Key benchmark indices edged higher as Asian and European stocks rose after preliminary survey showed acceleration in growth in China's manufacturing sector and improved growth in euro-area manufacturing and services sector this month. The umpove came during the last one and half hour of trade after indices hovered in the red for most part of the trading session. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit record high on intraday basis as well as on closing basis. The Sensex garnered 124.52 points or 0.48%, up 194.15 points from the day's low and off 20.81 points from the day's high. Gains for key benchmark indices were driven by reports that the Union Cabinet has approved hike in the ceiling on foreign direct investment (FDI) in insurance sector to 49% from 26%. However, there was lack of strength in the broad market. The BSE Mid-Cap index shed 0.2%. The Small-Cap index rose 0.25%, underperforming the Sensex. The market breadth indicating the overall health of the market was negative.
Steel stocks gained as measure of manufacturing in China climbed to an 18-month high in July. Shares of other metal and mining companies also gained. Hindalco Industries hit 52-week high. Shares of Cairn India tumbled after a loan given to its parent raised investor concerns about the use of the company's cash reserves. IT stocks gained after recent data reaffirmed improving health of the US economy, with TCS hitting record high. ACC rose in volatile trade after reporting Q2 results. Insurance stocks were mixed.
Hindustan Unilever rose after parent Unilever reported results for Q2 and half-year ended 30 June 2014. Idea Cellular rose after the company during market hours said that the Securities Allotment Committee of the Board of Directors of the company has, at its meeting held today, 24 July 2014, issued and allotted shares to Axiata Investments 2 (India) on a preferential basis. Bank of Baroda extended Wednesday's gains triggered by the Reserve Bank of India lifting curb on purchases of the shares of the bank by foreign investors.
Among the side counters, Tata Sponge and V-Guard Industries scaled record high. HCL Infosystems hit 52-week high. Sugar stocks were in demand on renewed buying.
The S&P BSE Sensex garnered 124.52 points or 0.48% to settle at 26,271.85, a record closing high. The index jumped 145.33 points at the day's high of 26,292.66 in late trade, a lifetime high for the index. The index fell 69.63 points at the day's low of 26,077.70 in early trade.
The CNX Nifty garnered 34.85 points or 0.45% to settle at 7,830.60, a record closing high. The index hit a high of 7,835.65 in intraday trade, a lifetime high for the index. The index hit a low of 7,771.65 in intraday trade.
The total turnover on BSE amounted to Rs 3093 crore, higher than Rs 3029.20 crore on Wednesday, 23 July 2014.
The market breadth indicating the overall health of the market was negative. On BSE, 1,487 shares dropped and 1,479 shares rose. A total of 119 shares were unchanged.
The BSE Mid-Cap index shed 18.26 points or 0.2% to settle at 9,293.46. The BSE Small-Cap index garnered 25.15 points or 0.25% to settle at 10,229.33. Both these indices underperformed the Sensex.
The S&P BSE Metal index (up 1.47%), the S&P BSE IT index (up 0.9%), the S&P BSE FMCG index (up 0.86%) and the S&P BSE Teck index (up 0.64%) outperformed the Sensex.
The S&P BSE Bankex (up 0.44%), the S&P BSE Realty index (up 0.32%), the S&P BSE Capital Goods index (up 0.19%), the S&P BSE Auto index (up 0.02%), the S&P BSE Oil & Gas index (down 0.19%), the S&P BSE Healthcare index (down 0.25%), the S&P BSE Power index (down 0.34%) and the S&P BSE Consumer Durables index (down 0.93%) underperformed the Sensex.
Among the 30-share Sensex pack, 21 stocks gained and rest of them declined.
IT stocks gained after recent data reaffirmed improving health of the US economy. US is the biggest outsourcing market for the Indian IT firms. Infosys (up 0.84%), Tech Mahindra (up 1.29%) and HCL Technologies (up 2.47%) gained.
Wipro was up 1.14% ahead of its Q1 results due later during the day.
TCS gained 0.12% to Rs 2,590 after hitting record high of Rs 2,600 in intraday trade. The company early this week announced a new partnership with MapR Technologies, Inc., provider of the top-ranked distribution for Apache Hadoop, to help enterprise customers easily and rapidly capture critical big data insights. The partnership's new big data offerings will shift the IT cost curve and allow companies to strategically reimagine their business models, TCS said.
Steel stocks gained as measure of manufacturing in China climbed to an 18-month high in July. Tata Steel (up 2.33%), Steel Authority of India (Sail) (up 4.13%), JSW Steel (up 3.58%) and Jindal Steel & Power (up 0.24%) gained. Bhushan Steel fell 0.09%.
Shares of aluminum makers Hindalco Industries and National Aluminum Company edged higher tracking gains in aluminum prices on the London Metal Exchange. National Aluminum Company was up 2.85%.
Hindalco Industries gained 2.51% to Rs 197.95 after hitting a 52-week high of Rs 198.50 in intraday trade.
On the London Metal Exchange (LME), aluminum for three-month delivery fell 0.47% to $2,011 a tonne on Wednesday, 23 July 2014. The price has risen 6.65% from a recent closing low of $1,885.50 on 10 July 2014.
The price has risen 5.06% so far in July 2014 (till 23 July 2014). It has risen 9.03% so far in calendar year 2014 (till 23 July 2014).
Among other metal and mining stocks, Hindustan Zinc (up 0.87%), Hindustan Copper (up 0.36%), NMDC (up 0.2%), and Sesa Sterlite (up 0.86%) gained.
China is the world's largest consumer of steel, copper and aluminum.
Shares of Cairn India tumbled after a loan given to its parent raised investor concerns about the use of the company's cash reserves. The stock slumped 6.67%. As per reports, Cairn India's management disclosed at a post-result conference call yesterday, 23 July 2014, that the company has lent $1.25 billion to parent Vedanta for a two-year period as a part of the company's treasury operations. Cairn India had already disbursed $800 million to Vedanta in Q1 June 2014 and the balance amount will be disbursed in the coming quarters.
Cairn India reported 65.05% fall in consolidated net profit to Rs 1092.90 crore on 10.33% rise in total income from operations (net) to Rs 4482.85 crore in Q1 June 2014 over Q1 June 2013. The result was announced after market hours on Wednesday, 23 July 2014.
The steep fall in the company's bottom line was due to an exceptional deprecation charge of Rs 1627.39 crore with retrospective effect in Q1 June 2014 due to change in method of depreciation from Straight Line method (SLM) to the Unit of Production (UOP) method.
Cairn India in its outlook said that with ongoing net capital investments program of $3 billion through end of year ending 31 March 2017, the company remains committed to the creation of long term shareholder value. Based on recent exploration successes, the company is confident that it will establish 3 billion barrels of oil equivalent (boe) hydrocarbons in-place, significantly ahead of schedule. Cairn India has identified significant gas potential in the block and plans are underway to advance commercialisation of discovered gas volumes. Considering the significant potential of the Rajasthan asset, the company continues to focus on other major development projects to enhance recovery and achieve a 3 year production CAGR of 7-10% from known discoveries with flat production in FY 2015, Cairn India said.
ONGC shed 0.22% to Rs 404.20. The stock hit high of Rs 408.75 and low of Rs 402.10.
Minister of State (I/C) in the Ministry of Petroleum & Natural Gas Dharmendra Pradhan informed the Rajya Sabha in a written reply on Wednesday, 23 July 2014, that ONGC and Reliance Industries (RIL) have selected an independent agency to verify the state explorer's allegation that RIL may be drawing gas from a common reservoir in the two companies' adjoining blocks in the KG Basin. ONGC in July 2013 stated that the wells drilled in blocks KG-DWN-98/3 by RIL in the vicinity/on boundary of ONGC's nomination Godavari PML and NELP-I Block KG-DWN-98/2 may be draining gas from ONGC's gas reservoirs. Both ONGC and RIL have made hydrocarbon discoveries in their respective blocks. While RIL is producing gas from its block since 2009, ONGC is yet to start production from its block. In May, 2014, ONGC filed an extra-ordinary writ petition in Delhi high court against Union of India, the Directorate General of Hydrocarbons and RIL with a request to appoint an independent agency to establish the continuity of reservoirs between KG-DWN-98/2 block operated by ONGC and KG-DWN-98/3 block operated by RIL and to estimate the volume of gas and also for working out gas balancing between the above reservoirs if found to have continuity.
Hindustan Unilever rose 1.56%. Parent Unilever said at the time of announcing its results for Q2 and half-year ended 30 June 2014 said that the company achieved 6.6% underlying sales growth in emerging markets in half-year ended 30 June 2014. "The first half again shows consistent top and bottom line progress despite significant headwinds. Our markets have been challenging and we have experienced a further slow-down in the emerging countries whilst developed markets are not yet picking up", Chief Executive Officer Paul Polman said.
Bharat Heavy Electricals (Bhel) rose 0.83%. Bhel during market hours said that the company has achieved landmark in its after-market-service business by successfully renovating, modernizing and uprating 110 MW Unit-4 at Guru Nanak Dev Thermal Plant of Punjab State Power Corporation (PSPCL) at Bathinda. After successfully running for over 33 years, this unit, originally supplied and commissioned by Bhel, was undertaken for Renovation & Modernization (R&M).
Following the R&M, not only was the working life of the machine extended by another 15-20 years, the capacity was also uprated to 120 MW from its original capacity of 110 MW. The unit has achieved the uprated capacity of 120 MW on 23 July 2014, Bhel said.
Cement stocks were mixed. Ambuja Cements rose 1.11% ahead of its Q2 results today, 24 July 2014.
UltraTech Cement rose 0.3%. The stock turned ex-dividend today, 24 July 2014, for dividend of Rs 9 per share for the year ended 31 March 2014 (FY 2014).
Grasim Industries declined 0.33%. Grasim has exposure to the cement sector through its subsidiary UltraTech Cement.
Shree Cement dropped 1.47%.
ACC rose 0.98% to Rs 1469 after announcing Q2 results. The stock hit high of Rs 1,474.35 and low of Rs 1,430.10. The company's consolidated net profit fell 7.11% to Rs 243.15 crore on 7.49% increase in total income to Rs 3,097.43 crore in Q2 June 2014 over Q2 June 2013. The result was announced during trading hours today, 24 July 2014.
Operating earnings before interest, taxes depreciation and amortization (EBITDA) fell 7.75% to Rs 452.12 crore in Q2 June 2014 over Q2 June 2013.
Manufacturing and distribution costs continued to face escalation, though the company derived some benefits from the ongoing cost leadership programme and an increase in the sales of premium products, ACC said in a statement.
Demand for cement showed some improvement and the company's overall sales volumes during the quarter improved by 4%, as compared to the corresponding period of the previous year, ACC said. The company expects the positive trend in demand for cement to continue as a result of government's emphasis on housing and infrastructure development, the company said.
Shares of insurance services providers were mixed after reports that the Union Cabinet has approved hike in the ceiling on foreign direct investment (FDI) in insurance sector to 49% from 26%. Finance Minister Arun Jaitley in Union Budget 2014-15 this month had proposed hike in FDI in insurance sector to 49% from 26%. Reliance Capital (up 4.2% to Rs 615), Max India (up 0.89% to Rs 322.30), Aditya Birla Nuvo (up 0.56% to Rs 1,419), State Bank of India (up 0.3% at Rs 2,548.05) rose. Religare Enterprises (down 1.05% at Rs 325), ICICI Bank (down 0.38% at Rs 1,500.10) and Bajaj Finserv (down 0.13% at Rs 928) dropped
All these firms have their presence in the life insurance sector either directly or through joint venture with foreign companies.
Bank of Baroda rose 3.52%, with the stock extending Wednesday's gains triggered by the Reserve Bank of India lifting curb on purchases of the shares of the bank by foreign investors. The Reserve Bank of India (RBI) on Tuesday, 22 July 2014, notified that the aggregate share holdings by foreign institutional investors (FIIs)/ registered foreign portfolio investors (FPIs)/non resident indian (NRI)/persons of Indian origin (PIO) under portfolio investment scheme in Bank of Baroda have gone below the prescribed threshold caution limit.
As on 30 June 2014, FIIs held 16.95% stake in Bank of Baroda.
State-run UCO Bank galloped 5.83% to Rs 107.95. The bank will announce Q1 results on Friday, 25 July 2014.
State-run Bank of India spurted 4.27% to Rs 299.45. The bank will announce Q1 results on 30 July 2014.
Idea Cellular rose 1.71%. Idea Cellular during market hours said that the Securities Allotment Committee of the Board of Directors of the company has, at its meeting held today, 24 July 2014, issued and allotted 5.18 crore equity shares to Axiata Investments 2 (India) at an issue price of Rs 144.68 per share, including a premium of Rs 134.68 per share, aggregating approximately to Rs 750 crore, on a preferential basis.
The Shareholders of the company had approved the allotment vide special resolution passed at the Extra-ordinary General Meeting held on 10 July 2014, Idea Cellular said. Further the Company has informed that, post the allotment, the paid-up equity share capital of the company stands increased to Rs 3595.89 crore of 359.58 crore equity shares of Rs 10 each, fully paid-up.
ABB India lost 4.22%, with the stock extending Wednesday's post-result losses. The company's net profit rose 20% to Rs 48 crore on 3.69% growth in revenue to Rs 1794 crore in Q2 June 2014 over Q2 June 2013. The Q2 result was announced during market hours on Wednesday, 23 July 2014. ABB India said that the top line during the quarter remained stable with encouraging growth mainly from short cycle business. The company maintains its policy of cash over revenue, ABB India said in a statement.
ABB India attributed the growth in bottom line during the quarter to higher focus on continuous localization, cost optimization and striking the right balance of risks and returns.
The company's order backlog stood at Rs 8083 crore as on 30 June 2014 as against Rs 8260 crore as on 30 June 2013. The order backlog position of the company has been steadily increasing over the last six months providing revenue visibility, ABB India said in a statement.
Container Corporation of India rose 1.66% after the company announced that Ministry of Heavy Industries and Public Enterprises, Department of Public Enterprises, Government of India granted Navratna status to the company on 23 July 2014. The company made the announcement after market hours on Wednesday, 23 July 2014.
Bharti Infratel fell 3.63% after the stock turned ex-dividend today, 24 July 2014, for a total dividend of Rs 8.90 per share.
L&T Finance Holdings (LTFH) dropped 1.59%. The company's consolidated net profit rose 97.25% to Rs 285.87 crore on 24.56% growth in total income to Rs 1468.54 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced after market hours on Wednesday, 23 July 2014.
L&T Finance Holdings (LTFH)'s consolidated profit after tax (excluding exceptional items) rose 15% to Rs 167 crore in Q1 June 2014 over Q1 June 2013. There was an exceptional income of approximately Rs 119 crore (net of tax) during the quarter from the sale of shares in City Union Bank.
TVS Motor Company dropped in volatile trade after the company announced Q1 results. The stock lost 8.23% at Rs 155.50. The scrip hit high of Rs 179 and low of Rs 154.70. The company's net profit jumped 39.3% to Rs 72.30 crore on 31% growth in total revenue to Rs 2305 crore in Q1 June 2014 over Q1 June 2013.
Glenmark Pharmaceuticals rose 0.57%. Glenmark Pharmaceuticals after market hours reported 43.65% rise in consolidated net profit to Rs 184.84 crore on 20.04% rise in total income to Rs 1490.40 crore in Q1 June 2014 over Q1 June 2013.
IPCA Laboratories slumped 13.2% after the company announced voluntary stoppage of shipments to the US market from the active pharmaceutical ingredients manufacturing facility at Madhya Pradesh. The company made the announcement during trading hours today, 24 July 2014. During the recent US Food and Drug Administration (USFDA) inspection at the company's active pharmaceutical ingredients (APls) manufacturing facility situated at Ratlam in Madhya Pradesh, IPCA Laboratories received certain inspection observations in Form 483 from the USFDA.
Consequent to this, the company has voluntarily decided to temporarily suspend API shipments from this manufacturing facility for the US markets till this issue is addressed. This voluntarily stoppage of API shipments from the Ratlam manufacturing facility will also have impact on the company's formulations export business to the US market since the company's formulations manufacturing units situated at Piparia (Silvassa) and SEZ, Indore (Pithampur) use the APIs manufactured from the company's Ratlam manufacturing facility for manufacturing formulations for the US market, the company said in a statement.
The company said it is fully committed in resolving this issue at the earliest. The company is also committed to its philosophy of highest quality in manufacturing, operations, systems, integrity and cGMP culture.
Panacea Biotec jumped 9.33% after the company said its board will meet on 1 August 2014 to consider raising funds by way of issue of securities aggregating upto Rs 250 crore or equivalent thereof in any currency. The announcement was made after market hours on Wednesday, 23 July 2014.
Sugar stocks were in demand on renewed buying. Bajaj Hindusthan (up 4.29%), Dhampur Sugar Mills (up 4.34%), Balrampur Chini Mills (up 1.65%), Shree Renuka Sugars (up 0.41%), and Dwarikesh Sugar Industries (up 3.09%) gained.
Ingersoll-Rand (India) lost 1.67% after net profit declined 5% to Rs 13.05 crore on 15.2% growth in net sales to Rs 144.89 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced after market hours on Wednesday, 23 July 2014.
HCL Infosystems rose 2.87% to Rs 78.75 after hitting a 52-week high of Rs 81.50 in intraday trade.
Tata Sponge Iron galloped 20% to Rs 1,011.10, also its record high.
V-Guard Industries advanced 10.91% to Rs 778 after scaling a record high of Rs 787.75 in intraday trade.
Liberty Shoes tumbled 7.73% after net profit rose 0.91% to Rs 3.32 crore on 9.69% decline in total income from operations to Rs 101.98 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced after market hours on Wednesday, 23 July 2014.
A bout of volatility was witnessed as key benchmark indices slipped into the red after opening higher. Key benchmark indices cut losses in morning trade. Key benchmark indices hovered in negative terrain in mid-morning trade. A bout of volatility was witnessed as key benchmark indices slipped into the red once again after moving into positive zone from negative zone for a brief period early afternoon trade. Volatility continued in afternoon trade as the key benchmark indices trimmed losses after extending intraday fall in early afternoon trade. A sudden rise after a narrow movement took key benchmark indices to fresh intraday high in mid-afternoon trade. Key benchmark indices surged to fresh intraday high in late trade. The Sensex and the 50-unit CNX Nifty, both, hit record high.
Indian stocks gained for the eighth straight day today, 24 July 2014. From a recent low of 25,006.98 on 14 July 2014, the Sensex has risen 1,264.87 points or 5.05% in eight trading sessions. The Sensex has risen 858.07 points or 3.37% in this month so far (till 24 July 2014). The Sensex has gained 5,101.17 points or 24.09% in calendar year 2014 so far (till 24 July 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 8,823.14 points or 50.56%.
Investors are keeping a watch of crude oil prices. India imports almost 80% of its crude oil requirements. Brent crude futures for September delivery were down 35 cents at $107.68 a barrel on the London-based ICE Futures Europe exchange. The contract had risen 70 cents to settle at $108.03 a barrel on Wednesday, 23 July 2014, as geopolitical tensions in the Middle East persisted.
In Libya, fighting between rival factions continues for control of Libyan capital's airport.
Meanwhile, violence continues in the Gaza Strip. As per reports, more than 700 Palestinians have been killed so far as fighting continues between Israel and Palestinian militants in Gaza Strip.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.09, compared with its close of 60.105 on Wednesday, 23 July 2014.
European stocks rose in choppy trade today, 24 July 2014, as data showed euro-area manufacturing and services are accelerating this month. Key benchmark indices in UK, France and Germany were up 0.05% to 0.8%.
Euro-area manufacturing and services activity strengthened in July in a sign that a recovery in the 18-nation region is gathering pace. A Purchasing Managers Index for both industries jumped to 54 from 52.8 in June, matching a three-year high reached in April, London-based Markit Economics said today. That's the 13th month the gauge has exceeded 50, the mark that signals expansion.
German services activity expanded at the fastest pace in three years and manufacturing accelerated, signaling that the economy is recovering from a slowdown in the second quarter. A Purchasing Managers Index for services jumped to 56.6 in July from 54.6 in June, London-based Markit Economics said today. A factory gauge rose to 52.9 from 52. A reading above 50 indicates expansion.
Many Asian stocks rose today, 24 July 2014, after a Chinese manufacturing gauge rose to its strongest reading in 18 months. Key benchmark indices in Hong Kong, Indonesia, China, Singapore and Taiwan were up by 0.11% to 1.28%. Key benchmark indices in Japan and South Korea fell by 0.08% to 0.29%.
A Chinese manufacturing gauge rose to an 18-month high in July, adding to signs that the government will meet its 2014 economic-growth target of about 7.5 percent. A preliminary Purchasing Managers' Index from HSBC Holdings Plc and Markit Economics was at 52, compared with a final reading of 50.7 in June. Numbers above 50 indicate expansion.
South Korea unveiled 11.7 trillion won ($11.4 billion) in government initiatives to shore up Asia's fourth-largest economy after growth slumped to the weakest pace in more than a year in the second quarter.
Trading in US index futures indicated that the Dow could gain 24 points at the opening bell on Thursday, 24 July 2014. US stocks were largely higher on Wednesday, 23 July 2014, with the S&P 500 index hitting another record high after bullish results from tech giants Apple and Microsoft, though technical resistance and conflicts in Ukraine and the Gaza Strip kept gains in check.
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