Key benchmark indices held firm in morning trade as a rally in Asian stocks boosted sentiment. The S&P BSE Sensex was up 162.94 points or 0.81%, up about 70 points from the day's low and off close to 20 points from the day's high. The market breadth, indicating the overall health of the market, was strong. Bank stocks edged higher. Realty stocks also gained. Index heavyweight and cigarette maker ITC scaled record high. IT major TCS also hit record high.
The market surged in early trade on firm Asian stocks. The Sensex hit its highest level in over nine weeks. The 50-unit CNX Nifty hit 7-1/2-week high. The market held firm in morning trade.
The market may remain volatile this week as traders roll over positions in the futures & options (F&) segment from the July 2013 series to August 2013 series. The near month July 2013 derivatives contracts expire on Thursday, 25 July 2013.
At 10:20 IST, the S&P BSE Sensex was up 162.94 points or 0.81% to 20,322.06. The index jumped 181.84 points at the day's high of 20,340.96 in early trade, its highest level since 20 May 2013. The index gained 90.86 points at the day's low of 20,249.98 in opening trade.
The CNX Nifty was up 48.75 points or 0.81% to 6,080.55. The index hit a high of 6,084 in intraday trade, its highest level since 31 May 2013. The index hit a low of 6,061.30 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 716 shares gained and 392 shares fell. A total of 56 shares were unchanged.
Among the 30-share Sensex pack, 26 stocks rose and only 3 of them fell. ONGC (up 1.79%), Dr Reddy's Laboratories (up 1.51%) and Sterlite Industries (up 1.56%), edged higher.
Bhel rose 2.45% on bargain hunting after falling 14.5% in the preceding two trading sessions.
Index heavyweight and cigarette maker ITC rose 1.1% to Rs 372.90. The stock hit record high of Rs 374 in intraday trade today, 23 July 2013. The company announces Q1 results on Thursday, 25 July 2013.
IT major TCS rose 1.38% to Rs 1770, with the stock extending recent gains triggered by the company's strong Q1 results. The stock hit a record high of Rs 1,780 in intraday trade today, 23 July 2013. TCS' net profit rose 5.9% to Rs 3831 crore on 9.5% growth in revenue to Rs 17987 crore in Q1 June 2013 over Q4 March 2013. The company reported Q1 results on 18 July 2013.
Bank stocks edged higher. HDFC Bank (up 0.56%), Axis Bank (up 0.92%), and ICICI Bank (up 1.44%), edged higher.
Among PSU bank stocks, State Bank of India, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank gained by 0.88% to 2.2%.
The Reserve Bank of India (RBI) on 15 July 2013 announced measures to tighten liquidity in the banking system to arrest slide in rupee against the dollar.
ING Vysya Bank was flat. The bank's net profit surged 34.6% to Rs 175.12 crore on 15.7% growth in total income to Rs 1553.08 crore in Q1 June 2013 over Q1 June 2012. The Q1 result was announced after market hours on Monday, 22 July 2013.
ING Vysya Bank's ratio of net non-performing assets (NPAs) to net advances stood at 0.19% as on 30 June 2013, as against 0.03% as on 31 March 2013 and 0.19% as on 30 June 2012. The ratio of gross NPAs to gross advances stood at 1.75% as on 30 June 2013, as against 1.76% as on 31 March 2013 and 1.97% as on 30 June 2012.
ING Vysya Bank's provisions and contingencies jumped 155.28% to Rs 68.11 crore in Q1 June 2013 over Q1 June 2012.
The bank's capital adequacy ratio (CAR) as per Basel II norms stood at 12.81% as on 30 June 2013, as against 13.24% as on 31 March 2013 and 13.35% as on 30 June 2012. CAR as per Basel III norms stood at 12.59% as on 30 June 2013.
Realty stocks edged higher. HDIL (up 1.91%), Unitech (up 1.32%), DLF (up 1.18%) and D B Realty (up 0.6%), edged higher.
Asian stocks surged on Tuesday, 23 July 2013, after data showing decline in US home sales dampened concerns the Federal Reserve will reduce stimulus measures. Key benchmark indices in Indonesia, South Korea, Singapore and Taiwan were up 0.37% to 1.42%.
Chinese stocks rose on expectations that Beijing will fine-tune its policies to support China's economic growth. In mainland China, the Shanghai Composite index was up 2.17%. In Hong Kong, the Hang Seng index was up 2.3%. Chinese Vice Premier Zhang Gaoli on Monday, 22 July 2013, said that policy makers are committed to speeding up economic restructuring and will take steps to support reasonable infrastructure and social-welfare investments, according to media reports.
China's foreign-exchange regulator said separately that the country wasn't seeing any capital flight.
Japanese shares edged higher after the government upgraded its view of the economy for a third straight month. The Nikkei 225 Average was up 0.48%.
Trading in US index futures indicated that the Dow could gain 43 points at the opening bell on Tuesday, 23 July 2013. US stocks posted modest gains on Monday, with the S&P 500 notching its 23rd record close this year, as the financial and health-care sectors led the market higher. Sales of previously owned US homes unexpectedly dropped 1.2% in June, data yesterday showed.
Federal Reserve Chairman Ben Bernanke last week said it is too early to determine whether the central bank will taper asset purchases at its meeting in September. The central bank currently purchases $85 billion a month in government and US mortgage debt, aimed at encouraging economic growth.
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