Firmness continued on the bourses in mid-morning trade. The barometer index, the S&P BSE Sensex, was up 280.73 points or 1.12%, up about 195 points from the day's low and off close to 50 points from the day's high. The BSE Mid-Cap index was up 1.4%. The BSE Small-Cap index was up almost 1.7%. Both these indices outperformed the Sensex. The market breadth indicating the overall health of the market was strong. A decline in crude oil prices and gains in Asian stocks underpinned sentiment on the domestic bourses. As crude prices dropped, concerns arising from the impact of high crude oil prices on India's macroeconomic situation eased.
Bajaj Auto and HDFC hit record high. PSU OMCs gained as crude oil prices declined. Sugar stocks extended Monday's gains triggered by media reports suggesting that in a move to bail out the ailing sugar industry, Food Minister Ram Vilas Paswan has agreed to raise import duty on sugar from 15% to 40%.
At 11:20 IST, the S&P BSE Sensex was up 280.73 points or 1.12% to 25,312.05. The index jumped 328.65 points at the day's high of 25,359.97 in mid-morning trade, its highest level since 19 June 2014. The index gained 84.51 points at the day's low of 25,115.83 in early trade.
The CNX Nifty was up 73.45 points or 0.98% to 7,566.80. The index hit a high of 7,580.05 in intraday trade, its highest level since 19 June 2014. The index hit a low of 7,515.20 in intraday trade.
The market breadth indicating the overall health of the market was strong, with over two gainers for every loser on BSE. On BSE, 1,683 shares gained and 646 shares fell. A total of 93 shares were unchanged.
The BSE Mid-Cap index was up 1266.46 points or 1.4% at 9,144.53. The BSE Small-Cap index was up 164.55 points or 1.68% at 9,980.90. Both these indices outperformed the Sensex.
GAIL (India) (up 4.17%), State Bank of India (SBI) (up 1.98%) and Sesa Sterlite (up 1.9%) edged higher from the Sensex pack.
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Bajaj Auto rose 1.37% to Rs 2,224 after hitting record high of Rs 2,228.95 in intraday trade.
HDFC gained 2.1% to Rs 987.05 after hitting record high of Rs 991.80 in intraday trade.
PSU OMCs gained as crude oil prices declined. HPCL (up 4.36% to Rs 408), Indian Oil Corporation (IOCL) (up 3.42% to Rs 338.40) and BPCL (up 3% to Rs 573), edged higher. Lower crude oil prices could reduce under-recoveries of PSU OMCs (public sector oil marketing companies) on domestic sale of diesel, LPG and kerosene at controlled prices. The government has already freed pricing of petrol.
The under-recovery on high speed diesel (HSD) applicable for second fortnight of June effective 16 June 2014 fell to Rs 1.62 per litre. This was Rs 2.80 per litre during first fortnight of June 2014 with effect from 1 June 2014. In the case of PDS kerosene and domestic LPG, the under-recoveries for the second fortnight of June 2014 continued to be Rs 32.87 per litre and Rs 432.71 per cylinder respectively, unchanged from the rates prevailing in the first fortnight of the month.
PSU OMCs, effective 16 June 2014, are incurring combined daily under-recovery of about Rs 249 crore on the sale of diesel, PDS kerosene and domestic LPG. This is less than Rs 262 crore daily under-recoveries during the first fortnight of June 2014. The under-recoveries for the financial year 2014-15 are projected to be Rs 91665 crore while the figure was Rs 139869 crore in the 2013-14.
Sugar stocks extended Monday's gains triggered by media reports suggesting that in a move to bail out the ailing sugar industry, Food Minister Ram Vilas Paswan has agreed to raise import duty on sugar from 15% to 40%.
Shree Renuka Sugars (up 2.72% to Rs 30.20), Balrampur Chini Mills (up 0.82% to Rs 85.85), Dhampur Sugar Mills (up 1.83% to Rs 66.80), EID Parry (India) (up 2.08% to Rs 220.50), Triveni Engineering & Industries (up 1.59% to Rs 32), Simbhaoli Sugars (up 4.95% to Rs 23.30), Dwarikesh Sugar (up 4.93% to Rs 43.60), and Sakthi Sugars (up 4.83% to Rs 26.05) edged higher.
While taking the decision at a second high-level meeting on Monday, 23 June 2014, the food minister also extended sugar export incentives till September 2014, according to reports. In addition, ethanol blending with petrol too has been raised to 10% from 5%, reports suggest.
Paswan has reportedly said that these measures for the revival of sugar industry are subject to the condition that sugar mills clear dues owed to farmers on sugarcane purchases estimated at Rs 11000 crore.
Bajaj Hindusthan jumped 7.46% to Rs 31.70 after the company said it has made repayment of $17.723 million of FCCBs on due date, in connection with FCCBs issued to International Finance Corporation, Washington. The announcement was made after market hours on Monday, 23 June 2014. Bajaj Hindusthan had issued foreign currency convertible bonds (FCCBs) worth $15 million to International Finance Corporation (IFC), Washington. The company has made repayment of $17.723 million, including the redemption premium of $2.723 million on the due date (16 June 2014), in accordance with the terms and conditions of the said FCCBs. With the aforesaid repayment, entire outstanding FCCBs held by IFC, Washington stands redeemed on maturity, Bajaj Hindusthan said.
Decline in crude oil prices triggered a firm opening on the domestic bourses today, 24 June 2014. Key benchmark indices extended initial gains and hit fresh intraday high in morning trade. Firmness continued on the bourses in mid-morning trade.
As crude prices dropped, concerns arising from the impact of high crude oil prices on India's macroeconomic situation eased. Brent crude oil futures extended Monday's losses on reports that Iraq's army has recaptured territory along the nation's border with Jordan and Syria from militants. Brent oil futures for August delivery were off 31 cents at $113.81 a barrel. The contract fell 0.6% to settle at $114.12 on Monday, 23 June 2014, the biggest percentage drop since 16 May 2014.
The recent spike in crude oil prices triggered by violence in Iraq sparked worries about India's macroeconomic situation as India imports majority of its crude oil requirements. Increase in crude oil prices raised concerns of increase in India's current account deficit and fiscal deficit. Firm global crude oil prices and the latest hike in railway freight rate also stoked inflation worries.
Indian stocks may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near month June 2014 series to July 2014 series. The near-month June 2014 F&O contract expire on Thursday, 26 June 2014.
In the foreign exchange market, the rupee edged higher against the dollar as crude dropped. The partially convertible rupee was hovering at 60.1325, compared with its close of 60.20/21 on Monday, 23 June 2014.
Asian stocks edged higher on Tuesday, 24 June 2014, as utilities advanced. Key benchmark indices in Indonesia, Japan, South Korea, China, Singapore, Hong Kong and Taiwan were up by 0.14% to 1.1%.
Trading in US index futures indicated that the Dow could fall 11 points at the opening bell on Tuesday, 24 June 2014. Most US stocks slid on Monday, 23 June 2014, with the Standard & Poor's 500 Index dropping for the first time in seven sessions, as General Electric Co. led industrial shares lower to offset gains among energy producers.
Data on Monday showed US sales of existing homes climbed 4.9% to a 4.89 million annualized rate in May, the most since October. A separate report from Markit Economics showed a measure of US manufacturing growth rose to 57.5 in June from 56.4 in May.
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