Key benchmark indices surged in early trade as Asian stocks jumped 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. The S&P BSE Sensex was up 296.74 points or 1.54%, up close to 125 points from the day's low and off about 25 points from the day's high. The market breadth, indicating the overall health of the market, was strong.
UltraTech Cement rose after the company said it has commissioned its clinkerisation plant of 3.3 million tonnes a year (mtpa) at Malkhed in Karnataka. Mahindra & Mahindra gained after the company said that a scheduled production cut this month is unlikely to have an adverse impact on availability of vehicles in the market due to adequate inventory. Zee Entertainment Enterprises, Thermax, Karur Vysya Bank, Andhra Bank, and Biocon dropped after these stocks turned ex-dividend today, 11 July 2013.
Bernanke' comments helped ease concerns about global liquidity. The Fed's bond-buying program which has flooded global markets with liquidity has helped support an array of assets, including equities in recent years. 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.
At 9:30 IST, the S&P BSE Sensex was up 296.74 points or 1.54% to 19,590.86. The index rose 319.55 points at the day's high of 19,505.93 in early trade. The index gained 174.34 points at the day's low of 19,448.64 in opening trade.
The CNX Nifty was up 92.35 points or 1.59% to 5,909.05. The index hit a high of 5,917 in intraday trade. 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, 587 shares rose and 115 shares fell. A total of 23 shares were unchanged.
From the 30-share Sensex pack, 29 stocks rose and only one of them fell. Hindalco Industries (up 2.8%), Tata Power Company (up 2.55%) and ICICI Bank (up 2.48%), edged higher.
L&T was trading at Rs 978 as the stock turned ex-bonus today, 11 July 213 for 1:2 bonus issue.
Mahindra & Mahindra (M&M) gained 1.72% after the company said that a scheduled production cut this month is unlikely to have an adverse impact on availability of vehicles in the market due to adequate inventory. M&M has announced that it would be observing 'No Production Days' at its automotive plants for a period ranging from 1 to 8 days during the remaining period of July 2013 with a view to align production with sales requirements. M&M also said that its wholly owned subsidiary viz. Mahindra Vehicle Manufacturers would also be observing 'No Production Days' for about 8 days during the remaining period of July 2013 at its plant situated at Chakan in Maharashtra.
UltraTech Cement rose 1.76% after the company said after market hours on Wednesday, 10 July 2013, it has commissioned its clinkerisation plant of 3.3 million tonnes a year (mtpa) at Malkhed in Karnataka.
Zee Entertainment Enterprises fell 0.19% as the stock turned ex-dividend today, 11 July 2013, for dividend of Rs 2 per share for the year ended 31 March 2013 (FY 2013).
Thermax dropped 0.18% as the stock turned ex-dividend today, 11 July 2013, for dividend of Rs 7 per share for the year ended 31 March 2013 (FY 2013).
Karur Vysya Bank shed 1.88% as the stock turned ex-dividend today, 11 July 2013, for dividend of Rs 14 per share for the year ended 31 March 2013 (FY 2013).
Andhra Bank declined 4.89% as the stock turned ex-dividend today, 11 July 2013, for dividend of Rs 5 per share for the year ended 31 March 2013 (FY 2013).
Biocon fell 1.08% as the stock turned ex-dividend today, 11 July 2013, for total dividend of Rs 7.50 per share for the year ended 31 March 2013 (FY 2013).
Asian stocks rose on Thursday, 11 July 2013, 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 China, Hong Kong, Indonesia, Singapore, South Korea and Taiwan rose by 1.52% to 2.48%. Japan's Nikkei Average fell 0.15%.
The Bank of Japan 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.
US stocks ended little changed on Wednesday after minutes from the Federal Reserve's last meeting had multiple members looking for more improvement in the labor market before cutting the pace of central-bank bond purchases.
Bernanke said that highly accommodative monetary policy will be needed for the foreseeable future after a speech in Cambridge. 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 $85 billion-a-month quantitative easing program.
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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