Market drifts higher in early trade

Key benchmark indices edged higher in early trade on firm Asian stocks. The S&P BSE Sensex was up 136.77 points or 0.71%, up close to 65 points from the day's low and off about 10 points from the day's high. The market breadth, indicating the overall health of the market, was strong. Shares of aluminium makers Hindalco Industries and National Aluminium Company (Nalco) rose after Alcoa Inc, the largest US aluminum producer, reported better than expected Q2 results on Monday. Bank stocks edged higher. GRUH Finance gained on good Q1 results.

At 9:30 IST, the S&P BSE Sensex was up 136.77 points or 0.71% to 19,461.54. The index rose 145.04 points at the day's high of 19,470.61 in early trade. The index gained 74.60 points at the day's low of 19,399.37 in opening trade.

The CNX Nifty was up 44.95 points or 0.77% to 5,856.50. The index hit a high of 5,860.65 in intraday trade. The index hit a low of 5,834.60 in intraday trade.

The market breadth, indicating the overall health of the market, was strong. On BSE, 612 shares rose and 79 shares fell. A total of 30 shares were unchanged.

From the 30-share Sensex pack, 26 stocks rose and only four of them fell. Bajaj Auto (up 1.5%), Sun Pharmaceutical Industries (up 1.17%) and Bhel (up 1.15%), edged higher.

Bank stocks edged higher. Kotak Mahindra Bank (up 0.18%), ICICI Bank (up 0.85%), and HDFC Bank (up 0.92%), edged higher.

Among PSU bank stocks, State Bank of India, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank gained by 0.32% to 1.95%.

Hindalco Industries and National Aluminium Company (Nalco) rose 0.84% to 1.34% after Alcoa Inc, the largest US aluminum producer, reported better than expected Q2 results. Alcoa reported a larger-than-expected quarterly profit, excluding one-time items such as restructuring costs and legal expenses. The company stuck to its forecast for 7% growth in global aluminum demand this year, led by a roughly 10% increase for aerospace needs. Alcoa reported results after close of US stock markets on Monday.

GRUH Finance gained 2.84% on good Q1 results. The company's net profit surged 26.4% to Rs 33.77 crore on 24% growth in total income to Rs 183.19 crore in Q1 June 2013 over Q1 June 2012. The Q1 result was announced after market hours on Monday, 8 July 2013. GRUH Finance's disbursements rose 29% to Rs 566.86 crore in Q1 June 2013 over Q1 June 2012. Loan assets increased 32% to Rs 5727.21 crore as on 30 June 2013, from Rs 4338.49 crore as on 30 June 2012. The gross non-performing assets (NPAs) of the company stood at Rs 26.30 crore as on 30 June 2013, as against Rs 29.73 crore as on 30 June 2012.

GRUH Finance is a subsidiary of housing finance major HDFC. Shares of HDFC were up 0.69% at Rs 830.

Asian stocks rose on Tuesday, 9 July 2013, after Alcoa Inc. started the US earnings season with results that beat analysts' estimates. Key benchmark indices in China, Hong Kong, Singapore, Japan, South Korea and Taiwan rose by 0.26% to 1.46%. Indonesia's Jakarta Composite fell 0.25%.

China's inflation accelerated more than estimated in June as food prices climbed, while the decline in factory-gate prices extended its longest streak in a decade amid slowing economic growth and lower commodity costs. The consumer price index rose 2.7% from a year earlier, the National Bureau of Statistics said today in Beijing.

US stocks advanced on Monday, 8 July 2013, heading into the start of earnings season, building on gains sparked by last week's robust employment report and pushing the S&P 500 index closer to its all-time high set in May. Alcoa Inc, the largest US aluminum producer, reported results after the market's close, which is typically seen as the start of earnings season.

The minutes of Federal Open Market Committee's (FOMC) policy meeting held on 19 June 2013, will be released tomorrow, 10 July 2013. The minutes may provide more insight into the Federal Reserve's outlook on monetary stimulus. Fed Chairman Ben Bernanke is also due to deliver a speech tomorrow, 10 July 2013. Bernanke on 19 June 2013 said that the central bank may taper the pace of its bond purchases, currently set at $85 billion a month, as early as this year if the economy continues to improve in line with its forecasts.

In Europe, Greece secured a lifeline from the euro zone and the IMF on Monday but was told it must keep its promises on cutting public sector jobs and selling state assets to get all the cash. The 6.8 billion euro deal, which spares Greece defaulting on debt in August, will see Athens drip fed support under close watch from the euro zone and the International Monetary Fund to ensure implementation of unpopular reforms.

Powered by Capital Market - Live News