Nifty hits 4-week closing high

Key benchmark indices edged higher on the last trading session of the week, with the market sentiment boosted by data showing that foreign funds remained net buyers of Indian stocks on Thursday, 20 February 2014. Gains in Asian and European stocks also aided the upmove on the domestic bourses. The 50-unit CNX Nifty hit 4-week closing high. The barometer index, the S&P BSE Sensex, garnered 164.11 points or 0.8%, off close to 25 points from the day's high and up about 100 points from the day's low. The market breadth, indicating the overall health of the market, was positive.

The Sensex has risen 186.90 points or 0.91% in this month so far (till 21 February 2014). The Sensex has declined 469.93 points or 2.21% so far in calendar 2014 (till 21 February 2014). From a record high of 21,483.74 on 9 December 2013, the Sensex has declined 782.99 points or 3.64%. From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 3,252.04 points or 18.63%.

Coming back to today's trade, index heavyweight Reliance Industries (RIL) edged higher in choppy trade. Index heavyweight and cigarette maker ITC extended intraday gains in late trade. Bank stocks were mostly higher. HCL Technologies surged to a record high after HCL Corp., the holding company for HCL Technologies, today, 21 February 2014, denied a newspaper report that said its founder Shiv Nadar was seeking potential buyers for his $10 billion stake in the company.

Telecom stocks declined as the new rules announced by the government late on Thursday, 20 February 2014, on mergers and acquisitions (M&A) in the telecom sector require the buyer of an Indian mobile phone company pay a fee to the government, in addition to what it pays for the target company.

The market edged higher in early trade on firm Asian stocks. The Sensex extended initial gains and hit fresh intraday high in morning trade. The Sensex trimmed gains after hitting fresh intraday high in mid-morning trade. Firmness continued on the bourses in afternoon trade. The Sensex trimmed intraday gains in mid-afternoon trade.

The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Thursday, 20 February 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 219.20 crore from the secondary equity markets on Thursday, 20 February 2014, as per the data from the Securities & Exchange Board of India (Sebi).

Asian and European stocks edged higher on Friday, 21 February 2014, after a larger-than-forecast climb in a measure of US manufacturing in February tempered concern about global growth. US economy is the world's biggest economy.

The S&P BSE Sensex garnered 164.11 points or 0.8% to settle at 20,700.75, its highest closing level since 19 February 2014. The index jumped 188.40 points at the day's high of 20,725.04 in mid-morning trade. The index rose 63.27 points at the day's low of 20,599.91 in early trade.

The CNX Nifty garnered 64 points or 1.05% to settle at 6,155.45, its highest closing level since 24 January 2014. The index hit a high of 6,159.65 and a low of 6,108 in intraday trade.

The BSE Mid-Cap index rose 45.03 points or 0.71% at 6,422.05. The BSE Small-Cap index garnered 31.48 points or 0.49% at 6,393.33. Both these indices underperformed the Sensex.

The total turnover on BSE amounted to Rs 1707 crore, lower than Rs 1807.71 crore on Thursday, 20 February 2014.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1,480 shares rose and 1,182 shares fell. A total of 154 shares were unchanged.

Among the 30-share Sensex pack, 22 stocks rose and rest fell.

Cement stocks surged on reports that cement makers have raised cement prices in North India this month. ACC, Ambuja Cements, Shree Cement and UltraTech Cement rose 3.7% to 6.09%. "Prices are up by Rs 30-45 per bag month-on-month in February (over Jan-14 average) across all these markets (North largely Delhi, Rajasthan and Punjab)," a brokerage wrote in an email to clients today, 21 February 2014, according to reports.

Index heavyweight and cigarette maker ITC rose 1.7% at Rs 317.10. The stock hit high of Rs 317.85 and low of Rs 313.

Index heavyweight Reliance Industries (RIL) rose 0.56% at Rs 809.85. The scrip hit high of Rs 815.95 and low of Rs 806.20.

Bank stocks were mostly higher. Among private sector banks, ICICI Bank (up 1.83%), Yes Bank (up 1.16%), Federal Bank (up 1.38%), and AXIS Bank (up 2.7%), gained. HDFC Bank (down 0.19%) and Kotak Mahindra Bank (down 0.37%) declined

Among PSU bank stocks, State Bank of India, Canara Bank, Bank of India, Bank of Baroda and Punjab National Bank shed 0.24% to 1.05%. Union Bank of India fell 0.29%.

The government's allocation of Rs 11200 crore for capital injection into state-run banks is credit negative as it is much smaller than estimated requirements, global credit rating agency Moody's Investors Service said on Thursday, 20 February 2014. The rating agency said in a report that it estimates lenders would need Rs 25000-36000 crore to meet a minimum Tier 1 ratio of 8% in the fiscal year ending March 2015. "Indian public-sector banks' need for significant external capital is a result of an increase in non-performing loans (NPLs) owing to the country's slowing economy and infrastructure bottlenecks, and profitability that is insufficient for internal capital generation to fund loan growth," it said. Early this week, the government unveiled its interim budget for the fiscal year starting in April, allocating Rs 11200 crore for capital injection into public-sector banks.

Shares of United Bank of India edged higher in choppy trade after Mrs. Archana Bhargava resigned as chairperson and managing director of the state-run bank. The stock rose 1.4% to Rs 24.60. United Bank of India said that Ministry of Finance vide its letter dated 21 February 2014 has communicated its acceptance to the application for voluntary retirement of Archana Bhargava, chairperson and managing director (CMD) of the bank with effect from 20 February 2014. The announcement was made during trading hours today, 21 February 2014.

In absence of the CMD, both the executive directors shall jointly remain in charge of the bank, till such time that a regular incumbent takes over the charge of CMD, United Bank of India said in a statement.

Metal and mining stocks edged higher. Sesa Sterlite (up 0.27%), NMDC (up 1.29%), Hindalco Industries (up 0.31%), Hindustan Copper (up 0.26%), JSW Steel (up 2.31%), National Aluminum Company (up 0.47%), Hindustan Zinc (up 0.33%), Jindal Steel & Power (JSPL) (up 1.21%) and Tata Steel (up 1.8%) gained. Steel Authority of India (Sail) fell 0.51%.

Many pharma stocks gained on renewed buying. Wockhardt (up 0.98%), Cadila Healthcare (up 0.84%), and Glenmark Pharmaceuticals (up 0.34%) gained. Cipla (down 0.51%), Lupin (down 0.29%) Ranbaxy Laboratories (down 1.84%) and Sun Pharmaceutical Industries (down 0.82%) declined.

Dr. Reddy's Laboratories rose 0.58% to Rs 2,729.20 after striking a record high of Rs 2,744 in intraday trade.

Divi's Laboratories gained 1.8% to Rs 1,421.20 after striking a record high of Rs 1,428 in intraday trade.

Ipca Laboratories rose 5.04% to Rs 887.80 after hitting record high of Rs 894 in intraday trade.

Natco Pharma rose 3.78% to Rs 803 after striking a record high of Rs 840.30 in intraday trade.

GlaxoSmithKline Pharma rose 0.26% to Rs 3,025.90. The Cabinet Committee on Economic Affairs on Thursday, 20 February 2014, approved the proposal of GlaxoSmithKline Pte, Singapore for acquisition of 24.33% of shares in the existing Indian subsidiary company of the GSK Group in India by way of a voluntary open offer under SEBI (SAST Regulations) in the pharmaceutical sector. The approval would result in foreign investment of approximately Rs 6390 crore in the country, the government said in a statement.

Construction stocks rose after the Union Cabinet on Thursday, 20 February 2014, gave its approval for declaration of about 7,200 kms of State Roads as new National Highways (NHs). Hindustan Construction Company, L&T, NCC, Jaiprakash Associates, Patel Engineering and IRB Infrastructure & Developers rose 0.39% to 5.09%.

Keeping in view the estimated allocations likely to be made available for development of non-National Highways Development Project NHs based on the previous years' trends, it is anticipated that there would be adequate funds available for taking up improvement works on these new NHs, the government said in a statement. There would also be adequate funds available for taking up improvement of the remaining existing NH Network of 21,271 kms, not covered under any programmes/schemes so far, it said. Expansion of the NH network is a continuous process and declaration of a new NH is taken up from time to time, depending upon requirement of connectivity, inter-se priority and availability of funds.

National highways are the main artery and serve as a backbone of the road network. District Headquarters being an important origination/destination for people as well as goods are expected to have good accessibility, the government said. All District Headquarters now will have better connectivity to the NH network and this will bring overall development to the entire nation, it said.

Realty stocks edged higher. D B Realty (up 1.73%), Sobha Developers (up 0.44%) and Unitech (up 0.16%) gained. But, DLF fell 0.8%.

IT stocks gained on positive economic data in US, the biggest outsourcing market for the Indian IT firms. Tech Mahindra (up 0.82%), Wipro (up 1.1%), and Infosys (up 1.02%) gained.

HCL Technologies surged to a record high after HCL Corp., the holding company for HCL Technologies, today, 21 February 2014, denied a newspaper report that said its founder Shiv Nadar was seeking potential buyers for his $10 billion stake in the company. The stock jumped 4.32% to Rs 1,537 after hitting record high of Rs 1,546 in intraday trade. "HCL Corporation denies any plans to exit HCL Technologies," it said in a statement. Mr. Nadar, who founded HCL in 1991, holds about 62% stake in HCL Technologies.

TCS gained 0.57% after the company said after market hours on Thursday, 20 February 2014, that it has partnered with the Finnish Wheelchair Curling Team, supporting the team in their quest for Olympic glory at the Paralympic Winter Games in Sochi. TCS will serve as a partner to the team for one year and provide support for the team towards their equipment, logistics and digital devices such as smart phones at Sochi.

Shares of power generation companies edged higher. NTPC (up 0.49%), NHPC (up 0.56%), and Reliance Power (up 0.72%) gained. GVK Power & Infrastructure (down 0.22%) and Torrent Power (down 1.68%) fell.

Coal India declined 0.04%.

Power Minister Jyotiraditya Scindia on Thursday, 20 February 2014, said that coal imports by power generation companies in India jumped 31% to 66 million tonnes in April-January compared with the same period a year earlier. In April-January power producers imported 31 million tonnes of coal to blend them with lower quality varieties and about 35 million tonnes for plants that depend exclusively on coal from overseas, Scindia said. India's coal-based power generation rose 8% to 587.64 billion kilowatt hour during the period from a year earlier. Power companies are likely to import 82 million tonnes this fiscal year ending 31 March 2014, Scindia said.

Telecom stocks declined as the new rules announced by the government late on Thursday, 20 February 2014, on mergers and acquisitions (M&A) in the telecom sector require the buyer of an Indian mobile phone company pay a fee to the government, in addition to what it pays for the target company. Idea Cellular (down 1.76%), Tata Teleservices (Maharashtra) (down 1.82%) and Reliance Communications (down 4.9%) declined.

Bharti Airtel dropped 2.91%. The company after market hours on Thursday, 20 February 2014, said it is not satisfied with the judgment of the Court of Appeal, Lagos delivered on 14 February 2014 and will lodge an appeal against that decision at the Supreme Court of Nigeria. Bharti Airtel said that the judgment has no impact on the equity holding of Bharti Airtel or of the other shareholders in Airtel Networks, Nigeria (Airtel Nigeria). Bharti Airtel owns 79.06% stake in Airtel Nigeria.

Airtel Nigeria has already launched an appeal before the Supreme Court of Nigeria against the Judgment of the Court of Appeal in Kaduna in the matter relating to Econet's claim for 5% shares in Airtel Nigeria. These shares in any case are held in an escrow account and do not affect Bharti Airtel's 79.06% stake in Airtel Nigeria, Bharti Airtel said in a statement.

Bharti Airtel and Airtel Nigeria have full confidence in the laws of the land, and believe the Supreme Court in Nigeria will determine the appeals on merits, Bharti Airtel said. Bharti Airtel wishes to assure its customers, employees and business partners that these judgments will in no way affect operations of Airtel Nigeria, the company said. "As regards the quantum of the claim as mentioned in some media reports, we would like to unequivocally state that neither of these orders of the Court of Appeals in Lagos and in Kaduna deal with the quantum of damages and no such quantum has been determined," Bharti Airtel said in a statement on Thursday.

Shoppers Stop rose 0.86% to Rs 380.85 after a bulk deal of 4.48 lakh shares was executed on the counter at Rs 377.60 per share in opening trade on BSE today, 21 February 2014. The bulk deal constitutes 0.53% of Shoppers Stop's equity.

Sandur Manganese & Iron Ores rose 3.82% after the Supreme Court permitted the company to continue its mining operations. The company made the announcement during trading hours today, 21 February 2014.

Sandur Manganese & Iron Ores during trading hours today, 21 February 2014 said that considering the company's plea, the Hon'ble Supreme Court was pleased to stay the directions contained in the Ministry of Environment & Forests (MoEF)'s communication dated 29 January 2014 resulting in permitting the company to continue mining operations. Thereafter, having coordinated with all the concerned government departments, the company is resuming its mining operations from today, 21 February 2014, Sandur Manganese & Iron Ores said in a statement.

It may be recalled that Sandur Manganese & Iron Ores had informed on 1 February 2014 about suspension of mining operations of the company consequent to Forest Conservation Division of Ministry of Environment & Forests (MoEF), Government of India by clarification dated 29 January 2014 opined that the Forest Clearance granted by it to the company should be considered as co-terminus with the period of Lease under Mines and Minerals (Development & Regulation) Act, 1957 since it does not recognize the provisions under Mineral Concession Rules, 1960.

Gujarat State Petronet rose 4.94% after the company said that Appellate Tribunal for Electricity has granted an interim stay on the Petroleum and Natural Gas Regulatory Board's order. The company made the announcement after market hours on Thursday, 20 February 2014.

Petroleum and Natural Gas Regulatory Board (PNGRB) had vide its order dated 11 September 2012 fixed the provisional initial unit natural gas pipeline tariff for the company's 2239 kilometres high pressure gas grid network having retrospective effect from 20 November 2008 (i.e. the date of notification of tariff regulations). The provisional initial unit natural gas pipeline tariff on levelized basis determined by PNGRB for Gujarat State Petronet's (GSPL) high pressure gas grid network was Rs 23.99 per million metric british thermal units (MMBTU) on gross calorific value (GCV) basis with effect from 20 November 2008.

The said tariff order of PNGRB was challenged vide Appeal No. 222 of 2012 & Appeal No. 251 of 2012 before the Appellate Tribunal for Electricity (APTEL) on the grounds that the date of applicability of the tariff order should be from the date of authorization of GSPL's pipeline (i.e. 27 July 2012) and not from the date of notification of the Tariff Regulations (i.e. 20 November 2008).

Based on the order of appellate tribunal for electricity dated 6 January 2014 staying the restrospective effect mentioned in the tariff order dated 11 September 2012 by PNGRB and ruling that the same shall be effective from the date of its authorization i.e. 27 July 2012, PNGRB vide its order dated 19 February 2014 has fixed the applicability of tariff order from the date of authorization of GSPL's pipeline (i.e. 27 July 2012) and not from the date of notification of tariff regulations (i.e 20 November 2008).

Hence, the re-computed levelized tariff for the economic life of the GSPL's pipeline (i.e 27 July 2012 to 11 March 2026) mentioned by PNGRB in its aforementioned order dated 19 February 2014 is Rs 26.58 per MMBTU (on GCV basis) instead of Rs 23.99 per MMBTU as computed in the original tariff order.

This tariff determination is provisional. GSPL is required to submit the zonal apportionment within next 10 days. PNGRB proposes to file an appeal before the Supreme Court against the aforesaid APTEL order.

Shree Renuka Sugars (SRS) fell 6.22% to Rs 21.10 on equity dilution worries after the company after trading hours on Thursday, 20 February 2014, said it has entered into an agreement with Wilmar International (Wilmar), through its 100% subsidiary Wilmar Sugar Holdings (WSH), to facilitate the investment of approximately $200 million in primary capital into SRS. The company said that this investment into the company would be done in two steps. The first step would involve an investment of upto Rs 517 crore by WSH in SRS through a preferential allotment of upto 25.75 crore shares of fresh equity to WSH at a price of Rs 20.08 per share. After this preferential issue, the existing promoters and WSH would hold 27.5% each of SRS' expanded equity share capital.

As per Sebi guidelines, there will also be an open offer by WSH and the existing promoters for up to 26% of the expanded equity share capital of the SRS at a price of Rs 21.89 per share. The second step would involve Wilmar and the existing promoters of SRS jointly participating in a rights issue to raise upto Rs 725.40 crore of primary equity capital for SRS, the company said in a statement.

Under a joint venture (JV) agreement signed between the existing promoters, WSH and the company, SRS would be jointly controlled by the existing promoters and Wilmar, with both parties holding equal shareholding and board representation in SRS. The existing promoters will continue with the management of the company with Wilmar being actively involved in strategic decisions. The investment is subject to approval of shareholders of SRS, anti-trust clearances in India and Brazil and such other statutory clearances as may be deemed necessary, SRS said in a statement.

SRS said that the proceeds of this investment/fund-raising would be used to pay down existing debt of SRS in India. As a strategic shareholder, WSH's shareholding in SRS and the capital infusion will strengthen the company's financial and business position and also provide a further platform for growth, it added. Wilmar's global reach and strong presence in key sugar producing countries is complementary to Shree Renuka's business, the company said in a statement.

Narendra Murkumbi, Vice-Chairman and Managing Director of SRS said, "This is a path-breaking move in the sugar business which would create a very strong partnership in some of the key global markets for sugar. Wilmar's leadership position in the edible oil business globally and its strong reach in several countries across the world would be synergistic with our large footprint in India and Brazil, the two largest sugar producers in the world. Wilmar's trading expertise, strong financial strength and history of entrepreneurial growth makes it an ideal partner."

Kuok Khoon Hong, Chairman and CEO of Wilmar said, "We are very pleased to be partnering with Mrs. Vidya Murkumbi and Mr. Narendra Murkumbi. India is a very important market for Wilmar. Besides the benefit for our sugar business, this venture will complement the development of our edible oils and other businesses in India."

Jean-Luc Bohbot, Managing Director of Wilmar Sugar and Group Sugar Head at Wilmar said, "Shree Renuka Sugar, with their two well-located refineries, large storage capacity and competitive milling operations in India, good mills and logistics assets in Brazil, fits perfectly with Wilmar Sugar's existing global footprint and provides us with a unique opportunity to participate in the Indian sugar industry. Their unique expertise will be of great value to our partnership."

Wilmar International, founded in 1991 and headquartered in Singapore, is today Asia's leading agri-business group. Wilmar is ranked amongst the largest listed companies by market capitalisation on the Singapore Exchange and has a market capitalization of about $17 billion and revenues of $44.1 billion, with profit of $1.3 billion in FY 2013. Wilmar's business activities include oil palm cultivation, oilseeds crushing, edible oils refining, sugar milling and refining, specialty fats, oleochemicals, biodiesel and fertilisers manufacturing and grains processing.

In the foreign exchange market, the rupee edged higher against the dollar on global risk-on sentiment. The partially convertible rupee was hovering at 62.13, compared with its close of 62.26/27 on Thursday, 20 February 2014.

The Reserve Bank of India will need to continue raising its policy interest rate given the sticky nature of inflation, the International Monetary Fund (IMF) said on Thursday, 20 February 2014. "The ingrained nature of inflation and inflation expectations mean that reducing inflation-even over a protracted horizon-will require significant increases in policy rates, which will weigh on growth. Should high inflation expectations persist and inflation remain sticky, a more front-loaded path of interest rate increases may be needed," the IMF said.

The IMF expects India's consumer price index to remain near double digits well into next year driven by food prices. The IMF has suggested giving more emphasis to consumer prices for making policy decisions. "Headline CPI should provide the principal nominal anchor for monetary policy, as food and fuel price shocks propagate rapidly into core inflation, and inflation expectations and wage formation are closely linked to CPI inflation," the IMF said. The IMF expects India's economy to grow at 4.6% in 2013-14, picking up to 5.4% in 2014-15.

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.

On the political front, lawmakers passed a bill to create India's 29th state on Thursday despite mayhem in parliament, as opponents made a futile last attempt to stop the upper house carving landlocked Telangana from coastal Andhra Pradesh. Demands that the southern region be made a separate state have existed almost as long as independent India. Thursday's vote fulfils a promise made by the government in 2009, and comes just weeks before a national election in April.

The new state will have a population of around 3.5 crore people. The bill must now be signed by president to become law, a formality expected to take place in a few days.

European stocks edged higher on Friday, 21 February 2014, after a larger-than-forecast climb in a measure of US manufacturing in February tempered concern about global growth. US economy is the world's biggest economy. Key benchmark indices in France, Germany and UK were up 0.06% to 0.2%.

UK retail sales fell more than economists forecast in January, led by a drop in demand at food and clothing stores. Sales including fuel plunged 1.5% from December, when they surged 2.5%, the Office for National Statistics said today in London.

Ukraine's presidential administration today, 21 February 2014, said that a preliminary agreement has been reached to bring an end to the political crisis that has rocked the country following overnight talks between the government, opposition leaders and representatives of the European Union and Russia. "The parties agreed on signing an agreement to resolve the crisis," said a statement on the presidential administration's website.

Global rating agency Standard & Poor's today, 21 February 2014, cut its long-term foreign currency rating on Ukraine by one notch to CCC, saying the country's worsening political situation is putting the government's capability to service its debt at increasing risk. An eruption of violent clashes between anti-government protestors and police have left nearly 70 people dead and more than 560 wounded, and has led S&P "to conclude that a conciliatory end to the political stand-off is now out of reach." The ratings agency's outlook on Ukraine is negative. Expected financial support from Russia "is becoming increasingly uncertain and dependent on the outcome of the deteriorating political situation in Ukraine," said S&P. Should that support "fall short of Russia's commitments, we expect the government of Ukraine to default on its foreign-currency obligations", S&P said.

Asian stocks edged higher on Friday, 21 February 2014, after a larger-than-forecast climb in a measure of US manufacturing in February tempered concern about global growth. US economy is the world's biggest economy. Key benchmark indices in Indonesia, Taiwan, Singapore, Japan, Hong Kong and South Korea were up 0.43% to 2.88%. China's Shanghai Composite fell 1.17%.

Minutes from the Bank of Japan's Jan. 22 policy meeting showed some board members said the central bank should provide a clearer explanation that an expected decline in second-quarter domestic growth was factored into its outlook.

Trading in US index futures indicated that the Dow could advance 30 points at the opening bell on Friday 21 February 2014. US stocks edged higher on Thursday, 20 February 2014, as investors found encouragement in a gauge of US manufacturing jumping to its highest level in almost four years, as well as in more M&A activity, this time involving Facebook. Late Wednesday, Facebook announced a $19 billion deal to acquire messaging service WhatsApp.

Markit Economics' preliminary index of US manufacturing increased to 56.7 in February, surpassing economists' estimates, while Labor Department figures indicated fewer applications for unemployment benefits last week. The Conference Board's index of US leading indicators, a gauge of the outlook for the next three to six months, rose in January in line with estimates.

Federal Reserve policy makers backed away from their year-old commitment to consider raising interest rates when unemployment falls below 6.5%, according to minutes of their January meeting released on Wednesday, 19 February 2014. Federal Reserve Chair Janet Yellen last week said the economy has strengthened enough to withstand continued cuts to monetary stimulus, adding that only a notable change in the outlook for the economy would prompt the central bank to slow the pace of tapering.

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.

Sweeping reforms are urgently needed to boost productivity and lower barriers to trade if the world is to avoid a new era of slow growth and stubbornly high unemployment, the OECD warned on Friday. In its 2014 study on "Going for Growth", The Organisation for Economic Co-operation and Development said momentum on reforms had slowed in the aftermath of the global financial crisis, with much of it now piecemeal and incremental. "The widespread deceleration in productivity since the crisis could presage the beginning of a new low-growth era," warned Pier Carlo Padoan, deputy secretary-general and chief economist at the Paris-based OECD. "These concerns, already prevalent among advanced OECD countries for some time, now encompass emerging-market economies and are fuelled also by high unemployment and falling labour force participation in many countries."

Group of 20 finance ministers meet in Sydney this weekend, with US stimulus cuts and political turmoil from Ukraine to Venezuela stoking concern over emerging-market volatility.

German Finance Minister Wolfgang Schaeuble said in TV interview broadcast today, 21 February 2014, that emerging markets should get their own houses in order before demanding solidarity from other nations. The troubles in emerging markets would be the main topic discussed by finance ministers and central bank chiefs at the G20 summit in Sydney this weekend, Schaeuble said. "In my opinion we must always strive towards an approach of solidarity. Everyone must first of all do their own homework and then countries can demand solidarity from others," Schaeuble said.

Schaeuble said emerging countries must ensure they carried out structural reforms and did not rely only on monetary policy. "We've had the problem recently in Europe and have always used the tool of monetary policy to gain some time, but this should not be misused to avoid solving the problems," he said.