Key benchmark indices extended gains and hit fresh intraday high in mid-afternoon trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit fresh two-week high. The Sensex was hovering above the psychological 26,000 mark after regaining that psychological level in early trade. The Sensex was up 181.33 points or 0.7% at 26,100.28. The market sentiment was boosted by data showing that foreign portfolio investors (FPIs) were net buyers of Indian stocks on Wednesday, 13 August 2014. The market breadth indicating the overall health of the market was currently positive, having moved alternately between positive in negative zone since mid-morning trade. Metal and mining stocks rose on speculation the Chinese government will take steps to support its 7.5% expansion target, after data released on Wednesday showed plunge in credit expansion in July and unexpected slowdown in investment spending. Hindalco Industries fell in volatile trade after the company reported poor Q1 result during market hours today, 14 August 2014. National Aluminium Company rose after strong Q1 result on Wednesday, 13 August 2014. Tata Steel reversed initial decline triggered by reporting weak Q1 result announced at the fag end of the trading session on Wednesday, 13 August 2014. Upstream oil companies were in demand. Oil and Natural Gas Corporation (ONGC) reversed intraday fall in volatile trade
Key benchmark indices have retained positive zone after in initial surge as weaker-than-expected US retail sales data reinforced speculation that the Federal Reserve won't rush to raise rates. The Fed has kept short-term US interest rates near zero since December 2008, bolstering demand for emerging-market assets as investors seek higher yield.
At 14:12 IST, the S&P BSE Sensex was up 181.33 points or 0.7% to 26,100.28. The index jumped 189.31 points at the day's high of 26,108.26 in mid-afternoon trade, its highest level since 31 July 2014. The index rose 26.40 points at the day's low of 25,945.35 in early trade.
The CNX Nifty was up 45.75 points or 0.59% to 7,785.30. The index hit a high of 7,789.55 in intraday trade, its highest level since 31 July 2014. The index hit a low of 7,739.10 in intraday trade.
The market breadth indicating the overall health of the market was currently positive, having moved alternately between positive and negative zone since mid-morning trade. On BSE, 1,482 shares gained and 1,263 shares declined. A total of 106 shares were unchanged.
The BSE Mid-Cap index was up 87.33 points or 0.98% at 8,988.08. The BSE Small-Cap index was up 82.87 points or 0.85% at 9,794.18. Both these indices outperformed the Sensex.
Metal and mining stocks rose on speculation the Chinese government will take steps to support its 7.5% expansion target, after data released on Wednesday showed plunge in credit expansion in July and unexpected slowdown in investment spending. China is the world's largest consumer of copper and aluminum.
Sesa Sterlite (up 2.82%), JSW Steel (up 8.08%), Steel Authority of India (Sail) (up 3.79%), NMDC (up 0.26%), Hindustan Zinc (up 0.09%), Jindal Steel & Power (up 3.3%) edged lower. Hindustan Copper fell 1.9%.
Hindalco Industries fell 0.84% in volatile trade. Hindalco Industries during market hours reported 30.92% fall in net profit to Rs 327.50 crore on 31.06% rise in total income to Rs 8212.44 crore in Q1 June 2014.
National Aluminium Company rose 3.38% after net profit jumped 69.68% to Rs 270.99 crore on 7.53% growth in total income to Rs 1870.40 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced after market hours on Wednesday, 13 August 2014.
Tata Steel rose 1.5% to Rs 542.70, with the stock reversing initial decline. The stock hit high of Rs 543.15 and low of Rs 525.20 so far during the day. Tata Steel's consolidated net profit fell 70.38% to Rs 337.33 crore on 11.08% increase in total income to Rs 36643.35 crore in Q1 June 2014 over Q1 June 2013. Tata Steel said the net profit was affected by exceptional charges of Rs 262 crore in Q1 June 2014. The result was announced at the fag end of the trading session on Wednesday, 13 August 2014.
EBITDA (earnings before interest, taxes, depreciation and amortization) rose 15.18% to Rs 4325 crore in Q1 June 2014 over Q1 June 2013. Steel deliveries rose 6.25% to 6.46 million tonnes in Q1 June 2014 over Q1 June 2013. The Group continues to undertake several financial initiatives to strengthen the balance sheet. Non-core assets such as Dhamra Port and Borivali land are being monetized, Tata Steel said.
On 30 July 2014, Rio Tinto reached an agreement for sale of Rio Tinto Coal Mozambique which includes the Benga Project in which Tata Steel has a 35% stake. Consequently, Tata Steel undertook an impairment review exercise of its investment in the Benga Project and the board approved a non-cash write-down of Rs 1577 crore, Tata Steel said in a statement.
Upstream oil companies were in demand. Oil and Natural Gas Corporation (ONGC) rose 1.54% to Rs 408, with the stock reversing intraday fall in volatile trade. The stock hit a high of Rs 408.75 and a low of Rs 393.15 so far during the day.
ONGC reported 19.06% surge in net profit to Rs 4781.79 crore on 10.93% rise in total income to Rs 22746.45 crore in Q1 June 2014 over Q1 June 2013. The result was announced after market hours on Wednesday, 13 August 2014.
Net profit increased in Q1 June 2014 on the back of higher realisation from sale of crude oil. The net realisation for crude oil sales during the quarter was 25% higher than the same quarter last year at Rs 2818 a barrel, and in dollar terms, it was $47.15 a barrel. Production of crude oil grew slowly at 0.83% to 6.007 million tonnes, while natural gas production fell 2.34% to 6.181 billion cubic metres.
ONGC said that due to the discounts given to the public sector oil marketing companies, net profit was lower by Rs 7396 crore in Q1 June 2014. The net profit was impacted by Rs 7131 crore in Q1 June 2013.
The company also announced five new discoveries during the quarter, four of which are in the western part of India and one in the Krishna-Godavari basin.
GAIL (India) advanced 2.75%. Oil India rose 1.19%.
The market sentiment was boosted by data showing that foreign portfolio investors (FPIs) were net buyers of Indian stocks on Wednesday, 13 August 2014. FPIs bought shares worth a net Rs 718.27 crore on Wednesday, 13 August 2014, as per provisional data from the stock exchanges.
The stock market remains closed tomorrow, 15 August 2014, on account of Independence Day.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 61.0375, compared with its close of 61.225 on Wednesday, 13 August 2014.
The annual rate of inflation based on monthly Wholesale Price Index (WPI) eased to 5.19% for July 2014, from 5.43% for June 2014, data released by government today, 14 August 2014 showed. Meanwhile, the government revised upwards WPI inflation for May 2014 at 6.18% from 6.01% reported earlier.
Data released by the government early this week had shown acceleration in headline consumer price inflation and easing of core consumer price inflation last month.
The government has reportedly sent a landmark bill to liberalise the insurance sector to a parliament committee today, 14 August 2014, after the opposition opposed the legislation in the upper house where it has a majority. Finance Minister Arun Jaitley reportedly said that a select committee will examine the bill to increase the cap on foreign participation in insurance joint ventures from 26% to 49% and submit its report in the winter session of parliament later this year. The hike in FDI in insurance sector was proposed by the Finance Minister in the Union Budget in July. It is one of the key measures announced by the government to liberalize the economy.
European stocks fell today, 14 August 2014, on weaker-than-estimated economic-growth figures from France and Germany. Key benchmark indices in France and Germany were off 0.4% to 0.53%. In UK, the FTSE 100 rose 0.1%.
GDP in Germany, the currency bloc's largest economy, fell 0.2% from the first quarter, when it rose a revised 0.7%, the Federal Statistics Office in Wiesbaden said today. French GDP stagnated in the three months through June, the national statistics office Insee said today in a statement.
Asian stocks edged lower today, 14 August 2014, amid intraday volatility. Key benchmark indices in China, Hong Kong, Singapore, Taiwan and Indonesia were off 0.01% to 0.74%. Key benchmark indices in Japan and South Korea were up 0.04% to 0.66%.
After holding its policy unchanged for more than a year, the Bank of Korea cut its benchmark interest rate today, 14 August 2014, by a quarter point to 2.25%, the lowest since late 2010.
Trading in US index futures indicated that the Dow could fall 15 points at the opening bell on Thursday, 14 August 2014. US stocks rose on Wednesday, 13 August 2014, as a slowdown in retail sales boosted speculation the Federal Reserve won't be forced to raise rates sooner than anticipated.
Sales at US retailers were unchanged in July, the weakest result in six months, as sales fell at auto dealers, but rose at gas stations and food and beverage stores, according to government data released on Wednesday, 13 August 2014. Separately, business inventories rose in June by more than expected.
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