Key benchmark indices edged higher in early trade after provisional data showed that foreign investors remained net buyers of Indian stocks on Friday, 4 July 2014. The barometer index, the S&P BSE Sensex, hit record high, crossing the 26,000 mark for the first time. The 50-unit CNX Nifty also scaled record high. The Sensex was up 100.12 points or 0.39%, up about 30 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. Indian stocks are witnessing a pre-Budget rally amid expectations that Finance Minister Arun Jaitley will announce measures aimed at bolstering economic growth.
Hero MotoCorp (HMCL) gained after the company announced the formation of a wholly-owned subsidiary in Colombia and the commencement of a state-of-the-art manufacturing plant in the country. Tata Power Company gained after the company said it has signed option agreement to sell 5% stake in a coal mine in Indonesia for $250 million to a Bakrie group entity. Adani Ports and Special Economic Zone (APSEZ) edged higher after the company said it has signed an agreement with France's CMA CGM Group to develop a new common user container terminal at Mundra Port. Ashok Leyland gained after the company said it has raised Rs 666.72 crore by allotting shares to Qualified Institutional Buyers (QIB).
At 9:30 IST, the S&P BSE Sensex was up 100.12 points or 0.39% to 26,062.18. The index jumped 137.29 points at the day's high of 26,099.35 in early trade, a lifetime high of the index. The index rose 68.99 points at the day's low of 26,031.05 in early trade.
The CNX Nifty was up 26.85 points or 0.35% to 7,778.45. The index hit a high of 7,787.95 in intraday trade, a lifetime high of the index. The index hit a low of 7,765.80 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,120 shares gained and 429 shares fell. A total of 57 shares were unchanged.
The BSE Mid-Cap index was up 47.85 points or 0.5% at 9,593.60. The BSE Small-Cap index was up 84.73 points or 0.81% at 10,592.76. Both these indcies outperformed the Sensex.
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Tata Power Company gained 2.79% to Rs 110 after the company said after market hours on Friday, 4 July 2104, that it has signed option agreements to sell 5% stake in PT Kaltim Prima Coal KPC) for $250 million to a Bakrie group entity to get additional cash flow as well as to reduce its consolidated debt. Tata Power said that that the company is facing under-recovery and cash flow challenges due to its Mundra Ultra Mega Power Project (UMPP) operations and therefore it took decision to sell a part of its stake in the Indonesia coal mine. In addition, the entire 30% stake in KPC related power infrastructure companies is also covered for sale in the agreement to the same Bakrie group entity, Tata Power said. KPC will continue to be a part of supply chain for Tata Power Group's coal offtake requirements. Tata Power will continue to hold the remaining 25% stake in KPC.
Hero MotoCorp (HMCL) gained 1.06% to Rs 2,609.95 after the company announced on Sunday, 6 July 2014, the formation of a wholly-owned subsidiary in Colombia and the commencement of a state-of-the-art manufacturing plant in the country.
With a project cost of $70 million, HMCL will invest $38 million in capital expenditure, with the rest being utilised as working capital over the next three-year period. The equity investment will be made through HMCL's wholly-owned subsidiary in the Netherlands viz. HMCL BV. The state-of-the-art manufacturing plant is expected to go on stream by the middle of calendar year 2015 with an initial installed capacity of 78,000 units. This will go up to around 150,000 units in the second phase. With this, Hero MotoCorp will be the first Indian two-wheeler company to have a manufacturing plant in Latin America.
The company's decision to start a new plant in Colombia is in line with the company's vision of expanding its global footprint to as many as 50 countries by 2020. By the year 2020, the company aims to cross 100 million units in cumulative production, and annual bike and scooter sales of 12 million units. It also plans to have more than 20 manufacturing and assembly plants across the globe with sales in more than 50 countries by that year.
Ashok Leyland gained 2.49% to Rs 37 after the company said after market hours on Friday, 4 July 2014, that the Fund Raising Committee of the company at its meeting held 4 July 2014, approved the issue and allotment of 18.52 crore shares to eligible Qualified Institutional Buyers (QIB) at the issue price of Rs 36 per share, aggregating to Rs. 666.72 crore.
IDBI Bank gained 0.74% to Rs 108.60. The bank said after market hours on Friday, 4 July 2104, that the Board of Directors of the bank has approved the proposal for mobilization in one or more tranches of Rs 4000 crore and foreign currency resources upto $7.5 billion equivalent outstanding, comprising of Senior Bonds, Basel III Compliant Tier II/Additional Tier I Bonds, by way of Private Placement/Public Issue/Reverse Enquiry/Issuances under MTN programme during the financial year ending 31 March 2015 (FY 2015).
Adani Ports and Special Economic Zone (APSEZ) rose 1.67% to Rs 279.75 after the company said after market hours on Friday, 4 July 2104, that it has signed an agreement with France's CMA CGM Group to develop a new common user container terminal at Mundra Port. This will be the 4th container terminal at Mundra and will be a 650 meters terminal along with 27 hectares of back area, capable of handling 1.3 million TEUs annually. Following this announcement, the construction phase will be initiated immediately and completion will be in a record 24 months. The new terminal will be set up as an equal joint venture between APSEZ and CMA CGM Group.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 943.19 crore on Friday, 4 July 2014, as per provisional data from the stock exchanges
The market has entered a crucial week. Railway Minister Sadananda Gowda will present the final Railway Budget for 2014-15 in Lok Sabha tomorrow, 8 July 2014. On Wednesday, 9 July 2014, the Finance Ministry will table Economic Survey for 2013-14. Jaitley will present the the final Union Budget for 2014-15 in Lok Sabha at 11:00 IST on Thursday, 10 July 2014. After a clear mandate in Lok Sabha elections this year and with BJP perceived as a business friendly party, expectations from the Budget are running high.
There are expectations that the finance minster will announce measures in the Budget aimed at bolstering economic growth. Increase in outlay on infrastructure sector with focus on stricter and time-bound implementation of projects, initiatives towards investments in agriculture and irrigation aimed at easing supply bottlenecks for food-grains, 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.
Asian stocks edged lower on Monday, 7 July 2104. Key benchmark indices in China, South Korea, Taiwan, Hong Kong, and Japan were off 0.05% to 0.55%. Key benchmark indices in Indonesia and Singapore were up 0.08% to 0.8%.
Business activity in emerging markets expanded last month at its fastest rate since March 2013, boosted by strong growth in China and India, a survey showed today, 7 July 2014. HSBC's composite emerging markets index of manufacturing and services purchasing managers' surveys jumped to 52.3 in June - well above the 50 threshold that indicates expansion - from 50.6 in May.
US markets were closed on Friday, 4 July 2014, for Independence Day holiday.
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