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Sensex, Nifty scale record high

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Last Updated : Jul 08 2014 | 11:55 PM IST

A bout of volatility was witnessed as key benchmark indices trimmed gains after opening on a firm note. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both scaled record high. The Sensex was up 27.48 points or 0.11%, off close to 60 points from the day's high and up about 15 points from the day's low. The market breadth indicating the overall health of the market was positive. Indian stocks are witnessing a pre-Budget rally amid expectations that Finance Minister Arun Jaitley will announce measures in the Budget aimed at bolstering economic growth.

Index heavyweight Reliance Industries (RIL) rose after the company announced that Independent Media Trust (IMT) of which RIL is the sole beneficiary, has completed the acquisition of control of Network 18 Media and Investments (NW18) including its subsidiary TV18 Broadcast (TV18). Shares of NW18 and TV 18 also gained.

At 9:30 IST, the S&P BSE Sensex was up 27.48 points or 0.11% to 26,127.56. The index rose 90.36 points at the day's high of 26,190.44 in early trade, a lifetime high of the index. The index rose 13.15 points at the day's low of 26,113.23 in early trade.

The CNX Nifty was up 0.75 points or 0.01% to 7,787.90. The index hit a high of 7,808.85 in intraday trade, a lifetime high of the index. The index hit a low of 7,785.50 in intraday trade.

The market breadth indicating the overall health of the market was positive. On BSE, 904 shares gained and 630 shares fell. A total of 54 shares were unchanged.

The BSE Mid-Cap index was up 14.91 points or 0.16% at 9,572.05. The BSE Small-Cap index was up 25.87 points or 0.24% at 10,596.65. Both these indcies outperformed the Sensex.

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Sun Pharmaceutical Industries (up 2.36%), GAIL (India) (up 1.11%) and Bajaj Auto (up 0.97%) edged higher from the Sensex pack.

Mahindra & Mahindra (M&M) rose 0.77% to Rs 1,248.45. The company announced after market hours on Monday, 7 July 2014, that it would carry out preventive inspection of some parts of its Scorpio Ex variant manufactured between May 2012 and November 2013. This is in keeping with its customer centric approach as well as in compliance with the voluntary code on vehicle recall. This inspection and necessary part replacement if any, would be carried out with immediate effect and would be done free of cost for Scorpio Lx customers who would be individually contacted by the company/authorised dealers. This recall is limited only to the Scorpio Lx variant manufactured during the above mentioned period and does not affect any other Scorpio variants, M&M said.

Index heavyweight Reliance Industries (RIL) rose 0.44% to Rs 1,030.95 after the company announced after market hours on Monday, 7 July 2014, that Independent Media Trust (IMT) of which RIL is the sole beneficiary, has completed the acquisition of control of Network 18 Media and Investments (NW18) including its subsidiary TV18 Broadcast (TV18).

Network 18 Media rose 3.25% to Rs 62. TV18 Broadcast gained 1.79% to Rs 31.35.

With the completion of this transaction, IMT and RIL have become promoters of NW18 and TV18. The open offers to the public shareholders for acquisition of equity shares of NW18, TV18 and Infomedia Press as announced on 29 May 2014 by IMT are in process and the draft letter of offer has been filed with Securities & Exchange Board of India (Sebi) for its comments, RIL said in a statement.

Jaiprakash Associates fell 0.34% to Rs 73.10. The company after trading hours on Monday, 7 July 2014, said that the Finance Committee of the Board of Directors of the company at its meeting on 7 July 2014 decided to close the bid period for qualified institutional placement (QIP) of shares and approved the issue size at about about Rs 1500 crore. The QIP was priced at Rs 70.27 per share.

The current week is a crucial period for Indian financial markets. Railway Minister Sadananda Gowda will present the final Railway Budget for 2014-15 in Lok Sabha today, 8 July 2014. The Finance Ministry will table Economic Survey for 2013-14 tomorrow, 9 July 2014. Finance Minister Arun Jaitley will present 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 Services Tax are some of the expectations from the Budget.

Asian stocks dropped on Tuesday, 8 July 2014, as earnings guidance from regional tech heavyweight Samsung came in well short of forecasts. Key benchmark indices in China, Singapore, South Korea, Hong Kong, and Japan were off 0.14% to 0.23%. Key benchmark indices in Taiwan and Indonesia rose 0.01% to 0.92%.

US stocks fell Monday, 7 July 2014, on profit booking after Dow Jones Industrial Avergae and the S&P 500 index hit record high last week.

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First Published: Jul 08 2014 | 9:34 AM IST

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