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Capital goods stocks edge higher

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Last Updated : Jun 13 2014 | 11:40 PM IST

Key benchmark indices moved in a narrow range in positive terrain in morning trade. The barometer index, the S&P BSE Sensex, was up 34.25 points or 0.13%, up close to 40 points from the day's low and off about 80 points from the day's high. The market breadth indicating the overall health of the market was strong.

Capital goods stocks gained after data on Thursday, 12 June 2014, showed that capital goods production jumped 15.7% in April 2014. Cement stocks gained.

A bout of volatility was witnessed in early trade as key benchmark indices regained positive terrain after slipping into the red for a brief period after opening with decent gains. Key benchmark indices moved in a narrow range in positive terrain in morning trade.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 652.35 crore on Thursday, 12 June 2014, as per provisional data from the stock exchanges.

At 10:20 IST, the S&P BSE Sensex was up 34.25 points or 0.13% to 25,610.46. The index jumped 112.10 points at the day's high of 25,688.31 in early trade, its highest level since 11 June 2014. The index fell 6.17 points at the day's low of 25,570.04 in early trade.

The CNX Nifty was up 8.70 points or 0.11% to 7,658.60. The index hit a high of 7,678.50 in intraday trade, its highest level since 11 June 2014. The index hit a low of 7,643.40 in intraday trade.

The BSE Mid-Cap index was up 52.50 points or 0.57% to 9,218.81. The BSE Small-Cap index was up 67.24 points or 0.67% to 10,052.72. Both these indices outperformed the Sensex.

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The market breadth indicating the overall health of the market was strong. On BSE, 1,202 shares rose and 722 shares fell. A total of 64 shares were unchanged.

Coal India (up 1.95%), Mahindra & Mahindra (M&M) (up 1.76%) and HDFC Bank (up 1.54%) edged higher from the Sensex pack.

Capital goods stocks gained after data on Thursday, 12 June 2014, showed that capital goods production jumped 15.7% in April 2014. ABB (India) (up 1.03% to Rs 1,011.45), Bharat Heavy Electricals (Bhel) (up 3.26% to Rs 251.95), L&T (up 0.82% to Rs 1,733) and Crompton Greaves (up 1.73% to Rs 211.10) gained.

Cement stocks gained. ACC (up 1.53% to Rs 1,500.35), UltraTech Cement (up 1.95% to Rs 2,812.95) and Ambuja Cements (up 2.06% to Rs 230.15) rose. Shree Cement fell 0.28% to Rs 7,298.

In the foreign exchange market, the rupee edged lower against the dollar as crude oil prices rose as escalating violence in Iraq threatened supplies from OPEC's second-largest oil producer. The partially convertible rupee was hovering at 59.435, compared with its close of 59.25/26 on Thursday, 12 June 2014.

Brent crude oil futures for July settlement, which expires today, 13 June 2014, were up 23 cents at $113.25 a barrel on the London-based ICE Futures Europe exchange. The contract ended up with gains of more than $3 on Thursday, 12 June 2014.

Crude rose as supply disruption fears took centre stage with the United States threatening military action in Iraq as supply disruption fears took centre stage with the United States threatening military action in Iraq as Sunni Islamist militants moved south towards Baghdad.

On the macro front, industrial production rose 3.4% in April 2014, compared with a contraction of 0.5% in March 2014, data released by the government after trading hours on Thursday, 12 June 2014, showed. Fourteen out of the twenty two industry groups from the manufacturing sector registered positive growth during the month of April 2014 as compared to the corresponding month of the previous year. Industrial production contracted 0.1% during April-May 2014 over the corresponding period of the previous year.

The annual inflation rate based on combined consumer price index (CPI) for urban and rural India eased to 8.28% (provisional) in May 2014, from 8.59% (final) in April 2014, data released by the government after trading hours on Thursday, 12 June 2014, showed. Within the consumer price index, food prices inflation eased to 9.56% in May 2014, from 9.83% in April 2014. The rate of inflation based on the core CPI, which excludes food and energy prices was 7.72% in May 2014, unchanged from the level in April 2014.

Asian stocks fell on Friday, 13 June 2014, as escalating civil war in Iraq hit risk appetite. Key benchmark indices in Indonesia, Japan, Taiwan, and South Korea were off 0.13% to 1.33%. Key benchmark indices in Singapore, China and Hong Kong were up 0.02% to 0.9%.

The Bank of Japan maintained record stimulus as Governor Haruhiko Kuroda strives to boost inflation that remains short of a 2% target. The central bank will continue to expand the monetary base at a pace of 60 trillion yen to 70 trillion yen ($688 billion) per year, it said in a statement today in Tokyo, in line with estimates.

Trading in US index futures indicated a flat opening of US stocks on Friday, 13 June 2014. US stocks fell on Thursday as concerns escalated about Iraq and after disappointing economic data on retail sales and jobless claims.

In macroeconomic news, retail sales rose 0.3% in May, half the growth rate than forecasts. Americans' new claims for unemployment benefits unexpectedly rose last week.

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First Published: Jun 13 2014 | 10:13 AM IST

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