Key benchmark indices surged in early trade tracking mostly firm Asian stocks. The barometer index, the S&P BSE Sensex crossed 25,000 level. The Sensex was up 309.05 points or 1.25%, up close to 90 points from the day's low. The market breadth, indicating the overall health of the market, was strong. The BSE Mid-Cap index rose nearly 1.5%. The BSE Small-Cap index rose over 1.5%. Both these indices outperformed the Sensex.
DLF rose after the company said that DLF Emporio, a subsidiary of DLF, has successfully placed India's first Commercial Mortgage Backed Security (CMBS) issuance of Rs 525 crore. GAIL (India) gained ahead of its Q4 results today, 26 May 2014.
The market sentiment was also boosted by data showing that foreign funds remained net buyers of Indian stocks on Friday, 23 May 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 416.80 crore on Friday, 23 May 2014, as per provisional data from the stock exchanges.
The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month May 2014 series to June 2014 series. The near month May 2014 derivatives contract expire on Thursday, 29 May 2014.
At 9:35 IST, the S&P BSE Sensex was up 309.05 points or 1.25% to 25,002.40. The index surged 311.71 points at the day's high of 25,005.06 in early trade. The index rose 219.22 points at the day's low of 24,912.57 in early trade.
The CNX Nifty was up 87.30 points or 1.18% to 7,454.40. The index hit a high of 7,457.45 in intraday trade. The index hit a low of 7,428.55 in intraday trade.
The BSE Mid-Cap index rose 122.48 points or 1.41% to 8,790.80. The BSE Small-Cap index rose 148.17 points or 1.62% to 9,276.21. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,175 shares gained and 142 shares fell. A total of 33 shares were unchanged.
Among the 30-share Sensex pack, 28 stocks gained and rest of them declined. Mahindra & Mahindra (M&M) (up 2.67%), Sun Pharmaceutical Industries (up 2.62%) and NTPC (up 2.36%) edged higher from the Sensex pack.
GAIL (India) rose 1.73% ahead of its Q4 results today, 26 May 2014.
Reliance Communications (RComm) gained 1.28%. With reference to news item appearing in the financial daily titled "Citic Telecom eyes JV with RComm", RComm has clarified after market hours on Friday, 23 May 2014, that the company is engaged in various discussions with international players for strategic partnerships in relation to its Global business. As and when these discussions result in a disclosable event, the company will promptly inform the stock exchanges as required in law, it added.
DLF rose 1.73% after the company said after market hours on Friday, 23 May 2014 that DLF Emporio, a subsidiary of DLF, has successfully placed India's first Commercial Mortgage Backed Security (CMBS) issuance of Rs 525 crore, with a coupon rate of 10.90% per annum (p.a.) and legal maturity of 7.5 years. DLF Emporio owns and operates approximately 3 lakh square feet (sq. ft) of a Luxury Mall in New Delhi, India. The CMBS issue is rated CRISIL AA (SO). This is a landmark issuance, being the first of its kind in the country at a competitive pricing. This shall pave way for more such issuances in future, DLF said in a statement.
Neyveli Lignite Corporation (NLC) jumped 8.89%. The company's net profit declined 19.57% to Rs 494.43 crore on 4.3% growth in total income to Rs 1938.41 crore in Q4 March 2014 over Q4 March 2013.
NLC's net profit rose 2.88% to Rs 1501.88 crore on 13.26% growth in total outcome to Rs 6992 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
On consolidated basis, NLC's net profit rose 2.95% to Rs 1501.88 crore on 13.26% growth in total income to Rs 6992 crore in FY 2014 over FY 2013.
With regard to the company's future plans, NLC said it is spreading its wings in new projects with fuels other than lignite. NLC forges ahead in all fronts and with its expansion activities the company is poised for substantial growth in the years to come, the company said in a statement.
After Bharatiya Janata Party (BJP) led National Democratic Alliance's (NDA) landslide victory in the recently concluded Lok Sabha election, investors are expecting measures from the incoming government to revive the Indian economy. There are expectations that Narendra Modi will be in a position to replicate the economic success he enjoyed in Gujarat state when he takes over as the country's Prime Minister. With Modi at the helm of affairs, Gujarat's economy expanded by 10.1% a year, on average and adjusting for inflation, from 2001 and 2012, compared with 7.7% growth a year for India's economy as a whole. India's GDP growth slowed sharply at 4.7% in Q3 December 2013. Investors hope that the BJP-led government would be able to accelerate policy reforms and overhaul the country's poor infrastructure.
Modi has pledged to fight inflation by cracking down on food hoarders, creating a national agriculture market and improving rural infrastructure.
Ever since NDA's victory in the election, speculation has been rife about the likely allocation of key ministerial portfolios in the Modi-led NDA government.
Modi will be sworn in as India's next Prime Minister today, 26 May 2014, evening at the Rashtrapati Bhawan.
The first budget of the new government is expected by July 2014. An interim budget was presented by P. Chidambaram in February this year. Essentially, in the nature of a vote on account, the interim budget was intended to get Parliament approval for expenditure to be incurred during the first few months of fiscal year 2014-15 due to Lok Sabha elections. 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.
Asian stocks rose on Monday after China's premier said policy will be fine tuned as needed to support the economy. Key benchmark indices in China, Taiwan, Singapore and Japan were up 0.36% to 0.73%. Key benchmark indices in Hong Kong, Indonesia and South Korea shed 0.14% to 0.28%.
China's Premier Li Keqiang said Asia's largest economy will adjust policy to address problems in the real economy, according to a statement on the government's website May 23.
Bank of Japan policy makers said the economy will probably grow above potential from summer, according to the minutes released today from an April 30 meeting.
Japan and China on Sunday accused each other's air forces of dangerous behaviour over the East China Sea, with Japan saying Chinese aircraft had come within a few dozen metres of its warplanes.
US stocks rallied on Friday with the S&P 500 index closing at a record high, buoyed by a rally in housing stocks after better-than-expected home sales and a jump in Hewlett-Packard shares a day after the personal computer maker said it would cut more jobs.
US stock markets remain closed today, 26 May 2014, on account of Memorial Day.
Data from the Commerce Department showed sales of new US single-family homes rose more than expected in April and the supply of houses on the market hit a 3-1/2 year high. A day ago, another report showed existing home sales rebounded in April.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 17-18 June 2014. The Fed on 30 April 2014 said after a monetary policy review that it will keep the benchmark interest-rate target at almost zero for a "considerable time" after its bond-buying program ends. The FOMC also reduced monthly debt purchases to $45 billion, its fourth straight $10 billion cut, and said further reductions are likely in "measured steps" if the economy continues to improve.