Key benchmark indices rallied in early trade on positive Asian stocks. The barometer index, the S&P BSE Sensex, surged past the psychological 19,000 mark in opening trade. The Sensex was now up 291.61 points or 1.54%, up 74.38 points from the day's low and off 21.95 points from the day's low. The market breadth, indicating the overall health of the market, was strong.
Index heavyweight and cigarette major ITC gained in early trade. ONGC, Reliance Industries (RIL) and Oil India surged after the government on Thursday almost doubled the price at which natural gas will be sold to producers of power, fertilizer, minerals and steel. GAIL (India) declined. Crompton Greaves advanced ahead of a board meeting today, 28 June 2013, to consider share buyback proposal.
Foreign institutional investors (FIIs) sold shares worth a net Rs 1,043.27 crore on Thursday, 27 June 2013, as per provisional data from the stock exchanges.
At 9:25 IST, the S&P BSE Sensex was up 291.61 points or 1.54% to 19,167.56. The index jumped 313.56 points at the day's high of 19,189.51 in early trade. The index gained 217.23 points at the day's low of 19,093.18 in opening trade.
The CNX Nifty was up 92.30 points or 1.62% to 5,774.65. The index hit a high of 5,777.85 in intraday trade. The index hit a low of 5,749.50 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 594 shares gained and 149 shares fell. A total of 21 shares were unchanged.
The total turnover on BSE amounted to Rs 113 crore by 09:25 IST.
Among the 30-share Sensex pack, 25 stocks gained and rest of them declined. Tata Motors (up 2.93%), Sterlite Industries (India) (up 2.52%) and Coal India (up 2.14%) edged higher from the Sensex pack.
ONGC (up 7.64%), Reliance Industries (RIL) (up 3.51%) and Oil India (up 3.04%), surged after the government on Thursday almost doubled the price at which natural gas will be sold to producers of power, fertilizer, minerals and steel. The price of gas could go up to $8.4 per million metric British thermal units (mmBtu), effective 1 April next year, from current $4.2 mmBtu.
GAIL (India) fell 1.36%.
Index heavyweight and cigarette major ITC rose 1.29%.
Bajaj Finserv rose 2.73%. Bajaj Finance gained 3.99%. Bajaj Finserv after market hours on Thursday, 27 June 2013 said it has submitted its application to Reserve Bank of India on 26 June 2013 for a licence to commence banking business in terms of section 22 of the Banking Companies Act, 1949. It is proposed to do this by converting its subsidiary Bajaj Finance into a bank in terms of RBI guidelines for licensing of new banks in the private sector dated 22 February 2013.
Crompton Greaves advanced 2.37%. A meeting of the board of directors of the company is scheduled today, 28 June 2013, to consider share buyback proposal.
Asian stocks edged higher on Friday, 28 June 2013, tracking an overnight rise in global equities on easing fears of an early end to US monetary stimulus. Key benchmark indices in Hong Kong, Indonesia, Taiwan, Singapore, China and South Korea were up 0.57% to 1.6%.
Japanese Nikkei 225 index shot higher by 3.29% as a weakened yen combined with upbeat industrial-production data to lift sentiment.
Japan's industrial production showed a surprise jump in May, while retail sales for the same month also gained, though the largest retailers saw a decline. Industrial output rose 2% during the last month, the Ministry of Economy, Trade and Industry said Friday, accelerating from a 0.9% gain in April.
US stocks surged for a third session on Thursday on upbeat economic data and reiterations from Federal Reserve officials that monetary policy depends on the economic outlook. In a speech on Thursday, Federal Reserve Bank of New York President William Dudley played down the possibility that rate hikes are in the cards anytime soon. Atlanta Fed President Dennis Lockhart said that the markets had mistaken Bernanke's framework for tapering central-bank asset purchases, and reiterated the Fed's approach would be flexible, and based on economic conditions. On Wednesday, Fed Bank of Richmond President Jeffrey Lacker said he believes the economic recovery will remain lackluster for a few more years.
The US Department of Labor reported the number of Americans filing for state unemployment benefits fell by 9,000 to 346,000 last week. The National Association of Realtors reported that pending home sales jumped to a six-year high in May.
Federal Reserve Chairman Ben Bernanke on 19 June 2013 said that the central bank may taper the pace of its bond purchases, currently set at $85 billion a month, as early as this year if the economy continues to improve in line with its forecasts.
Data on Wednesday had gross domestic product expanding at a less-than-estimated 1.8% annualized pace in the first quarter, bolstering the view that the Fed would continue the rate of its quantitative easing until late this year or early in 2014.
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