Key benchmark indices extended initial gains and hit fresh intraday high in morning trade. The barometer index, the S&P BSE Sensex, and the 50-unt CNX Nifty, both, hit 1-1/2-week high. The Sensex was up 201.17 points or 0.78%, up about 75 points from the day's low and off close to 15 points from the day's high. The market breadth indicating the overall health of the market was strong, with three gainers for every loser on BSE. The BSE Mid-Cap index rose 1.2%. The BSE Small-Cap index gained 1.31%. Both these indices outperformed the Sensex. Firmness in Asian stocks, provisional data showing buying by foreign portfolio investors during the previous trading session and improvement in rainfall last week boosted sentiment on the domestic bourses.
Bank stocks gained, with Axis Bank scaling record high. Kotak Mahindra Bank rose after the bank said it has entered into a Share Purchase Agreement to purchase 76.49 lakh shares aggregating to 15% equity stake in Multi Commodity Exchange of India (MCX) from Financial Technologies (India) (FTIL) for a consideration of Rs 459 crore. Shares of MCX and FTIL surged after the announcement. HDFC Bank rose ahead of its Q1 results today, 21 July 2014.
At 10:20 IST, the S&P BSE Sensex was up 201.17 points or 0.78% to 25,842.73. The index surged 219.59 points at the day's high of 25,861.15 in morning trade, its highest level since 10 July 2014. The index rose 127.65 points at the day's low of 25,769.21 in early trade.
The CNX Nifty was up 48.80 points or 0.64% to 7,712.70. The index hit a high of 7,722.10 in intraday trade, its highest level since 10 July 2014. The index hit a low of 7,700.95 in intraday trade.
The market breadth indicating the overall health of the market was strong, with three gainers for every loser on BSE. On BSE, 1,439 shares rose and 405 shares fell. A total of 65 shares were unchanged.
The BSE Mid-Cap index was up 111.35 points or 1.2% at 9,364.15. The BSE Small-Cap index was up 133.11 points or 1.31% at 10,313.95. Both these indices outperformed the Sensex.
Bank stocks gained. Among private sector banks, ICICI Bank (up 0.72%), IndusInd Bank (up 1.38%), Yes Bank (up 1.09%), and Federal Bank (up 1.11%), gained.
Axis Bank rose 0.98% to Rs 2,015.65 after hitting record high of Rs 2,022.65 in intraday trade.
HDFC Bank rose 1.52% ahead of its Q1 results today, 21 July 2014.
Among PSU bank stocks, State Bank of India (SBI) (up 2.34%), Canara Bank (up 2.48%), Union Bank of India (up 1.53%), Bank of India (up 1.12%), Bank of Baroda (up 1.03%) and Punjab National Bank (up 0.89%) gained.
Kotak Mahindra Bank rose 2.63% after the bank said before market hours that the bank on 20 July 2014 has entered into a Share Purchase Agreement to purchase 76.49 lakh shares aggregating to 15% equity stake in Multi Commodity Exchange of India MCX (India), from Financial Technologies (India), for a consideration of Rs 459 crore. The final closing is subject to certain conditions to be fulfilled including regulatory approvals.
Shares of MCX surged 11.47% to Rs 877.25 after hitting 52-week high of Rs 895 in intraday trade. Financial Technologies (India) jumped 6.98%.
After the latest stake sale, FTIL's shareholding in MCX will come down to 5%, which is under lock-in till 7 March 2015. In a statement, FTIL said it will continue with its divestment of process to sell the balance 5% stake in MCX subject to receipt of binding bids and regulatory and other approvals.
Key benchmark indices surged in early trade as firmness in Asian stocks, provisional data showing buying by foreign portfolio investors during the previous trading session and improvement in rainfall last week boosted sentiment. Key benchmark indices extended initial gains and hit fresh intraday high in morning trade. The Sensex and the 50-unt CNX Nifty, both, hit 1-1/2-week high.
The market sentiment was boosted by provisional data showed that foreign portfolio investors were buyers of Indian stocks during the previous trading session. Foreign portfolio investors (FPIs) bought shares worth a net Rs 574.47 crore on Friday, 18 July 2014, as per provisional data from the stock exchanges.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.20, compared with its close of 60.275 on Friday, 18 July 2014.
Union Minister of State (MoS) Science and Technology (Independent Charge), Earth Sciences (Independent Charge), MoS in Prime Minister's Office (PMO), Department of Personnel and Training, Atomic Energy, Space and Earth Sciences, Dr. Jitendra Singh said on Sunday, 20 July 2014, that there has been significant increase in the monsoon during the last one week beginning from 13 July 2014. While during the month of June and first two weeks of July, the monsoon was deficient by 43%, in the week beginning 13 July 2014, the deficiency was 32%, thus, recording an improvement of 11% in the monsoon level.
The monsoon forecast for next two weeks is also good, particularly in Central India and coastal regions of South India. There is, therefore, no reason to be unnecessarily alarmist on the issue of monsoon, Dr. Singh said. From 1 August onwards, he said, the meteorological predictions indicate active rainfall in the country.
Rains are vital to India's farm sector, which accounts for about 14% of the country's nearly $2 trillion economy. Two-thirds of its 1.2 billion population live in rural areas.
Asian stocks rose today, 21 July 2014, joining a global rebound after the downing of a passenger jet in Ukraine and Israel's invasion of Gaza affected investor sentiment adversely in the recent past. Key benchmark indices in Indonesia, Hong Kong, Taiwan, Singapore, and South Korea rose by 0.01% to 0.7%. China's Shanghai Composite fell 0.18%.
Trading in US index futures indicated that the Dow could fall 11 points at the opening bell on Monday, 21 July 2014. US stocks rose on Friday, 18 July 2014, where better earnings from Google Inc., the world's third-largest company, refocused investors on economic growth amid crises in the Middle East and Ukraine.
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