Key benchmark indices edged higher on the last trading session of the week after comments from Finance Minister Arun Jaitley that there is no cause to panic about the possibility of higher inflation. A decline in crude oil prices aided gains on the domestic bourses in what was a volatile trading session. The barometer index, the S&P BSE Sensex, attained record closing high. The 50-unit CNX Nifty hit record high on intraday basis as well as on closing basis. The market breadth indicating the overall health of the market once again tuned positive from negative in late trade. The Sensex garnered 138.31 points or 0.54%, up close to 300 points from the day's low and off about 20 points from the day's high. The market sentiment was upbeat after data showing that foreign investors remained net buyers of Indian stocks on Thursday, 3 July 2014. Indian stocks are witnessing a pre-Budget rally amid expectations that Jaitley will announce measures aimed at bolstering economic growth.
Shares of State Bank of India's subsidiary banks surged. Index heavyweight Reliance Industries (RIL) rose. Realty stocks edged higher. Shares of public sector oil marketing companies (PSU OMCs) rose on reports that the oil ministry has recommended a hike in kerosene and LPG prices.
The S&P BSE Sensex garnered 138.31 points or 0.54% to settle at 25,962.06, a record closing high for the index. The index surged 157.76 points at the day's high of 25,981.51 in late trade. The index fell 164.42 points at the day's low of 25,659.33 in afternoon trade, its lowest level since 1 July 2014.
The CNX Nifty garnered 36.80 points or 0.48% to settle at 7,751.60, a record closing high for the index. The index hit a high of 7,758 in intraday trade, a lifetime high for the index. The index hit a low of 7,661.30 in intraday trade, its lowest level since 1 July 2014.
The total turnover on BSE amounted to Rs 3843 crore, much higher than Rs 1429.99 crore on Thursday, 3 July 2014. The turnover was hit on Thursday, 3 July 2014, due to a 3-hour shutdown on BSE caused by network outage.
The market breadth indicating the overall health of the market once again turned positive from negative in late trade. On BSE, 1,683 shares rose and 1,357 shares fell. A total of 125 shares were unchanged. Earlier, the breadth had turned negative from positive in early afternoon trade.
The BSE Mid-Cap index garnered 55.17 points or 0.58% to settle at 9,545.75. The BSE Small-Cap index garnered 88.65 points or 0.85% to settle at 10,508.03. Both these indices outperformed the Sensex.
Among the 30-share Sensex pack, 19 stocks rose and rest of them fell.
Pharma stocks gained. Dr Reddy's Laboratories rose 1.56% to Rs 2,678.55. Ranbaxy Laboratories rose 0.13% to Rs 534.
Cipla rose 0.31% to Rs 447.90 after hitting record high of Rs 452.70 in intraday trade.
Lupin gained 0.57% to Rs 1,087.85 after hitting record high of Rs 1,102.45 in intraday trade.
Sun Pharmaceutical Industries gained 0.31% to Rs 708.55 after hitting record high of Rs 714.35 in intraday trade.
Maruti Suzuki India rose 0.49% to Rs 2,642.80. The company said during market hours that its production rose 29.64% to 79,948 units in June 2014 over June 2013. The company had on 1 July 2014 said total vehicles sales rose 33.5% to 1.12 lakh units in June 2014 over June 2013.
Tata Motors edged lower in volatile trade. The stock was down 0.07% at Rs 468.45. The stock hit record high of Rs 474.20 in intraday trade. The scrip hit a low of Rs 466.20. The company's total sales (including exports) of Tata commercial and passenger vehicles declined 27% to 38,557 vehicles in June 2014 over June 2013. The company's exports declined 5% to 3,814 units in June 2014 over June 2013. The company announced the monthly sales data early this week.
Most IT stocks rose on positive economic data in US, the biggest outsourcing market for the Indian IT firms. Tech Mahindra (up 0.11% to Rs 2,115.70), HCL Technologies (up 0.92% to Rs 1,480.55) and Infosys (up 0.88% to Rs 3,239.15), gained. Wipro (down 1.46% to Rs 547.50) and TCS (down 0.33% to Rs 2,409.80) declined.
Bharti Airtel gained 0.34% to Rs 338.50 after the Reserve Bank of India on Thursday, 3 July 2014, advised that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can invest upto 74% of the paid up capital of Bharti Airtel under the Portfolio Investment Scheme. The Reserve Bank has stated that the company has passed resolutions at its Board of Directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs. The purchases could be made through primary market and through stock exchanges.
NMDC fell 0.49% to Rs 183.80. The stock hit high of Rs 186.80 and low of Rs 182.55. The company recorded decent growth in production and despatches in Q1 June 2014. The company after market hours on Wednesday, 3 July 2014, said its production rose 13.48% to 78.54 lakh tonnes in Q1 June 2014 over Q1 June 2013. Despatches rose 16.65% to 85.85 lakh tonnes in Q1 June 2014 over Q1 June 2013. The company rolled over prices of iron ore to July 2014 from June 2014. Accordingly, lump iron ore prices stood at Rs 4,600/WMT and fine iron ore prices stood at Rs 3,160/WMT.
Sesa Sterlite declined 1.74% to Rs 305.15 as the stock turned ex-dividend today, 4 July 2014, for final dividend of Rs 1.75 per share for the year ended 31 March2 104 (FY 2014).
HDFC rose 0.39% to Rs 1,009.35. The stock turned ex-dividend today, 4 July 2014, for dividend of Rs 14 per share for the year ended 31 March2 104 (FY 2014).
Kotak Mahindra Bank shed 0.61% to Rs 884.45 as the stock turned ex-dividend today, 4 July 2014, for dividend of Rs 0.80 per share for the year ended 31 March2 104 (FY 2014).
Punjab National Bank shed 1.23% to Rs 979.55. The bank said during market hours that it has realized Rs 4.15 crore from the sale of its 41% stake in High Mark Credit Information Services (High Mark) to CRIF.
IDBI Bank fell 0.09% to Rs 107.80. The bank said after market hours that the Board of Directors of the bank has approved the proposal for mobilization in one or more tranches of Rs 4000 crore and foreign currency resources upto $7.5 billion equivalent outstanding, comprising of Senior Bonds, Basel III Compliant Tier II/Additional Tier I Bonds, by way of Private Placement/Public Issue/Reverse Enquiry/Issuances under MTN programme during the financial year ending 31 March 2015 (FY 2015).
Shares of State Bank of India's subsidiary banks surged. State Bank of Mysore (up 3.56% to Rs 592.10), State Bank of Travancore (up 3.63% to Rs 818.80) and State Bank of Bikaner & Jaipur (up 10.67% to Rs 617.05) gained.
State Bank of India (SBI) rose 0.22% to Rs 2,698.
Adani Ports and Special Economic Zone (APSEZ) gained 1.76% to Rs 275.15. The company said after market hours that it has signed an agreement with France's CMA CGM Group to develop a new common user container terminal at Mundra Port. This will be the 4th container terminal at Mundra and will be a 650 meters terminal along with 27 hectares of back area, capable of handling 1.3 million TEUs annually. Following this announcement, the construction phase will be initiated immediately and completion will be in a record 24 months. The new terminal will be set up as an equal joint venture between APSEZ and CMA CGM Group.
Index heavyweight Reliance Industries (RIL) rose 2.61% to Rs 1,033.40. The stock hit high of Rs 1,036.80 and low of Rs 1,004.15.
Oil India fell 1.19%. Oil India during market hours said that the company has completed the transaction for acquisition of interest in PetroNeft Resources' oil block in Russia. The company has completed the acquisition of 50% shareholding in WorldAce Investment, a Cyprus based wholly owned subsidiary of PetroNeft Resources, which owns License 61 in Tomsk Oblast region in Western Siberia, Russia. This transaction marks Oil India's entry into Russia and is a significant addition to the company's overseas E&P portfolio, the company said. The total commitment from Oil India will be $85 million, including $45 million for development capex.
The current production from the block is around 2,100 barrels of oil per day.
ONGC rose 0.54% to Rs 420.45.
Shares of public sector oil marketing companies (PSU OMCs) rose on reports that the oil ministry has recommended a hike in kerosene and LPG prices. HPCL (up 1.8% to Rs 421.55) and Indian Oil Corporation (IOCL) (up 1.94% to Rs 349.20) gained. BPCL fell 0.22% to Rs 598. As per reports, the oil ministry is likely to recommend raising kerosene price by Rs 4-5 per litre and LPG by Rs 250 per cylinder to the Cabinet committee, according to the recommendations of Kirit Parikh panel. However, last month the government had said that it has no plans to hike LPG and kerosene prices.
PSU OMCs suffer under recoveries on domestic sale of diesel, LPG and kerosene at controlled prices. The government has already freed pricing of petrol.
Realty stocks edged higher. DLF (up 1.11% to Rs 218.30), Sobha Developers (up 1.89% to Rs 490), Housing Development & Infrastructure (HDIL) (up 0.29% to Rs 103) and Unitech (up 0.3% to Rs 32.90) gained.
There are expectations that the government will take steps towards providing the long awaited industry status to the real estate sector and provide boost to low cost housing in the final Union Budget 2014-15 to be unveiled on 10 July 2014. There are also expectations that the tax benefit with respect to interest payment on housing loans will be raised. At present, a maximum deduction of Rs 1.5 lakh is allowed on taxable income towards interest on housing loan
The Sensex regained positive terrain after slipping into the red for a brief period after opening higher. Key benchmark indices hovered in positive terrain in morning trade. Key benchmark indices pared gains after hitting fresh intraday high in mid-morning trade. Key benchmark indices witnessed a sudden slide in early afternoon trade. Key benchmark indices cut losses in afternoon trade. Key benchmark indices further pared intraday losses in mid-afternoon trade. Key benchmark indices reversed intraday losses in late trade after comments from Finance Minister Arun Jaitley that there is no cause to panic about the possibility of higher inflation. A decline in crude oil prices also aided recovery on the domestic bourses as the 50-unit CNX Nifty scaled record..
Foreign portfolio investors (FIIs) bought shares worth a net Rs 973.04 crore from the secondary equity markets on Thursday, 3 July 2014, as per the data from National Securities Depository.
The Sensex has gained 548.28 points or 2.15% in first four sessions of July 2014 so far (till 4 July 2014). The Sensex has gained 4,791.38 points or 22.63% in calendar year 2014 so far (till 3 July 2014). From a record high of 25,999.08 on 3 July 2014, the Sensex has fallen 37.02 points or 0.14%. From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 8,513.35 points or 48.79%.
Concerns about India's macroeconomic situation have eased as crude prices have come off 9-month high which it hit last month. India imports about 80% of its crude oil requirement. Brent crude oil futures for August delivery were off 19 cent at $110.81 a barrel. The contract fell 24 cents to settle at $111 a barrel on Thursday, 3 July 2014, on prospects of increase in oil exports from Libya.
All eyes are now on the final Union Budget for 2014-15 due next week. Jaitley will present the Budget in Lok Sabha at 11:00 IST on Thursday, 10 July 2014. After a clear mandate in Lok Sabha elections this year and with BJP perceived as a business friendly party, expectations from the Budget are running high. There are expectations that the finance minster will announce measures in the Budget aimed at bolstering economic growth. 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.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 59.80, compared with its close of 59.73/74 on Thursday, 3 July 2014.
European stocks edged lower on Friday, 4 July 2014, as German factory orders fell more than expected in May. Key benchmark indices in UK, France and Germany were off 0.02% to 0.16%.
German factory orders fell more than expected in May as geopolitical risks weighed on confidence in the strength of Europe's largest economy. Orders, adjusted for seasonal swings and inflation, fell 1.7% from April, when they rose a revised 3.4%, the Economy Ministry in Berlin said today.
European Central Bank chief Mario Draghi said on Thursday, 3 July 2104, after a policy meeting that borrowing costs will stay at current levels for an extended period after the introduction of unprecedented stimulus in June.
Asian stocks edged lower in choppy trade on Friday, 4 July 2014. Key benchmark indices in China, South Korea, Singapore and Taiwan were down 0.03% to 0.19%. Key benchmark indices in Indonesia, Hong Kong, and Japan were up 0.06% to 0.58%.
US stocks rose on Thursday, 3 July 2014, with the Dow Jones Industrial Average hitting record high above 17,000 for the first time and the S&P 500 index also scaling record high after the June jobs report came in much stronger than expected.
US employers added 288,000 workers to nonfarm payrolls in June, following a 224,000 increase in May that was bigger than previously estimated. A 1.39 million increase in employment over the past six months was the largest since early 2006, while the unemployment rate fell to 6.1%, the lowest level since September 2008.
US markets are closed today, 4 July 2104, for Independence Day holiday.
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