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. The barometer index, the S&P BSE Sensex, was up 205.25 points or 0.82%, up 112.09 points from the day's low. The market breadth indicating the overall health of the market was strong.
Index heavyweight Reliance Industries rose in early trade, with the stock shrugging off reports that the government has disallowed RIL from recovering $2.376 billion invested to develop offshore gas fields in the D6 block on the country's east coast. L&T rose after the company after market hours on Monday, 14 July 2014, said that its wholly owned subsidiary dedicated to oil and gas -- L&T Hydrocarbon -- has secured an order worth Rs 5076 crore from Kuwait Oil Company (KOC).
At 9:30 IST, the S&P BSE Sensex was up 205.25 points or 0.82% to 25,212.23. The index jumped 205.67 points at the day's high of 25,212.65 in early trade. The index rose 93.16 points at the day's low of 25,100.14 in early trade.
The CNX Nifty was up 65.30 points or 0.88% to 7,519.45. The index hit a high of 7,520.55 in intraday trade. The index hit a low of 7,490.55 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,050 shares gained and 330 shares fell. A total of 32 shares were unchanged.
The BSE Mid-Cap index was up 119.87 points or 1.35% at 8,993.57. The BSE Small-Cap index was up 130.30 points or 1.35% to 9,772.76. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 233 crore by 09:30 IST.
Among the 30-share Sensex pack, 24 stocks gained and rest of them declined.
ITC rose 0.7%. With regard to media reports that ITC Hotels is close to acquiring the Ramada Caravela Beach Resort from Advani Hotels & Resorts in Goa at a cost of Rs 700 crore, ITC clarified after market hours on Monday, 14 July 2014, that the report is speculative in nature and as a matter of best practice, the company does not respond to market rumours. ITC further said that the company routinely scans strategic opportunities for business growth and this process involves dialogues from time to time with relevant parties across the country for different businesses. As and when there is conclusive development of a substantive nature, the company keeps the stock exchanges informed.
Shares of Advani Hotels & Resorts were locked at 20% upper circuit at Rs 61.90. The stock extended Monday's 20% rally.
Index heavyweight Reliance Industries (RIL) rose 0.56%. As per reports, government has disallowed RIL from recovering $2.376 billion invested to develop offshore gas fields in the D6 block on the country's east coast as output has fallen drastically and is way below the promised volumes. Under exploration policy, the government allows companies to first recover their costs from oil and gas revenue, and subsequently share profits with the government.
L&T rose 1.49%. L&T after market hours on Monday, 14 July 2014, said that its wholly owned subsidiary dedicated to oil and gas -- L&T Hydrocarbon -- has secured an order worth Rs 5076 crore from Kuwait Oil Company (KOC). L&T Hydrocarbon will execute complete Engineer-Procure-Construct contract for a gathering centre for KOC, a subsidiary of Kuwait Petroleum Corporation (KPC) and fully owned by the State of Kuwait. Located in North Kuwait, the oil gathering facilities will receive crude from the Raudhatain fields.
Mangalore Refinery and Petrochemicals (MRPL) rose 2.41%. ONGC rose 0.92%. MRPL clarified after market hours on Monday, 14 July 2014, that the company currently holds only 3% equity in ONGC Mangalore Petrochemicals (OMPL) and that it is examining the possibility of acquiring more stake in OMPL. The company issued the clarification after media reports suggested that ONGC is evaluating a proposal to merge ONGC Mangalore Petrochemicals with MRPL.
OMPL is building an aromatic complex in 442 acres of land acquired in Mangalore Special Economic Zone with a project cost estimate of Rs 5750 crore. The project is reportedly scheduled to be completed by August 2014. The complex is totally integrated with MRPL refinery.
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.
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, South Korea, China and Singapore rose by 0.03% to 0.86%.
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.
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.
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