Giving thumbs up to RBI’s status quo stance in second bi-monthly monetary policy, Indian equity markets rallying for second consecutive session and accumulating gains of over 3/4th of a percent, settled at record high closing levels on Tuesday. Besides, the status quo stance for key policy repo rate, which was left unchanged at 8%, markets took a heart from dovish tone of RBI, which in its policy rationale and guidance, underscored that if the economy stays on this course, further policy tightening will not be warranted, but on the other hand, if disinflation, adjusting for base effects, was faster than currently anticipated, this would provide headroom for an easing of the policy stance. By close of trade, both Sensex and Nifty ended past the crucial 24,850 and 7,400 levels respectively. Meanwhile, broader indices also participated into this rally and ended with gains in the range of 0.65%-1.25%.

On the global front, Asian shares rode higher on Tuesday, supported by solid US and Chinese data. Shares were bolstered by the US Institute for Supply Management’s manufacturing activity index rising to 55.4 in May from 54.9 in April. Meanwhile, European shares were trading lower ahead of key euro zone inflation data and also on account of caution ahead of this week’s European Central Bank (ECB) policy meeting.

Closer home, majority of the sectoral indices on BSE ended into positive territory, with only exception being stocks from Healthcare, Fast Moving Consumer Goods and Information Technology counters which were the top losers of the session. On the flip side, stocks from Metal, Realty and Public Sector Undertaking counters were the prominent gainers. Meanwhile, shares of sugar refiners rose sharply on expectations that the new government would push ethanol blending in petrol and increase the import duty on the sweetener to support local prices. Besides, steel stocks also gained after positive manufacturing data in a private survey in China, the world’s biggest consumer and producer of the metal. China’s factory sector turned in its best performance in four months in May as export orders improved although activity still contracted, a private survey showed on Tuesday, adding to signs the economy may be stabilizing. Additionally, Auto counter too staged a heartwarming performance, while Hero MotoCorp extended Monday’s gains triggered by the company’s strong sales in May, Eicher Motors rose after the company reported strong motorcycle sales in May. Besides, Cement stocks too were on investors’ radar, with Grasim Industries scaling a 52 week high level in intra-day trade. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1919: 1096, while 91 scrips remained unchanged. (Provisional)

The BSE Sensex gained 173.74 points or 0.70% to settle at 24858.59. The index touched a high and a low of 24892.06 and 24626.97 respectively. Among the 30-share Sensex, 17 stocks gained, while 13 stocks declined. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.63% and Small cap index was up by 1.18%. (Provisional)

On the BSE Sectoral front, Metal up by 5.06%, Realty up by 3.15%, PSU up by 1.87%, Oil and Gas up by 1.76% and Consumer Durables up by 1.44% were the gainers while, FMCG down by 0.75%, Healthcare down by 0.50%, Bankex down by 0.18% and  IT down by 0.04%, were the few losers in the space. (Provisional)

The top gainers on the Sensex were Tata Steel up 6.74%, SSLT up by 6.03%, Coal India up by 5.33%, ONGC up by 4.45% and BHEL up by 3.66%. On the flip side, the key losers were Dr. Reddys Lab down by 3.07%, GAIL down by 2.04%, HUL down by 1.67%, ITC down by 1.22% and Bharti Airtel down by 1.05%. (Provisional)

Meanwhile, the government has slashed the import tariff on gold to $408 per 10 gram from $424 and silver to $617 per kg from $650 per kg, in line with global rates of the precious metals, which could lead to some softening in the prices. Tariff value or the base price is set to determine the customs duty on the precious metal and to prevent under invoicing. The government revises import tariff value on a fortnightly basis taking into account the volatility in global metal prices.

During the recent months, global gold prices have been declining as positive US economic data backed the latest Federal Reserve’s move to keep on reducing monetary stimulus which has dimmed the precious metal’s appeal. Taking global cues, domestic gold rates in the national capital Delhi declined to 11-month low at Rs 27,400 per 10 grams.

Gold is the second largest import item for India after crude oil. The government had taken various measures like high customs duty of 10% and 80/20 rule to curb gold shipments to check country’s widening current account deficit (CAD). Gold and silver imports fell by 40.02% to $33.46 billion in FY14 due to these stern Government’s norms. Low gold imports also helped India to contain current account deficit (CAD) at 1.7 percent of GDP or $32.4 billion in FY 14 as compared to $87.8 billion, or 4.7 percent of GDP in FY13.

India VIX, a gauge for markets short term expectation declined 4.25% at 15.79 from its previous close of 16.49 on Friday. (Provisional)

The CNX Nifty gained 51.95 points or 0.71% to settle at 7,414.45. The index touched high and low of 7,424.95 and 7,342.15 respectively. Out of 50 stocks in Nifty, 31 stocks ended in the green and 19 in red. (Provisional)

The major gainers of the Nifty were Tata Steel up 6.72%, SSLT up by 5.98%, Coal India up by 5.64%, DLF up by 5.21% and Grasim up by 5.16%. On the flip side, the key losers were Dr. Reddys Lab down by 2.30%, HCL Tech down by 2.03%, Indusind Bank down by 1.86%, GAIL down by 1.84% and Kotak Mahindra Bank down by 1.51%. (Provisional)

Most of European markets were trading in red; UK’s FTSE 100 down by 0.34%, Germany’s DAX down by 0.27% and France’s CAC 40 was down by 0.07%.

Hong Kong Retail Sales fell to a seasonally adjusted annual rate of -9.8%, from -1.3% in the preceding month. Japan’s Monetary Base fell to 45.6%, from 48.5% in the preceding month while Japan’s Average Cash Earnings rose to a seasonally adjusted 0.9%, from 0.7% in the preceding quarter. Thai consumer confidence jumped in May on hopes a new military government would impose order after months of political chaos that had threatened to tip the economy into recession.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2038.31

-0.91

-0.04

Hang Seng

23291.04

209.39

0.91

Jakarta Composite

4942.16

30.07

0.61

KLSE Composite

1872.55

8.30

0.45

Nikkei 225

15034.25

98.33

0.66

Straits Times

 3296.67

-5.57

-0.17

KOSPI Composite

2008.56

6.56

0.33

Taiwan Weighted

9123.46

47.55

0.52

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Second Bi-Monthly Monetary Policy Review for 2014-15 (Apr-Mar)

Second Bi-Monthly Monetary Policy Review for 2014-15 (Apr-Mar)

  • Keep repo rate unchanged at 8.00%
  • Cuts SLR by 50 bps to 22.5%
  • SLR cut effective from fortnight starting Jun 14
  • Reverse repo unchanged at 7.00%
  • MSF unchanged at 9.00%
  • Keep banks’ CRR unchanged at 4.00% of NDTL
  • Liquidity under export credit refinance cut by 50 bps to 32%
  • Continue to provide liquidity under 7-, 14-day term repos
  • To introduce special term repo of 0.25% of NDTL
  • To continue with term repos of up to 0.75% of NDTL
  • Reiterates CPI inflation target of 8% for Jan 2015
  • Reiterates CPI inflation target of 6% by Jan 2016
  • If econ stays on course, more policy tightening not warranted
  • Excluding food, fuel, CPI inflation edging down
  • Appropriate at this juncture to leave rates unchanged
  • Need to allow earlier rate hike to mitigate inflation pressure
  • Committed to keeping econ on disinflationary path
  • Since April policy global activity evolving at different speed
  • Growth is gaining traction in US, UK
  • Structural issues continues impeding growth in emerging econs
  • If disinflation falls faster, it will give headroom for easing
  • Faster disinflation to provide room for easing stance
  • FIIs can participate in exchange traded FX derivatives
  • Further tightening not needed if disinflation on course
  • Strong poll mandate could revive demand during year
  • FII FX derivative play to extent of exposure plus $10 mln
  • Hiked FX remittance under liberalised scheme cap to $125,000
  • Invest demand, credit will pick up as econ recovers
  • Indians, non-residents allowed to take out up to 25,000 rupees
    .
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Indian equity benchmarks trimmed their gains but continued to trade in green in the late afternoon session in absence of any positive upside trigger. Investors have started taking cautious approach ahead of Q4GDP data and RBI’s monetary policy review scheduled on Tuesday for outlook on inflation and expectations on the new government’s budget. Traders were seen piling up positions in Realty, HealthCare and FMCG stocks, while selling was witnessed in Bankex, Auto and Consumer Durables sector stocks.  Hectic activity was witnessed in defence related stocks on Union Government’s decision to allow 100% Foreign Direct Investment (FDI) in defence sector. In scrip specific development, DLF, India’s largest realty company, was trading in green after posting a net profit of Rs 410 crore for the quarter ended March 31, 2014 compared to Rs 196 crore in the year-ago period, while Jammu & Kashmir Bank was trading weak on media reports indicating that the bank has undisclosed amount of Rs 2,500 crore as stressed loan.

On the global front, the Asian markets were trading mostly in red, while the European markets too traded mostly on pessimistic note. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 7,200 and 24,200 levels respectively. The market breadth on BSE was positive in the ratio of 1570:1275 while 108 scrips remained unchanged.

The BSE Sensex is currently trading at 24241.10, up by 6.95 points or 0.03% after trading in a range of 24,353.59 and 24167.94. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading higher; the BSE Mid cap index was up by 0.46%, while Small cap index up by 0.62%.

The gaining sectoral indices on the BSE were Realty up by 2.05%, HealthCare up by 1.48%, FMCG up by 1.10%, Metal up 0.84% and Power up 0.79%. While, Bankex down by 0.94%, Auto down by 0.51% and Consumer Durables down by 0.50% were the losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 4.94%, NTPC up by 2.79%, ONGC up by 2.46%, Cipla up by 2.17% and Tata Steel up by 1.84%.

On the flip side, HDFC down by 2.38%, SBI down by 1.85%, HDFC Bank down by 1.12%, Tata Motors down by 1.12% and Axis Bank down by 0.89%.

Meanwhile, Prime Minister Narendra Modi has unveiled a 10-point agenda for good governance. Assigning maximum importance to bureaucratic empowerment and good governance, Prime Minister told ministers to prepare a detailed action plan for the first 100 days in office and resolve all issues left pending by the previous government on a priority basis.

Ministries should give focus on delivery and implementation and agenda for governance should be embedded into day-to-day functioning and policy making, he added. Prime Minister’s latest agenda for good governance highlighted 10-point framework include build up confidence in bureaucracy, give priority to education, health, water and power, mechanism for inter-ministerial issues, addressing concerns about economy, stability and sustainability in government policy, give bureaucrats independence to work without pressure, transparency in governance, infrastructure development, implement policy in time bound manner and people orientated system for better addressing people’s problems.

Narendra Modi has also reiterated the importance of dealing with states’ problems on a priority basis and told cabinet ministers to share their workload with junior ministers such as state ministries. In order to strengthen the federal structure, there is a need to take the states along with the Centre, he added. Prime Minister has started the process of scrutinizing bills which have lapsed in the Lok Sabha and Rajya Sabha and need to be revived.

The CNX Nifty is currently trading at 7,239.30, up by 3.65 points or 0.05% after trading in a range of 7,272.50 and 7,118.45. There were 30 stocks advancing against 19 declining while 1 stock remained unchanged on the index.

The top gainers of the Nifty were HUL up by 5.19%, NTPC up by 3.02%, ONGC up by 2.50%, DLF up by 2.40% and Tech Mahindra up by 2.30%.

On the flip side, HDFC down by 2.76%, SBI down by 1.92%, Tata Motors down by 1.25%, HDFC Bank down by 1.23% and ACC down by 1.20% were the major losers on the index.

Asian equity indices were mostly in red; Shanghai Composite down by 0.07%, Jakarta Index declined 0.97%, Straits Times down by 0.02%, Nikkei 225 descended by 0.34% and Taiwan Weighted slid 0.36% while, Hang Seng advanced 0.31%.

The European markets were trading mostly in red, with France’s CAC 40 was down by 0.47% and UK’s FTSE 100 lost 0.17% while, Germany’s DAX was up by 0.09%.

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24th May 2014, Wednesday turned out to be another session of consolidation for Indian equity markets, which in absence of any fresh triggers, failed to make headway into positive territory. While, there was some caution ahead of the expiry of May derivative contracts on Thursday. Nevertheless, sentiment to some extent took a hit after overseas investors for three consecutive session sold shares worth Rs 203 crore on Tuesday, while anticipation of Jan-March GDP to confirm economy confirming slow-down, too added to the cautious undertone of the markets. Q4 GDP It data is set to be unveiled on May 31, Friday. Further, a report called India’s new ministers ‘underwhelming,’ saying no professionals were brought in for ministries targeted for reforms, such as railways and coal, too limited the uptrend of the markets.

Volatility on penultimate session of F&O expiry mainly took Nifty higher by quarter of a percent and above the crucial 7300 level by close of trade, however Sensex ended the session flat at 24,550 level. Meanwhile, broader indices underperforming larger peers by fat margins, ended with gains in the range of 0.40-1.65%.

On the global front, Strong economic data in the United States shored up Asian stocks to one-year highs on Wednesday. Riskier asset markets sped up overnight after the United States reported an unexpected rise in durable goods orders in April and higher home prices for March. Services industries, which dominate the economy, also grew at a rapid clip in May. Meanwhile, European stocks were little changed, trading near their highest level since January 2008, as GlaxoSmithKline Plc retreated after becoming the subject of a criminal investigation.

Closer home, gains in stocks from Information Technology, Realty and Technology counters were counterbalanced by losses in stocks from Metal, PSU and Consumer Durables counters. IT stocks featured in the list of top gainers for yet another session on good US economic data and Rupee’s depreciation. Meanwhile, in non sectoral gauge activity, cement stocks also witnessed buying interest amid long built-up in these stocks ahead of expiry of May derivative contracts. UltraTech, Ambuja and ACC all rallied over 4%. Besides, fertilizer stocks, namely Chambal fertilizers, National fertilizers, Zuari Agro gained after Fertilizer Minister underscored that government will take steps to revive closed urea plants. Meanwhile, airline stocks, namely Spicejet and Jet Air India too witnessed drubbing after the latter posted a record 8% quarterly loss partly as a result of higher jet fuel expenses and a one-time charge on a unit.

The BSE Sensex is currently trading at 24556.09, up by 6.58 points or 0.03% after trading in a range of 24643.33 and 24488.81. 16 stocks advanced against 14 stocks declining on the index. (Provisional)

The broader indices outperformed larger peers; the BSE Mid cap and Smallcap index settled higher by 0.40% and 1.63% respectively. (Provisional)

The gaining sectoral indices on the BSE were IT up by 1.52%, TECK up by 1.42%, Realty up by 1.40%, Bankex up by 0.56% and Capital Goods up by 0.45%. While, Metal down by 1.62%, PSU down by 1.20%, Consumer Durables down by 0.99%, Oil & Gas down by 0.88% and Auto down by 0.75% were the losing indices on BSE.    (Provisional)

The top gainers on the Sensex were Tata Power up by 3.40%, HDFC Bank up by 2.16%, Hero Motocorp up by 2.11%, Bharti Airtel up by 1.73% and Dr. Reddy’s Lab up by 1.67%. On the flip side, Coal India down by 3.43%, ONGC down by 3.17%, M&M down by 2.85% Gail India down by 2.01% and NTPC down by 1.75%.(Provisional)

Meanwhile, with a view to provide importers with greater flexibility in hedging facility, the Reserve Bank of India (RBI) has decided to allow domestic importers to book forward contracts up to 50 percent of the eligible limit under the past performance route. As per the present guidelines relating to hedging of currency risk of probable exposures based on past performance, Indian importers are allowed to book contracts up to 25 percent of the eligible limit.

The RBI further notified that importers who have already booked contracts up to previous limit of 25 percent in the current financial year, will be eligible for difference arising out of the enhanced limits. The eligible limit is determined on the basis of average of the previous three financial years’ import turnover or the previous year’s actual import turnover, whichever is higher.

The RBI’s latest move is likely to provide some relief to importers as the depreciation in rupee value increases the imports costs. During the FY14, India’s overall imports declined by 8.11% to $450.95 billion as against $490.74 billion reported in the same period of previous fiscal year. Contraction in domestic imports during FY14 was mainly driven by weak domestic demand and lower gold imports.

The CNX Nifty settled at 7,335.30, up by 17.30 points or 0.24% after trading in a range of 7,344.75 and 7,302.60. 28 stocks advanced against 22 declines on the index. (Provisional)

India VIX, a gauge for markets short term expectation lost 8.07% at 17.55 from its previous close of 19.10on Monday. (Provisional)

The top gainers of the Nifty were Ultratech Cement up by 5.67%, Ambuja Cement up by 5.49%, Tata Power up by 4.71%, ACC up by 4.32% and HCL Technologies up by 4.15%. On the flip side, Coal India down by 3.07%, ONGC down by 3.00%, Asian Paints down by 2.86%, M&M down by 2.71% and Jindal Steel down by 2.51% were the major losers on the index. (Provisional)

The European markets were trading mostly in green, with France’s CAC 40 up by 0.13% and UK’s FTSE 100 gained 0.05%, while Germany’s DAX added 0.13% (Provisional)

The Asian markets concluded Wednesday’s trade mostly in green. Details are below :

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2050.23

15.66

0.77

Hang Seng

23080.03

135.73

0.59

Jakarta Composite

4985.58

21.65

0.44

KLSE Composite

1871.66

4.09

0.22

Nikkei 225

14670.95

34.43

0.24

Straits Times

 3271.84

-2.22

-0.07

KOSPI Composite

2017.06

19.43

0.97

Taiwan Weighted

9121.71

66.42

0.73

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After witnessing drubbing in the last session, Indian equity benchmarks have made a positive start and are trading in fine fettle in early deals on Wednesday buoyed by firm global cues. The S&P 500 closed at a record high for a second straight session on Tuesday, buoyed by the latest round of merger activity and as expectations for rate cuts at the European Central Bank stoked investors’ appetite for equities. The Asian markets were trading mostly in the green at this point of time after China reported industrial profits increased by 10 percent this year through April from the same period in 2013.

Back home, sentiments remained up-beat as investors continued to buy beaten down but fundamentally strong stocks. Select stocks from realty counter were trading higher on a report that government is likely to grant infrastructure tag to low-cost housing segment, which will enable real-estate developers to get finance from banks and for longer tenures. However, some cautiousness crept after Finance Ministry said that it has to be watchful of the Current Account Deficit (CAD) as well as the rupee because global markets are still volatile.

On the sectoral front, capital goods, software and technology witnessed the maximum gain in trade, while metal, power and realty remained the top losers on the BSE sectoral space. The broader indices, however, were outperforming benchmarks, while the market breadth on the BSE was positive; there were 1,270 shares on the gaining side against 566 shares on the losing side while 47 shares remain unchanged.

The BSE Sensex is currently trading at 24601.07, up by 51.56 points or 0.21% after trading in a range of 24643.33 and 24552.76. There were 14 stocks advancing against 16 declines on the index. The broader indices were trading in green; the BSE Mid cap index was up by 0.66% and Small cap index up by 1.19%.

The top gaining sectoral indices on the BSE were, Capital Goods up by 1.65%, IT up by 0.85%, TECK up by 0.79%, Power up by 0.53% and Consumer Durables up by 0.30% while Metal down by 0.97%, Realty down  by 0.39%, PSU down  by 0.29%, Auto  down by 0.11%, and FMCG up by 0.10% were the top losers.

The top gainers on the Sensex were BHEL up by 3.81%, Hero MotoCorp up by 2.46%, Maruti Suzuki up by 1.71%, L&T up by 1.69% and ICICI Bank up by 1.07%. On the flip side, Coal India was down by  3.33%, Hindalco Inds was down by 1.37%, Tata Motors  was down by 1.13% , SSLT was down by 1.03%  and ONGC was down by 0.94%  were the losers on the Sensex.

Meanwhile, According to Petroleum Ministry, under-recoveries on sensitive petroleum products are likely to fall 20 percent from Rs 1,39,869 crore during FY14 to Rs 1,11,000 crore in FY15. The oil ministry highlighted that in the financial year 2015, the oil subsidy burden for new government will be the lowest since 2011-12. The loss on diesel, kerosene and cooking gas (LPG) is expected to be Rs 35,000 crore, Rs 29,000 crore and Rs 47,000 crore in FY15 mainly due to decline in the diesel subsidy and increase in prices owing to the diesel decontrol measures (Rs 9.06 a litre) since January 2013.

The Petroleum Ministry further highlighted that the appreciation in rupee’s value has also helped bring the figure down. The Ministry’s calculations are based on the crude oil prices at $105-108 a barrel and the rupee at about 58/dollar. Presently, public sector companies Bharat Petroleum Corporation, Indian Oil Corporation and Hindustan Petroleum Corporation are incurring a daily loss of Rs 318 crore on the sale of diesel, kerosene and cooking gas.

An appreciation in rupee value against the dollar cut Rs 10,000 crore on the under-recovery front. Over the past couple of months, Indian rupee has appreciated and if the current trend continues coupled with new government’s move to keep increasing the diesel prices monthly by 50 paise a litre, the under-recovery on high-speed diesel will be wiped out in six months. Overall under-recoveries will further decline if the new government implements the suggestions of the Kirit Parikh committee, which recommended a Rs 5/litre increase in diesel prices, Rs 250-a-cylinder rise in LPG prices and a Rs 4/litre rise in kerosene prices.

The CNX Nifty is currently trading at 7,332.25 up by 14.25 points or 0.19% after trading in a range of 7,344.75 and 7,317.35. There were 27 stocks advancing against 22 declines while 1 stock remained unchanged on the index.

The top gainers of the Nifty were BHEL up by 3.68%, Ambuja Cement up by 2.52%, ACC up by 2.15%, Hero Moto Co up by 2.00% and Maruti up by 1.85%. On the flip side, Coal India down by 3.41%, DLF down by 1.96%, Kotak Bank down by 1.65%, Asian Paint down by 1.60% and Hindalco down by 1.34% were the top losers on the index.

Asian markets were trading  in green; Shanghai Composite gained 3.21 points or 0.16% to 2,037.78, Hang Seng improved 192.12 points or 0.84% to 23,136.42, Jakarta Composite strengthened by 7.98 points or 0.16% to 4,971.90, KLSE Composite rose 0.59 points or 0.03% to 1,868.16, Nikkei 225 spurted by 50.64 points or 0.35% to 14,687.16, Straits Times increased by 1.26 points or 0.04% to 3,275.32, Seoul Composite jumped 12.61 points or 0.63% to 2,010.24 and Taiwan Weighted was up by 30.00 points or 0.33% to 9,085.29.

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Extending their previous session’s jubilation, Indian equity benchmarks ended the Friday’s trade near their intraday high levels with a gain of over a percentage point. There was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too equally participated in the rally. Though, some profit booking was witnessed during the trade amid report that foreign institutional investors (FIIs) sold shares worth a net Rs 294.99 crore on May 22, 2014, as per provisional data from the stock exchanges. But, domestic bourses maintained the steady trend on hopes that a Modi-led disposition would mark a paradigm shift in governance and herald a new era in economic reforms. Meanwhile, industry body Assocham in its action plan for the new government has pitched for liberalisation of ECB norms, GST implementation, incentives for investments and easing of processes for companies planning to set up manufacturing units.

Supportive cues from US markets too provided support to local markets where sentiments remained up-beat on report from the National Association of Realtors showing that existing home sales rose for the first time this year in April. Asian markets too ended mostly in the green with Nikkei, Shanghai, Straits Times and Taiwan gaining up-to half a percent each as investors welcomed signs of a turnaround in the world’s biggest economies. But the European markets, including the FTSE, CAC and DAX, are trading virtually unchanged due to caution ahead of weekend elections in Ukraine and European Union.

Back home, markets changed gear in last leg of trade to end near intraday high after State Bank of India (SBI) moved higher by nearly 10%, its highest level since May 2011, on reporting a better-than-expected net profit of Rs 3,041 for the quarter ended March 31, 2014 (Q4FY14). Other PSU banks like Canara Bank, Andhra Bank, Syndicate Bank, Oriental Bank of Commerce, Allahabad Bank, IDBI Bank and Indian Overseas Bank too edged higher.

Meanwhile, stocks related to power sector too remained on buyers’ radar on the buzz that the incoming government will have a major thrust on the area, while infra and realty stocks witnessed buying on hopes of some recovery of the economy coming out of stagflation type of situation. Additionally, select gold related stocks continued their bull run for second day in a row after RBI permitted exporters, long-term export advance up to a maximum period of 10 years on a satisfactory track record and eased gold import norms.

The NSE’s 50-share broadly followed index Nifty gained by ninety points to end above its psychological 7,350 support level, while Bombay Stock Exchange’s Sensitive Index — Sensex surged by around three hundred and twenty points to end tad below its crucial 24,700 mark. The broader markets too traded jubilantly throughout the session and ended the session with a gain of around two percent. The market breadth remained in favour of advances, as there were 2,203 shares on the gaining side against 833 shares on the losing side while 92 shares remain unchanged.

Finally, the BSE Sensex soared by 318.95 points or 1.31%, to 24693.35, while the CNX Nifty surged by 90.70 points or 1.25%, to 7,367.10.

The BSE Sensex touched a high and a low of 24745.86 and 24470.78, respectively. The BSE Mid cap index was up by 1.76%, while the Small cap index rose by 1.87%.

The top gainers on the Sensex were SBI up by 9.69%, Tata Power up by 6.33%, Maruti Suzuki up by 5.32%, NTPC up by 4.39% and ONGC up by 3.68%. While Hindalco Inds down by 2.03%, HDFC Bank down by 1.63%, Infosys down by 1.31%, ITC down by 0.77% and Hindustan Unilever down by 0.22% were the top losers in the index.

On the BSE Sectoral front, PSU up by 3.87%, Power up by 3.66%, Oil & Gas up by 2.16%, Capital Goods up by 2.15% and Realty up by 2.10% were the top gainers, while Consumer Durables down by 0.82% and FMCG down by 0.47% were the only losers in the space.

Meanwhile, Industry body Assocham has outlined an action plan suggesting measures for new government to boost the economic growth.  The action plan is aimed at achieving economic growth of 9 to 10 percent over the medium term and sustaining the high-growth path.Assocham’s action plan highlighted that the new government must introduce single-window clearance for pending projects, relax FDI limits across key sectors, privatise sick PSUs, divest its holding in top 10-15 PSUs to generate over Rs 1 lakh crore of capital. Further, the industry body has also pitched for GST implementation, liberalisation of ECB norms, incentives for investments, restoration of the SEZ policy to its original form and easing of processes for companies planning to set up manufacturing units.

Emphasizing the need to create an environment for increasing investments, Assocham President Rana Kapoor said that new government should introduce suitable policy framework to improve the business sentiments in the country. Further, a long term approach to fiscal consolidation along with clear policies is urgently needed for addressing structural bottlenecks and high inflation. Rana Kapoor further added that in order to expedite the implementation of big infrastructure projects, new government must accelerate land acquisition and environment clearances process for mega projects by setting up a joint task force comprising central ministries like environment, finance, administrative along with the states ministries. New government must take measures soon to replace existing state and central levies with a uniform tax as implementation of Goods and Services Tax (GST) can boost India’s economy by up to two percentage points.

Currently, Indian economy is struggling with slowdown and the factors like low investments, slow execution of infrastructure projects and prevailing high interest rates in order to combat elevated inflation have been adversely impacting the domestic economy. Indian economy’s growth slowed down to 4.6% during the first three quarter of FY14 and is likely to remain at sub-5% level in FY14.

The CNX Nifty touched a high and low of 7,381.00 and 7,293.90 respectively.

The top gainers of the Nifty were State Bank of India up by 10.28%, Tata Power Company up by 6.99%, Jindal Steel & Power up by 6.39%, IDFC up by 5.70% and Maruti Suzuki India up by 5.53%. On the other hand, Kotak Mahindra Bank down by 1.58%, HDFC Bank down by 1.57%, Hindalco Industries down by 1.48%, ITC down by 1.39% and Infosys down by 1.38% were the top losers.

Most of the European markets were trading in green, France’s CAC 40 was up by 0.02% and Germany’s DAX was up by 0.21%, while United Kingdom’s FTSE 100 was down by 0.29%.

The Asian markets concluded Friday’s traded mostly in green, heading for a four-month high, after data showed US manufacturing expanded and as the yen held yesterday’s losses. Japan’s trade deficit narrowed again last month as a sales tax hike weighed on imports – denting demand for foreign fruit, lobsters and crude oil – while shipments of goods to overseas markets picked up pace. The finance ministry data showed the trade deficit shrank 7.8% year on year in April, with Japan logging a shortfall of 808.9 billion yen ($8 billion) against the year-before deficit of 877.4 billion yen. Industrial production in Taiwan rose more-than-expected last month. Taiwanese Industrial Production rose to a seasonally adjusted annual rate of 4.80%, from 3.05% in the preceding month.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2034.57

13.28

0.66

Hang Seng

22965.86

12.10

0.05

Jakarta Composite

4973.06

3.18

0.06

KLSE Composite

1869.22

-5.90

-0.31

Nikkei 225

14462.17

124.38

0.87

Straits Times

 3278.02

12.36

0.38

KOSPI Composite

2017.17

1.58

0.08

Taiwan Weighted

9008.22

38.59

0.43

 

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Jubilation continued on Dalal Street with both the frontline indices snapping the session above their psychological 24,300 (Sensex) and 7,250 (Nifty) levels, ending at fresh all time closing high levels after BJP won clear majority in the country’s general elections. Boisterous benchmarks once again showcased an enthusiastic performance with investors getting support from report that FII’s made substantial purchases in Indian stocks on May 16, 2014. Though, markets after a gap-up opening pared all of their gains and entered into negative terrain for a brief period as profit booking was witnessed at higher levels. But, volatility ruled the roost as the key benchmark indices regained positive zone and thereafter not even an iota of profit booking was witnessed in the session, as the benchmarks managed to fervently gain from strength to strength as investors continued hunt for fundamentally strong but oversold stocks.

Overall, sentiment remained upbeat, while some support also came after Industry body CII expressed hopes that the economic reforms agenda can be taken forward with a stable political dispensation and with a prudent macroeconomic management, the economy could recover to 6.5 per cent GDP growth rate in 2014-15 as against an estimated 4.9 per cent in 2013-14. On the currency front, the rupee was also mirroring the feel-good sentiment prevalent on Dalal Street. The currency touched a fresh 11-month high today; it was trading at 58.58 a dollar – the highest level since June 18, 2013 – up 20 paise compared to Friday’s closing value of 58.79 a dollar.

However, global cues remained sluggish with European markets trading lower in early deals, as investors were cautious amid sustained expectations for further easing measures by the European Central Bank (ECB). Asian markets shut shop mostly in the red, undermined by the concerns about slower growth in China, which led to mainland Chinese shares falling more than 1 percent to two-month lows on news that Beijing is tightening its grip on interbank lending to defuse risks in the shadow banking system.

Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too equally participated in the rally. Stocks related to railway such as Texmaco Rail and Engineering, Kalindee Rail Nirman, Titagarh Wagons, Kernex Microsystems and Hind Rectifiers remained on buyers’ radar on hopes that Bhartiya Janta Party’s Prime Minister designate, Narendra Modi will stand by his promise to improve the Indian Railways. Additionally, infra, realty and public sector undertakings (PSUs) counters too extended their past week’s rally. On the flip side, defensive sectors such as fast moving consumer goods (FMCG), information technology (IT) and pharmaceuticals lost sheen as investors shift their focus to infrastructure-related sectors.

The NSE’s 50-share broadly followed index Nifty surged by over sixty points to end comfortably above its psychological 7,250 support level, while Bombay Stock Exchange’s Sensitive Index — Sensex surged over two hundred and forty points to surpass the psychological 24,350 mark. The broader markets outperformed benchmarks and traded jubilantly throughout the session, ending the trade by over four percentage points. The market breadth remained in favour of advances, as there were 2154 shares on the gaining side against 698 shares on the losing side while 96 shares remain unchanged.

Finally, the BSE Sensex surged by 241.31 points or 1.00%, to 24363.05, while the CNX Nifty gained 60.55 points or 0.84%, to 7,263.55.

The BSE Sensex touched a high and a low of 24448.47 and 24107.99, respectively. The BSE Mid cap index was up by 4.19%, while the Small cap index rose by 5.82%.

The top gainers on the Sensex were BHEL up by 16.94%, Coal India up by 12.73%, NTPC up by 10.35%, ONGC up by 8.17% and Tata Power up by 7.95%. While TCS down by 5.69 %, ITC down by 5.45%, Dr Reddys Lab down by 5.22%, Infosys down by 4.88% and Sun Pharma down by 4.83% were the top losers in the index.

On the BSE Sectoral front, Power up by 10.15%, PSU up by 9.00%, Capital Goods up by 8.34%, Realty up by 6.91% and Metal up by 6.81% were the top gainers, while IT down by 4.95%, FMCG down by 4.00%, Healthcare down by 3.66% and Teck down by 3.46% were the only losers in the space.

Meanwhile, in a positive development for the economy, Global Rating agency, Moody’s Investors Service underscored that the landslide victory by the Bharatiya Janata Party (BJP) in elections is ‘credit positive’ for country’s sovereign profile and corporate sector. It further added that this strong mandate increases the possibility of a stable central government pursuing a shared economic agenda for addressing country’s macroeconomic challenges since intra-coalition differences around economic priorities in the past had derailed measures to improve India’s operating environment.

However, the rating agency sounded a word of caution on expecting any immediate change in economic situation as it highlighted that though the policy measures to revive the economy would emerge in the coming months, but growth, fiscal and inflation metrics were unlikely to improve any time soon. The agency said although market indicators have shifted rapidly in response to sentiment, economic trends will reverse more slowly, given that economic data still shows that growth remains weak and inflation high.

Additionally, it pointed that though India’s GDP growth rate was higher than that of several peer countries, even during its economic slowdown, its fiscal metrics, inflation levels and infrastructure for long had remained weaker than those of other ‘Baa’-rated countries. Also, the rating agency averred that the extent to which these metrics improve would depend upon the measures which the government adopts to address country’s weak fiscal position, the regulatory conditions on investment and output and the lack of adequate social and physical infrastructure.

However, it did acknowledge the incremental portfolio capital flows into India this year on hopes of a BJP-led coalition forming the next government and pursuing policies conducive to investment and economic growth, which in turn led to rupee appreciating by 5% against the US dollar since the beginning of the year.

The CNX Nifty touched a high and low of 7,291.10 and 7,193.55 respectively.

The top gainers of the Nifty were BHEL up by 14.42%, Coal India up by 13.20%, NTPC up by 12.16%, PNB up by 11.23% and ONGC up by 8.11%. On the other hand, TCS down by 6.24%, Dr. Reddy’s Laboratories down by 5.48%, Infosys down by 5.27%, Hindustan Unilever down by 4.95% and ITC down by 4.75% were the top losers.

The European markets were trading in red, France’s CAC 40 was down by 0.39%, Germany’s DAX was down by 0.39% and United Kingdom’s FTSE 100 was down by 0.44%.

The Asian markets concluded Monday’s trade mostly in red, as investors await the release of key manufacturing data from China later in the week. China’s top economic planning agency stated that the country will try to quicken the pace of economic reform this year as part of the government’s efforts to arrest a slowdown in the world’s second-largest economy. The National Development and Reform Commission reaffirmed nine reform priorities for 2014, including deepening reforms in the power and the oil and gas industries and cutting red tape for investment approvals. Japan’s Core Machinery Orders rose to 19.1%, from -8.8% in the preceding month. Hong Kong Unemployment Rate remained unchanged at a seasonally adjusted 3.1%, as of the preceding month. Malaysian GDP rose to a seasonally adjusted 6.2%, from 5.1% in the preceding month. Thailand’s gross domestic product fell less-than-expected last month. Thai GDP fell to a seasonally adjusted -0.6%, from 0.6% in the preceding month.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2005.18

-21.32

-1.05

Hang Seng

22704.50

-8.41

-0.04

Jakarta Composite

5015.00

-16.58

-0.33

KLSE Composite

1887.07

3.73

0.20

Nikkei 225

14006.44

-90.15

-0.64

Straits Times

 3262.43

-0.16

KOSPI Composite

2015.14

1.70

0.08

Taiwan Weighted

8899.90

11.45

0.13

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Indian equity benchmarks, recovering entire early losses, staged a smart comeback in the last leg of trade on Thursday and ended the session at their fresh record closing high levels, on hopes of BJP-led NDA winning the general elections. Earlier, key benchmark indices alternately swung between positive and negative terrain as investors remained cautious ahead of final results of elections on May 16, while markets seem to have more or less priced in the exit poll prediction of a majority for the BJP-led National Democratic Alliance (NDA) in the Lok Sabha.

But, volatility ruled the roost in dying hours of trade with the frontline gauges witnessing a sharp jump as sentiments remained up-beat after the annual rate of inflation, based on monthly WPI, easing at 5.20% in month of April, 2014, as compared to 5.70% for the March and 4.77% during the corresponding month of the previous year, as all three major components of the index – food, fuel and manufactured goods – recorded moderation in prices. However, February inflation figures were revised upwards to 5.03% against 4.68% earlier. Some support also came in to the markets after India Meteorological Department (IMD) has predicted that the conditions for the advancement of South west monsoon are favourable and it will be hitting Andamans much earlier than expected.

On the global front, Asian markets reversed most of the early losses and ended mostly in the green. Though, Japanese Nikkei witnessed profit taking while a stronger yen weighed on market sentiment. European shares were trading marginally lower in early deals with investors shrugging off Germany’s robust economic growth during the first quarter.

Back home, buying which emerged in late trade mainly helped the domestic equity markets to re-conquer their crucial 7,100 (Nifty) and 23,900 (Sensex) bastions. Some support came in from currency front, where the rupee firmed up against the dollar and was quoting at Rs 59.30 at the time of equity markets closing as compared to Tuesday’s close of Rs 59.68 on the back of strong inflows in the domestic equity market.

Meanwhile, recovery in banking counter too supported the sentiments, stocks like HDFC Bank, Axis Bank, Kotak Mahindra Bank, Yes Bank etc. edged higher after the RBI panel had recommended a one-licence policy for all banks, irrespective of the ownership pattern. Power stocks too traded with traction as the Centre has announced a nine-member panel, which will identify more blocks, in addition to already selected 54 mines, for sale through competitive bidding to expedite coal auction process. Additionally, tyre stocks too remained on buyers’ radar after Apollo Tyres reported better-than-expected Q4 numbers. The company’s fourth quarter consolidated net profit doubled to Rs 281.6 crore from Rs 141.7 crore in same quarter last year on strong growth in Europe business and strong operational performance.

The NSE’s 50-share broadly followed index Nifty surged by over twenty points to end comfortably above its psychological 7,100 support level, while Bombay Stock Exchange’s Sensitive Index — Sensex surged over ninety points to surpass the psychological 23,900 mark. However, broader markets struggled to get any traction during the session and ended the trade with a cut of around a percent. The market breadth remained in favour of decliners, as there were 1,156 shares on the gaining side against 1,743 shares on the losing side while 136 shares remain unchanged.

Finally, the BSE Sensex gained 90.48 points or 0.38%, to 23905.60, while the CNX Nifty was up by 14.40 points or 0.20%, to 7,123.15.

The BSE Sensex touched a high and a low of 23971.78 and 23742.75, respectively. The BSE Mid cap index was down by 0.83%, while the Small cap index lost 0.86%.

The top gainers on the Sensex were Tata Power up by 3.07%, NTPC up by 2.95%, ONGC up by 2.56%, Gail India up by 2.16% and Hindustan Unilever up by 2.08%. While Bajaj Auto down by 4.28%, Hindalco Inds down by 1.98%, SSLT down by 1.88%, Wipro down by 1.50% and Dr Reddys Lab down by 1.46% were the top losers in the index.

On the BSE Sectoral front, Consumer Durables up by 1.52%, Power up by 0.97%, Oil & Gas up by 0.95%, PSU up by 0.42% and FMCG up by 0.29% were the top gainers, while Realty down by 1.11%, Capital Goods down by 0.90%, Metal down by 0.71%, Teck down by 0.49% and Auto down by 0.46% were the top losers in the space.

Meanwhile, in order to promote the growth and global competitiveness of the IT industry, the National Association of Software and Services Companies (NASSCOM) has prepared a five-point agenda for the new Government formed on May 16. The NASSCOM’ s report suggested five measures including enabling innovation and support entrepreneurship, making the domestic investment easier and simpler, building new markets to promote the growth and global competitiveness of the IT industry, expanding existing markets and focusing on skill development.

The NASSCOM President R Chandrashekhar said that new government can use the strength of the Indian IT industry to achieve the development agenda within the country. Indian IT sector has grown in size and now has a global footprint and there is an opportunity for new government to expand sector’s global footprint, which in turn will also contribute to the domestic transformation and developmental agenda. He added that the new Government needs to ensure that the rules for opening and operating the small business are far simpler than earlier and should take measures for funding the start-ups, and connecting them with academics and research and development.

Information Technology (IT) has emerged as an industry that has not only transformed India’s image on the global platform, but also fuelled economic growth. Present, market size of Indian IT industry stand at around $50 billion and its contribution to Indian GDP has increased from just 1.2 percent in 90’s to around 8 percent in 2013. India is the only country that covers a wide range of segments of this industry such as IT Services, BPM, Engineering & R&D, Internet & Mobility and Software Products. Currently, the US, UK and other European markets contribute to around 90% of the total business of Indian IT sector.

The CNX Nifty touched a high and low of 7,152.55 and 7,082.55 respectively.

The top gainers of the Nifty were ONGC up by 3.36%, Tata Power Company up by 2.65%, GAIL (India) up by 2.59%, Power Grid Corporation of India up by 2.54% and NTPC up by 2.39%. On the other hand, Asian Paints down by 5.73%, Bajaj Auto down by 4.30%, Bank of Baroda down by 3.88%, NMDC down by 3.33% and United Spirits down by 2.43% were the top losers.

Most of the European markets were trading in red, France’s CAC 40 was down by 0.24% and Germany’s DAX was down by 0.04% while, United Kingdom’s FTSE 100 was up by 0.05%.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2024.97

-22.94

-1.12

Hang Seng

22730.86

148.09

0.66

Jakarta Composite

KLSE Composite

1879.83

0.63

0.03

Nikkei 225

14298.21

-107.55

-0.75

Straits Times

 3272.49

13.40

0.41

KOSPI Composite

2010.20

-0.63

-0.03

Taiwan Weighted

8880.65

5.49

0.06

 

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Local barometer gauges reversed all its losses after the release of narrower than expected Wholesale price index, WPI data which slid to two months low at 5.20% on account of decline in Fuel & Power index, mainly lifted the sentiment at Dalal Street. Meanwhile, bargain buying activities by select market-participants ahead of the crucial event of election results on May 16 amidst continued optimism that the Bharatiya Janata Party (BJP) and its allies would win a clear majority also aided markets’ recovery. Off day’s low, While Sensex bounced back in positive terrain to trade above the crucial 23,800 level, Nifty albeit in red with slender loss, reclaimed the crucial 7,100 mark. However, the session turned out to be harrowing for broader indices, which were trading lower with losses in the range of 0.35%-0.55%.

On the global front, Asian pacific shares stepped back from highs on profit-booking amidst concerns over the situation in Ukraine, with Japanese markets declining despite better than expected GDP data. Japan’s gross domestic product jumped 5.9 percent on year in the first quarter of 2014 that was well above forecasts for an increase of 4.2 percent following the 0.7 percent gain in the previous three months. Meanwhile, European markets got off to a muted start as mixed national GDP data from France and Germany contrasted with some upbeat corporate earnings, keeping key indexes within striking distance of multi-year highs.

Closer home, majority of the sectoral indices on BSE were trading into positive terrain, with stocks from Information Technology, Technology and Capital Goods counters trading contrary to the trend. Meanwhile, banking stocks also lost out on account of profit-booking, while results of Bank of India also disappointed. On the flip side, stocks from Power, Consumer Durable, Realty counters were the top performers of the session, which witnessed maximum demand. The overall market breadth on BSE is in the favour of declines which thumped advances in the ratio of 1558:1008; while 144 shares remained unchanged.

The BSE Sensex is currently trading at 23821.90, up by 6.78 points or 0.03% after trading in a range of 23,971.78 and 23742.75. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices witnessed additional selling pressure; with both BSE Mid cap and Smallcap index trading lower by 0.34% and 0.55% respectively.

The gaining sectoral indices on the BSE were Power up by 1.38%, Consumer Durables up by 0.85%, Realty up by 0.58%, Healthcare up by 0.24% and Auto up by 0.23%. On the flip side, IT down by 0.75%, TECK down by 0.73%, Capital Goods down by 0.56%, Bankex down by 0.13% were the losing indices on BSE.

The top gainers on the Sensex were NTPC up by 3.66%, Tata Steel up by 2.82%, Tata Power up by 2.65%, Sun Pharma up by 2.26% and Axis Bank up by 1.49%. On the flip side, Coal India down by 1.49%, ICICI Bank down by 1.39%, Wipro down by 1.23%, L&T down by 1.14% and TCS down by 0.98% were the top losers on the index.

Meanwhile, in a complete divergence to Retail Inflation data, the annual rate of inflation, based on monthly WPI, eased in-line with expectation at two month low of 5.20% in month of April, 2014, as compared to 5.70% for the March and 4.77% during the corresponding month of the previous year. However, in a bit of worry February Inflation stood higher at 179.5 as compared to 178.9 (provisional) and annual rate of inflation based on final index stood revised at 5.03% as compared to 4.68 percent respectively. Meanwhile, build up inflation rate in the financial year so far stood at 0.22% compared to a build up rate of 0.71% in the corresponding period of the previous year.

The decline in headline inflation was mainly on account of decline in Fuel & Power index, which occupies 14.91% weight in the overall index. The group slid by 1.0% to 211.0 (provisional) from 213.1 (provisional) for the previous month due to lower prices of aviation turbine fuel and furnace oil (4% each), LPG and petrol (2% each) and kerosene and bitumen (1% each).

Meanwhile, Primary article index, which occupies 20.12% weight in the overall headline index, rose by 1% to 242.5 (provisional) from 240.2 (provisional) for the previous month on account of 1.5% surge in Food Articles at 238.8. On the flip side, index for Non-Food Articles group declined by 0.4% to 216.3 (provisional) from 217.2 (provisional) for the previous month.

Further, the index of Manufacture Products, which occupies the majority 64.97% weight in WPI index, rose by 0.2% to 153.8 (provisional) from 153.5 (provisional) for the previous month on account of surge of food articles by 0.8% at 153.8 (provisional) from 153.5 (provisional) for the previous month.

However, the headline inflation does not assume much of significance ever-since Reserve Bank of India moved its focus to CPI, being the main index in terms of key determinants. A factor that matters is the higher Retail inflation figures, which has surged to three months high at 8.59% in April, driven by higher food prices, notably ahead of RBI’s monetary policy review on June 3, 2014. Additionally, sticky core inflation, which stood at 3.4% in April against 3.5% in March, also remains to be cause of worry.

The CNX Nifty is currently trading at 7,103.30, down by 5.45 points or 0.08% after trading in a range of 7,152.55 and 7,082.55. There were 25 stocks advancing against 25 declining on the index.

The top gainers of the Nifty were NTPC up by 3.78%, Tata Powers up by 2.77%, Tata Steel up by 2.67%, PNB up by 2.20% and Sun Pharma up by 2.07%. On the flip side, Asian Paint down by 5.00%, Bank of Baroda down by 3.31%, NMDC down by 2.04%, Ambuja Cement down by 1.65% and Coal India down by 1.54% were the major losers on the index.

Asian equity indices were trading mixed; Hang Seng up by 0.18%, Taiwan Weighted up by 0.06% and Straits Times up by 0.18%. While, Shanghai Composite down by 1.12% and Nikkei 225 down by 0.75% were the only losers amongst Asian pack.

European markets got off to a muted start; with United Kingdom’s FTSE 100 trading flat, France’s CAC 40 index  declining by 0.14% and Germany’s DAX trading lower by 0.04%.

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Thursday’s session turned out to be of consolidation as local equity markets took a breather after last three trading sessions ferocious bull-run, which took markets scaling fresh life time high levels with each passing session. Market-participants’ hesitation in initiating fresh bets ahead of the elections’ final result on May 16 combined with record high levels which enticed traders to cash in their profit, mainly led to down session of trade at Dalal Street, which dragged Sensex lower over quarter of a percent and Nifty marginally below the neutral line. However, losses to some extent were capped by the recovery that took place in the late hours of trade. On the political front, most exit polls predicted that Narenda Modi and his alliance will secure a simple majority in India’s legislature, or 272 of parliament’s 543 seats. Notably, the session clearly belonged to broader indices, which for yet another session accumulated massive gains of over a percent.

On the global front, Asian stocks rose amid speculation that China will do more to support the property market, however gains were capped as investors continued to monitor the ongoing crisis in the Ukraine, where pro-Russian separatists ambushed Ukrainian troops on Tuesday, killing seven. On the flip side, European shares eased from multi-year highs on Wednesday and the euro licked its wounds after slumping to a five-week low as the focus shifted to an economic outlook from the Bank of England for clues on when UK interest rates will rise.

Closer home, despite being the lackluster session of trade, majority of the sectoral indices settled into positive terrain, with the prominent gainers being the stocks from Realty, Metal and Consumer Durable counters. On the flip side, much of profit-booking was witnessed in stocks from Oil & Gas counter, followed by Capital Goods and Information Technology counters that ended with cut of over 0.25%. On the gainers’ side, state-run banks gained after a committee appointed by Reserve Bank of India (RBI) proposed on Tuesday the Indian government should cut its stakes in state banks to below 50%. Besides, steel stocks witnessed massive demand, with all JSW Steel, Steel Authority of India (SAIL), and Jindal Steel & Power gaining in the range of 1.5%-6%. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1689: 1222, while 131 scrips remained unchanged. (Provisional)

The BSE Sensex soared 56.11 points or 0.24% to settle at 23815.12. The index touched a high and a low of 23964.67and 23753.36 respectively. Among the 30-share Sensex, 15 stocks gained, while 15 stocks declined. (Provisional)

The broader indices too shut shop with massive gains; while BSE Mid cap index ended higher by 1.12%, Small cap index settled with gains of 1.24%.(Provisional)

On the BSE Sectoral front, Realty up by 4.32%, Metal up by 3.22%, Consumer Durables up by 2.28% , PSU up by 1.84% and Power up by 0.83% were the gainers while, Oil & Gas down by 0.78%, Capital Goods down by 0.36%, IT down by 0.31% , Health Care down by 0.30% and Auto down by 0.03%  were the losers in the space. (Provisional)

The top gainers on the Sensex were Tata Steel up by 6.11%, Coal India up by 3.29%, Bajaj Auto up by 2.77%, SSLT up by 2.62% and NTPC up by 2.36% while, Mahindra & Mahindra down by 3.34%, Dr Reddys Lab down by 3.24%, HDFC down by 2.04%, RIL down by 1.59% and BHEL down by 1.51% were the top losers in the index (Provisional).

India currently is the fourth largest oil consumer in the world behind the US, China and Japan, and imports around 80 percent of its oil needs. In the previous year 2013, India had overtaken Japan as the world’s third-biggest crude oil importer. It imported 3.86 million bpd of crude oil in 2013, nearly 6 percent higher than Japan’s customs-cleared imports of 3,648,372 bpd. The US EIA report estimates that India will become the world’s largest oil importer by 2020. Meanwhile, the Government of India (GoI) has formulated a roadmap for cutting India’s dependence on imports to meet its oil needs. The Government wants country’s oil imports dependence to be cut to 50 percent by 2020 and by 25 percent in 2025 through intensive exploration and exploitation of untapped reserves. Presently, only 0.93 million sq km area in India is held under exploration and production in 19 basins as compared to total estimated sedimentary area of 3.14 million square kilometres, comprising 26 sedimentary basins.

India VIX, a gauge for markets short term expectation gained 1.16% at 32.42 from its previous close of 32.06 on Tuesday. (Provisional)

The CNX Nifty ended flat at 7,108.40. The index touched high and low of 7,142.25 and 7,080.90 respectively. Out of 50 stocks in Nifty, 30 stocks ended in the green and 20 in red.

The major gainers of the Nifty were Bank Baroda up 9.60%, Jindal Steel up by 5.95%, Tata Steel up by 5.95% , DLF up by 5.45% and NMDC up by 5.07%.  On the flip side, the key losers were M&M down by 3.67%, DR Reddy down by 3.48%, HDFC down by 1.91%, Reliance down by 1.74% and HDFC Bank down by 1.71%. (Provisional)

European markets were trading in red; France’s CAC 40 was down by 0.15%, UK’s FTSE 100 was down by 0.02% and Germany’s DAX was down by 0.06%.

The Asian markets concluded Wednesday’s trade mostly in green, following a record close for the Dow and S&P 500 on Wall Street. Southeast Asian currencies rallied as US economic data that trailed estimates weakened the greenback, and political developments in Indonesia spurred the rupiah to its biggest gain since March. A set of unexpectedly weak activity data for April pointed toward a stalling economic recovery in China, reviving expectations that the government will continue policies aimed at nurturing growth. New home sales in China declined at a faster rate in the first four months of this year, by both value and volume, as the lack of enthusiasm among homebuyers continued. The value of new homes sold across the country dropped 9.9% from the same period a year earlier to 1.53 trillion yuan ($246 billion) during the January-April period. In the first quarter, the value fell 7.7% year on year. Japan’s Corporate Goods Price Index rose to a seasonally adjusted annual rate of 4.1%, from 1.7% in the preceding month. South Korean Unemployment Rate rose to a seasonally adjusted annual rate of 3.7%, from 3.5% in the preceding month.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2047.91

-2.82

-0.14

Hang Seng

22582.77

230.39

1.03

Jakarta Composite

4991.64

70.24

1.43

KLSE Composite

1879.20

13.12

0.70

Nikkei 225

14405.76

-19.68

-0.14

Straits Times

 3259.09

36.66

1.14

KOSPI Composite

2010.83

27.90

1.41

Taiwan Weighted

8875.16

57.22

0.65

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