Key benchmark indices extended gains in late trade tracking firmness for European stocks. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit record high. The Sensex was provisionally up 100.82 points or 0.39%, up about 130 points from the day's low and off about 45 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%. Gains for key benchmark indices were also driven by higher Asian and European shares. 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 market breadth indicating the overall health of the market turned positive from negative in late trade.
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.
As per provisional figures, the S&P BSE Sensex was up 100.82 points or 0.39% to 26,248.15. 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 was up 29.10 points or 0.37% to 7,824.85, as per provisional figures. 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 turned positive from negative in late trade. On BSE, 1,504 shares rose and 1,453 shares fell. A total of 128 shares were unchanged.
The BSE Mid-Cap index was down 18.26 points or 0.2% at 9,293.46. The BSE Small-Cap index was up 25.15 points or 0.25% at 10,229.33. Both these indices 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.
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
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.
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 30 cents at $107.73 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 60.0925, 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 0.13% to 0.76%.
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 30 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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