Key benchmark indices extended gains and hit fresh intraday high in mid-morning trade as firmness in Asian stocks boosted sentiment. The barometer index, the S&P BSE Sensex and the 50-unit CNX Nifty, both, hit their highest level in nearly two weeks. The Sensex was up 188.35 points or 0.9%, off close to 20 points from the day's high and up about 130 points from the day's low. The market breadth, indicating the overall health of the market, was strong. All the thirteen sectoral indices on BSE were in the green. IT stocks rose on positive economic data in US with Infosys hitting record high.
The market edged higher in early trade. The Sensex hit highest level in nearly two weeks. Firmness continued on bourses in morning trade. It extended gains and hit fresh intraday high in mid-morning trade.
Asian stocks rose on Wednesday on optimism the global economy is strengthening.
At 11:28 IST, the S&P BSE Sensex was up 188.35 points or 0.9% to 21,221.23. The index rose 208.54 points at the day's high of 21,241.42 in mid-morning trade, its highest level since 2 January 2014. The index gained 58.58 points at the day's low of 21,091.46 in opening trade.
The CNX Nifty was up 55.25 points or 0.89% to 6,297.10. The index hit a high of 6,304.05 in intraday trade, its highest level since 2 January 2014. The index hit a low of 6,265.30 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,314 shares gained and 788 shares fell. A total of 123 shares were unchanged.
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Among the 30-share Sensex pack, 28 stocks rose and only two of them fell. Hindalco Industries (up 2.42%), Cipla (up 2.38%) and Sesa Sterlite (up 2.21%) gained.
IT stocks rose on positive economic data in US. US is the biggest outsourcing market for the Indian IT firms. Infosys rose 0.69% to Rs 3714.30, with the stock extending recent gains triggered by the company raising its revenue growth guidance for the year ending 31 March 2014. The scrip was volatile. The stock hit a record high of Rs 3,717.90 in intraday trade. At the time of announcement of Q3 December 2013 earnings, Infosys, before trading hours on Friday, 10 January 2014, raised its revenue growth guidance in both rupee and dollar terms for the year ending 31 March 2014. The company expects consolidated revenue in rupee terms to grow 24.4% to 24.9% for the year ending 31 March 2014 (FY 2014). This guidance is based on rupee dollar conversion rate of 61.81 for the rest of the financial year. The company expects consolidated revenue in dollar terms to grow 11.5% to 12% in FY 2014.
TCS rose 1.54% to Rs 2364.95. The stock had hit a record high of Rs 2,384.20 in intraday trade on Tuesday, 14 January 2014. The company unveils Q3 results tomorrow, 16 January 2014.
HCL Technologies rose 1.36% to Rs 1340.55. The company unveils Q2 results tomorrow, 16 January 2014. The stock had hit a record high of Rs 1,352 in intraday trade on Monday, 13 January 2014.
Wipro advanced 0.72% to Rs 556.70. The stock had hit 52-week high of Rs 567.45 in intraday trade on Monday, 13 January 2014.
But, Tech Mahindra fell 0.21% to Rs 1889.50. The stock had hit a 52-week high of Rs 1,906 in intraday trade on Tuesday, 14 January 2014.
Aarti Industries jumped 3.68% after the company said that the Gujarat Pollution Control Board has allowed the company to restart the manufacturing activities at its Vapi plants. The announcement was made after market hours on Tuesday, 14 January 2014. Aarti Industries said that the Gujarat Pollution Control Board (GPCB) vide order dated 13 January 2014 has revoked its earlier order and has allowed the company to restart/commence the manufacturing activities at its Vapi plants viz Alchemie Organic Division and Aarti Fertilizers Division. On receipt of such order, commercial operation/production in company's division viz. Alchemie Organic and Aarti Fertilizers has commenced with effect from 14 January 2014, the company said.
On account of this, operating profit for the quarter ending March 2014 would be affected by approximately Rs 3.5 to Rs 4 crore, Aarti Industries said in a statement.
It may be recalled that Aarti Industries had on 31 December 2013 said that it received orders from GPCB for closure of manufacturing activities at two of its various plant locations in Vapi, viz. Alchemie Organic Division and Aarti Fertilizers Division at Vapi, from 1 January 2014.
The said plants annually contribute around 15% of the operating profit of the company, Aarti Industries said at that time.
Inflation based on the wholesale price index (WPI) is seen easing up a bit at 7.1% in December 2013, from 7.52% in November 2013, as per the median estimate of a poll of economists carried out by Capital Market. WPI had accelerated to 7.52% in November 2013, from 7% in October 2013. The government will unveil WPI data for December 2013 at 12 noon today, 15 January 2014.
The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014. The Reserve Bank of India kept its main lending rate viz. the repo rate unchanged after its last policy review in December and said at that time that it expected inflation to ease in the following months.
Asian stocks rose on Wednesday on optimism the global economy is strengthening. Key benchmark indices in Hong Kong, Indonesia, Japan, Singapore, South Korea and Taiwan were up 0.31% to 2.07%. China's Shanghai Composite fell 0.59%.
Trading in US index futures indicated that the Dow could gain 5 points at the opening bell on Wednesday, 15 January 2014. US stocks rose on Tuesday, giving the Standard & Poor's 500 Index its biggest gain of the year, as better-than-forecast retail sales and corporate merger activity signaled confidence in the economy.
US retail sales increased 0.2% after a 0.4% advance in November, Commerce Department figures showed in Washington.
Philadelphia Fed President Charles Plosser said that the central bank's stimulus program should end later this year because the economy is on a "firmer footing" than it has been in the past several years. Richard Fisher, Fed president in Dallas, likened quantitative easing to "beer goggles" that makes everything look good. There are signs that "we have made for an intoxicating brew as we have continued pouring liquidity down the economy's throat," he said in a speech.
The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014. By a 9-to-1 vote, the Fed on 18 December 2013 decided to trim its asset-purchase program by $10 billion to $75 billion per month starting in January 2014.
The World Bank raised its global growth forecasts as the easing of austerity policies in advanced economies supports their recovery, boosting prospects for developing markets' exports. The Washington-based lender sees the world economy expanding 3.2% this year, compared with a June projection of 3 percent and up from 2.4% in 2013. The forecast for the richest nations was raised to 2.2% from 2%. Part of the increase reflects improvement in the 18-country euro area, with the US ahead of developed peers, growing twice as fast as Japan. The report by the institution that's trying to eradicate extreme poverty by 2030 indicates a near-doubling of the growth in world trade this year from 2012, as developed economies lift export-reliant emerging nations. At the same time, the withdrawal of monetary stimulus in the US may raise market interest rates, hurting poorer countries as investors return to assets such as Treasuries, according to the bank.
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