A bout of volatility was seen in early trade as key benchmark indices trimmed initial gains. The barometer index, the S&P BSE Sensex, was up 94.65 points or 0.38%, off 54.69 points from the day's high and up 22.58 points from the day's low. The market breadth indicating the overall health of the market was strong.
Banking and infrastructure stocks rose after the Reserve Bank of India (RBI) on Tuesday, 15 July 2014, announced incentives to raise long term bonds for infrastructure financing. Sun Pharmaceutical Industries rose after a subsidiary of the company acquired Pharmalucence Inc., which has sterile injectable capacity in the US, supported by strong R&D capabilities.
At 9:30 IST, the S&P BSE Sensex was up 94.65 points or 0.38% to 25,323.30. The index jumped 149.34 points at the day's high of 25,377.99 in early trade. The index rose 72.07 points at the day's low of 25,300.72 in early trade.
The CNX Nifty was up 22.80 points or 0.3% to 7,549.45. The index hit a high of 7,571.35 in intraday trade. The index hit a low of 7,546.55 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 940 shares gained and 371 shares fell. A total of 30 shares were unchanged.
The BSE Mid-Cap index was up 48.82 points or 0.54% at 9,093.74. The BSE Small-Cap index was up 78.70 points or 0.8% at 9,934.70. Both these indices outperformed the Sensex.
More From This Section
The total turnover on BSE amounted to Rs 350 crore by 09:30 IST.
Among the 30-share Sensex pack, 22 stocks gained and rest of them declined.
Banking and infrastructure stocks rose after the Reserve Bank of India (RBI) on Tuesday, 15 July 2014, announced incentives to raise long term bonds for infrastructure financing. Among PSU bank stocks, Punjab National Bank (up 0.72%), Bank of Baroda (up 0.81%), Bank of India (up 1.22%) and Union Bank of India (up 2.48%) gained.
State Bank of India (SBI) gained 2.01%, with the stock extending Tuesday's 4.32% rally triggered by the bank's announcement of reduction in interest rates on bulk and retail term deposit interest rates for select maturities which will bring down the cost of funds for the bank. The state-run bank during market hours on Tuesday, 15 July 2014, said it has revised downwards its bulk term deposit interest rates (Rs 1 crore and above) to 6.25% from 6.5% for deposits between 7 days to 60 days with effect from 18 July 2014. SBI also revised downwards its bulk term deposit interest rates to 6.75% from 7% for deposits between 61 days to less than 1 year.
SBI also revised downwards its retail term deposit interest rates (below Rs 1 crore) to 7% from 7.5% for deposits between 7 days to 179 days with effect from 18 July 2014.
Among private bank stocks, Axis Bank (up 1.61%), Yes Bank (up 0.68%), and ICICI Bank (up 2.97%) gained HDFC Bank (down 0.77%) and IndusInd Bank (down 0.22%) declined.
Kotak Mahindra Bank rose 0.15% ahead of its Q1 June 2014 result today, 16 July 2014.
Among the infrastructure developers, L&T (up 1.02%), Jaiprakash Associates (up 1.24%), Punj Lloyd (up 3.32%), IVRCL (up 2.99%), GVK Power Infrastructure (up 1.25%), Lanco Infratech (up 2.09%), GMR Infrastructure (up 1.65%) and IRB Infrastructure Developers (up 1.1%) gained.
The RBI on Tuesday said that banks can issue long-term bonds with a minimum maturity of seven years to raise resources for lending to long term projects in infrastructure sub-sectors and affordable housing. The minimum maturity period of the long-term bonds shall be seven years. These bonds will be exempted from computation of net demand and time liabilities (NDTL) and would not be subjected to cash reserve ratio (CRR)/statutory liquidity ratio (SLR) requirements. This exemption will be subject to a ceiling of the eligible credit which has been decided by the RBI.
RBI's regulatory incentives for infrastructure financing come after Finance Minister Arun Jaitley on 10 July 2014 said at the time of presentation of Union Budget 2014-15 that banks will be permitted to raise long-term funds for lending to infrastructure sector with minimum regulatory pre-emption such as CRR, SLR and Priority Sector Lending.
The RBI on Tuesday also said that it has issued a number of instructions to banks, specifying the operational guidelines and incentives in the form of flexibility in loan structuring and refinancing so as to mitigate the Asset-Liability Management (ALM) problems faced by banks in extending project loans to infrastructure and core industries sectors.
Sun Pharmaceutical Industries rose 0.76%. Sun Pharmaceutical Industries today, 16 July 2014, announced the acquisition of Pharmalucence Inc., by one of its subsidiaries. Pharmalucence has sterile injectable capacity in the US, supported by strong R&D capabilities. The announcement was made before market hours today, 16 July 2014.
Tech Mahindra rose 0.42%. Tech Mahindra announced after market hours on Tuesday, 15 July 2014, that it will be establishing its new Canadian Aerospace head office in Greater Montrl. This was made possible in part due to the support provided by Montreal International. Tech Mahindra anticipates the creation of approximately 300 jobs over the next three years, mainly in the aerospace industry. The announcement was made at the 2014 Farnborough Air Show.
At a summit in Brazil, the five BRICS nations -- Brazil, Russia, India, China and South Africa -- on Tuesday, 15 July 2014, announced the signing of an agreement establishing the New Development Bank (NDB), with the purpose of mobilizing resources for infrastructure and sustainable development projects in BRICS and other emerging and developing economies. The bank will have an initial authorized capital of $100 billion. The initial subscribed capital will be $50 billion, equally shared by the five BRICS nations. The five BRICS nations also announced the signing of the treaty for the establishment of the BRICS Contingent Reserve Arrangement (CRA) with an initial size of $100 billion. This arrangement will have a positive precautionary effect, help countries forestall short-term liquidity pressures, promote further BRICS cooperation, strengthen the global financial safety net and complement existing international arrangements, according to a statement issued on Tuesday. The agreement is a framework for the provision of liquidity through currency swaps in response to actual or potential short-term balance of payments pressures.
Asian stocks were mostly higher on Wednesday, 16 July 2014, as a slide in oil prices to the lowest in over three months on Tuesday, 15 July 2014, was taken as a potential positive for global growth. Key benchmark indices in Hong Kong, Singapore, Indonesia and China rose by 0.07% to 0.86%. Key benchmark indices in Taiwan and South Korea fell by 0.1% to 0.48%. Japan's Nikkei 225 index was unchanged.
China today, 16 July 2014 reported second-quarter GDP growth of 7.5% compared with 7.4% in the previous three months. Other data showed retail sales gained 12.4% in June from a year earlier and industrial production jumped 9.2%.
US markets saw mixed trend on Tuesday, 15 July 2014, after the US Federal Reserve raised concerns about social-media and biotech companies' valuations.
Federal Reserve Chair Janet Yellen reportedly indicated in testimony before US lawmakers on Tuesday, 15 July 2014, that stimulus is still required for the US economy. A high degree of monetary policy accommodation continues to be appropriate, Yellen said in her semi-annual address to the Senate Banking Committee.
Powered by Capital Market - Live News