Expectations of a growth oriented Budget, decline in crude oil prices and signs of pick up in monsoon rains aided rally on the domestic bourses. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit record high on intraday as well as on closing basis. Gains in world markets and provisional data showing that foreign investors made decent purchases of Indian stocks on Tuesday, 1 July 2014, boosted sentiment. The Sensex garnered 324.86 points or 1.27%, up 181.05 points from the day's low and off 23.32 points from the day's high. The market breadth indicating the overall health of the market was strong. All the twelve sectoral indices on BSE were in the green.
Maruti Suzuki India extended Tuesday's gains triggered by the company reporting robust sales in June. Mahindra & Mahindra (M&M) extended Tuesday's gains triggered by the company announcing decent tractor sales in June. Bajaj Auto edged higher after the company reported increase in sales volume for June.
Cement stocks gained. Many realty stocks edged higher on hopes of favorable announcements for the sector in the final Union Budget 2014-15 to be unveiled on 10 July 2014. Adani Ports and Special Economic Zone scaled record high. CESC also scaled record high. Novartis India hit 52-week high. 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. L&T rose after the company said that its construction division won new orders worth Rs 2002 crore across various segments in June 2014.
The S&P BSE Sensex garnered 324.86 points or 1.27% to settle at 25,841.21, a record closing high for the barometer index. The index jumped 348.18 points at the day's high of 25,864.53 in late 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 garnered 90.45 points or 1.18% to settle at 7,725.15, a record closing high for the index. The index hit a high of 7,732.40 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, 1,907 shares gained and 1,157 shares fell. A total of 114 shares were unchanged.
Also Read
The BSE Mid-Cap index garnered 73.16 points or 0.78% to settle at 9,506.90. The BSE Small-Cap index garnered 112.55 points or 1.09% to settle at 10,434.18. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 4299 crore, higher than Rs 3747.41 crore on Tuesday, 1 July 2014.
All the sectoral indices on BSE logged gains. The S&P BSE Metal index (up 2.01%), the S&P BSE Power index (up 1.93%), the S&P BSE Healthcare index (up 1.88%), the S&P BSE Capital Goods index (up 1.67%), the S&P BSE Auto index (up 1.42%) and the S&P BSE Consumer Durables index (up 1.31%) outperformed the Sensex.
The S&P BSE FMCG index (up 1.12%), the S&P BSE Bankex (up 1.02%), the S&P BSE Oil & Gas index (up 0.98%), the S&P BSE Realty index (up 0.39%), the S&P BSE Teck index (up 0.18%) and the S&P BSE IT index (up 0.05%) underperformed the Sensex.
Among the 30-share Sensex pack, 28 stocks gained and two fell.
Index heavyweight and cigarette major ITC rose 1.11% to Rs 328.75. There has been speculation that the government will increase excise duty on cigarettes in the Budget, including on cigarettes of stick size of less than 65 mm in length which currently enjoys lower excise duty.
United Spirits rose gained 2.45% to Rs 2,474.90. The world's largest spirits maker Diageo plc today, 2 July 2014, said that the company through its wholly-owned subsidiary, Relay B.V., has accepted the tender of 3.77 crore shares in United Spirits (USL) representing 26% stake in USL at a price of Rs 3,030 per share under the tender offer announced on 15 April 2014. The aggregate consideration for these shares is Rs 11448.91 crore.
Diageo's prior interest in USL was 28.78%, acquired for Rs 6574.21 crore. Diageo, therefore, will have a total interest of 54.78% in USL acquired for a total consideration of Rs 18023.13 crore.
L&T rose 1.67% after the company said during market hours that its construction division won new orders worth Rs 2002 crore across various segments in June 2014.
L&T could be major beneficiary of the government's thrust on the infrastructure sector. There are expectations of higher allocations for power, roads, ports, rivers, and railways in the final Union Budget 2014-15 to be unveiled on 10 July 2014, with focus on stricter and time-bound implementation of projects.
Adani Ports and Special Economic Zone jumped 10.69% to Rs 270.20 after scaling a record high of Rs 278.70 in intraday trade. Media reports recently said that the company is looking to buy a port on the southeast coast to strengthen its presence across the country. In clarification to the media reports, Adani Ports and Special Economic Zone after market hours on Tuesday, 1 July 2014, said that the company does not comment on market rumours.
Cement stocks gained on a likely thrust on infrastructure sector in the Budget. ACC (up 2.11%), UltraTech Cement (up 0.84%) and Ambuja Cements (up 0.63%) gained.
Coal India rose 2.38% after the company declared production and offtake data. Coal India said that the company and its subsidiary companies' production on provisional basis was 94% of targeted production at 34.54 million tonnes in June 2014. Coal India and its subsidiary companies' offtake on provisional basis was 91% of targeted offtake at 38.29 million tonnes in June 2014.
Coal India said that the company and its subsidiary companies' production on provisional basis was 96% of targeted production at 108.33 million tonnes between April 2014 and June 2014. Coal India's coal production rose 5.3% to 108.33 million tonnes during April-June 2014 over April-June 2013. Coal India and its subsidiary companies' offtake on provisional basis was 91% of targeted offtake at 119.55 million tonnes between April 2014 to June 2014. Coal India's coal offtake rose 3.6% to 119.55 million tonnes during April-June 2014 over during April-June 2013.
The company made the announcement during trading hours today, 2 July 2014.
Maruti Suzuki India rose 2.14% to Rs 2,640.15, with the stock extending Tuesday's gains triggered by the company reporting robust sales in June. The stock hit record high of Rs 2.663 in intraday trade. Maruti's total sales rose 33.5% to 1.12 lakh units in June 2014 over June 2013. Domestic sales rose 31.1% to 1 lakh units in June 2014 over June 2013. Exports jumped 58.4% to 11,809 units in June 2014 over June 2013. The company announced sales figures during trading hours on Tuesday, 1 July 2014.
Mahindra & Mahindra (M&M) rose 2% to Rs 1,218 with the stock extending Tuesday's gains triggered by the company announcing decent tractor sales in June. The company's total tractor sales rose 8% to 29,884 units in June 2014 over June 2013. M&M's domestic tractor sales rose 8% to 28,893 units in June 2014 over June 2013. Total tractor exports fell 3% to 991 units in June 2014 over June 2013. The company announced sales figures during trading hours on Tuesday, 1 July 2014.
In a separate announcement on Tuesday, M&M reported 1% rise in total automobile sales to 38,471 units in June 2014 over June 2013. Total domestic automobiles sales rose 1% to 36,457 units in June 2014 over June 2013. Total automobiles exports rose 7% to 2,014 units in June 2014 over June 2013.
Tata Motors rose 0.45% to Rs 453. The stock hit high of Rs 458.30 and low of Rs 445. The company's total sales (including exports) of Tata commercial and passenger vehicles in June 2014 declined 27% to 38,557 vehicles, in June 2014 over June 2013. The company's domestic sales of Tata commercial and passenger vehicles for June 2014 fell 29% to 34,743 vehicles in June 2014 over June 2013. The sales figures were announced after market hours on Tuesday, 1 July 2014.
The company's sales of commercial vehicles in the domestic market fell 27% to 26,832 units in June 2014 over June 2013. Light commercial vehicles (LCV) sales declined 33% to 17,212 units in June 2014 over June 2013, while M&HCV sales fell 14% to 9,620 units in June 2014 over June 2013.
The sales of passenger vehicles were lower by 33% to 7,911 units in June 2014 over June 2013.
The company's exports declined 5% to 3,814 units in June 2014 over June 2013.
Bajaj Auto rose 1.3% to Rs 2,360. The stock hit record high of Rs 2,363.90 in intraday trade. The company said during market hours that its total sales rose 3% to 3.05 lakh units in June 2014 over June 2013. Motorcycles sales rose 3% to 2.62 lakh units in June 2014 over June 2013. Commercial vehicles sales rose 5% to 43,263 units in June 2014 over June 2013. The company's total exports rose 12% to 1.35 lakh units in June 2014 over June 2013.
Hero MotoCorp (up 1.11% to Rs 2,670) and TVs Motor Company (up 2.17% to Rs 167.05) gained.
Ashok Leyland fell 1.63% to Rs 36.15. The stock hit high of Rs 38.10 and low of Rs 36.10. The company reported 7% increase in total sales to 7,452 units in June 2014 over June 2013. Total sales of medium and heavy commercial vehicle (M&HCV) rose 17% to 5,542 units in June 2014 over June 2013. However, total sales of light commercial vehicles (LCV) slipped 15% to 1,910 units in June 2014 over June 2013. The company announced sales figures after trading hours on Tuesday, 1 July 2014.
Escorts gained 3.62% to Rs 141.80. The company after market hours on Tuesday, 1 July 2014, announced that Escorts Agri Machinery Segment (EAM)'s tractor sales fell 1.48% to 6,689 units in June 2014 over June 2013. Domestic sales fell 5.84% to 6,349 units in June 2014 over June 2013. Exports jumped 623.4% to 340 units in June 2014 over June 2013.
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 1.84%), Steel Authority of India (Sail) (up 0.41%), Sesa Sterlite (up 4.32%), Jindal Steel & Power (up 1.68%), JSW Steel (up 1.52%), NMDC (up 0.82%) edged higher. National Aluminum Company (down 0.74%) and Hindustan Copper (down 0.17%) declined.
Hindalco Industries rose 1.34% to Rs 177.55 after hitting 52-week high of Rs 179 in intraday trade.
Tata Steel rose 0.21% 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.
Many bank stocks rose on renewed buying. Among private sector banks, ICICI Bank (up 0.99%), IndusInd Bank (up 0.81%), Yes Bank (up 1.91%), Kotak Mahindra Bank (up 1.15%), HDFC Bank (up 1.81%) and Axis Bank (up 0.25%) gained.
Among PSU bank stocks, State Bank of India (SBI) (up 0.72%), Canara Bank (up 0.29%), Bank of Baroda (up 0.36%) and Vijaya Bank (up 2.57%) gained. Punjab National Bank (down 0.1%), Union Bank of India (down 0.4%) and Bank of India (down 0.36%) declined.
Realty stocks edged higher on hopes of favorable announcements for the sector in the final Union Budget 2014-15 to be unveiled on 10 July 2014. DLF (up 0.99%), Indiabulls Real Estate (up 0.2%), Oberoi Realty (up 3.21%) and Hubtown (up 1.07%) gained. Unitech (down 1.15%) and Housing Development and Infrastructure (down 1.95%),
There are expectations that the government will take steps towards providing the long awaited industry status to the real estate sector and provide boost to low cost housing in the final Union Budget 2014-15 to be unveiled on 10 July 2014. There are also expectations that the tax benefit with respect to interest payment on housing loans will be raised. At present, a maximum deduction of Rs 1.5 lakh is allowed on taxable income towards interest on housing loan.
Castrol India surged 9.06% to Rs 361.60 after hitting a 52-week high of Rs 364.80 in intraday trade. The stock surged on reports that foreign promoter Castrol is exploring options to delist its India subsidiary Castrol India. Castrol holds 70.92% stake in the Castrol India (as per shareholding pattern as on 31 March 2014).
In clarification to the media reports, Castrol India after market hours today, 2 July 2014, said that the company is not aware of any current plans to delist its equity shares from the stock exchanges.
CESC advanced 4.47% to Rs 717.05 after hitting a record high of Rs 737.85 in intraday trade
Apollo Hospitals Enterprise gained 3.82% to Rs 1,026.80. The company today, 2 July 2014, announced leadership reorganization aimed at achieving accelerated growth for the company over the next five years. The company announced the re-designation four executive directors in keeping with the expanded roles and additional responsibilities being assigned to them.
Novartis India galloped 15.71% to Rs 679.95 after hitting a 52-week high of Rs 704 in intraday trade.
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. Key benchmark indices extended intraday gains in early afternoon trade. Key benchmark indices extended intraday gains and hit fresh intraday high in afternoon trade. Key benchmark indices hit fresh record high in mid-afternoon trade. The Sensex and the 50-unit CNX Nifty, both, hit fresh lifetime high in late trade.
Indian stocks gained for the fourth day in a row today, 2 July 2014. The Sensex has risen 778.54 points or 3.1% in four trading days from recent low of 25,062.67 on 26 June 2014. The Sensex has gained 4,670.53 points or 22.06% in calendar year 2014 so far (till 2 July 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 8,392.50 points or 48.09%.
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 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. 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 macroeconomic 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 down 65 cents at $111.64 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 59.70, compared with its close of 60.07/08 on Tuesday, 1 July 2014.
European stocks edged higher on Wednesday, 2 July 2014, as investors awaited reports on US jobs and factory orders. Key benchmark indices in UK and Germany were up 0.19% to 0.31%. France's CAC 40 shed 0.06%.
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, Indonesia, China, South Korea, Singapore and Japan were up 0.29% to 1.55%.
Trading in US index futures indicated that the Dow could gain 8 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.
Powered by Capital Market - Live News