Stock markets to see cautious trading amid elections, IIP data: Analysts
After a record rally in the stock market over the past few days, indices may see cautious trading in a holiday-shortened week ahead amid the onset of general elections from Monday and industrial production data for February due on Friday, analysts said. The stock markets will remain closed on Tuesday for ‘Ram Navami’. “IIP is the only important data schedule this week. Continued fund inflow along with appreciation in domestic currency is pushing the benchmarks to new highs. Participants especially global investors are expecting clear mandate to any political party in the upcoming elections thus they are optimist on growth prospect ahead,” said Jayant Manglik, President-retail distribution, Religare Securities Limited. Lok Sabha elections will be held from April 7 to May 12 in nine phases. Besides, analysts said that the next major trigger for the stock market is the March quarter corporate earnings, starting on April 15 with IT major Infosys. Brokers attributed the rally in the stock market over the past few days to hopes of a stable government at the Centre and the economy returning to high growth path.
FIIs pump in R4,900 crore in Indian stocks in week to April 4
Foreign investors poured in almost Rs 4,900 crore in the Indian stock market last week primarily on hopes of a strong reformist government after elections. The total investment by foreign institutional investors (FIIs) in equities so far in 2014 has risen to Rs 27,088 crore ($4.46 billion). Market analysts say FIIs are bullish on India on expectations a strong reformist government would come to power after the Lok Sabha elections, scheduled from April 7 to May 12. Analysts are of the view that a positive bias towards the Indian equity market would continue in the coming weeks. FIIs were gross buyers of shares worth Rs 22,194 crore and sellers of stocks to the tune of Rs 17,302 crore in the week to April 4, resulting in a net inflow of Rs 4,892 crore ($815 million), according to data with the Securities and Exchange Board of India.
Companies double fund raising via NCDs to R43,000 crore in FY14
Indian companies more than doubled the amount they raised through non-convertible debentures (NCDs) to almost Rs 43,000 crore in FY14, primarily to meet working capital requirements. A cumulative amount of Rs 16,982 crore had been garnered through 20 issues of NCDs in FY13. NCDs are loan-linked bonds that cannot be converted into stock and usually offer higher interest rates than convertible debentures. Most of the funds were raised to support working capital requirements and for other general corporate purposes. Indian companies collectively raised Rs 42,738 crore via NCDs in the previous financial year through 35 issuances, according to data with market regulator Sebi.