Key benchmark indices continued to hover in green in mid-afternoon trade, with the 50-unit CNX Nifty hitting fresh intraday high. The barometer index, the S&P BSE Sensex, was up 106.79 points or 0.42%, up 88.69 points from the day's low and off 42.55 points from the day's high. The market breadth indicating the overall health of the market was strong. The BSE Mid-Cap index was up 1.11%. The BSE Small-Cap index was up 1.66%. Both these indices outperformed the Sensex. The market sentiment was positive after the Reserve Bank of India (RBI) on Tuesday, 15 July 2014, announced incentives to raise long term bonds for infrastructure financing and after the latest data showed a decent growth in merchandise exports in June 2014. Firmness in European stocks also underpinned sentiment on the domestic bourses.
Metal and mining stocks gained after the latest data showed that China's GDP growth accelerated to 7.5% in Q2 June 2014, from 7.4% in Q1 March 2014. Shares of IDFC, which is in the process of converting into a bank and which has a large exposure to the infrastructure sector, surged to hit 52-week high after RBI's announcement of incentives to raise long term bonds for infrastructure financing.
Among side counters, Alembic Pharmaceuticals, Bajaj Finserv and Bharat Forge scaled record high. Asahi India Glass hit 52-week high.
At 14:20 IST, the S&P BSE Sensex was up 106.79 points or 0.42% to 25,335.44. The index jumped 149.34 points at the day's high of 25,377.99 in early trade, its highest level since 11 July 2014. The index rose 18.10 points at the day's low of 25,246.75 in early afternoon trade.
The CNX Nifty was up 36.55 points or 0.49% to 7,563.20. The index hit a high of 7,572.80 in intraday trade, its highest level since 11 July 2014. The index hit a low of 7,532.45 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,784 shares gained and 1,001 shares fell. A total of 110 shares were unchanged.
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The BSE Mid-Cap index was up 100.13 points or 1.11% at 9,145.05. The BSE Small-Cap index was up 163.60 points or 1.66% at 10,019.60. Both these indices outperformed the Sensex.
Among the 30-share Sensex pack, 16 stocks gained and rest of them declined.
ICICI Bank (up 4.14%), Axis Bank (up 2.5%) and State Bank of India (up 1.75%) edged higher from the Sensex pack.
Metal and mining stocks gained after the latest data showed that China's GDP growth accelerated to 7.5% in Q2 June 2014, from 7.4% in Q1 March 2014. China is the world's largest consumer of copper and aluminum.
NMDC (up 1.01%), Hindustan Zinc (up 0.64%), National Aluminium Company (up 0.37%) and Hindustan Copper (up 3.55%) edged higher.
Hindalco Industries rose 1.98%. The government raised export duty on bauxite from 10% to 20% in Union Budget 2014-15. Increase in export duty on bauxite will be favourable for aluminium smelters like Hindalco and Sesa Sterlite who will benefit from the resultant increase in domestic bauxite supply.
Shares of Sesa Sterlite fell 0.4%.
Steel stocks gained across the board as higher outlay for housing, road, port, urban and rural housing and infrastructure development in Union Budget 2014-15 would help improve steel consumption.
Jindal Steel & Power (up 0.94%), JSW Steel (up 1.25%), Tata Steel (up 0.76%) gained. Steel Authority of India (Sail) shed 0.94%.
Shares of IDFC, which is in the process of converting into a bank and which has a large exposure to the infrastructure sector, jumped after RBI's announcement of incentives to raise long term bonds for infrastructure financing. The stock jumped 7.93% at Rs 161.90 after hitting a 52-week high of Rs 162.50 in intraday trade.
Bajaj Finance rose 0.22%. Bajaj Finance's net profit rose 20% to Rs 211 crore on 34% growth in total income to Rs 1246 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced during market hours today, 16 July 2014.
Alembic Pharmaceuticals gained 4.62% to Rs 324.05 after scaling a record high of Rs 326.45 in intraday trade.
Asahi India Glass jumped 5.29% to Rs 92.50 after hitting a 52-week high of Rs 94.85 in intraday trade.
Bajaj Finserv advanced 2.66% to Rs 948 after scaling a record high of Rs 988.35 in intraday trade.
Bharat Forge rose 2.57% to Rs 696.65 after scaling a record high of Rs 703 in intraday trade.
A bout of volatility was seen in early trade as key benchmark indices trimmed initial gains. Volatility continued as the key benchmark indices recovered from lower level after trimming intraday gains in morning trade. Key benchmark indices strengthened in mid-morning trade after the government announced trade data for June 2014. Key benchmark indices extended gains in mid-morning trade after the latest data showed a decent growth in merchandise exports in June 2014. Volatility ruled the roost as the key benchmark indices trimmed gains in early afternoon trade. Key benchmark indices continued to hover in green in mid-afternoon trade, with the 50-unit CNX Nifty hitting fresh intraday high.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 60.14, compared with its close of 60.12/13 on Tuesday, 15 July 2014.
India's merchandise exports jumped 10.22% to $26.48 billion in June 2014 over June 2013, data released by the government today, 16 July 2014, showed. Imports rose 8.33% to $38.24 billion in June 2014 over June 2013. The trade deficit stood at $11.76 billion in June 2014, which was higher than trade deficit of $11.28 billion in June 2013.
At a summit in Brazil, the five BRICS nations -- Brazil, Russia, India, China and South Africa -- on Tuesday, 15 July 2014, announced the signing of an agreement establishing the New Development Bank (NDB), with the purpose of mobilizing resources for infrastructure and sustainable development projects in BRICS and other emerging and developing economies. The bank will have an initial authorized capital of $100 billion. The initial subscribed capital will be $50 billion, equally shared by the five BRICS nations. The five BRICS nations also announced the signing of the treaty for the establishment of the BRICS Contingent Reserve Arrangement (CRA) with an initial size of $100 billion. This arrangement will have a positive precautionary effect, help countries forestall short-term liquidity pressures, promote further BRICS cooperation, strengthen the global financial safety net and complement existing international arrangements, according to a statement issued on Tuesday. The agreement is a framework for the provision of liquidity through currency swaps in response to actual or potential short-term balance of payments pressures.
European stocks edged higher today, 16 July 2014, after a report showed China's economy expanded in second quarter in line with the government's target. Key benchmark indices in France, Germany and UK rose by 0.77% to 1.17%.
Asian stocks edged higher on Wednesday, 16 July 2014, as a slide in oil prices to the lowest in over three months on Tuesday, 15 July 2014, was taken as a potential positive for global growth. Key benchmark indices in Hong Kong, Singapore, Indonesia, and South Korea rose by 0.04% to 0.68%. Key benchmark indices in China, Japan and Taiwan fell by 0.1% to 0.88%.
China today, 16 July 2014 reported second-quarter GDP growth of 7.5% compared with 7.4% in the previous three months. Other data showed retail sales gained 12.4% in June from a year earlier and industrial production jumped 9.2%. Fixed asset investment, a mainstay driver of the Chinese economy, climbed 17.3% in the first six months.
Chinese Premier Li Keqiang said in March during annual meeting of parliament that China has set its gross domestic product (GDP) growth target for 2014 at 7.5%, the same as for 2013, and will keep consumer inflation at 3.5%.
Trading in US index futures indicated that the Dow could rise 52 points at the opening bell on Wednesday, 16 July 2014. US markets saw mixed trend on Tuesday, 15 July 2014, after the US Federal Reserve raised concerns about social-media and biotech companies' valuations.
Federal Reserve Chair Janet Yellen reportedly indicated in testimony before US lawmakers on Tuesday, 15 July 2014, that stimulus is still required for the US economy. A high degree of monetary policy accommodation continues to be appropriate, Yellen said in her semi-annual address to the Senate Banking Committee.
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