Key benchmark hovered in positive terrain in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was up 41.01 points or 0.19%, off close to 60 points from the day's high and up about 55 points from the day's low. The market breadth, indicating the overall health of the market, was positive. Gains in Asian and European stocks supported gains on the domestic bourses.
Metal and mining stocks edged higher. Hindustan Zinc and Sesa Sterlite, both, hit 52-week high after trade minister Anand Sharma on Monday, 20 January 2014, said that Union Cabinet has approved divestment of government's residual stake in Hindustan Zinc. Realty stocks edged higher.
The market edged higher in early trade on firm Asian stocks. The Sensex extended initial gains and hit fresh intraday high in morning trade. A bout of volatility was witnessed as key benchmark indices trimmed gains after hitting fresh intraday high in mid-morning trade. Key benchmark indices regained positive terrain after reversing intraday gains in early afternoon trade. Key benchmark hovered in positive zone in mid-afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 384.89 crore on Monday, 20 January 2014, as per provisional data from the stock exchanges.
At 14:20 IST, the S&P BSE Sensex was up 41.01 points or 0.19% to 21,246.06. The index jumped 97.47 points at the day's high of 21,302.52 in mid-morning trade, its highest level since 16 January 2014. The index fell 15.85 points at the day's low of 21,189.20 in early afternoon trade.
The CNX Nifty was up 9.55 points or 0.15% to 6,313.50. The index hit a high of 6,330.30 in intraday trade, its highest level since 16 January 2014. The index hit a low of 6,297.90 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,283 shares gained and 1,228 shares fell. A total of 151 shares were unchanged.
Tata Motors (up 2.74%), ICICI Bank (up 2.34%) and Maruti Suzuki India (up 1.68%) edged higher from the Sensex pack.
Realty stocks edged higher. DLF (up 0.35%), HDIL (up 0.91%), D B Realty (up 0.6%) and Sobha Developers (up 0.6%) rose. But, Unitech fell 0.36%.
Metal and mining stocks edged higher after China's central bank injected emergency funds into banks to tackle concerns about liquidity. China is the world's largest consumer of copper and aluminum. Jindal Steel & Power (up 0.13%), Tata Steel (up 1.5%), National Aluminum Company (up 1.1%), Hindustan Copper (up 0.6%), JSW Steel (up 0.34%), NMDC (up 0.82%), Hindalco Industries (up 0.22%) and Sail (up 0.51%) gained.
Hindustan Zinc rose 2.98% to Rs 136.50 after hitting a 52-week high of Rs 141.80 in intraday trade. Trade minister Anand Sharma on Monday, 20 January 2014, said that Union Cabinet has approved divestment of government's residual stake in Hindustan Zinc. He said the method and timing of the stake sale would be decided later. The government sold its control in Hindustan Zinc to India-born billionaire Anil Agarwal's Vedanta Resources PLC almost a decade ago. The government now still has a 29.54% stake in Hindustan Zinc. Vedanta holds 64.92% stake in Hindustan Zinc through its Indian arm Sesa Sterlite -- erstwhile Sterlite Industries. Vedanta has been seeking a larger control of the company to fast-track decision-making.
Shares of Sesa Sterlite were up 2.36% to Rs 210.35. The stock hit a 52-week high of Rs 213.05 in intraday trade.
The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014. The RBI kept its main lending rate viz. the repo rate unchanged after its last policy review in December and said at that time that it expected inflation to ease in the following months.
European stocks rose on Tuesday, 21 January 2014, after China's central bank added funds to the financial system. Key benchmark indices in France, Germany and UK rose 0.08% to 0.17%.
Asian stocks edged higher on Tuesday, 21 January 2014, as China's money-market rates dropped after the central bank pumped funds into the financial system. Key benchmark indices in China, Japan, Singapore, Hong Kong, Indonesia, and South Korea were up 0.18% to 0.99%. Taiwan's Taiwan Weighted fell 0.25%.
The People's Bank of China yesterday added funds and expanded access to a lending facility as rising demand for cash before the Lunar New Year drove the biggest jump in money-market rates in seven months. Around the holiday, large amounts of money are usually withdrawn from the banks to fund travel and gifts. Small- and medium-sized Chinese banks will also be able to tap the PBOC's Standing Lending Facility for loans of up to two weeks on a trial basis after the seven-day repurchase rate, a gauge of interbank funding availability, jumped 153 basis points yesterday to 6.32%.
The Bank of Japan's two-day monetary policy meeting began today, 21 January 2014.
Trading in US index futures indicated that the Dow could advance 45 points at the opening bell on Tuesday, 21 January 2014. The US stock market was closed on Monday, 20 January 2014, for a holiday commemorating civil rights leader Martin Luther King Jr.
The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014. By a 9-to-1 vote, the Fed on 18 December 2013 decided to trim its asset-purchase program by $10 billion to $75 billion per month starting in January 2014.
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