A sudden slide was witnessed after the barometer index, the SP BSE Sensex, and the 50-unit CNX Nifty, both, hit record high in mid-morning trade. The Sensex was up 97.83 points or 0.38%, off about 55 points from the day’s high and up close to 105 points from the day’s low. The market breadth indicating the overall health of the market was strong. The BSE Mid-Cap index rose almost 1%. The BSE Small-Cap index rose 1.7%.
Coal India extended gains for the third day in a row and hit record high after the government’s announcement early this week that it will formulate clear rules for allocation of coal, minerals and telecoms spectrum. Realty stocks edged higher on renewed buying. Shares of hospitality companies edged higher.
Key benchmark indices edged higher in morning trade. A sudden slide was witnessed after the barometer index, the SP BSE Sensex, and the 50-unit CNX Nifty, both, hit record high in mid-morning trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Tuesday, 10 June 2014. Foreign portfolio investors (FPIs) bought shares worth a net Rs 682.26 crore on Tuesday, 10 June 2014, as per provisional data from the stock exchanges.
At 11:20 IST, the SP BSE Sensex was up 97.83 points or 0.38% to 25,681.52. The index rose 152.18 points at the day’s high of 25,735.87 in mid-morning trade, a lifetime high for the index. The index fell 8.46 points at the day’s low of 25,575.23 in morning trade.
The CNX Nifty was up 30.90 points or 0.4% to 7,682.80. The index hit a high of 7,700.05 in intraday trade, a lifetime high for the index. The index hit a low of 7,636.50 in intraday trade
The BSE Mid-Cap index was up 88.99 points or 0.97% to 9,300.84. The BSE Small-Cap index was up 169.97 points or 1.7% to 10,187.41. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong, with almost three gainers for every loser on BSE. On BSE, 1,937 shares rose and 681 shares fell. A total of 76 shares were unchanged.
Infosys (up 4.97%), State Bank of India (SBI) (up 2.13%) and GAIL (India) (up 1.85%) edged higher from the Sensex pack.
Realty stocks edged higher on renewed buying. D B Realty (up 4.42% to Rs 101.60), Sobha Developers (up 0.79% to Rs 529.50), Anant Raj (up 3.96% to Rs 84) and Unitech (up 1.74% to Rs 37.55) gained. DLF fell 0.43% to Rs 232.15.
Coal India extended gains for the third day in a row and hit record high after the government’s announcement early this week that it will formulate clear rules for allocation of coal, minerals and telecoms spectrum. The stock was up 0.7% at Rs 423.20. The stock hit record high of Rs 423.85 in intraday trade. Reforms in the coal sector will be pursued with urgency for attracting private investment in a transparent manner, President Pranab Mukherjee said in his speech addressing a joint sitting of Parliament on Monday, 9 June 2014. Mukherjee presented the new government’s policy address on behalf of the new government led by Prime Minister Narendra Modi, as prescribed by tradition for opening parliament.
Shares of hospitality companies edged higher. EIH (up 4.2% at Rs 104.25), Hotel Leela Venture (up 3.5% at Rs 27.55), Viceroy Hotels (up 3.2% at Rs 25.80), TajGVK Hotels Resorts (up 3.3% at Rs 93.25) and Indian Hotels Co (up 3.2% at Rs 103.25) edged higher.
Future Lifestyle Fashions jumped 5.31% to Rs 109 after the company said it has acquired 12% stake in Unico Retail, a company engaged in the business of handbags, belts and wallets under the brand PEPERONE. The announcement was made after trading hours on Tuesday, 10 June 2014. Meanwhile, Future Lifestyle Fashions before market hours today, 11 June 2014 said that with reference to earlier announcement dated 5 June 2014, regarding proposed preferential issue of shares, Future Lifestyle Fashions said that in the matter of issue and allotment of shares on preferential basis to Ryka Commercial Ventures (a member of the promoter group), Securities Exchange Board of India (Sebi) vide its letter dated 10 June 2014, has conveyed to the company its decision not to grant exemption from Regulation 72(2) of the SEBI (ICDR) Regulations, 2009 for inter-se transfer of shares made by another promoter group entity to its holding company.
JMT Auto was locked at 5% upper circuit at Rs 405.80 after the company’s board at its meeting held on Tuesday, 10 June 2014, approved the issue of bonus shares in the ratio of 5:2 i.e., five bonus shares for every two shares held. The announcement was made after market hours on Tuesday, 10 June 2014.
In the foreign exchange market, the rupee was almost unchanged against the dollar. The partially convertible rupee was hovering at 59.305, compared with its close of 59.29/30 on Tuesday, 10 June 2014.
On the macro front, the government will unveil trade data for May 2014 at 12:00 IST today, 11 June 2014.
Finance Minister Arun Jaitley said on Tuesday, 10 June 2014, that the growth of the country has been below 5% in the recent years. He said that economic growth cannot be compromised at any cost. The Finance Minister said that the government is committed to bring the economy back on the track. He said that priority of the government would be to restore the economic growth, curb inflation, follow the path of fiscal consolidation and to create an environment for higher employability. The Finance Minister was making the opening remarks during his Pre-Budget consultation with economists.
Major suggestions from economists included doing away with retrospective tax amendments, removal of all kind of cess and surcharges and instead increase rate of tax if so required, removal of dividend distribution tax and introduction of inheritance tax above certain threshold limit as in case of many other capitalist countries.
The next major trigger for the market is the Union Budget for 2014-15. Jaitley is expected to table Union Budget for 2014-15 in Lok Sabha by mid-July 2014. An interim budget was presented by P. Chidambaram in February this year. Essentially, in the nature of a vote on account, the interim budget was intended to get Parliament approval for expenditure to be incurred during the first few months of fiscal year 2014-15 due to Lok Sabha elections.
The government will unveil industrial production data for April 2014 tomorrow, 12 June 2014. Industrial production shrank for a second straight month in March 2014. Industrial production declined 0.5% in March 2014, compared with a contraction of 1.8% in February 2014.
The government is scheduled to announce data on inflation based on the combined consumer price index (CPI) for rural and urban India for May 2014 tomorrow, 12 June 2014. Inflation based on the CPI accelerated to 8.59% (provisional) in April 2014, from 8.31% (final) in March 2014. Core CPI which excludes food and energy prices eased to 7.8% in April 2014, from 7.81% in March 2014.
Asian stocks edged lower in choppy trade on Wednesday, 11 June 2014 after the World Bank cut its global growth forecast for 2014. Key benchmark indices in Singapore, South Korea, Indonesia, Taiwan, Hong Kong, and China were off 0.08% to 0.38%. Japan’s Nikkei Average rose 0.25%.
China will quicken interest rate liberalisation and preparations for setting up a deposit insurance system in 2014, the central bank said on Wednesday. The People’s Bank of China (PBOC) reiterated elements from its 2013 annual report stating it would keep its monetary stance prudent, while still making pre-emptive moves to fine-tune policy.
Trading in US index futures indicated that the Dow could fall 9 points at the opening bell on Wednesday, 11 June 2014. Most US stocks managed small gains on Tuesday, with the Dow Jones Industrial Average closing at an all-time high.
Data showed US wholesale inventories increased 1.1% in April, more than the estimates. A separate report showed job openings rose to 4.5 million in April from 4.17 million in March.
The World Bank cut its global growth forecast amid weaker outlooks for the US, Russia and China, while calling on emerging markets to strengthen their economies before the Federal Reserve raises interest rates. The Washington-based lender predicts the world economy will expand 2.8% this year, compared with a January projection of 3.2%. The US forecast was reduced to 2.1% from 2.8% while outlooks for Brazil, Russia, India and China were also lowered. The 2015 estimate for world economic growth was unchanged at 3.4%.
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Sensex, Nifty hit record high