Key benchmark indices trimmed gains after a sudden slide in early afternoon trade. The barometer index, the S&P BSE Sensex, was up 91.64 points or 0.37%, off 138.04 points from the day's high and up 23.49 points from the day's low. The sudden slide from the day's high came after easing of retail inflation in June 2014 and gains in global stocks kept stock prices firm until mid-morning trade. The market breadth indicating the overall health of the market was strong.
Oil & gas stocks rose. Index heavyweight Reliance Industries edged higher, with the stock shrugging off reports that the government has disallowed RIL from recovering $2.376 billion invested to develop offshore gas fields in the D6 block on the country's east coast. PSU OMCs edged higher as crude oil prices declined. Piramal Enterprises dropped as the stock turned ex-dividend today, 15 July 2014. Glenmark Pharmaceuticals rose after the company said its step down subsidiary received final approval for Fluocinonide cream from the US drug regulator.
At 12:15 IST, the S&P BSE Sensex was up 91.64 points or 0.37% to 25,098.62. The index jumped 229.68 points at the day's high of 25,236.66 in morning trade, its highest level since 11 July 2014. The index rose 68.15 points at the day's low of 25,075.13 in early afternoon trade.
The CNX Nifty was up 28.70 points or 0.39% to 7,482.85. The index hit a high of 7,524.20 in intraday trade, its highest level since 11 July 2014. The index hit a low of 7,474.10 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,581 shares gained and 923 shares fell. A total of 78 shares were unchanged.
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The BSE Mid-Cap index was up 89.35 points or 1.01% at 8,963.05. The BSE Small-Cap index was up 117.93 points or 1.22% to 9,760.39. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1172 crore by 12:15 IST, compared with Rs 869 crore by 11:15 IST.
Among the 30-share Sensex pack, 19 stocks gained and rest of them declined.
ICICI Bank (up 2.5%), State Bank of India (up 1.9%) and L&T (up 1.5%) edged higher from the Sensex pack.
NTPC (down 2.57%), Dr Reddy's Laboratories (down 2.46%) and Sesa Sterlite (down 1.71%) edged lower from the Sensex pack.
Oil & gas stocks rose across the board. Among upstream oil & gas companies, GAIL (India) (up 1.58%), ONGC (up 1.57%), Oil India (up 1.11%) and Cairn India (up 0.31%) rose.
Index heavyweight Reliance Industries (RIL) rose 1.32% to Rs 974.55. The stock was volatile. The stock hit high of Rs 979.90 and low of Rs 963 so far during the day. As per reports, government has disallowed RIL from recovering $2.376 billion invested to develop offshore gas fields in the D6 block on the country's east coast as output has fallen drastically and is way below the promised volumes. Under exploration policy, the government allows companies to first recover their costs from oil and gas revenue, and subsequently share profits with the government.
PSU OMCs edged higher as crude oil prices declined. HPCL (up 2.03%), Indian Oil Corporation (IOCL) (up 1.14%) and BPCL (up 1.1%) gained.
Brent crude oil futures for August delivery were down 23 cents or 0.21% to $106.75 a barrel in electronic trading today, 15 July 2014. Brent crude oil futures for August delivery gained 32 cents to settle at $106.98 a barrel on Monday, 14 July 2014. The August Brent futures contract expires tomorrow, 16 July 2014. Brent crude oil futures for September delivery were off 19 cents at $107.52 a barrel. The September Brent contract is now the most active contract.
Lower crude oil prices could decrease under-recoveries of state-run oil marketing companies (PSU OMCs) on domestic sale of diesel, LPG and kerosene at controlled prices. The government has adopted the policy of gradually increasing diesel prices to eliminate under recovery and deregulate the diesel prices. It is expected that the gap between administered price and market price of diesel would be eliminated by early FY 2015, the Finance Ministry said in its fiscal policy strategy statement on 10 July 2014. The government has already freed pricing of petrol.
Piramal Enterprises lost 8.62% to Rs 639.45 after the stock turned ex-dividend today, 15 July 2014, for dividend of Rs 52.50 per share for the year ending March 2014. Before turning ex-dividend, the stock offered a dividend yield of 7.50% based on the closing price of Rs 699.80 on Monday, 14 July 2014.
Glenmark Pharmaceuticals rose 1.64% after the company said its step down subsidiary received final approval for Fluocinonide cream from the US drug regulator. Glenmark Generics Inc., USA, a subsidiary of Glenmark Generics, has been granted final approval from the United States Food and Drug Administration (USFDA) for its abbreviated new drug application (ANDA) for Fluocinonide cream USP 0.1%, the generic version of Vanos cream by Medicis. According to IMS Health sales data, Fluocinonide cream garnered annual sales of approximately $103 million in the United States for the 12 month period ended March 2014. Glenmark Generics is a subsidiary of Glenmark Pharmaceuticals.
Easing of retail inflation in June 2014, gains in Asian stocks and overnight upmove in US stocks triggered a firm opening on the domestic bourses. Key benchmark indices trimmed gains after hitting fresh intraday high in morning trade. Firmness continued on the bourses in mid-morning trade. Key benchmark indices trimmed gains after a sudden slide in early afternoon trade.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 60.20, compared with its close of 60.07/08 on Monday, 14 July 2014.
On the macro front, the annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India eased to 7.31% in June 2014, from 8.28% in May 2014, data released by the government after trading hours on Monday, 14 July 2014, showed. The rate of inflation based on the combined consumer food price indices (CFPI) for urban and rural India eased to 7.97% in June 2014, from 9.56% in May 2014, the data showed. Core CPI inflation which excludes food and energy prices, eased to 7.39% in June 2014, from 7.71% in May 2014.
Inflation based on the wholesale price index eased to 5.43% in June 2014, from 6.01% in May 2014, data released by the government during trading hours on Monday, 14 July 2014, showed.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 5 August 2014.
Asian stocks edged higher on Tuesday, 15 July 2014, after the Dow Jones industrial average hit an intraday record on Monday, 14 July 2014, boosted by Citigroup's better-than-expected earnings and a fresh round of merger and acquisition activity in the US healthcare industry. Key benchmark indices in Taiwan, Hong Kong, Japan, Indonesia and South Korea rose by 0.35% to 0.94%. Key benchmark indices in Singapore and China fell 0.06% to 0.17%.
The Bank of Japan kept its record stimulus unchanged and forecast inflation will pick up to its 2% price target. The central bank stuck with its goal of an annual increase in the monetary base of between 60 trillion yen and 70 trillion yen ($690 billion), it said in a statement today, 15 July 2014, in Tokyo at the end of a two-day monetary policy review.
China will release second-quarter GDP data tomorrow, 16 July 2014.
Trading in US index futures indicated a flat opening of US stocks on Tuesday, 15 July 2014. US stocks ended higher on Monday, 14 July 2014, with the Dow Jones industrial average hitting an intraday record, helped by Citigroup's better-than-expected earnings and more deals in the healthcare sector.
Investors are awaiting Federal Reserve Chair Janet Yellen's testimony before the congress due later in the day.
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