Volatility continued as key benchmark indices pared gains after hitting fresh intraday high in mid-morning trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, pared gains after hitting lifetime high. The Sensex was up 217.64 points or 0.85%, off close to 55 points from the day's high and up about 75 points from the day's low. The market breadth indicating the overall health of the market was strong. Gains in Asian stocks and overnight upmove in US stocks underpinned sentiment on the domestic bourses. Provisional data showing that foreign investors made decent purchases of Indian stocks on Tuesday, 1 July 2014, also boosted sentiment. Expectations of a growth oriented Budget is driving uptrend on the bourses.
L&T rose after the company said that its construction division won new orders worth Rs 2002 crore across various segments in June 2014. Bank stocks gained on renewed buying.
At 11:20 IST, the S&P BSE Sensex was up 217.64 points or 0.85% to 25,733.99. The index jumped 273.07 points at the day's high of 25,789.42 in mid-morning trade, a lifetime high for the index. The index rose 143.81 points at the day's low of 25,660.16 in early trade.
The CNX Nifty was up 60.65 points or 0.79% to 7,695.35. The index hit a high of 7,711.50 in intraday trade, a lifetime high for the index. The index hit a low of 7,677.30 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,615 shares gained and 833 shares fell. A total of 41 shares were unchanged.
The BSE Mid-Cap index was up 73.41 points or 0.78% at 9,507.15. The BSE Small-Cap index was up 93.91 points or 0.91% at 10,415.54. Both these indices outperformed the Sensex.
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L&T rose 1.49% to Rs 1,751 after the company said during market hours that its construction division won new orders worth Rs 2002 crore across various segments in June 2014.
L&T could be major beneficiary of the government's thrust on the infrastructure sector. There are expectations of higher allocations for the infrastructure sector like power, roads, ports, rivers, railways etc. in the final Union Budget 2014-15 to be unveiled on 10 July 2014, with focus on stricter and time-bound implementation of projects.
Bank stocks rose on renewed buying. Among private sector banks, ICICI Bank (up 1.48% to Rs 1,459), IndusInd Bank (up 0.1% to Rs 576.35), Yes Bank (up 1.73% to Rs 566.05), Federal Bank (up 0.53% to Rs 132.25), Kotak Mahindra Bank (up 0.92% to Rs 893), HDFC Bank (up 1.06% to Rs 831.80) and Axis Bank (up 0.98% to Rs 1,939.35), gained.
Among PSU bank stocks, State Bank of India (SBI) (up 1.5% to Rs 2,721), Canara Bank (up 0.73% to Rs 465), Union Bank of India (up 1.28% to Rs 237.70), Bank of India (up 0.82% to Rs 306.50), Bank of Baroda (up 1.75% to Rs 893.65) and Punjab National Bank (up 1.32% to Rs 1,007.90) gained.
Key benchmark indices surged in early trade on firm Asian stocks and on overnight upmove in US stocks. A bout of volatility was witnessed as key benchmark indices regained strength after paring initial gains in morning trade. Key benchmark indices pared gains after hitting fresh intraday high in mid-morning trade. The S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit fresh lifetime high.
Expectations of a growth oriented Budget is driving uptrend on the bourses. Increase in outlay on infrastructure sector with focus on stricter and time-bound implementation of projects, initiatives towards investments in agriculture and irrigation, fiscal prudence with roadmap to reduce the fiscal deficit, a roadmap for reducing the subsidy burden and timeline for implementation of the Goods and Service Tax are some of the expectations from the Budget.
Finance Minister Arun Jaitley reportdly said yesterday, 1 July 2014, that the government would take bold decisions and pursue the path of fiscal prudence to revive the economy.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 856.35 crore on Tuesday, 1 July 2014, as per provisional data from the stock exchanges.
In the foreign exchange market, the rupee edged higher against the dollar as equities rose. The partially convertible rupee was hovering at 60.0425, compared with its close of 60.07/08 on Tuesday, 1 July 2014.
Asian stocks rose on Wednesday, 2 July 2014, after reports showing manufacturing expansion in US, the world's biggest economy sent US stocks to record high overnight. Key benchmark indices in Taiwan, Hong Kong, South Korea, Singapore, and Japan were up 0.19% to 1.02%. Key benchmark indices in China and Indonesia fell 0.19% to 0.22%.
Trading in US index futures indicated that the Dow could gain 6 points at the opening bell on Wednesday, 2 July 2014. The S&P 500 index and the Dow Jones Industrial Average both climbed to all-time highs on Tuesday, 1 July 2014, as manufacturing activity picked up in the US and Asia in June and on increased optimism about the global economy's health.
The Institute for Supply Management's US factory index was little changed at 55.3 in June from 55.4 in the prior month, the Tempe, Arizona-based group's report showed on Tuesday. Readings above 50 indicate expansion.
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