Firmness continued on the bourses in mid-morning trade. The barometer index, the S&P BSE Sensex, was up 184.32 points or 0.74%, off 45.36 points from the day's high and up 91.16 points from the day's low. The market breadth indicating the overall health of the market was strong, with more than two gainers for every loser on BSE. The BSE Mid-Cap index was up 1.51%. The BSE Small-Cap index was up 1.86%. Easing of retail inflation in June 2014, gains in Asian stocks and overnight upmove in US stocks underpinned sentiment on the domestic bourses.
Metal and mining stocks gained ahead of Chinese gross domestic product (GDP) data for the second quarter due to be released tomorrow, 16 July 2014. Hindustan Zinc rose as zinc prices hovered near a three-year high. Steel stocks gained across the board as significant thrust on improving as higher outlay for housing, road, port, urban and rural housing and infrastructure development Union Budget 2014-15 would help improve steel consumption. Tata Sponge Iron jumped after strong Q1 result announced after trading hours on Monday, 14 July 2014. Among other side counters, Gruh Finance scaled record high.
At 11:15 IST, the S&P BSE Sensex was up 184.32 points or 0.74% to 25,191.30. The index jumped 229.68 points at the day's high of 25,236.66 in morning trade, its highest level since 11 July 2014. The index rose 93.16 points at the day's low of 25,100.14 in early trade.
The CNX Nifty was up 56.65 points or 0.76% to 7,510.80. The index hit a high of 7,524.20 in intraday trade, its highest level since 11 July 2014. The index hit a low of 7,490.55 in intraday trade.
The market breadth indicating the overall health of the market was strong, with more than two gainers for every loser. On BSE, 1,559 shares gained and 694 shares fell. A total of 63 shares were unchanged.
The BSE Mid-Cap index was up 134.38 points or 1.51% at 9,008.08. The BSE Small-Cap index was up 179.28 points or 1.86% to 9,821.74. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 869 crore by 11:15 IST, compared with Rs 566 crore by 10:15 IST.
Among the 30-share Sensex pack, 21 stocks gained and rest of them declined.
ICICI Bank (up 3.19%), GAIL (India) (up 2.29%) and Bharat Heavy Electricals (Bhel) (up 2.14%) edged higher from the Sensex pack.
Metal and mining stocks gained ahead of Chinese gross domestic product (GDP) data for the second quarter due to be released tomorrow, 16 July 2014. China is the world's largest consumer of copper and aluminum.
NMDC (up 3.24%), National Aluminium Company (up 1.99%) and Hindustan Copper (up 3.46%) edged higher.
Hindustan Zinc rose 2.11% as zinc prices hovered near a three-year high. The stock had jumped 5.07% on Monday, 14 July 2014. Three month zinc on the London Metal Exchange struck the highest since August 2011 at $2,325.50 on Monday, 14 July 2014.
Hindalco Industries rose 0.89%. The government raised export duty on bauxite from 10% to 20% in Union Budget 2014-15. Increase in export duty on bauxite will be favourable for aluminium smelters like Hindalco and Sesa Sterlite who will benefit from the resultant increase in domestic bauxite supply.
Shares of Sesa Sterlite fell 0.64%.
Steel stocks gained across the board as significant thrust on improving as higher outlay for housing, road, port, urban and rural housing and infrastructure development Union Budget 2014-15 would help improve steel consumption.
Jindal Steel & Power rose 0.86%. JSW Steel rose 2.02%. Tata Steel rose 1.53%. Steel Authority of India (Sail) gained 1.32%.
Tata Sponge Iron jumped 7.79% after net profit surged 145.45% to Rs 44.28 crore on 23.52% increase in total income from operations to Rs 203.12 crore in Q1 June 2014 over Q1 June 2013. The company announced the result after trading hours on Monday, 14 July 2014.
Gruh Finance gained 1.86% to Rs 216.80 after scaling a record high of Rs 218.80 in intraday trade. Gruh Finance is a subsidiary of housing finance major HDFC.
Shares of HDFC shed 0.18%.
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. Key benchmark indices trimmed gains after hitting fresh intraday high in morning trade. Firmness continued on the bourses in mid-morning trade.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 60.1750, compared with its close of 60.07/08 on Monday, 14 July 2014.
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.
Inflation based on the wholesale price index eased to 5.43% in June 2014, from 6.01% in May 2014, data released by the government during trading hours on Monday, 14 July 2014, showed.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 5 August 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, Singapore, Indonesia, South Korea and China rose by 0.05% to 1.03%.
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.
Trading in US index futures indicated that the Dow could rise 15 points at the opening bell on Tuesday, 15 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.
Investors are awaiting Federal Reserve Chair Janet Yellen's testimony before the congress due later in the day.
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