Key benchmark indices extended gains and hit fresh intraday high in mid-morning trade. The market breadth, indicating the overall health of the market, was strong. All the thirteen sectoral indices on BSE were in the green. Gains in Asian stocks underpinned sentiment on the domestic bourses. The barometer index, the S&P BSE Sensex, was up 63.98 points or 0.3%, off close to 5 points from the day's high and up about 45 points from the day's low.
Shares of state-run oil marketing companies (PSU OMCs) edged higher on reports that the oil ministry has decided to move a Cabinet note for a higher increase in diesel price - in line with the Rs 5 raise recommended by the Kirit Parikh committee. ONGC and Oil India edged higher on reports that the oil ministry is working on a policy to limit the share of upstream oil companies in the overall subsidy burden. Realty stocks extended their recent gains triggered by ICICI Bank, State Bank of India and HDFC cutting interest rates on home loans last week. Among capital goods shares, Thermax scaled 52-week high.
Shares of a number of small-cap and mid-cap companies extended recent gains triggered by stock market regulator Securities and Exchange Board of India's (Sebi) announcement on 19 December 2013 that it has decided to rationalize the rules on trading of thinly-traded stocks. BSE Small-Cap and Mid-Cap indices were up over 1% each, with both these indices outperforming the Sensex.
The market edged higher in early trade on firm Asian stocks. Key benchmark indices retained positive zone in morning trade. The Sensex extended gains and hit fresh intraday high in mid-morning trade.
The market may remain volatile today, 26 December 2013, as traders roll over positions in the futures & options (F&O) segment from the near month December 2013 series to January 2014 series. The near month December 2013 derivatives contracts expire today, 26 December 2013.
Foreign institutional investors (FIIs) bought shares worth a net Rs 40.67 crore on Tuesday, 24 December 2013, as per provisional data from the stock exchanges.
At 11:20 IST, the S&P BSE Sensex was up 63.98 points or 0.3% to 21,096.69. The index rose 69.51 points at the day's high of 21,102.22 in mid-morning trade. The index gained 18.29 points at the day's low of 21,051 in opening trade.
The CNX Nifty was up 19.40 points or 0.31% to 6,287.90. The index hit a high of 6,291.20 in intraday trade. The index hit a low of 6,270.05 in intraday trade.
The BSE Mid-Cap index rose 1.13% and the BSE Small-Cap index gained 1.42%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,446 shares gained and 585 shares fell. A total of 110 shares were unchanged.
Among the 30-share Sensex pack, 26 stocks gained and rest of them declined. Sun Pharmaceutical Industries (up 1.4%), Tata Power Company (up 1.51%) and Bharti Airtel (up 1.37%) gained.
Shares of state-run oil marketing companies (PSU OMCs) edged higher on reports that the oil ministry has decided to move a Cabinet note for a higher increase in diesel price - in line with the Rs 5 raise recommended by the Kirit Parikh committee. The Parikh committee, which had filed its report towards the end of October, had also suggested a Rs 250 a cylinder increase in the price of domestic cooking gas and Rs 4 a litre in kerosene oil, with immediate effect. BPCL (up 3.31%), HPCL (up 3.12%) and Indian Oil Corporation (up 1.53%) gained.
PSU OMCs suffer under recoveries on domestic sale of diesel, LPG and kerosene at controlled prices. In January 2013, the government allowed PSU OMCs to raise diesel prices in small measures at regular intervals while completely deregulating diesel prices sold to institutional or bulk buyers. The government has already freed pricing of petrol.
On 20 December 2013, PSU OMCs hiked the petrol price by 41 paise a litre, excluding local sales tax or VAT, following the government's decision to raise commission paid to petrol pump dealers and firming global oil rates. Simultaneously, diesel rates were increased by 10 paise per litre, excluding local sales tax or VAT, due to a hike in dealers' commission.
ONGC and Oil India edged higher on reports that the oil ministry is working on a policy to limit the share of upstream oil companies in the overall subsidy burden. ONGC was up 2.2% at Rs 292.20. Oil India was up 1% at Rs 477.90.
Thermax rose 1.84% to Rs 709.10 after hitting 52-week high of Rs 711 in intraday trade.
Realty stocks extended their recent gains triggered by ICICI Bank, State Bank of India and HDFC cutting interest rates on home loans last week. The reduction in home loan rates by these three major lenders could lead to a revival of interest in the real estate sector, which has been hit by high prices amid a sluggish economy. Purchases of both residential and commercial property are largely driven by finance. DLF (up 0.19%), D B Realty (up 0.59%), Unitech (up 1.27%), HDIL (up 1.09%) and Sobha Developers (up 1.09%) gained.
Trident rose 2.76% after the company said that the court convened meeting of its shareholders is scheduled to be held on 25 January 2014 in the matter of proposed amalgamation of Trident Corporation with the company. The announcement was made after market hours on Tuesday, 24 December 2013.
IL&FS Transportation Networks rose 1.66% to Rs 134.80 after the firm approved the allotment of 12.64 crore rated listed fully paid-up cumulative non-convertible compulsorily redeemable preference shares on private placement basis. The announcement was made after market hours on Tuesday, 24 December 2013.
IL&FS Transportation Networks (ITNL) said that the Committee of Directors approved the allotment of 12.64 crore rated listed fully paid-up cumulative non-convertible compulsorily redeemable preference shares (CNCRPS) of Rs 10 each at a premium of Rs 10 per share on a private placement basis on Monday, 23 December 2013. The aforesaid CNCRPS were listed on the BSE effective from Tuesday, 24 December 2013. The company had already issued 20 crore unrated, unlisted fully paid up cumulative redeemable preference shares of Rs 10 each at a premium of Rs 10 per share on a private placement basis on 26 September 2013. With the aforesaid allotment the company has issued 32.64 crore preference shares of Rs 10 each as of date, ITNL said.
In foreign exchange market, rupee edged lower against the dollar on broad based gains in dollar. The partially convertible rupee was hovering at 61.9775, compared with its close of 61.79/80 on Tuesday, 24 December 2013. Financial markets remained closed on Wednesday, 25 December 2013, on account of Christmas.
Asian stocks edged higher on Thursday, 26 December 2013, led by Japanese stocks after the yen fell to a five-year low against the dollar. Key benchmark indices in Taiwan, Japan, and Singapore were up 0.23% to 0.93%. South Korea's Kospi dropped 0.06%. Stock markets in Hong Kong and Indonesia were shut for holidays.
China's Shanghai Composite fell 1.3%, ending a three-day recovery as investors reacted negatively to a lack of additional cash injections from the central bank, used last week to calm a spike in interbank lending rates that has eroded investor confidence.
China's ruling Communist Party reportedly unveiled on Wednesday a five-year plan to fight pervasive graft, with particular attention on corruption that triggers protests or happens in the course of economic reforms.
China's economy this year is likely to expanded 7.6%, compared with the government's 7.5% target, a News Agency in China reportedly said, citing a report by the State Council.
The minutes of the Bank of Japan's Nov. 20-21 board meeting released on Wednesday, 25 December 2013, showed that not all members were convinced that the country's growth was on a long-term upward trend. One member said that the recent deceleration in real gross domestic product growth could signal a downward shift in the economy's trend
The consumer confidence index in South Korea stayed at 107 in December, unchanged from November, the nation's central bank said in a statement today, 26 December 2013.
The US stock market was closed on Wednesday, 25 December 2013, for Christmas. US stocks ended higher on Tuesday, 24 December 2013, with the Dow Jones Industrial Average and the S&P 500 rising to record closes after an upbeat report on durable-goods orders. Investors welcomed Tuesday's durable-goods report showing that orders for big-ticket US items, such as aircraft and transportation equipment, rose 3.5% last month.
In a separate report, US home prices rose 8.2% in October from the same month last year, according to the Federal Housing Finance Agency. Prices rose 0.5% from September.
Rising mortgage rates did not affect the sales of new single-family homes much, according to US Commerce Department data released on Tuesday. Sales declined 2.1% in November to a seasonally adjusted annual rate of 464,000, down from a rate of 474,000 in October, which was the fastest pace since July 2008.
The US Federal Reserve said after a two-day monetary policy review on 18 December 2013 that it will cut its monthly bond purchases to $75 billion from $85 billion starting in January 2014 amid an improved outlook for the job market in the world's largest economy. The US central bank is poised to continue winding down its stimulus measures gradually over the next year.
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