Key benchmark indices saw divergent trend and hovered near the flat line in early afternoon trade. The barometer index, the S&P BSE Sensex, was currently slightly lower for the day after trimming intraday losses. The 50-unit CNX Nifty regained positive zone. The Sensex was down 10.99 points or 0.04%, up 44.27 points from the day's low and off 71.74 points from the day's high. The market breadth indicating the overall health of the market was positive. The BSE Mid-Cap index was up 1.04%.
Bajaj Auto reversed intraday gains after the company reported a flat bottom line in Q1 June 2014. Metal and mining stocks extended recent gains. Tata Sponge Iron scaled record high.
At 12:15 IST, the S&P BSE Sensex was down 10.99 points or 0.04% to 25,538.73. The index gained 60.75 points at the day's high of 25,610.47 in early trade, its highest level since 10 July 2014. The index fell 55.26 points at the day's low of 25,494.46 in early afternoon trade.
The CNX Nifty was up 6.75 points or 0.09% to 7,631.15. The index hit a high of 7,643.60 in intraday trade, its highest level since 10 July 2014. The index hit a low of 7,612.70 in intraday trade.
The market breadth, indicating the overall health of the market was positive. On BSE, 1,525 shares gained and 1,051 shares fell. A total of 110 shares were unchanged.
The BSE Mid-Cap index was up 95.18 points or 1.04% at 9,261.10. The BSE Small-Cap index was up 92.16 points or 0.92% at 10,149.53. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2855 crore by 12:15 IST, compared with Rs 2513 crore by 11:15 IST.
Among the 30-share Sensex pack, 17 stocks gained and rest of them declined.
Bajaj Auto reversed intraday gains after the company reported a flat bottom line in Q1 June 2014. The stock was off 2.21% at Rs 2,093. The stock hit high of Rs 2,155 and low of Rs 2,084.10 so far during the day. Bajaj Auto's net profit rose 0.31% to Rs 739.98 crore on 7.57% increase in total income to Rs 5471.68 crore in Q1 June 2014 over Q1 June 2013. Operating EBITDA margin before mark-to-market (MTM) foreign exchange gain/loss declined to 19.6% in Q1 June 2014, from 21.3% in Q1 June 2013. The result was announced during trading hours today, 17 July 2014.
Bajaj Auto said that the company's market share in the segment is expected to improve with the proposed launch of a new Discover motorcycle model in the coming month. The company also said that with the opening of new permits, the outlook for the commercial vehicle segment is positive. The company also said that with exports to Egypt resuming in July 2014 and relative normalcy across major geographical markets, the outlook for exports for coming quarters is encouraging.
Metal and mining stocks extended Wednesday's gains triggered by data showing acceleration in China's GDP growth to 7.5% in Q2 June 2014, from 7.4% in Q1 March 2014. China is the world's largest consumer of copper and aluminum.
NMDC (up 0.5%), National Aluminium Company (up 0.54%) and Hindustan Copper (up 0.64%) edged higher. Hindustan Zinc fell 0.36%.
Hindalco Industries rose 1.24%, with the stock extending Wednesday's gain triggered by upgrade in rating of the stock from a foreign brokerage to 'buy' from 'underperform'. The brokerage cited positive outlook for aluminium prices, better margins at Hindalco's US subsidiary Novelis and balance sheet deleveraging as key reasons for upgrading shares of Hindalco Industries.
The government raised export duty on bauxite from 10% to 20% in Union Budget 2014-15. Increase in export duty on bauxite will be favourable for aluminium smelters like Hindalco and Sesa Sterlite who will benefit from the resultant increase in domestic bauxite supply.
Shares of Sesa Sterlite rose 0.83%.
Steel stocks gained across the board as higher outlay for housing, road, port, urban and rural housing and infrastructure development in Union Budget 2014-15 would help improve steel consumption.
Jindal Steel & Power (up 2.24%), JSW Steel (up 0.57%), Tata Steel (up 1.3%), and Steel Authority of India (Sail) (up 1.93%) gained.
Tata Sponge Iron surged 4.92% to Rs 744 after hitting a record high of Rs 756 in intraday trade.
Britannia Industries rose 0.49%. Britannia Industries during market hours said that the contract workers at the company's factory located in Delhi have gone on an illegal strike. The illegal strike has had a partial impact on the production/operation at the factory. Britannia said that the strike has a very small impact on the overall business/operation of the company including the availability of the finished products in the market.
With small initial gains, the Sensex and the 50-unit CNX Nifty, both, hit one week high. Key benchmark indices slipped into negative zone from positive zone in mid-morning trade. Key benchmark indices saw divergent trend and hovered near the flat line in early afternoon trade.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 60.145, compared with its close of 60.13 on Wednesday, 16 July 2014.
Asian stocks edged lower today, 17 July 2014, after the US and European Union imposed further sanctions on Russian businesses for Russia's failure to defuse fighting in Ukraine. Key benchmark indices in Indonesia, Japan, Singapore, China, Taiwan and Hong Kong were off 0.06% to 0.82%. South Korea's Seoul Composite index rose 0.37%.
Trading in US index futures indicated that the Dow could fall 25 points at the opening bell on Thursday, 17 July 2014. US stocks advanced on Wednesday, 16 July 2014, sending the Dow Jones Industrial Average to an all-time high, as companies from Time Warner Inc. to Intel Corp. rallied amid deals and earnings reports.
The Federal Reserve said in its Beige Book business survey released on Wednesday, 16 July 2014, that economic growth was modest to moderate in the latest period as all 12 of its districts reported stronger consumer spending and expanded manufacturing.
Federal Reserve Chairwoman Janet Yellen concluded her two-day appearance testifying on Capitol Hill. In her comments, she reportedly stressed a softer line on stock valuations, saying the Fed doesn't have a target for equity values. The central bank instead looks to see if valuations are outside historical norms. In that sense, I am not seeing alarming warning signals, she said Wednesday, 16 July 2014.
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