Key benchmark indices eked out small gains after seeing intermittent volatility in intraday trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit record high on intraday basis as well as closing basis. The Sensex rose 29.71 points or 0.11% to settle at 26,420.67. The market breadth indicating the overall health of the market was positive. The BSE Mid-Cap index rose 1.1%. The BSE Small-Cap index rose 1.21%. Both these indices outperformed the Sensex. European stocks were in green. Asian stocks ended higher.
Realty stocks extended recent gains triggered by the latest data showing inflation based on wholesale price index (WPI) eased in July. Auto stocks rose across the board. Tata Motors, Maruti Suzuki India and Mahindra & Mahindra (M&M) scaled record high. Force Motors galloped to 52-week high. Airline stocks rose as crude oil prices fell. Sesa Sterlite rose on reports that the Goa state government will allot at least 27 iron ore mining leases from 30 September to 10 October this year. Shares of PSU OMCs extended Monday's gains as Brent crude oil futures stayed near 14-month low, with BPCL hitting record high. Cement stocks were in demand with ACC hitting record high. Among pharma stocks, Lupin scaled record high. Among FMCG stocks, shares of biscuits major Britannia Industries extended its recent strong gains.
A further decline in crude oil prices and a rally in US stocks on Monday, 18 August 2014, triggered a firm opening on the domestic bourses and took the Sensex and Nifty to record high.
The S&P BSE Sensex garnered 29.71 points or 0.11% to settle at 26,420.67, a record closing high. The index jumped 139.71 points at the day's high of 26,530.67 in early trade, a lifetime high for the index. The index fell 3.12 points at the day's low of 26,387.84 in late trade.
In percentage terms, Nifty's gains were higher than the gains in Sensex. The Nifty garnered 23.25 points or 0.3% to settle at 7,897.50, a record closing high. The index hit a high of 7,918.55 in intraday trade, a lifetime high for the index. The index hit a low of 7,881.15 in intraday trade.
The total turnover on BSE amounted to Rs 3106 crore, higher than Rs 2584.39 crore on Monday, 18 August 2014.
The market breadth indicating the overall health of the market was positive. On BSE, 1,692 shares gained and 1,266 shares fell. A total of 102 shares were unchanged.
The BSE Mid-Cap index garnered 100.52 points or 1.1% to settle at 9,270.86. The BSE Small-Cap index garnered 121.33 points or 1.21% to settle at 10,168.80. Both these indices outperformed the Sensex.
The S&P BSE Auto index (up 2.25%), the S&P BSE Realty index (up 1.63%), the S&P BSE Power index (up 1.25%), the S&P BSE Capital Goods index (up 1.11%), the S&P BSE Healthcare index (up 0.64%), the S&P BSE Metal index (up 0.6%), the S&P BSE Bankex (up 0.57%), the S&P BSE Consumer Durables index (up 0.54%), the S&P BSE Oil & Gas index (up 0.34%) and the S&P BSE FMCG index (up 0.13%) outperformed the Sensex.
The S&P BSE Teck index (down 0.36%) and the S&P BSE IT index (down 0.57%) underperformed the Sensex.
Auto stocks rose across the board. Tata Motors gained 2.95% to Rs 518.75 after hitting record high of Rs 520.50 in intraday trade. The company after market hours on Thursday, 14 August 2014, said that its global wholesales declined 8.46% at 80,151 units in July 2014 over July 2013. Global wholesales rose 5.98% at 80,151 units in July 2014 over June 2014.
Maruti Suzuki India rose 1.84% to Rs 2,757 after scaling a record high of Rs 2,758.30 in intraday trade.
Mahindra & Mahindra (M&M) advanced 3.77% to Rs 1,376 after scaling a record high of Rs 1,379.80 in intraday trade.
Ashok Leyland surged 7.39%.
Among two-wheeler makers, Hero MotoCorp (up 1.26%) and Bajaj Auto (up 3.14%) gained. TVS Motor Company fell 0.22%.
Many metal and mining stocks gained. Hindustan Zinc (up 2.68%), Jindal Steel & Power (up 0.02%), Steel Authority of India (Sail) (up 0.87%) National Aluminum Company (up 0.34%) and NMDC (up 0.71%) gained. Hindalco Industries (down 1.18%), Tata Steel (down 0.74%) and Hindustan Copper (down 0.83%) declined.
Sesa Sterlite rose 1.45% on reports that the Goa state government will allot at least 27 iron ore mining leases from 30 September to 10 October this year. Goa chief minister Manohar Parrikar reportedly said his government will renew leases of 27 holders which include Sesa Sterlite. There has been a ban on iron ore mining in Goa since October 2012 due to illegal mining. The Supreme Court order in April had given right to the state to give out mining leases while keeping overall output of mining under limits.
JSW Steel edged higher in volatile trade after the company entered into a definitive agreement with Welspun Enterprises (WEL) to acquire the entire equity shares held by WEL in Welspun Maxsteel (WMSL) for an enterprise value of Rs 1000 crore plus net current assets. The stock rose 0.59% at Rs 1,284. The stock hit high of Rs 1,299 and low of Rs 1,273. The company has acquired the equity shares of WMSL as WMSL is situated in close proximity to company's Dolvi unit, offering complimentary infrastructure and location to augment the current envisaged expansions at Dolvi by JSW Steel.
JSW Steel has a strategic goal to enhance its steel production to 40 million tonnes per annum (MTPA) in the next decade. The company currently has an installed capacity of 14.3 MTPA.
Shares of WEL rose 4.99%.
Tata Power Company rose 0.71%. The company clarified during market hours that Maharashtra Electricity Regulatory Commission (MERC) on 14 August 2014 issued transmission license and distribution license to the company for the next 25 years with effect from 16 August 2014 and the license area covers from Colaba to Mahim, falling under Mumbai City Revenue district, Bandra to Dahisar and Chunabatti to Vikhroli of Mumbai suburban Revenue District and the area of Mira Bhayandar Municipal Corporation.
The license allows Tata Power to continue serving the Mumbai consumers as before in its distribution and transmission area. The distribution license is granted with a specific condition to get the network roll out approved by the Regulatory Commission. Tata Power will follow the directions of the Commission as before and grow its network to acquire balanced set of consumers to ensure tariff benefit to low end consumers, Tata Power said.
The company issued the clarification with respect to news titled "Tata Power Gets 25-yr Licence for City".
TCS dropped 1.9%. TCS' UK based BPO subsidiary Diligenta today, 19 August 2014, announced that it has secured a new multi-million pound, multi-year contract with Friends Life Management Services (Friends Life) for its international operation. Under the terms of this deal, Diligenta will configure and implement TCS BaNCS, a globally acclaimed core platform, to support the international operations of Friends Life - Friends Provident International (FPI).
Bharat Heavy Electricals (Bhel) advanced 3.14%. Bhel during market hours said that based on the company's extensive in-house experience of working with a great variety of indigenous as well as imported coals over the years, it has developed a new boiler with fuel flexibility of indigenous and imported coal. This new boiler design is based on a unique combination of indigenous and imported coals but is capable of firing both extremes of 100% domestic coal as well as 100% imported coal. The new boiler design will provide developers with much needed freedom regarding the ratio of blending as well as the characteristics of the domestic and imported coal to be blended, Bhel said. This enables the boiler to work over the entire range of blending ratios and would protect the project developer against the vagaries in coal availability, thereby providing him with an opportunity to operate the plant throughout the year, Bhel said.
Shares of PSU OMCs extended Monday's gains as Brent crude oil futures stayed near 14-month low. HPCL gained 2.27%.
BPCL rose 4.04% to Rs 674.80 after hitting record high of Rs 680.90 in intraday trade.
Indian Oil Corporation (IOC) gained 1.79% to Rs 358.85.
Lower crude oil prices will reduce under-recovery of public sector oil marketing companies (PSU OMCs) on domestic sales of diesel, kerosene and LPG at government controlled prices. The government has adopted the policy of gradually increasing diesel prices to eliminate under recovery and deregulate the diesel prices. The government has already freed pricing of petrol.
The under-recovery on High Speed Diesel (HSD) applicable for second fortnight of August 2014, effective from 16 August 2014, will go up to Rs 1.78 per litre. This was Rs 1.33 per litre during first fortnight of August 2014. In the case of PDS Kerosene and Domestic LPG, the under-recoveries for the second fortnight of August 2014 will be Rs 32.98 per litre (Rs 32.98 per litre in first fortnight) and Rs 447.87 per cylinder (Rs 447.87 per cylinder in first fortnight) respectively. Effective from 16 August 2014, PSU OMCs are incurring combined daily under-recovery of about Rs 230 crore on the sale of Diesel, PDS Kerosene and Domestic LPG. This is higher than Rs 226 crore daily under-recoveries during first fortnight of August. The under-recoveries for the financial year 2014-15 are projected to be Rs 91665 crore while the figure was Rs 1.39 lakh crore in 2013-14. The Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas today, 19 August 2014 reviewed international prices of crude oil and petroleum products during the first fortnight of August 2014.
Cement stocks were in demand. Ambuja Cements (up 1.47%), UltraTech Cement (up 1.98%) and Shree Cement (up 3.38%) gained.
ACC rose 1.81% to Rs 1,535 after hitting record high of Rs 1,538.65 in intraday trade.
Grasim Industries was up 3.03%. Grasim has exposure to the cement sector through its subsidiary UltraTech Cement.
Lupin rose 1.71% to Rs 1,221, also its record high.
Britannia Industries rose 1.6% to Rs 1,286 after hitting record high of Rs 1,310.85 in intraday trade. The stock gained for the third day in a row. The company's consolidated net profit rose 27% to Rs 113.66 crore on 15.5% increase in total income to Rs 1808.59 crore in Q1 June 2014 over Q1 June 2013. The result was announced on 12 August 2014.
Gujarat Gas Company (up 5.64%) and Gujarat State Petronet (up 6.97%) surged.
Realty stocks extended recent gains triggered by the latest data showing inflation based on wholesale price index (WPI) eased in July. Purchases of both residential and commercial property are largely driven by finance. Sobha Developers (up 5.85%), Unitech (up 2.83%, Housing Development and Infrastructure (up 4.87%), D B Realty (up 4.94%) and Godrej Properties (up 1.91%) gained.
DLF rose 1.06%. The stock turned ex-dividend today, 19 August 2014, for dividend of Rs 2 per share for the year ended 31 March 2014.
Airline stocks rose as crude oil prices fell. Jet Airways (India) (up 4.2%) and SpiceJet (up 1.85%) gained. Jet fuel or aviation turbine fuel (ATF) typically makes up almost half of an airline's operating cost. Prices of jet fuel are directly linked to crude oil prices. State-run oil marketing companies--Indian Oil Corporation (IOCL), Bharat Petroleum Corporation and Hindustan Petroleum Corporation revise jet fuel prices on the 1st and 16th of every month based on the average international crude price in the preceding fortnight.
Tyre stocks rose. Apollo Tyres (up 1.12%), JK Tyre & Industries (up 1.55%), MRF (up 0.75%) and CEAT (up 5.68%) gained.
Berger Paints (India) galloped 9.13% to Rs 340. The stock hit a record high of Rs 341.50 in intraday today, 19 August 2014.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 473.42 crore on Monday, 18 August 2014, as per provisional data from the stock exchanges.
Meanwhile, India's macroeconomic worries have eased on falling crude oil prices. India imports about 80% of its crude oil requirement. Brent crude oil futures edged up towards $102 a barrel today, 19 August 2014, but stayed near a 14-month low reached in the previous session on weak demand and easing concerns over risks to supply. The October Brent crude contract was up 28 cents at $101.88 a barrel. The contract fell $1.93 a barrel to settle at $ 101.60 a barrel on Monday, 18 August 2014, after Iraqi Kurds recaptured a large chunk of the biggest dam in the country from Islamist militants, with help from US air power.
In the foreign exchange market, the rupee was slightly higher against the dollar. The partially convertible rupee was hovering at 60.755, compared with its close of 60.78 on Thursday, 14 August 2014. The currency market remained close on Friday, 15 August 2014, and Monday, 18 August 2014 on account of holidays.
Indian stocks gained for the sixth day in a row today, 19 August 2014. From a recent low of 25,329.14 on 8 August 2014, the Sensex has gained 1,091.53 points or 4.3% in six trading sessions. The Sensex has gained 525.70 points or 2.03% in this month so far (till 19 August 2014). The Sensex has gained 5,249.99 points or 24.79% in calendar year 2014 so far (till 19 August 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 8,971.96 points or 51.41%.
India reportedly called off on Monday, 18 August 2014, peace talks with Pakistan, giving a jolt to renewed diplomatic efforts between the two nuclear-armed neighbours and adding to the troubles of Pakistan's beleaguered government. India said it would not attend talks involving the foreign secretaries of the two countries, which had been set to take place on 25 August 2014 in Islamabad, because of plans by Pakistan to consult Kashmiri separatists ahead of the meeting.
European stocks rose today, 19 August 2014, extending strong gains of the previous trading session as talks between Ukraine and Russia eased concern about the conflict between the two countries. Key benchmark indices in UK, France and Germany were up 0.37% to 0.94%.
UK inflation cooled more than forecast in July, giving the Bank of England room to keep its key interest rate at a record-low. The rate of price growth fell to 1.6% from 1.9% in June, the Office for National Statistics said today in London.
Foreign ministers from Russia, Ukraine, Germany, and France gathered in Berlin over the weekend to discuss talks for a ceasefire or a political solution in Ukraine, and Russia's Foreign Ministry said on Monday a 'certain progress' was achieved during the talks.
Asian stocks rose today, 19 August 2014, after a rally in US stocks on Monday, 18 August 2014, triggered by upbeat US housing data and hopes of progress in the Ukraine crisis. Key benchmark indices in China, Hong Kong, South Korea, Taiwan, Singapore, Japan, and Indonesia were up 0.11% to 1.12%.
Trading in US index futures indicated that the Dow could gain 38 points at the opening bell on Tuesday, 19 August 2014. US stocks registered solid gains on Monday, 18 August 2014, helped by deal news and easing Ukraine-Russia tensions. A better-than-expected reading on the housing market also boosted sentiment and kicked off a big week for economic data. US homebuilder sentiment rose in August to its highest since January, the National Association of Home Builders said on Monday, marking a third straight monthly gain.
The minutes from the last Federal Open Market Committee meeting will be released tomorrow, 20 August 2014. Federal Reserve Chairwoman Janet Yellen will give a speech on Friday, 22 August 2014, at the annual Fed summit in Jackson Hole, Wyo.
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