Key benchmark indices hit fresh record high in mid-afternoon trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, scaled fresh record high. The Sensex was up 307.74 points or 1.21%, up close to 165 points from the day's low. The market breadth indicating the overall health of the market was strong. Expectations of a growth oriented Budget, decline in crude oil prices and signs of pick up in monsoon rains aided gains on the domestic bourses. Provisional data showing that foreign investors made decent purchases of Indian stocks on Tuesday, 1 July 2014, also boosted sentiment.
Cement stocks gained.
At 14:20 IST, the S&P BSE Sensex was up 307.74 points or 1.21% to 25,824.09. The index jumped 311.76 points at the day's high of 25,828.11 in mid-afternoon trade, a lifetime high for the index. The index rose 143.81 points at the day's low of 25,660.16 in early trade.
The CNX Nifty was up 82.85 points or 1.09% to 7,717.55. The index hit a high of 7,723.55 in intraday trade, a lifetime high for the index. The index hit a low of 7,677.30 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,822 shares gained and 1,120 shares fell. A total of 111 shares were unchanged.
The BSE Mid-Cap index was up 75.14 points or 0.8% at 9,508.88. The BSE Small-Cap index was up 105.50 points or 1.02% at 10,427.13. Both these indices underperformed the Sensex.
Among the 30-share Sensex pack, 28 stocks gained and two fell. Sesa Sterlite (up 3.9%), Maruti Suzuki India (up 2.61% and Mahindra & Mahindra (M&M) (up 2.08%) edged higher from the Sensex pack.
Cement stocks gained. ACC (up 1.1% to Rs 1,495.05), Ambuja Cements (up 0.85% to Rs 225.70) and UltraTech Cement (up 1.37% to Rs 2,666) gained.
There are expectations of higher allocations for the infrastructure sector like power, roads, ports, rivers, railways etc. in the final Union Budget 2014-15 to be unveiled on 10 July 2014, with focus on stricter and time-bound implementation of projects.
Coal India gained 1.35% to Rs 390.05. The company said during market hours that the Coal India and its subsidiary companies' production on provisional basis was 94% of targeted production at 34.54 million tonnes in June 2014. Coal India and its subsidiary companies' offtake on provisional basis was 91% of targeted offtake at 38.29 million tonnes in June 2014.
Key benchmark indices surged in early trade on firm Asian stocks and on overnight upmove in US stocks. A bout of volatility was witnessed as key benchmark indices regained strength after paring initial gains in morning trade. Key benchmark indices pared gains after hitting fresh intraday high in mid-morning trade. Key benchmark indices extended intraday gains in early afternoon trade. Key benchmark indices extended intraday gains and hit fresh intraday high in afternoon trade. Key benchmark indices hit fresh record high in mid-afternoon trade. The S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit fresh lifetime high.
Expectations of a growth oriented Budget is driving uptrend on the bourses. Increase in outlay on infrastructure sector with focus on stricter and time-bound implementation of projects, initiatives towards investments in agriculture and irrigation aimed at easing supply bottlenecks for food-grains, fiscal prudence with roadmap to reduce the fiscal deficit, a roadmap for reducing the subsidy burden and timeline for implementation of the Goods and Service Tax are some of the expectations from the Budget. Finance Minister Arun Jaitley will table the final Union Budget for 2014-15 in parliament on 10 July 2014.
Jaitley reportedly said yesterday, 1 July 2014, that the government would take bold decisions and pursue the path of fiscal prudence to revive the economy.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 856.35 crore on Tuesday, 1 July 2014, as per provisional data from the stock exchanges.
There are signs of pick up in monsoon rains. The India Meteorological Department (IMD) in its daily monsoon report yesterday, 1 July 2014, said that the southwest monsoon has further advanced into entire Uttarakhand, Himachal Pradesh and Jammu & Kashmir, some more parts of Uttar Pradesh and some parts of Haryana & Punjab. The weather office said that conditions are favourable for further advance of Southwest Monsoon into some more parts of Madhya Pradesh, remaining parts of Uttar Pradesh, Haryana, Chandigarh & Delhi and Punjab and some parts of north Rajasthan during next 48 hours
Concerns about India's macroeconomic situation have eased as Brent crude has come off 9-month high which it hit last month. Brent crude oil futures for August delivery were down 9 cents at $112.20 a barrel. The contract lost 7 cents to close at $112.29 a barrel on Tuesday, 1 July 2014. India imports about 80% of its crude oil requirements.
In the foreign exchange market, the rupee edged higher against the dollar as equities rose. The partially convertible rupee was hovering at 59.715, compared with its close of 60.07/08 on Tuesday, 1 July 2014.
European stocks edged higher on Wednesday, 2 July 2014, as investors awaited reports on US jobs and factory orders. Key benchmark indices in UK, France and Germany were up 0.03% to 0.31%.
Asian stocks rose on Wednesday, 2 July 2014, after reports showing manufacturing expansion in US, the world's biggest economy sent US stocks to record high overnight. Key benchmark indices in Taiwan, Hong Kong, China, South Korea, Singapore and Japan were up 0.29% to 1.55%. Indonesia's Jakarta Composite fell 0.03%.
Trading in US index futures indicated that the Dow could gain 14 points at the opening bell on Wednesday, 2 July 2014. The S&P 500 index and the Dow Jones Industrial Average both climbed to all-time highs on Tuesday, 1 July 2014, as manufacturing activity picked up in the US and Asia in June and on increased optimism about the global economy's health.
The Institute for Supply Management's US factory index was little changed at 55.3 in June from 55.4 in the prior month, the Tempe, Arizona-based group's report showed on Tuesday. Readings above 50 indicate expansion.
Powered by Capital Market - Live News
