A sudden rise took key benchmark indices to fresh intraday high in mid-afternoon trade. A slide in crude oil prices and gains in European stocks underpinned sentiment on the domestic bourses. The barometer index, the S&P BSE Sensex was up 128.12 points or 0.51%, up 179.37 points from the day's low and off 11.35 points from the day's high. The market breadth indicating the overall health of the market was strong. The BSE Mid-Cap index was up almost 1%. The BSE Small-Cap index was up almost 1.5%. Both these indices outperformed the Sensex.
Telecom stocks were in demand, with shares of Idea Cellular extending Monday's gains triggered by the Reserve Bank of India (RBI) allowing hike in FII investment ceiling to 49% from earlier 24% of the paid-up capital of the company. Fertiliser shares were in demand on renewed buying.
At 14:20 IST, the S&P BSE Sensex was up 128.12 points or 0.51% to 25,318.60. The index jumped 139.47 points at the day's high of 25,329.95 in mid-afternoon trade, its highest level since 13 June 2014. The index fell 85.98 points at the day's low of 25,104.50 in early afternoon trade.
The CNX Nifty was up 23.50 points or 0.31% to 7,557.05. The index hit a high of 7,558.25 in intraday trade, its highest level since 13 June 2014. The index hit a low of 7,509.25 in intraday trade.
The BSE Mid-Cap index was up 84.89 points or 0.95% at 9,051.77. The BSE Small-Cap index was up 143.13 points or 1.47% at 9,847.52. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,828 shares gained and 1,150 shares fell. A total of 126 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks gained and rest of them declined.
Mahindra & Mahindra (down 2.36%), Hindalco Industries (down 1.89%) and Tata Steel (down 1.28%) edged lower from the Sensex pack.
Axis Bank (up 2.52%), GAIL (India) (up 2.16%) and Coal India (up 1.58%) edged higher from the Sensex pack.
Cipla shed 0.66%. Cipla (Mauritius), a wholly owned subsidiary of the Cipla, has signed a definitive agreement with parent Cipla's existing Sri Lankan distributor for acquisition of 60% stake in a new company which will market Cipla's products in Sri Lanka. The consideration payable for the transaction is $14 million, Cipla said during market hours today, 17 June 2014. The proposed acquisition is subject to regulatory approvals.
Telecom stocks were in demand. Tata Teleservices (Maharashtra) (up 5.62%), Bharti Airtel (up 1.58%) and Reliance Communications (up 0.29%) gained. MTNL fell 0.17%.
Idea Cellular rose 2.94% to Rs 140.05, with the stock extending Monday's gains triggered by the Reserve Bank of India (RBI) allowing hike in FII investment ceiling to 49% from earlier 24% of the paid-up capital of the company.
The RBI on Friday, 13 June 2014, notified that foreign institutional investors (FIIs), through primary market and stock exchanges, can now purchase up to 49% of the paid up capital of Idea Cellular under the portfolio investment scheme (PIS). The FII investment ceiling in the company's shares has been raised from earlier 24% after the company's board of director and shareholders approved the proposal for raising FII investment ceiling, the RBI said. Total holding of FIIs in Idea Cellular stood at 21.57% as per the shareholding pattern as on 11 June 2014.
Fertiliser shares were in demand on renewed buying. Coromandel International (up 3.67%), Gujarat Narmada Valley Fertilizers & Chemicals (up 5.55%), National Fertilizers (up 4.06%), Rashtriya Chemicals and Fertilizers (up 6.79%), Chambal Fertilisers & Chemicals (up 8.85%), Gujarat State Fertilizers & Chemicals (up 4.53%), Deepak Fertilisers & Petrochemicals Corporation (up 4.76%) gained.
Fulford (India) was locked in 5% lower circuit at Rs 1,584.30 after the company said its promoter may consider other strategic alternatives in relation to its ownership of shares in the company if the delisting offer fails. The company's overseas parent firm Dashtag feels that the spurt in the share price of Fulford (India) after the announcement of the proposed delisting of the company's shares does not truly reflect of the business fundamentals of the Fulford (India).
Hanung Toys & Textiles was locked at 5% upper circuit at Rs 34.25 after the firm said its board has given its nod for issue and allotment of equity shares to promoters, promoters group by way of preferential issue. The announcement was made after market hours on Monday, 16 June 2014.
State Bank of Travancore rose 1.78% after the bank said its board of directors will meet on 20 June 2014 to consider and review the issue size of the proposed rights issue of the equity shares of the bank. The announcement was made during market hours today, 17 June 2014.
Pennar Industries rose 2.55%. Pennar Industries along with its subsidiaries Pennar Engineering Building Systems (PEBS Pennar) and Pennar Enviro (PEC) received orders worth Rs 105 crore.
A bout of volatility was witnessed in early trade as the key benchmark indices turned negative after reversing initial decline. Key benchmark indices moved into positive zone in morning trade. Key benchmark indices slipped in negative zone from positive zone in mid-morning trade. Key benchmark indices alternately swung between positive and negative zone within a narrow range in early afternoon trade. A bout of volatility was witnessed as key benchmark indices recovered after hitting fresh intraday low in early afternoon trade as European stocks rose in early trade there. A sudden rise took key benchmark indices to fresh intraday high in mid-afternoon trade.
In the foreign exchange market, the rupee reversed intraday fall against the dollar. The partially convertible rupee was hovering at 60.125, compared with its close of 60.155/60.165 on Monday, 16 June 2014.
India's macroeconomic worries eased as crude dropped after recent gains triggered by unrest in Iraq. Brent crude oil futures for August delivery were down 69 cents at $112.25 a barrel. The contract had risen 37 cents to settle at $112.57 a barrel on Monday, 16 June 2014, after touching an intraday high of $113.28 a barrel. The recent increase in crude oil price and fall in rupee against the dollar stoked concerns of fuel price inflation and increase in India's current account deficit and fiscal deficit. India imports majority of its crude oil requirements.
Reserve Bank of India Governor Raghuram Rajan today, 17 June 2014, said that the country is watching the Iraq situation, but despite the uncertainty the domestic economy is currently better prepared to deal with any shocks on the external front compared to last year. Rajan reportedly said on the sidelines of an industry event that since India has sufficient foreign reserves and the current account deficit is low, one shouldn't worry too much about the external side at this point.
Reacting to increase in inflation based on the wholesale price index to five-month high in May 2014, Finance Minister Arun Jaitley was quoted by the media as saying on Monday that the rising inflation was due to the hoarding of food stocks. He said that the Centre is committed to ease supply side bottlenecks and has also asked states to take firm measures against hoarders to check speculation. The Finance Minister reportedly said that the government is committed to take measures which will positively impact the GDP and result in higher growth than expected. The Finance Minister said inflation which is moving upward now would eventually come down.
The annual rate of inflation based on the monthly wholesale price index (WPI) accelerated to 6.01% for the month of May 2014, from 5.2% in April 2014, data released by the government on Monday, 16 June 2014, showed.
European stocks gained on Tuesday, 17 June 2014, ahead of the ZEW report, which is forecast to show an improvement in German investor confidence in June. Key benchmark indices in UK, France and Germany were up by 0.15% to 0.81%.
British consumer prices rose 1.5% in May from the same month last year, down from a rate of 1.8% in April, the U.K. Office for National Statistics reported Tuesday.
Most Asian stocks rose on Tuesday, 17 June 2014. Key benchmark indices in Indonesia, Japan, South Korea and Taiwan were up 0.16% to 0.41%. Key benchmark indices in Hong Kong, China and Singapore were down 0.42% to 0.92%.
China attracted $8.6 billion of foreign direct investment in May, down 6.7% from a year earlier, the Ministry of Commerce said in a statement Tuesday. The figure was down from April's $8.7 billion, which was 3.4% higher from a year earlier. FDI in the January-May period rose 2.8% on year to $48.91 billion.
Japan's government late Monday, 16 June 2014, released a draft of Prime Minister Shinzo Abe's long-awaited growth strategy. This included already-flagged policies such as a plan to cut the corporate tax rate and other steps like a promise to ease regulation in agriculture and allow more foreign workers to be employed in the housekeeping and nursing sectors.
Trading in US index futures indicated that the Dow could advance 51 points at the opening bell on Tuesday, 17 June 2014. US stocks rose on Monday, 16 June 2014, as corporate deals and growth in American manufacturing overshadowed escalating tension in Iraq.
Fresh data from the factory sector showed that manufacturing remained a bright spot in the US economy at the end of the second quarter. Manufacturing activity in the New York region held steady in June after hitting an almost four-year high in May, the Federal Reserve Bank of New York said Monday.
Another data showed that industrial production in the US climbed in May. Output at factories, mines and utilities rose 0.6% after a revised 0.3% drop in April, a report from the Federal Reserve showed.
Home builders' confidence rose in June to the highest level in five months, but respondents were still a bit pessimistic, according to the National Association of Home Builders/Wells Fargo housing-market index released Monday.
A two-day meeting of the Federal Open Market Committee on US monetary policy begins today, 17 June 2014. The FOMC after a monetary policy review on 30 April 2014 reduced its monthly debt purchases to $45 billion, its fourth straight $10 billion cut, and said further reductions are likely in "measured steps" if the economy continues to improve. The Fed also said at that time that it will keep the benchmark interest-rate target at almost zero for a "considerable time" after its bond-buying program ends.
The International Monetary Fund (IMF) cut its growth forecast for the US economy this year and said the Fed may have scope to keep interest rates at zero for longer than investors expect. The institution now sees the world's largest economy growing 2% in 2014, down from an April estimate of 2.8%. The IMF left a 2015 prediction unchanged at 3%, and said it doesn't expect the US to see full employment until the end of 2017, amid low inflation.
The Bank of Russia said Tuesday it is cutting forex intervention aimed at smoothing ruble volatility, partially removing a defense implemented in early March before Moscow annexed Crimea. The central bank plans to let the ruble float freely from 2015 and will focus on taming inflation through interest rates. The regulator would still intervene if needed to maintain financial stability.
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