Don’t miss the latest developments in business and finance.

Metal & mining stocks gain

Image
Capital Market
Last Updated : Aug 19 2014 | 10:11 PM IST

After giving away most of the initial gains in morning trade key benchmark indices recovered from lower level in mid-morning trade. The barometer index, the S&P BSE Sensex, was currently up 87.06 points or 0.33% at 26,414.25. The market breadth indicating the overall health of the market was strong. The market sentiment was boosted by data showing that foreign portfolio investors (FPIs) were net buyers of Indian stocks during the previous trading session on Monday, 18 August 2014. Asian stocks rose after a rally in US stocks on Monday, 18 August 2014. Metal and mining stocks gained. JSW Steel edged higher in volatile trade after the company entered into a definitive agreement with Welspun Enterprises (WEL) to acquire the entire equity shares held by WEL in Welspun Maxsteel (WMSL) for an enterprise value of Rs 1000 crore plus net current assets. Among FMCG stocks, shares of biscuits major Britannia Industries extended its recent strong gains.

A further decline in crude oil prices and a rally in US stocks on Monday, 18 August 2014, had triggered a firm opening on the domestic bourses, with the Sensex and the 50-unit CNX Nifty, both, hitting record high in early trade.

At 11:16 IST, the S&P BSE Sensex was up 87.06 points or 0.33% to 26,414.25. The index jumped 139.71 points at the day's high of 26,530.67 in early trade, a record high for the index. The index rose 23.29 points at the day's low of 26,414.25 in morning trade.

The CNX Nifty was up 25.35 points or 0.31% to 7,898.35. The index hit a high of 7,918.55 in intraday trade, a record high for the index. The index hit a low of 7,881.15 in intraday trade.

The market breadth indicating the overall health of the market was strong. On BSE, 1,388 shares gained and 921 shares fell. A total of 75 shares were unchanged.

The BSE Mid-Cap index was up 85.21 points or 0.93% at 9,255.55. The BSE Small-Cap index was up 88.15 points or 0.88% at 10,135.62. Both these indices outperformed the Sensex.

More From This Section

Metal and mining stocks gained. Sesa Sterlite (up 2.82%), Hindalco Industries (up 0.82%), Hindustan Zinc (up 1.1%), Jindal Steel & Power (up 0.1%), Tata Steel (up 0.46%), Steel Authority of India (Sail) (up 0.81%) National Aluminum Company (up 1.37%) and NMDC (up 0.65%) gained.

JSW Steel edged higher in volatile trade after the company entered into a definitive agreement with Welspun Enterprises (WEL) to acquire the entire equity shares held by WEL in Welspun Maxsteel (WMSL) for an enterprise value of Rs 1000 crore plus net current assets. The stock was up 0.49% at Rs 1,282.80. The stock hit high of Rs 1,295 and low of Rs 1,273 so far during the day. The company has acquired the equity shares of WMSL as WMSL is situated in close proximity to company's Dolvi unit, offering complimentary infrastructure and location to augment the current envisaged expansions at Dolvi by JSW Steel.

JSW Steel has a strategic goal to enhance its steel production to 40 million tonnes per annum (MTPA) in the next decade. The company currently has an installed capacity of 14.3 MTPA.

Shares of WEL rose 1.27%.

Gujarat Gas Company (up 8.02%) and Gujarat State Petronet (up 8.48%) surged.

Britannia Industries rose 2.51% to Rs 1,297 after hiting record high of Rs 1,310.85 in intraday trade. The stock gained for the third day in a row. The company's consolidated net profit rose 27% to Rs 113.66 crore on 15.5% increase in total income to Rs 1808.59 crore in Q1 June 2014 over Q1 June 2013. The result was announced on 12 August 2014.

The sentiment on the bourses was boosted by data showing that foreign portfolio investors (FPIs) were net buyers of Indian stocks on Monday, 18 August 2014. Foreign portfolio investors (FPIs) bought shares worth a net Rs 473.42 crore on Monday, 18 August 2014, as per provisional data from the stock exchanges.

Meanwhile, India's macroeconomic worries have eased on falling crude oil prices. India imports about 80% of its crude oil requirement. Brent crude oil futures edged up towards $102 a barrel today, 19 August 2014, but stayed near a 14-month low reached in the previous session on weak demand and easing concerns over risks to supply. The October Brent crude contract was up 23 cents at $101.83 a barrel. The contract fell $1.93 a barrel to settle at $ 101.60 a barrel on Monday, 18 August 2014, after Iraqi Kurds recaptured a large chunk of the biggest dam in the country from Islamist militants, with help from US air power.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.735, compared with its close of 60.78 on Thursday, 14 August 2014. The currency market remained close on Friday, 15 August 2014, and Monday, 18 August 2014 on account of holidays.

India reportedly called off on Monday, 18 August 2014, peace talks with Pakistan, giving a jolt to renewed diplomatic efforts between the two nuclear-armed neighbours and adding to the troubles of Pakistan's beleaguered government. India said it would not attend talks involving the foreign secretaries of the two countries, which had been set to take place on 25 August 2014 in Islamabad, because of plans by Pakistan to consult Kashmiri separatists ahead of the meeting.

Asian stocks rose today, 19 August 2014, after a rally in US stocks on Monday, 18 August 2014, triggered by upbeat US housing data and hopes of progress in the Ukraine crisis. Key benchmark indices in South Korea, Taiwan, Singapore, Hong Kong, Japan, and Indonesia were up 0.12% to 1.15%. China's Shanghai Composite was off 0.2%.

Trading in US index futures indicated that the Dow could gain 31 points at the opening bell on Tuesday, 19 August 2014. US stocks registered solid gains on Monday, 18 August 2014, helped by deal news and easing Ukraine-Russia tensions. A better-than-expected reading on the housing market also boosted sentiment and kicked off a big week for economic data. US homebuilder sentiment rose in August to its highest since January, the National Association of Home Builders said on Monday, marking a third straight monthly gain.

The minutes from the last Federal Open Market Committee meeting will be released tomorrow, 20 August 2014. Federal Reserve Chairwoman Janet Yellen will give a speech on Friday, 22 August 2014, at the annual Fed summit in Jackson Hole, Wyo.

Foreign ministers from Russia, Ukraine, Germany, and France gathered in Berlin over the weekend to discuss talks for a ceasefire or a political solution in Ukraine, and Russia's Foreign Ministry said on Monday a 'certain progress' was achieved during the talks.

Powered by Capital Market - Live News

Also Read

First Published: Aug 19 2014 | 11:15 AM IST

Next Story