Key benchmark indices edged higher for the second consecutive trading session led by gains in IT and pharmaceutical shares. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit record high on intraday basis as well as on closing basis. The Sensex attained record closing high above 26,000. It was the third time in four days that the Sensex and the Nifty attained record closing high. The Sensex garnered 138.02 points or 0.53%, up about 107 points from the day's low and off close to 23 points from the day's high. 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. The market breadth indicating the overall health of the market was positive. A decline in crude oil prices and data showing that foreign investors remained net buyers of Indian stocks on Friday, 4 July 2014, underpinned sentiment on the domestic bourses.
IT stocks rose as rupee edged lower against the dollar, with TCS hitting record high. Capital goods stocks gained on renewed buying. Among auto shares, Tata Motors scaled record high. Tata Power Company gained after the company said it has signed option agreement to sell 5% stake in a coal mine in Indonesia for $250 million to a Bakrie group entity. IDFC gained after a foreign investment bank upgraded the stock to overweight from underweight. Bank stocks fell across the board on profit booking.
The S&P BSE Sensex garnered 138.02 points or 0.53% to settle at 26,100.08, a record closing high. The index jumped 161.49 points at the day's high of 26,123.55 in late trade, a lifetime high of the index. The index rose 30.67 points at the day's low of 25,922.73 in afternoon trade.
The CNX Nifty garnered 35.55 points or 0.46% to settle at 7,787.15, a record closing high. The index hit a high of 7,792 in intraday trade, a lifetime high of the index. The index hit a low of 7,755.10 in intraday trade.
The total turnover on BSE amounted to Rs 4180 crore, higher than Rs 3862.53 crore on Friday, 4 July 2014.
The market breadth indicating the overall health of the market was positive. On BSE, 1,715 shares gained and 1,359 shares fell. A total of 102 shares were unchanged.
The BSE Mid-Cap index garnered 11.39 points or 0.12% to settle at 9,557.14, underperforming the Sensex. The BSE Small-Cap index garnered 62.75 points or 0.6% to settle at 10,570.78, outperforming the Sensex.
The S&P BSE IT index (up 2.63%), the S&P BSE Teck index (up 2.16%), the S&P BSE Power index (up 1.12%), the S&P BSE Healthcare index (up 0.8%), the S&P BSE Auto index (up 0.69%) and the S&P BSE Capital Goods index (up 0.57%) outperformed the Sensex.
The S&P BSE FMCG index (up 0.31%), the S&P BSE Consumer Durables index (up 0.05%), the S&P BSE Metal index (up 0.02%), the S&P BSE Realty index (down 0.14%), the S&P BSE Oil & Gas index (down 0.91%) and the S&P BSE Bankex (down 1.21%), underperformed the Sensex.
Among 30 Sensex shares, 21 stocks rose and the remaining shares fell.
IDFC spurted 6.23% to Rs 142.30 after a foreign investment bank upgraded the stock to overweight from underweight. The investment bank has reportedly cited potential benefits for IDFC after Reserve Bank of India (RBI) Governor Raghuram Rajan hinted at the possibility of exempting banks from liquidity ratio norms when raising debt for infrastructure. The investment bank also said IDFC's under-performance recently may be unjustified given its good management, strong balance sheet, and diversified financial presence. IDFC in April this year received in-principle approval for banking license from the Reserve Bank of India.
Tata Power rose 3.59% to Rs 111.05. The company said after market hours on Friday, 4 July 2104, that it has signed option agreements to sell 5% stake in PT Kaltim Prima Coal KPC) for $250 million to a Bakrie group entity to get additional cash flow as well as to reduce its consolidated debt. Tata Power said that that the company is facing under-recovery and cash flow challenges due to its Mundra Ultra Mega Power Project (UMPP) operations and therefore it took decision to sell a part of its stake in the Indonesia coal mine. In addition, the entire 30% stake in KPC related power infrastructure companies is also covered for sale in the agreement to the same Bakrie group entity, Tata Power said. KPC will continue to be a part of supply chain for Tata Power Group's coal offtake requirements. Tata Power will continue to hold the remaining 25% stake in KPC.
Tata Motors rose 2.2% to Rs 478.75 after hitting record high of Rs 479.95 in intraday trade.
Hero MotoCorp (HMCL) gained 1.22% to Rs 2,614.25 after the company announced on Sunday, 6 July 2014, the formation of a wholly-owned subsidiary in Colombia and the commencement of a state-of-the-art manufacturing plant in the country.
With a project cost of $70 million, HMCL will invest $38 million in capital expenditure, with the rest being utilised as working capital over the next three-year period. The equity investment will be made through HMCL's wholly-owned subsidiary in the Netherlands viz. HMCL BV. The state-of-the-art manufacturing plant is expected to go on stream by the middle of calendar year 2015 with an initial installed capacity of 78,000 units. This will go up to around 150,000 units in the second phase. With this, Hero MotoCorp will be the first Indian two-wheeler company to have a manufacturing plant in Latin America.
The company's decision to start a new plant in Colombia is in line with the company's vision of expanding its global footprint to as many as 50 countries by 2020. By the year 2020, the company aims to cross 100 million units in cumulative production, and annual bike and scooter sales of 12 million units. It also plans to have more than 20 manufacturing and assembly plants across the globe with sales in more than 50 countries by that year.
Ashok Leyland gained 2.77% to Rs 37.10 after the company said after market hours on Friday, 4 July 2014, that the Fund Raising Committee of the company at its meeting held 4 July 2014, approved the issue and allotment of 18.52 crore shares to eligible Qualified Institutional Buyers (QIB) at the issue price of Rs 36 per share, aggregating to Rs. 666.72 crore.
Reliance Communications edged higher after index provider FTSE on Friday, 4 July 2014, said it has raised the weightage of the stock in three indices. The stock rose 2.62% at Rs 146.85. Reliance Communications will remain in FTSE All-World Index, FTSE MPF All-World Index and FTSE Emerging Index with an increased investability weighting of 42%, FTSE said. The new weightage would be effective from the start of trading on 14 July 2014, FTSE said.
IT stocks rose as rupee edged lower against the dollar. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports. Infosys (up 3.23%), Hexaware Technologies (up 2.06%), Wipro (up 1.86%), HCL Technologies (up 1.85%), Tech Mahindra (up 0.80%), Oracle Financial Services Software (up 0.68%) and MphasiS (up 0.52%), edged higher.
TCS rose 3.06% to Rs 2,483.50 after hitting record high of Rs 2,492.50 in intraday trade.
Most pharma stocks gained as rupee edged lower against the dollar. Weakness in rupee could boost sales of pharma companies in rupee terms as pharma firms derive substantial revenue from exports. Cadila Healthcare (up 4.49%), Dr Reddy's Laboratories (up 1.95%), Ranbaxy Laboratories (up 1.71%), Aurobindo Pharma (up 0.39%), Divi's Laboratories (up 0.36%), GlaxoSmithKline Pharmaceuticals (up 0.31%), Ipca Laboratories (up 0.09%) and Wockhardt (up 0.04%), edged higher.
Sun Pharmaceutical Industries gained 1.59% to Rs 719.85 after hitting record high of Rs 737 in intraday trade.
Cipla rose 0.31% to Rs 449.30. The stock was volatile. The stock hit high of Rs 453 in intraday trade which is a record high for the counter. The scrip hit a low of Rs 444.60. The company in collaboration with the UK government has expressed its intention to make investment of up to 100 million in its UK subsidiary over the next few years, it said in a statement today, 7 July 2014. The proposed investment in the UK subsidiary is expected to facilitate the launch of a range of products in the area of respiratory, oncology and antiretroviral medicines to further Cipla's higher purpose of universal affordable access, the Indian company said. The investment underscores the growing importance of UK in Cipla's long term strategy. Cipla also plans to invest in R&D activities, clinical trials and expand further internationally.
Lupin fell 0.93% to Rs 1,077.75.
Capital goods stocks gained on renewed buying. BEML (up 5%), Pipavav Defence and Offshore Engineering Company (up 4.94%), Bharat Electronics (up 3.96%), SKF India (up 2.31%), Havells India (up 2.01%), Praj Industries (up 1.90%), Alstom T&D India (up 1.71%), Crompton Greaves (up 1.06%), ABB (up 0.92%), Thermax (up 0.92%), Bharat Heavy Electricals (up 0.72%), Larsen & Toubro (up 0.41%), ALSTOM India (up 0.22%) and AIA Engineering (up 0.04%), edged higher.
Bank stocks fell across the board on profit booking. Yes Bank (down 2.64%), IndusInd Bank (down 2.28%), Union Bank of India (down 2.17%), Federal Bank (down 1.90%), HDFC Bank (down 1.90%), Bank of India (down 1.17%), Bank of Baroda (down 1.08%), Punjab National Bank (down 1.01%), ICICI Bank (down 0.79%), IDBI Bank (down 0.79%), Canara Bank (down 0.65%), Axis Bank (down 0.62%) and State Bank of India (down 0.62%), edged lower.
Kotak Mahindra Bank fell 1.22% to Rs 873.65 ahead of the bank's deletion from MSCI's Global Standard Index tomorrow, 8 July 2014. MSCI decided to remove Kotak Mahindra Bank from its Global Standard Index after the stock reached its trigger limit on foreign institutional investor shareholding on 18 June 2014. The current limit on foreign shareholding in Kotak Mahindra Bank is at 37%.
The S&P BSE Bankex had risen 3.74% in the preceding five trading sessions to settle at 17,824.53 on 4 July 2014, from 17,181.74 on 27 June 2014.
State Bank of India clocked highest turnover of Rs 83.60 crore on BSE. ICICI Bank (Rs 66.97 crore), IDFC (Rs 49.38 crore), United Spirits (Rs 43.31 crore) and National Buildings Construction Corporation (Rs 40 crore), were the other turnover toppers on BSE in that order.
SpiceJet topped volumes, with 1.15 crore shares changing hands in the stock on BSE. Tata Teleservices (Maharashtra) (51.84 lakh shares), South Indian Bank (51.79 lakh shares), Cals Refineries (47.76 lakh shares) and Yantra Natural Resources (47.52 lakh shares), were the other volumes toppers on BSE in that order.
Key benchmark indices edged higher in early trade after provisional data showed that foreign investors remained net buyers of Indian stocks on Friday, 4 July 2014. The Sensex hit record high, crossing the 26,000 mark for the first time. The 50-unit CNX Nifty also scaled record high. Key benchmark indices pared initial gains in morning trade. Key benchmark indices hovered in positive terrain in mid-morning trade. Key benchmark indices moved in a narrow range in positive zone in early afternoon trade. Key benchmark indices pared gains in afternoon trade as European market edged lower in early trade there. Volatility continued as key benchmark indices trimmed gains after recovering from lower level in mid-afternoon trade. Key benchmark indices extended gains and hit fresh record high in late trade.
Indian stocks rose for the second day in a row today, 7 July 2014. The Sensex has risen 276.33 points or 1.07% in two trading sessions from a recent low of 25,823.75 on 3 July 2014. The Sensex has gained 686.30 points or 2.70% in this month so far (till 7 July 2014). The Sensex has gained 4,929.40 points or 23.28% in calendar year 2014 so far (till 7 July 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 8,651.37 points or 49.58%.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 905.81 crore from the secondary equity markets on Friday, 4 July 2014, as per data from Securities & Exchange Board of India.
Concerns about India's macroeconomic situation have eased as crude prices have come off 9-month high which they hit last month. India imports about 80% of its crude oil requirement. Brent crude oil futures for August delivery were currently unchanged for the day at $110.64 a barrel. The contract fell 36 cents to settle at $110.64 on Friday, 4 July 2014, the lowest close since 11 June 2014.
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 tomorrow, 8 July 2014. On Wednesday, 9 July 2014, the Finance Ministry will table Economic Survey for 2013-14. 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.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 60.01, compared with its close of 59.72/73 on Friday, 4 July 2014.
European market edged lower on Monday, 7 July 2014, on profit booking after last week's rally. Key benchmark indices in UK, France and Germany were off 0.19% to 0.46%.
German industrial output dropped for a third month in May amid signs Europe's largest economy is taking a breather. Production, adjusted for seasonal swings, fell 1.8% from April, when it declined a revised 0.3%, the Economy Ministry in Berlin said today.
Most Asian stocks edged higher in choppy trade on Monday, 7 July 2104. Key benchmark indices in China, Taiwan, Indonesia and Singapore were up 0.03% to 1.7%. Key benchmark indices in South Korea, Hong Kong, and Japan were off 0.02% to 0.37%.
China's economic growth quickened in the second quarter from the previous three months, but further modest government support measures will still be needed, Premier Li Keqiang reportedly said on Monday.
Business activity in emerging markets expanded last month at its fastest rate since March 2013, boosted by strong growth in China and India, a survey showed today, 7 July 2014. HSBC's composite emerging markets index of manufacturing and services purchasing managers' surveys jumped to 52.3 in June - well above the 50 threshold that indicates expansion - from 50.6 in May.
Trading in US index futures indicated that the Dow could fall 24 points at the opening bell on Monday, 7 July 2014.
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