Key benchmark indices extended gains to strike fresh intraday high in mid-morning trade on the government's gas and energy sector reforms and firm Asian stocks. The S&P BSE Sensex was up 357.34 points or 1.89%, up 140.11 points from the day's low and off 18.06 points from the day's low. The market breadth, indicating the overall health of the market, was strong.
IT stocks dropped following the US Senate's approval of plan to rewrite its immigration laws. PSU OMCs gained. Fertiliser shares were also in demand. United Spirits dropped on high volume.
The government on Thursday agreed to double natural gas prices to industrial and retail consumers to help fund investment in exploration and reverse declining domestic gas output. In another decision, the government on Thursday approved setting up of a coal regulator in a bid to further liberalize the energy sector and revitalize economic growth.
Key benchmark indices rallied in early trade on the government's gas and energy sector reforms, with market sentiment also lifted by higher Asian stocks. The barometer index, the S&P BSE Sensex, hit over one-week high above the psychological 19,000 mark. Key benchmark indices regained strength after paring gains after an initial surge. Key benchmark indices extended gains to strike fresh intraday high in mid-morning trade.
At 11:22 IST, the S&P BSE Sensex was up 357.34 points or 1.89% to 19,233.29. The index jumped 375.40 points at the day's high of 19,251.35 in mid-morning trade, its highest level since 19 June 2013. The index gained 217.23 points at the day's low of 19,093.18 in opening trade.
The CNX Nifty was up 104.45 points or 1.84% to 5,786.80. The index hit a high of 5,794.70 in intraday trade, its highest level since 19 June 2013. The index hit a low of 5,749.50 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,301 shares gained and 634 shares fell. A total of 118 shares were unchanged.
The total turnover on BSE amounted to Rs 676 crore by 11:20 IST on BSE compared to Rs 436 crore by 10:20 IST.
Among the 30-share Sensex pack, 26 stocks gained and only four of them declined.
IT stocks dropped following the US Senate's approval of plan to rewrite its immigration laws. The plan, aimed at overhauling US immigration laws, includes proposals such as limiting the number of foreign workers in the US and raising visa fees significantly. Indian IT companies get more than half of their revenue from the US and the bill could impact these companies' cost structures.
Tata Consultancy Services (TCS) (down 0.09%), Infosys (down 0.51%), Wipro (down 0.85%) and HCL Technologies (down 2.04%) declined.
Fertiliser shares were in demand. Rashtriya Chemicals and Fertilizers (up 3.2%), Chambal Fertilisers & Chemicals (up 6.26%), GSFC (up 0.67%), Deepak Fertilisers & Petrochemicals Corporation (up 0.92%) and Coromandel International (up 2.96%) gained.
National Fertilisers (NFL) gained 3.83% after the government cleared a proposal for divestment of government's 7.64% stake sale in the state-run firm. The government currently holds 97.64% stake in NFL.
PSU OMCs gained. HPCL (up 4.64%), BPCL (up 4.34%) and Indian Oil Corporation (up 4.19%) gained.
United Spirits dropped 6.36% to Rs 2088.10 on high volume of 3.64 lakh shares as against an average daily volume of 3.20 lakh shares in the past one quarter.
Shasun Pharmaceuticals jumped 10.34%. The company during market hours today, 28 June 2013, said an amicable settlement has been reached with the workers at the company's Pondicherry facility. The strike has been called off and operations resumed from yesterday night.
Asian stocks edged higher on Friday, 28 June 2013, tracking an overnight rise in global equities on easing fears of an early end to US monetary stimulus. Key benchmark indices in Hong Kong, Indonesia, Taiwan, Singapore, China and South Korea were up 0.75% to 1.67%.
In Japan, the Nikkei 225 index jumped 3.36% as a weakened yen combined with upbeat industrial-production data to lift sentiment.
Japan's industrial production showed a surprise jump in May, while retail sales for the same month also gained, though the largest retailers saw a decline. Industrial output rose 2% during the last month, the Ministry of Economy, Trade and Industry said Friday, accelerating from a 0.9% gain in April.
Trading in US index futures indicated that the Dow could gain 30 points at the opening bell on Friday, 28 June 2013. US stocks surged for a third session on Thursday on upbeat economic data and reiterations from Federal Reserve officials that monetary policy depends on the economic outlook. In a speech on Thursday, Federal Reserve Bank of New York President William Dudley played down the possibility that rate hikes are in the cards anytime soon. Atlanta Fed President Dennis Lockhart said that the markets had mistaken Bernanke's framework for tapering central-bank asset purchases, and reiterated the Fed's approach would be flexible, and based on economic conditions. On Wednesday, Fed Bank of Richmond President Jeffrey Lacker said he believes the economic recovery will remain lackluster for a few more years.
The US Department of Labor reported the number of Americans filing for state unemployment benefits fell by 9,000 to 346,000 last week. The National Association of Realtors reported that pending home sales jumped to a six-year high in May.
Federal Reserve Chairman Ben Bernanke on 19 June 2013 said that the central bank may taper the pace of its bond purchases, currently set at $85 billion a month, as early as this year if the economy continues to improve in line with its forecasts.
Data on Wednesday had gross domestic product expanding at a less-than-estimated 1.8% annualized pace in the first quarter, bolstering the view that the Fed would continue the rate of its quantitative easing until late this year or early in 2014.
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