on account of Mahashivratri.
Foreign institutional investors (FIIs) bought shares worth a net Rs 266.87 crore on Monday, 24 February 2014, as per provisional data from the stock exchanges.
Asian stocks edged higher on Tuesday, 25 February 2014, after overnight rally in US stocks.
At 10:15 IST, the S&P BSE Sensex was up 64.71 points or 0.31% to 20,876.15. The index jumped 101.10 points at the day's high of 20,912.54 in early trade, its highest level sine 24 January 2014. The index rose 58.52 points at the day's low of 20,869.96 in morning trade.
The CNX Nifty was up 19.50 points or 0.32% to 6,205.60. The index hit a high of 6,216.85 in intraday trade, its highest level since 24 January 2014. The index hit a low of 6,205 in intraday trade.
The BSE Mid-Cap index was up 38.12 points or 0.59% at 6,479.72. The BSE Small-Cap index was up 31.24 points or 0.49% at 6,446.87. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,161 shares gained and 614 shares fell. A total of 95 shares were unchanged.
The total turnover on BSE amounted to Rs 423 crore by 10:20 IST, compared with Rs 101 crore by 09:25 IST.
Among the 30-share Sensex pack, 18 stocks gained and rest of them declined.
GAIL (India) (down 1.61%), Coal India (down 1.47%) and NTPC (down 1.28%) edged lower from the Sensex pack.
Index heavyweight and cigarette major ITC rose 0.64% to Rs 321.90. The stock hit high of Rs 322 and low of Rs 319.45 so far during the day.
IT stocks were in demand on renewed buying. TCS was up 0.91%.
Wipro rose 1.57% to Rs 587.15 after hitting a 52-week high of Rs 589.90 in intraday trade.
HCL Technologies gained 0.98% to Rs 1,545.95 after hitting record high of Rs 1,553.50 in intraday trade.
Infosys rose 0.89%. Infosys on 22 February 2014 announced that it has commenced work on its new campus in Mohali, Punjab. The new campus at SAS Nagar, Mohali, will be spread over 50 acres of land allocated by the Government of Punjab and will see construction undertaken in phases. In the first phase of construction, the company will make an investment of Rs 425 crore to create a built-up area of 6.5 lakh sq. ft. to seat 5,000 software professionals. Phase I of this state-of-the-art facility is likely to be completed in the next 24 months.
Tech Mahindra rose 0.48% to Rs 1,838.90. Tech Mahindra announced after market hours on Monday, 24 February 2014, the launch of its Near Field Communication (NFC) test lab in Bangalore, India. The NFC Testing and Consulting capabilities in the lab will cater to the fast-growing needs of chipset manufacturers, OEMs, Service Providers, Acquires and Issuers from the banking industry.
Speaking on the occasion, Sirisha Voruganti, Head, Device Testing, Tech Mahindra said: "The convergence of payments schemes on the smartphones from leading banks has caused a lot of interoperability and compliance issues in the network as well. With this test lab, we are geared to help the Chipset manufacturers, OEMs and Service Providers to reduce the failure rates to NIL in the field and hasten their market growth. Our Lab focuses on troubleshooting and consulting with global clients while providing cost-effective test solution".
Mastek rose 2.53% to Rs 223.05 after the company said its board has decided to proceed with buyback of up to 32 lakh fully paid-up equity shares at a maximum buyback price of Rs 250 per share for an amount not exceeding Rs 54.50 crore. The announcement was made after market hours on Monday, 24 February 2014.
Mastek's board of directors at a meeting held on Monday, 24 February 2014, decided to proceed with the buyback of equity shares pursuant to the special resolution approved by the shareholders of the company. Mastek would buyback up to 32 lakh fully paid-up equity shares of face value of Rs 5 each (not exceeding 25% of the total paid-up equity share capital as at the nine month period ended 31 March 2013) for an amount not exceeding Rs 54.50 crore (excluding brokerage and other charges), being 14.92% of total paid-up share capital and free reserves as on 31 March 2013 for a price not exceeding Rs 250 per share from the shareholders of the company under the buyback regulations from the open market through the stock exchanges.
Ambuja Cements gained 2.81%. The company during market hours said that the High Court of Himachal Pradesh has granted a stay on the order issued earlier by the Ministry of Environment and Forest and accordingly the mining operations at Himachal Pradesh Plants would now be resumed. Earlier, Ambuja Cements had on 12 February 2014 announced that pursuant to a notice received from the Ministry of Environment and Forest the mining operation at the company's Himachal Pradesh plants has been kept in abeyance.
Gujarat Gas Company jumped 9.84%. Gujarat Gas Company after market hours on Monday, 24 February 2014, said that the company's Board of Directors at its meeting held on Monday, 24 February 2014, inter alia, has granted its in-principle approval to the proposed consolidation by way of amalgamation of the company with GSPC Distribution Networks (GDNL), GSPC Gas (GSPC Gas), Gujarat Gas Financial Services (GFSL) and Gujarat Gas Trading Company (GTCL), viz., the companies involved in City Gas Distribution business by way of proposed amalgamation. Gujarat Gas Company said it has approved the appointment of KPMG (India) as advisors for conceptualization and implementation of the proposed scheme of amalgamation, SSPA & Co., Chartered Accountants, as independent valuers for determining the swap ratio for the proposed amalgamation, Saurabh N. Soparkar, a senior advocate to represent the companies before the jurisdictional High Court and other concerned authorities for the purpose of the proposed amalgamation. Based on advisor's recommendations as appointed above, the Board will give approval to the final consolidation plan, Gujarat Gas Company said.
In the foreign exchange market, the rupee edged higher against the dollar on global risk-on sentiment. The partially convertible rupee was hovering at 62.0250, compared with its close of 62.07/08 on Monday, 24 February 2014.
Reserve Bank of India (RBI) Governor Raghuram Rajan in a television interview which was broadcast on Monday, 24 February 2014, said the government and the central bank shared similar views on inflation management, while reiterating a call for the US Federal Reserve to be more sensitive to emerging economies. Rajan's comments come after Finance Minister P. Chidambaram last week chided the central bank over its focus on fighting inflation, saying the RBI needed to abide by government policy to promote economic growth. "It's not as if the government is on a different page on what we've been doing on inflation thus far. They may have different views on what they would like to see done, but there is a process, there is a conversation. I think there is fair amount of coordination at the highest level," Rajan said.
Rajan said the central bank panel report on inflation was consistent with the government's stance. "We have a committee which has suggested a target, which is also by the way, consistent with the process the finance ministry's committee has suggested, so there is no disagreement about the broader need to get a framework in place. I think in terms of how I see the process, is really that the government sets the objective, and the central bank delivers on that objective," Rajan said.
Rajan also reiterated his call for the Federal Reserve to take into account the impact of its withdrawal of monetary stimulus on emerging economies, despite saying he was comfortable with the current pace of tapering. "I actually welcome a measured pace of tapering. The only thing I have been calling for is that in the communication there should be some sensitivity to conditions in emerging markets. And this is not from our perspective, this is broadly emerging markets, some of whom have been in trouble in the last few months. But I am fully prepared for a tapering that continues at this measured pace," Rajan 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.
Asian stocks edged higher on Tuesday, 25 February 2014, after overnight rally in US stocks. Key benchmark indices in Taiwan, Hong Kong, China, Singapore, Japan, and South Korea were up 0.1% to 1.48%. In Indonesia, the Jakarta Composite index was off 0.58%.
US stocks climbed on Monday, 24 February 2014, boosted by M&A activity, an upbeat German confidence report and bets that the S&P 500's foray into new high ground could spur further buying. The main indexes finished with solid gains, although they ended well off their session highs as buying momentum faded.
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.
From BS News
Extending its gains for the third day, the rupee today strengthened by 12 paise to 61.95 against the US dollar in early trade on the Interbank Foreign Exchange market on increased foreign fund inflows amid a higher opening in the domestic equity market.