After giving away almost entire intraday gains in early afternoon trade key benchmark indices recovered from lower level in afternoon trade as European stocks edged higher in early trade there. The barometer index, the S&P BSE Sensex, was currently up 70.10 points or 0.27% at 26,461.06. The market breadth indicating the overall health of the market was positive. The BSE Mid-Cap index was up 1.07%. The BSE Small-Cap index was up 1.2%. Both these indices outperformed the Sensex. Asian stocks were up after better-than-expected housing data sent US stocks surging on Monday, 18 August 2014. Auto stocks rose across the board. Tata Motors, Maruti Suzuki India and Mahindra & Mahindra (M&M) scaled record high. Force Motors galloped to 52-week high. Shares of PSU OMCs extended Monday's gains as Brent crude oil futures stayed near 14-month low, with BPCL hitting record high.
Earlier, key benchmark indices had erased almost entire intraday gains in early afternoon trade after a further decline in crude oil prices and a rally in US stocks on Monday, 18 August 2014, triggered a firm opening and took the Sensex and the 50-unit CNX Nifty to record high.
At 13:20 IST, the S&P BSE Sensex was up 70.10 points or 0.27% to 26,461.06. The index jumped 139.71 points at the day's high of 26,530.67 in early trade, a record high for the index. The index rose 4.21 points at the day's low of 26,395.17 in early afternoon trade.
The CNX Nifty was up 31.65 points or 0.4% to 7,905.90. The index hit a high of 7,918.55 in intraday trade, a record high for the index. The index hit a low of 7,881.15 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,557 shares gained and 1,162 shares fell. A total of 110 shares were unchanged.
The BSE Mid-Cap index was up 97.98 points or 1.07% at 9,268.32. The BSE Small-Cap index was up 120.47 points or 1.2% at 10,167.94. Both these indices outperformed the Sensex.
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Auto stocks rose across the board. Tata Motors gained 2.12% to Rs 514.80 after hitting record high of Rs 515.55 in intraday trade. The company after market hours on Thursday, 14 August 2014, said that its global wholesales declined 8.46% at 80,151 units in July 2014 over July 2013. Global wholesales rose 5.98% at 80,151 units in July 2014 over June 2014.
Maruti Suzuki India rose 1.28% to Rs 2,741.85 after scaling a record high of Rs 2,747.75 in intraday trade.
Mahindra & Mahindra (M&M) advanced 2.81% to Rs 1,363.15 after scaling a record high of Rs 1,365.55 in intraday trade.
Force Motors galloped 14.65% to Rs 842 after hitting a 52-week high of Rs 858 in intraday trade.
Ashok Leyland surged 5.97%. Eicher Motors gained 1.46%.
Among two-wheeler makers, TVS Motor Company (up 0.97%), Hero MotoCorp (up 1.22%) and Bajaj Auto (up 1.75%) gained.
Bharat Heavy Electricals (Bhel) rose 1.88%. Bhel during market hours said that based on the company's extensive in-house experience of working with a great variety of indigenous as well as imported coals over the years, it has developed a new boiler with fuel flexibility of indigenous and imported coal. This new boiler design is based on a unique combination of indigenous and imported coals but is capable of firing both extremes of 100% domestic coal as well as 100% imported coal. The new boiler design will provide developers with much needed freedom regarding the ratio of blending as well as the characteristics of the domestic and imported coal to be blended, Bhel said. This enables the boiler to work over the entire range of blending ratios and would protect the project developer against the vagaries in coal availability, thereby providing him with an opportunity to operate the plant throughout the year, Bhel said.
Shares of PSU OMCs extended Monday's gains as Brent crude oil futures stayed near 14-month low. HPCL gained 4.19%.
BPCL rose 4.31% to Rs 676.55 after hitting record high of Rs 677.80 in intraday trade.
Indian Oil Corporation (IOC) gained 2.4% to Rs 361.60.
Lower crude oil prices will reduce under-recovery of public sector oil marketing companies (PSU OMCs) on domestic sales of diesel, kerosene and LPG at government controlled prices. The government has adopted the policy of gradually increasing diesel prices to eliminate under recovery and deregulate the diesel prices. The government has already freed pricing of petrol.
The under-recovery on High Speed Diesel (HSD) applicable for second fortnight of August 2014, effective from 16 August 2014, will go up to Rs 1.78 per litre. This was Rs 1.33 per litre during first fortnight of August 2014. In the case of PDS Kerosene and Domestic LPG, the under-recoveries for the second fortnight of August 2014 will be Rs 32.98 per litre (Rs 32.98 per litre in first fortnight) and Rs 447.87 per cylinder (Rs 447.87 per cylinder in first fortnight) respectively. Effective from 16 August 2014, PSU OMCs are incurring combined daily under-recovery of about Rs 230 crore on the sale of Diesel, PDS Kerosene and Domestic LPG. This is higher than Rs 226 crore daily under-recoveries during first fortnight of August. The under-recoveries for the financial year 2014-15 are projected to be Rs 91665 crore while the figure was Rs 1.39 lakh crore in 2013-14. The Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas today, 19 August 2014 reviewed international prices of crude oil and petroleum products during the first fortnight of August 2014.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 473.42 crore on Monday, 18 August 2014, as per provisional data from the stock exchanges.
Meanwhile, India's macroeconomic worries have eased on falling crude oil prices. India imports about 80% of its crude oil requirement. Brent crude oil futures edged up towards $102 a barrel today, 19 August 2014, but stayed near a 14-month low reached in the previous session on weak demand and easing concerns over risks to supply. The October Brent crude contract was up 26 cents at $101.86 a barrel. The contract fell $1.93 a barrel to settle at $ 101.60 a barrel on Monday, 18 August 2014, after Iraqi Kurds recaptured a large chunk of the biggest dam in the country from Islamist militants, with help from US air power.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.715, compared with its close of 60.78 on Thursday, 14 August 2014. The currency market remained close on Friday, 15 August 2014, and Monday, 18 August 2014 on account of holidays.
India reportedly called off on Monday, 18 August 2014, peace talks with Pakistan, giving a jolt to renewed diplomatic efforts between the two nuclear-armed neighbours and adding to the troubles of Pakistan's beleaguered government. India said it would not attend talks involving the foreign secretaries of the two countries, which had been set to take place on 25 August 2014 in Islamabad, because of plans by Pakistan to consult Kashmiri separatists ahead of the meeting.
European stocks rose today, 19 August 2014, as global geopolitical concerns eased. Key benchmark indices in UK, France and Germany were up 0.37% to 0.91%.
Foreign ministers from Russia, Ukraine, Germany, and France gathered in Berlin over the weekend to discuss talks for a ceasefire or a political solution in Ukraine, and Russia's Foreign Ministry said on Monday a 'certain progress' was achieved during the talks.
Asian stocks rose today, 19 August 2014, after a rally in US stocks on Monday, 18 August 2014, triggered by upbeat US housing data and hopes of progress in the Ukraine crisis. Key benchmark indices in China, Hong Kong, South Korea, Taiwan, Singapore, Japan, and Indonesia were up 0.26% to 1.12%.
Trading in US index futures indicated that the Dow could gain 55 points at the opening bell on Tuesday, 19 August 2014. US stocks registered solid gains on Monday, 18 August 2014, helped by deal news and easing Ukraine-Russia tensions. A better-than-expected reading on the housing market also boosted sentiment and kicked off a big week for economic data. US homebuilder sentiment rose in August to its highest since January, the National Association of Home Builders said on Monday, marking a third straight monthly gain.
The minutes from the last Federal Open Market Committee meeting will be released tomorrow, 20 August 2014. Federal Reserve Chairwoman Janet Yellen will give a speech on Friday, 22 August 2014, at the annual Fed summit in Jackson Hole, Wyo.
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