Volatility continued in mid-morning trade as the key benchmark indices regained positive zone after hitting fresh intraday low in negative zone. The barometer index, the S&P BSE Sensex, was up 11.10 points or 0.04%, up 49.59 points from the day's low and off 168.50 points from the day's high. The market breadth indicating the overall health of the market was positive.
Capital goods stocks edged higher on renewed buying. Shares of Bharat Electronics hit 52-week high. ALSTOM India also scaled 52-week high. Shares of PSU OMCs and state-run upstream oil firms dropped after international crude oil prices firmed up.
At 11:15 IST, the S&P BSE Sensex was up 11.10 points or 0.04% to 25,257.35. The index jumped 179.60 points at the day's high of 25,425.85 in early trade. The index fell 38.49 points at the day's low of 25,207.76 in morning trade.
The CNX Nifty was up 4.45 points or 0.06% to 7,562.65. The index hit a high of 7,606.45 in intraday trade. The index hit a low of 7,540.20 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,337 shares gained and 1,168 shares fell. A total of 94 shares were unchanged.
The BSE Mid-Cap index was up 18.75 points or 0.21% at 9,054. The BSE Small-Cap index was up 33.83 points or 0.34% at 9,907.47. Both these indices outperformed the Sensex.
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The total turnover on BSE amounted to Rs 1264 crore by 11:15 IST, compared with Rs 863 crore by 10:15 IST.
Among the 30-share Sensex pack, 19 stocks gained and the rest of them declined.
Infosys (up 1.51%), Wipro (up 1.42%) and Tata Motors (up 1.14%) edged higher from the Sensex pack.
Maruti Suzuki India fell 1.56%. Maruti Suzuki India during market hours today, 19 June 2014, said that the company has commissioned a 1 megawatts photovoltaic solar power plant at Manesar this month. Built with an investment of Rs 10.30 crore, the solar power plant will help the company offset CO2 emissions to the tune of over 1200 tonnes annually, Maruti Suzuki India said. The power generated from the solar plant at Manesar is synchronized with the natural gas based captive power plant and is used to complement the power requirement in the facility, Maruti said.
Capital goods stocks edged higher on renewed buying. Punj Lloyd (up 7.96%), BEML (up 2.07%), Bharat Heavy Electricals (Bhel) (up 1.63%), L&T (up 0.39%) and Siemens (up 0.34%) gained. Thermax (down 1.33%) and ABB India (down 1.09%) declined.
Bharat Electronics gained 4.64% to Rs 1909.75 after scaling a 52-week high of Rs 1,945.30 in intraday trade.
Crompton Greaves rose 0.89%. According to reports, Crompton Greaves has put a part of its land parcel at LBS Marg in the eastern suburbs of Mumbai for sale. Crompton Greaves has put on the block 8-10 acres out a total of the 32-34-acre. The rest will be sold in tranches, reports suggest. The total valuation of the 32-34-acre plot is estimated at Rs 1400 crore, reports added. Reports suggested that most leading builders were in the race to buy the land parcel, adding Lodha, Runwal and Oberoi Realty were the frontrunners.
ALSTOM India rose 3.23% to Rs 564.10 after scaling a 52-week high of Rs 573 in intraday trade.
Shares of PSU OMCs dropped after international crude oil prices firmed up. HPCL (down 1.43%), BPCL (down 1.91%) and Indian Oil Corporation (down 1.34%) edged lower.
Higher crude oil prices could increase under-recoveries of PSU OMCs on domestic sale of diesel, LPG and kerosene at controlled prices. The government has already freed pricing of petrol.
Shares of state-run upsteam oil firms dropped on concerns their subsidy burden will rise along with increase in crude oil prices. ONGC was off 5.2% at Rs 419.95. Oil India was off 4% at Rs 574.40. ONGC and Oil India share part of the under-recoveries of state-run oil refining-cum-marketing firms (PSU OMCs ) arising from the government-imposed price caps on prices three key fuels -- diesel, LPG for domestic use and kerosene sold through the public distribution system.
Zee Entertainment Enterprises rose 1.01%. Zee Media Corporation rose 0.48%. Zee Entertainment Enterprises after market hours on Wednesday, 18 June 2014, said its subsidiary Taj Television India will now distribute all the channels of Zee Entertainment Enterprises and Zee Media Corporation while also representing Turner channels as its authorized agent. Taj Television is India's largest distribution agency and has a repertoire of over 45 leading television channels.
Key benchmark indices edged higher in early trade as Asian stocks after the US Federal Reserve on Wednesday, 18 June 2014, after a monetary policy review said a highly accommodative stance of monetary policy remains appropriate at this juncture. Volatility struck the bourses in morning trade as the key benchmark indices retreated from intraday high hit in early trade only to regain strength later. The 50-unit CNX Nifty regained positive zone soon after reversing intraday gain to briefly turn negative. Volatility continued in mid-morning trade as the key benchmark indices regained positive zone after hitting fresh intraday low in negative zone.
Brent crude rose as investors worried about exports from Iraq as militant violence in the country continues. Brent crude futures for August delivery were up 30 cents at $114.56 a barrel.
Increase in oil prices has triggered macroeconomic worries for India which imports majority of its crude oil requirements. Increase in crude oil prices have raised concerns of increase in fuel price inflation and increase in India's current account deficit and fiscal deficit.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 366.18 crore on Wednesday, 18 June 2014, as per provisional data from the stock exchanges.
In the foreign exchange market, the rupee edged higher against the dollar after the US Federal Reserve signalled that interest rates will stay low for a while yet. The partially convertible rupee was hovering at 60.06, compared with its close of 60.39/40 on Wednesday, 18 June 2014.
Asian markets edged higher on Thursday, 19 June 2014, on the optimism of Wall Street after the US Federal Reserve gave a positive assessment of the world's largest economy and committed to retaining its accommodative monetary policy. Key benchmark indices in Singapore, Taiwan, South Korea, Hong Kong and Japan rose by 0.04% to 1.21%. Key benchmark indices in Indonesia and China fell by 0.33% to 0.61%.
Chinese Premier Li Keqiang vowed that his nation's economy will not suffer a so-called "hard landing," a report said.
Trading in US index futures indicated that the Dow could rise 5 points at the opening bell on Thursday, 19 June 2014. US stocks rallied on Wednesday, 18 June 2014, gaining the most in four weeks, after the Federal Reserve chief signaled no hurry to raise rates.
The Federal Reserve said growth is bouncing back and the job market is improving as it continued to reduce the monthly pace of asset purchases. The Federal Open Market Committee trimmed bond-buying by $10 billion for a fifth straight meeting, to $35 billion, keeping it on pace to end the program late this year.
In a statement, the Federal Open Market Committee (FOMC) said that if the incoming information broadly supports the committee's expectation of ongoing improvement in US labor market conditions and inflation moving back toward its longer-run objective, the committee will likely reduce the pace of asset purchases in further measured steps at future meetings. However, asset purchases are not on a preset course, and the committee's decisions about their pace will remain contingent on the committee's outlook for the labor market and inflation as well as its assessment of the likely efficacy and costs of such purchases. To support continued progress toward maximum employment and price stability, a highly accommodative stance of monetary policy remains appropriate at this juncture, the FOMC said. In determining how long to maintain the current zero to 1/4 percent target range for the federal funds rate, the committee will assess progress--both realized and expected--toward its objectives of maximum employment and 2% inflation, the FOMC said. The committee continues to anticipate, based on its assessment of these factors, that it likely will be appropriate to maintain the current target range for the federal funds rate for a considerable time after the asset purchase program ends, especially if projected inflation continues to run below the committee's 2% longer-run goal, and provided that longer-term inflation expectations remain well anchored.
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