Key benchmark indices pared gains in afternoon trade as profit booking emerged at higher levels. The Sensex was up 367.79 points or 1.91%, off 62 points from the day's high and up close to 193 points from the day's low. The market breadth, indicating the overall health of the market, was strong. Torrent Pharmaceuticals, WABCO India, Shasun Pharmaceuticals, Zydus Wellness and HDFC saw a surge in volumes on BSE today, 11 July 2013. Shares of state-run State Trading Corporation of India declined on reports that the cabinet approved stake sale by government.
Earlier during the day, the S&P BSE Sensex hit its highest level in over 5 weeks and the 50-unit CNX Nifty hit its highest level in nearly 5 weeks as US Federal Reserve Chairman Ben S. Bernanke's comments on Wednesday, 10 July 2013, that a highly accommodative monetary policy is needed for the US economy for the foreseeable future boosted global stocks.
The market surged in early trade on firm Asian stocks. The market extended initial gains to hit fresh intraday high in morning trade. The market extended gains to hit fresh intraday high in mid-morning trade. The Sensex hit over 5-week high. The Sensex further extended gains to hit fresh intraday high in early afternoon trade. Key benchmark indices pared gains in afternoon trade as profit booking emerged at higher levels.
Bernanke said a speech in Cambridge, Massachusetts on Wednesday, 10 July 2013, that "highly accommodative" monetary policy will be needed for the "foreseeable future." Meanwhile, minutes of the Fed's June meeting showed that while "several members judged that a reduction in asset purchases would likely soon be warranted," many want to see further improvement in the labor market before reducing the central bank's $85 billion-a-month quantitative easing program.
The signal that the Fed will likely maintain an accommodative policy stance sent Asian stocks surging as Fed's bond-buying program and quantitative easing by other central banks worldwide has flooded global markets with liquidity and helped support an array of assets, including equities in recent years. The Fed currently buys $85 billion a month in government and mortgage bonds in an effort to keep interest rates low and stimulate economic growth. At a press conference following the June 18-19 meeting, Federal Reserve Chairman Ben Bernanke said the central bank could start reducing its $85 billion in monthly bond purchases later this year if the economy continues to improve in line with its forecasts.
At 13:20 IST, the S&P BSE Sensex was up 367.79 points or 1.91% to 19,661.91. The index jumped 429.39 points at the day's high of 19,723.51 in afternoon trade, its highest level since 4 June 2013. The index gained 174.34 points at the day's low of 19,468.46 in opening trade.
The CNX Nifty was up 109.50 points or 1.88% to 5,926.20. The index hit a high of 5,948.85 in intraday trade, its highest level since 7 June 2013. The index hit a low of 5,887.95 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,270 shares rose and 778 shares fell. A total of 120 shares were unchanged.
From the 30-share Sensex pack, 28 stocks rose and only 2 of them fell. Hindalco Industries (up 5.35%), Sterlite Industries (India) (up 4%), HDFC Bank (up 3.17%), Hero MotoCorp (up 2.86%), Larsen & Toubro (up 2.86%), Bharti Airtel (up 2.67%) and ONGC (up 2.65%), edged higher from the Sensex pack.
Wipro (down 0.41%) and Cipla (down 0.10%), edged lower from the Sensex pack.
State-run State Trading Corporation of India (STC) fell 4.13% at Rs 100.90. Cabinet has approved planned stake sale in STC, information and broadcasting minister Manish Tewari told the media today, 11 July 2013. As on 31 March 2013, government held 91.02% stake in STC.
Torrent Pharmaceuticals clocked volume of 1.28 lakh shares, a 15.55-times surge over two-week average daily volume of 8,000 shares. The stock rose 0.60% to Rs 894.10.
WABCO India notched up volume of 32,000 shares, a 7.66-fold surge over two-week average daily volume of 4,000 shares. The stock rose 1.12% to Rs 1,660.10.
Shasun Pharmaceuticals saw volume of 9.81 lakh shares, a 5.22-fold surge over two-week average daily volume of 1.88 lakh shares. The stock surged 7.84% to Rs 78.40.
Zydus Wellness clocked volume of 1.09 lakh shares, a 5.03-fold surge over two-week average daily volume of 22,000 shares. The stock rose 1.12% to Rs 690.
HDFC saw volume of 3.63 lakh shares, a 2.27-fold rise over two-week average daily volume of 1.60 lakh shares. The stock rose 2.38% to Rs 849.05.
European stocks mirrored gains in Asian market after US Federal Reserve Chairman Ben S. Bernanke said on Wednesday, 10 July 2013, that the world's biggest economy will continue to need stimulus. Key benchmark indices in UK, France and Germany were up by 1.08% to 1.30%.
Asian stocks rose on Thursday, 11 July 2013, after Bernanke's comment. Key benchmark indices in China, Hong Kong, Indonesia, Japan, Singapore, South Korea and Taiwan rose by 0.39 % to 3.23%.
The Bank of Japan (BOJ) refrained from adding to unprecedented monetary stimulus and raised its assessment of the economy, referring to a recovery for the first time since before a record 2011 earthquake. Governor Haruhiko Kuroda's board stuck with an April pledge to expand the monetary base by 60 to 70 trillion yen ($709 billion) per year, a statement released in Tokyo today showed. The bank maintained its April forecast that prices, excluding the effect of a planned sales tax increase, will rise 1.9% in the year starting April 2015. It trimmed some other forecasts for inflation and economic growth. The BOJ now sees inflation of 0.6% in the current fiscal year and 1.3% in the following 12 months. The central bank is chasing a target of 2 percent inflation, focusing on a gauge that excludes fresh food.
South Korea's central bank on Thursday left its policy interest rate unchanged at 2.5% amid low inflation, uncertainty over the Federal Reserve's bond purchases and China's economic slowdown.
Trading in US index futures indicated that the Dow could surge 142 points at the opening bell on Thursday, 11 July 2013. US stocks ended little changed on Wednesday as investors analyzed minutes from the Fed's last meeting for signs on when the central bank might slow the pace of stimulus efforts.
Meanwhile, Brazil's central bank late Wednesday, 10 July 2013, raised the country's benchmark interest rate to 8.5% from 8%, marking the third consecutive rate increase of a half-percentage point each.
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