Volatility continued as key benchmark indices trimmed gains after recovering from lower level in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was up 77.43 points or 0.3%, off close to 80 points from the day's high and up about 45 points from the day's low. The market breadth indicating the overall health of the market was positive. With the Sensex and the Nifty, both, hitting record high, Indian stocks are witnessing a pre-Budget rally amid expectations that Finance Minister Arun Jaitley will announce measures in the Budget aimed at bolstering economic growth.
Realty stocks edged lower. Kotak Mahindra Bank fell ahead of the bank's deletion from MSCI's Global Standard Index with effect from tomorrow, 8 July 2014.
At 14:20 IST, the S&P BSE Sensex was up 77.43 points or 0.3% to 26,039.49. The index jumped 154.67 points at the day's high of 26,116.73 in early trade, a lifetime high of the index. The index rose 30.67 points at the day's low of 25.922.73 in afternoon trade.
The CNX Nifty was up 16.30 points or 0.21% to 7,767.90. The index hit a high of 7,791.40 in intraday trade, a lifetime high of the index. The index hit a low of 7,755.10 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,638 shares gained and 1,332 shares fell. A total of 87 shares were unchanged.
The BSE Mid-Cap index was up 7.33 points or 0.08% at 9,553.08, underperforming the Sensex. The BSE Small-Cap index was up 72 points or 0.69% at 10,580.03, outperforming the Sensex.
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Among 30 Sensex shares, 19 stocks rose and the remaining shares fell. Tata Power Company (up 3.59%), Infosys (up 3.58% and TCS (up 2.7%) edged higher from the Sensex pack.
Realty stocks edged lower. Sobha Developers (down 1.03% to Rs 485.55), Housing Development & Infrastructure (HDIL) (down 2.28% to Rs 100.80), D B Realty (down 1.23% to Rs 96.55) and Unitech (down 0.3% to Rs 32.75) declined. DLF rose 2.05% to Rs 223.35.
There are expectations that the government will take steps towards providing the long awaited industry status to the real estate sector and provide boost to low cost housing in the final Union Budget 2014-15 to be unveiled on 10 July 2014. There are also expectations that the tax benefit with respect to interest payment on housing loans will be raised. At present, a maximum deduction of Rs 1.5 lakh is allowed on taxable income towards interest on housing loan
Kotak Mahindra Bank fell 1.74% to Rs 869.05 ahead of the bank's deletion from MSCI's Global Standard Index tomorrow, 8 July 2014. MSCI decided to remove Kotak Mahindra Bank from its Global Standard Index after the stock reached its trigger limit on foreign institutional investor shareholding on 18 June 2014. The current limit on foreign shareholding in Kotak Mahindra Bank is at 37%.
Key benchmark indices edged higher in early trade after provisional data showed that foreign investors remained net buyers of Indian stocks on Friday, 4 July 2014. The barometer index, the S&P BSE Sensex, hit record high, crossing the 26,000 mark for the first time. The 50-unit CNX Nifty also scaled record high. Key benchmark indices pared initial gains in morning trade. Key benchmark indices hovered in positive terrain in mid-morning trade. Key benchmark indices moved in a narrow range in positive zone in early afternoon trade. Key benchmark indices pared gains in afternoon trade as European market edged lower in early trade there. Volatility continued as key benchmark indices trimmed gains after recovering from lower level in mid-afternoon trade.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 943.19 crore on Friday, 4 July 2014, as per provisional data from the stock exchanges
The market has entered a crucial week. Railway Minister Sadananda Gowda will present the final Railway Budget for 2014-15 in Lok Sabha tomorrow, 8 July 2014. On Wednesday, 9 July 2014, the Finance Ministry will table Economic Survey for 2013-14. Jaitley will present the final Union Budget for 2014-15 in Lok Sabha at 11:00 IST on Thursday, 10 July 2014. After a clear mandate in Lok Sabha elections this year and with BJP perceived as a business friendly party, expectations from the Budget are running high.
There are expectations that the finance minster will announce measures in the Budget aimed at bolstering economic growth. Increase in outlay on infrastructure sector with focus on stricter and time-bound implementation of projects, initiatives towards investments in agriculture and irrigation aimed at easing supply bottlenecks for food-grains, fiscal prudence with roadmap to reduce the fiscal deficit, a roadmap for reducing the subsidy burden and timeline for implementation of the Goods and Services Tax are some of the expectations from the Budget.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 59.9925, compared with its close of 59.72/73 on Friday, 4 July 2014.
European market edged lower on Monday, 7 July 2014, on profit booking after last week's rally. Key benchmark indices in UK, France and Germany were off 0.23% to 0.54%.
German industrial output dropped for a third month in May amid signs Europe's largest economy is taking a breather. Production, adjusted for seasonal swings, fell 1.8% from April, when it declined a revised 0.3%, the Economy Ministry in Berlin said today.
Most Asian stocks edged higher in choppy trade on Monday, 7 July 2104. Key benchmark indices in China, Taiwan, Indonesia and Singapore were up 0.11% to 1.36%. Key benchmark indices in South Korea, Hong Kong, and Japan were off 0.02% to 0.37%.
China's economic growth quickened in the second quarter from the previous three months, but further modest government support measures will still be needed, Premier Li Keqiang reportedly said on Monday.
Business activity in emerging markets expanded last month at its fastest rate since March 2013, boosted by strong growth in China and India, a survey showed today, 7 July 2014. HSBC's composite emerging markets index of manufacturing and services purchasing managers' surveys jumped to 52.3 in June - well above the 50 threshold that indicates expansion - from 50.6 in May.
Trading in US index futures indicated that the Dow could fall 25 points at the opening bell on Monday, 7 July 2014.
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