Volatility continued as the key benchmark indices traded off the day's highs in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was up 65 points or 0.26%, off 164.68 points from the day's high and up 51.66 close to points from the day's low. The market breadth indicating the overall health of the market was positive. The BSE Mid-Cap index was up 1.01%. The BSE Small-Cap index was up 1.33%. Both these indices outperformed the Sensex. The market sentiment was positive as data released by the government after trading hours yesterday, 14 July 2014, showed that retail inflation eased in June 2014. Easing inflation provides space for the Reserve Bank of India (RBI) to cut policy rates to revive economic growth.
State Bank of India (SBI) advanced after the state-run bank during market hours said it has revised downwards its bulk and retail term deposit interest rates for select maturities with effect from 18 July 2014. Interest rate sensitive realty stocks gained after the latest data showed retail inflation eased in June 2014. Among side counters, Clariant Chemicals scaled record high.
At 14:15 IST, the S&P BSE Sensex was up 65 points or 0.26% to 25,071.98. The index jumped 229.68 points at the day's high of 25,236.66 in morning trade, its highest level since 11 July 2014. The index rose 13.34 points at the day's low of 25,020.32 in early afternoon trade.
The CNX Nifty was up 25.15 points or 0.34% to 7,479.30. The index hit a high of 7,524.20 in intraday trade, its highest level since 11 July 2014. The index hit a low of 7,459.15 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,592 shares gained and 1,165 shares fell. A total of 94 shares were unchanged.
The BSE Mid-Cap index was up 89.74 points or 1.01% at 8,963.44. The BSE Small-Cap index was up 127.95 points or 1.33% to 9,770.41. Both these indices outperformed the Sensex.
Among the 30-share Sensex pack, 16 stocks gained and rest of them declined.
ICICI Bank (up 2.56%), ONGC (up 1.59%) and Coal India (up 1.34%) edged higher from the Sensex pack.
Dr Reddy's Laboratories (down 2.36%), Sesa Sterlite (down 1.9%) and Hero MotoCorp (down 1.87%) edged lower from the Sensex pack.
State Bank of India (SBI) advanced 2.32%. The state-run bank during market hours said it has revised downwards its bulk term deposit interest rates (Rs 1 crore and above) to 6.25% from 6.5% for deposits between 7 days to 60 days with effect from 18 July 2014. SBI also revised downwards its bulk term deposit interest rates to 6.75% from 7% for deposits between 61 days to less than 1 year.
SBI also revised downwards its retail term deposit interest rates (below Rs 1 crore) to 7% from 7.5% for deposits between 7 days to 179 days with effect from 18 July 2014.
Interest rate sensitive realty stocks gained after the latest data showed retail inflation eased in June 2014. Easing inflation provides space for the Reserve Bank of India (RBI) to cut policy rates to revive stalled economic growth. Lower interest rates may help revive demand for properties. Purchases of both residential and commercial property are largely driven by finance.
DLF (up 1.32%), Indiabulls Real Estate (up 0.62%), Housing Development and Infrastructure (up 1.55%), D B Realty (up 1.68%), Unitech (up 1.86%), Godrej Properties (up 0.2%), and Parsvnath Developers (up 1.33%) gained. Oberoi Realty fell 1.32%.
Clariant Chemicals jumped 6.17% to Rs 933.30 after scaling a record high of Rs 964.90 in intraday trade.
NIIT Technologies lost 8.88% after consolidated net profit declined 18.7% to Rs 43.20 crore on 6.6% growth in revenue to Rs 577.60 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced during market hours today, 15 July 2014.
NIIT Technologies attributed the decline in bottom line during the quarter to lower other income at Rs 3.60 crore in Q1 June 2014 as compared to Rs 20.60 crore in Q1 June 2013, on account of revaluation of current assets and liabilities due to rupee depreciation.
The company added 4 new clients, two in BFSI and two in the Travel and Transportation segment during the quarter. The company said that $295 million worth of business is executable over the next 12 months from the order book.
Easing of retail inflation in June 2014, gains in Asian stocks and overnight upmove in US stocks triggered a firm opening on the domestic bourses. Key benchmark indices trimmed gains after hitting fresh intraday high in morning trade. Firmness continued on the bourses in mid-morning trade. Key benchmark indices trimmed gains after a sudden slide in early afternoon trade. A bout of volatility was witnessed as key benchmark indices recovered from lower level after giving away most of the intraday gains in afternoon trade. Volatility continued as the key benchmark indices traded off the day's highs in mid-afternoon trade.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 60.11, compared with its close of 60.07/08 on Monday, 14 July 2014.
On the macro front, the annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India eased to 7.31% in June 2014, from 8.28% in May 2014, data released by the government after trading hours on Monday, 14 July 2014, showed. The rate of inflation based on the combined consumer food price indices (CFPI) for urban and rural India eased to 7.97% in June 2014, from 9.56% in May 2014, the data showed. Core CPI inflation which excludes food and energy prices, eased to 7.39% in June 2014, from 7.71% in May 2014.
Inflation based on the wholesale price index eased to 5.43% in June 2014, from 6.01% in May 2014, data released by the government during trading hours on Monday, 14 July 2014, showed.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 5 August 2014.
European stocks edged lower on Tuesday, 15 July 2014, as investors awaited Federal Reserve Chair Janet Yellen's semi-annual testimony later in the global day. Key benchmark indices in France and Germany were off 0.19% to 0.2%. UK's FTSE 100 was up 0.19%.
Asian stocks edged higher on Tuesday, 15 July 2014, after the Dow Jones industrial average hit an intraday record on Monday, 14 July 2014, boosted by Citigroup's better-than-expected earnings and a fresh round of merger and acquisition activity in the US healthcare industry. Key benchmark indices in Taiwan, Hong Kong, Japan, Indonesia, China and South Korea rose by 0.18% to 0.94%. Singapore's Straits Times fell 0.07%.
The Bank of Japan kept its record stimulus unchanged and forecast inflation will pick up to its 2% price target. The central bank stuck with its goal of an annual increase in the monetary base of between 60 trillion yen and 70 trillion yen ($690 billion), it said in a statement today, 15 July 2014, in Tokyo at the end of a two-day monetary policy review.
China will release second-quarter GDP data tomorrow, 16 July 2014.
Trading in US index futures indicated that the Dow could gain 7 points at the opening bell on Tuesday, 15 July 2014. US stocks ended higher on Monday, 14 July 2014, with the Dow Jones industrial average hitting an intraday record, helped by Citigroup's better-than-expected earnings and more deals in the healthcare sector.
Investors are awaiting Federal Reserve Chair Janet Yellen's testimony before the congress due later in the day
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