Key benchmark indices extended intraday gains in early afternoon trade. The barometer index, the S&P BSE Sensex, was up 236.23 points or 0.93% up about 90 points from the day's low and off close to 40 points from the day's high. The market breadth indicating the overall health of the market was strong. Expectations of a growth oriented Budget, decline in crude oil prices, signs of pick up in monsoon rains and gains in Asian stocks aided gains on the domestic bourses. Provisional data showing that foreign investors made decent purchases of Indian stocks on Tuesday, 1 July 2014, also boosted sentiment.
Metal and mining stocks extended Tuesday's gains triggered by data showing that China's manufacturing expanded in June at the fastest pace this year. Tata Steel rose after the company announced restructuring proposals to improve the competitiveness of its South Wales steelmaking business.
At 12:20 IST, the S&P BSE Sensex was up 236.23 points or 0.93% to 25,753.58. The index jumped 273.07 points at the day's high of 25,789.42 in mid-morning trade, a lifetime high for the index. The index rose 143.81 points at the day's low of 25,660.16 in early trade.
The CNX Nifty was up 64.40 points or 0.84% to 7,699.10. The index hit a high of 7,711.50 in intraday trade, a lifetime high for the index. The index hit a low of 7,677.30 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,709 shares gained and 997 shares fell. A total of 102 shares were unchanged.
The BSE Mid-Cap index was up 77.76 points or 0.82% at 9,511.50, underperforming the Sensex. The BSE Small-Cap index was up 101.93 points or 0.99% at 10,423.56, outperforming the Sensex.
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Metal and mining stocks extended Tuesday's gains triggered by data showing that China's manufacturing expanded in June at the fastest pace this year. China is the world's largest consumer of copper and aluminum. Hindustan Zinc (up 2.7% to Rs 172.95), Steel Authority of India (Sail) (up 1.28% to Rs 99.20), Sesa Sterlite (up 2.88% to Rs 304.70), Hindustan Copper (up 0.39% to Rs 114.75), Jindal Steel & Power (up 1.33% to Rs 331.50), JSW Steel (up 2.03% to Rs 1,295), NMDC (up 1.31% to Rs 185.40) and National Aluminum Company (up 0.01% to Rs 60.95) edged higher.
Hindalco Industries fell 0.14% to Rs 174.95, with the stock reversing direction after hitting 52-week high of Rs 179 in intraday trade.
Tata Steel rose 1.02% to Rs 546.85 after the company after market hours on Tuesday, 1 July 2014, announced restructuring proposals to improve the competitiveness of its South Wales steelmaking business. The proposed changes would enable the UK Strip Products business to compete in Europe's lower market demand era by reducing costs equivalent to the loss of about 400 jobs in Port Talbot.
Key benchmark indices surged in early trade on firm Asian stocks and on overnight upmove in US stocks. A bout of volatility was witnessed as key benchmark indices regained strength after paring initial gains in morning trade. Key benchmark indices pared gains after hitting fresh intraday high in mid-morning trade. The S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit fresh lifetime high. Key benchmark indices extended intraday gains in early afternoon trade.
Expectations of a growth oriented Budget is driving uptrend on the bourses. Increase in outlay on infrastructure sector with focus on stricter and time-bound implementation of projects, initiatives towards investments in agriculture and irrigation, fiscal prudence with roadmap to reduce the fiscal deficit, a roadmap for reducing the subsidy burden and timeline for implementation of the Goods and Service Tax are some of the expectations from the Budget. Finance Minister Arun Jaitley will table the final Union Budget for 2014-15 in parliament on 10 July 2014.
Jaitley reportedly said yesterday, 1 July 2014, that the government would take bold decisions and pursue the path of fiscal prudence to revive the economy.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 856.35 crore on Tuesday, 1 July 2014, as per provisional data from the stock exchanges.
There are signs of pick up in monsoon rains. The India Meteorological Department (IMD) in its daily monsoon report yesterday, 1 July 2014, said that the southwest monsoon has further advanced into entire Uttarakhand, Himachal Pradesh and Jammu & Kashmir, some more parts of Uttar Pradesh and some parts of Haryana & Punjab. The weather office said that conditions are favourable for further advance of Southwest Monsoon into some more parts of Madhya Pradesh, remaining parts of Uttar Pradesh, Haryana, Chandigarh & Delhi and Punjab and some parts of north Rajasthan during next 48 hours
Concerns about India's macroecnomic situation have eased as Brent crude has come off 9-month high which it hit last month. Brent crude oil futures for August delivery were off 1 cents at $112.28 a barrel. The contract lost 7 cents to close at $112.29 a barrel on Tuesday, 1 July 2014. India imports about 80% of its crude oil requirements.
In the foreign exchange market, the rupee edged higher against the dollar as equities rose. The partially convertible rupee was hovering at 59.97, compared with its close of 60.07/08 on Tuesday, 1 July 2014.
Asian stocks rose on Wednesday, 2 July 2014, after reports showing manufacturing expansion in US, the world's biggest economy sent US stocks to record high overnight. Key benchmark indices in Taiwan, Hong Kong, South Korea, Singapore, and Japan were up 0.19% to 1.02%. Key benchmark indices in China and Indonesia fell 0.03% to 0.22%.
Trading in US index futures indicated that the Dow could gain 10 points at the opening bell on Wednesday, 2 July 2014. The S&P 500 index and the Dow Jones Industrial Average both climbed to all-time highs on Tuesday, 1 July 2014, as manufacturing activity picked up in the US and Asia in June and on increased optimism about the global economy's health.
The Institute for Supply Management's US factory index was little changed at 55.3 in June from 55.4 in the prior month, the Tempe, Arizona-based group's report showed on Tuesday. Readings above 50 indicate expansion.
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