Key benchmark indices extended initial losses and hit fresh intraday low in morning trade. The market extended recent losses triggered by the India Meteorological Department (IMD) on Thursday, 24 April 2014, announcing that the country will likely get below-normal levels of monsoon rain this year. Investors also maintained caution ahead of the announcement of Federal Reserve's monetary policy review tomorrow, 30 April 2014. The barometer index, the S&P BSE Sensex, was down 119.75 points or 0.53%, off close to 170 points from the day's high and up about 40 points from the day's low. The market breadth, indicating the overall health of the market, turned negative from positive. Metal stocks declined.
The market dropped in early trade. It extended initial losses and hit fresh intraday low in morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 77.02 crore on Monday, 28 April 2014, as per provisional data from the stock exchanges.
At 10:20 IST, the S&P BSE Sensex was down 119.75 points or 0.53% to 22,511.86. The index fell 161.18 points at the day's low of 22,470.43 in morning trade, its lowest level since 17 April 2014. The index rose 50.28 points at the day's high of 22,681.89 in early trade.
The CNX Nifty was down 34.10 points or 0.5% to 6,727.15. The index hit a low of 6,711.10 in intraday trade, its lowest level since 17 April 2014. The index hit a high of 6,779.70 in intraday trade.
The BSE Mid-Cap index was down 11.72 points or 0.16% to 7,426.77. The BSE Small-Cap index was down 1.27 points or 0.02% to 7,616.01. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, turned negative from positive. On BSE, 828 shares fell and 771 shares rose. A total of 62 shares were unchanged.
Among the 30-share Sensex pack, 25 stocks declined and rest of them rose. ICICI Bank (down 1.38%), Hindustan Unilever (down 1.31%) and HDFC Bank (down 1.22%) edged lower from the Sensex pack.
Metal stocks declined. JSW Steel (down 3.12%), Hindalco Industries (down 1.66%), Bhushan Steel (down 0.78%), Tata Steel (down 2.57%), Sail (down 1.96%), National Aluminum Company (down 0.13%) and Hindustan Copper (down 0.44%) declined. Hindustan Zinc rose 0.54%.
Jindal Steel & Power dropped 2.36% ahead of its Q4 results today, 29 April 2014.
Sesa Sterlite gained 0.49% ahead of its Q4 results today, 29 April 2014.
Tata Sponge Iron surged 14.98% after consolidated net profit jumped 335.95% to Rs 40.50 crore on 11.91% growth in total income from operations to Rs 236.56 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced before market hours today, 29 April 2014. Tata Sponge Iron's consolidated net profit rose 18.54% to Rs 101.19 crore on 1.7% decline in total income from operations to Rs 782.22 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
Tata Sponge Iron's board of directors at its meeting held on Monday, 28 April 2014, recommended dividend of Rs 10 per share for FY 2014.
Bajaj Auto shed 1.35%. With reference to the earlier announcement dated 18 April 2014 regarding propose to call for a stoppage of work by all the workmen employed in Chakan plant, Bajaj Auto has now informed that the company has received a notice dated 27 April 2014 from the workmen's union of its Chakan plant viz., Vishwa Kalyan Kamgar Sanghatana stating that the stoppage of work in the Chakan plant of the company has been postponed to 15 May 2014.
UPL gained 0.38%, with the stock extending recent rally triggered by reporting good Q4 results. On a consolidated basis, UPL's net profit rose 29.4% to Rs 360.28 crore on 18.5% increase in total income to Rs 3365.23 crore in Q4 March 2014 over Q4 March 2013. The result was announced during trading hours on Friday, 25 April 2014, when the stock surged 7.26% to settle at Rs 230.40. Shares of UPL have gained 31.4% in three trading days from a recent low of Rs 214.80 on 23 April 2014. The stock logged a staggering 20.18% surge in a single trading session to settle at Rs 276.90 on 28 April 2014.
On a consolidated basis, UPL's net profit rose 22.6% to Rs 949.79 crore on 17.3% increase in total income to Rs 10902.23 crore in the year ended 31 March 2014 over the year ended 31 March 2013.
UPL's Board of Directors at its meeting held on Friday, 25 April, 2014, recommended a dividend of Rs 4 per equity share.
The country will likely get below-normal levels of monsoon rain this year, the India Meteorological Department (IMD) said on Thursday, 24 April 2014. The IMD said that the rainfall during the June-September summer rainy season will likely be 95% of the long-term average for the country. India's weather department defines a normal monsoon as one with rainfall between 96% and 104% of the 50-year average, which is 89 centimeters this year. This year could be a below normal monsoon, the weather department said, as there is a 60% possibility of the emergence of the El Ni weather phenomenona warm weather system that starts in the southern Pacific can affect weather around the world. El Ni last affected India's monsoon in 2009 when the monsoon rainfall was 23% below normal.
Annual rains are important for India as most of its farmlands are dependent or rain for irrigation and more than half of its workforce is employed in agriculture. The monsoon rains usually arrive over the southern state of Kerala by the end of May or the first week of June, and gradually cover the entire country by July. The IMD will issue the update forecasts in June 2014 as a part of the second stage forecast. Along with the update forecast, separate forecasts for the monthly (July and August) rainfall over the country as a whole and seasonal (June-September) rainfall over the four geographical regions of India will also be issued.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.575, compared with its close of 60.6450/65 on Monday, 28 April 2014.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 3 June 2014. The RBI left its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review on 1 April 2014, as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar.
A major near term trigger for the stock market is the outcome of the upcoming Lok Sabha elections. The 36 days long voting process began on 7 April 2014 and will conclude on 12 May 2014. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.
Asian stocks swung between gains and losses on Tuesday as investors weighed corporate earnings and after US equities advanced. Key benchmark indices in Taiwan, China and Hong Kong rose 0.16% to 0.56%. Key benchmark indices in Indonesia, South Korea and Singapore were off 0.14% to 0.39%.
Trading in US index futures indicated that the Dow could gain 24 points at the opening bell on Tuesday, 29 April 2014. US stocks rose, with the Standard & Poor's 500 Index erasing an earlier slide on Monday, 28 April 2014,, as Internet and smaller companies pulled back from a selloff amid optimism over merger activity.
A report by the National Association of Realtors showed contracts to purchase previously owned US homes climbed in March by the most in almost three years, showing residential real estate was starting to stabilize entering the spring selling season. The pending home sales index rose 3.4%, the first gain in nine months, after a 0.5% drop in February that was smaller than initially reported.
A two-day meet of the Federal Open Market Committee (FOMC) on monetary policy review resumes today, 29 April 2014. The Federal Reserve on 19 March 2014 decided after the conclusion of a monetary policy review to trim its monthly bond purchases by $10 billion to $55 billion.
Investors are also watching developments in Ukraine. The Obama administration imposed sanctions on seven Russian officials and 17 companies linked to Russian President Vladimir Putin's inner circle involved in banking, energy and infrastructure. The sanctions, announced by the White House, are being imposed in conjunction with the European Union, which said it is adding 15 names to its list of previously sanctioned individuals.
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