IT stocks in demand

Key benchmark indices retained positive zone in mid-morning trade. The barometer index, the S&P BSE Sensex, was up 92.09 points or 0.37%, up about 60 points from the day's low and off close to 55 points from the day's high. The market breadth indicating the overall health of the market was strong. Indian stocks edged higher today, 27 June 2014, as crude oil prices fell on Thursday, 26 June 2014, and after recent data showed reduction in rain shortfall in the week to 25 June 2014.

IT stocks were in demand. Tech Mahindra rose after the company announced that Comptel Corporation and the company have operationalised their strategic alliance, which was announced earlier this year. Dr Reddy's Laboratories rose after the company said that it has launched Duloxetine Delayed-Release Capsules USP 20 mg, 30 mg and 60 mg, a therapeutic equivalent generic version of CYMBALTA (Duloxetine Delayed-Release Capsules) in the US market on 26 June 2014.

At 11:20 IST, the S&P BSE Sensex was up 92.09 points or 0.37% to 25,154.76. The index jumped 146.94 points at the day's high of 25,209.61 in early trade. The index rose 33.88 points at the day's low of 25,096.55 in early trade.

The CNX Nifty was up 29.95 points or 0.4% to 7,523.15. The index hit a high of 7,538.75 in intraday trade. The index hit a low of 7,503.80 in intraday trade.

The market breadth indicating the overall health of the market was strong. On BSE, 1,572 shares gained and 901 shares fell. A total of 99 shares were unchanged.

The BSE Mid-Cap index was up 39.33 points or 0.43% at 9,220.17. The BSE Small-Cap index was up 73.49 points or 0.74% at 10,054.87. Both these indices outperformed the Sensex.

Dr Reddy's Laboratories rose 1.32% to Rs 2,537.95 after the company said during market hours that it has launched Duloxetine Delayed-Release Capsules USP 20 mg, 30 mg and 60 mg, a therapeutic equivalent generic version of CYMBALTA (Duloxetine Delayed-Release Capsules) in the US market on 26 June 2014. The CYMBALTA brand and its generic version had US sales of approximately $5.04 billion for twelve months ended 30 April 2014, according to IMS Health data.

IT stocks were in demand. TCS (up 2.3% to Rs 2,361.50), Wipro (up 1.61% to Rs 544.30), Infosys (up 1.06% to Rs 3,223.20) and HCL Technologies (up 2.31% to Rs 1,465.35) gained.

Tech Mahindra rose 2.32% to Rs 2,089.95 after the company announced after market hours on Thursday, 26 June 2014, that Comptel Corporation and the company have operationalised their strategic alliance, which was announced earlier this year. The companies have set up a Centre of Excellence (CoE) at Tech Mahindra's Hinjewadi facility in Pune, India to support communications service providers (CSPs) with their complex OSS/BSS transformation projects.

Key benchmark indices edged higher amid initial volatility as crude oil prices dropped on Thursday, 26 June 2014. Intraday volatility continued as key benchmark indices pared gains after extending initial gains in morning trade. Key benchmark indices retained positive zone in mid-morning trade.

In the foreign exchange market, the rupee was unchanged against the dollar. The partially convertible rupee was hovering at 60.14, compared with its close of 60.14/15 on Thursday, 26 June 2014.

Oil prices recovered after dropping on Thursday. Brent crude oil futures for August delivery were up 2 cents at $113.23 a barrel. The contract lost 79 cents to settle at $113.21 on Thursday, 26 June 2014, its lowest settlement since 16 June 2014.

As crude prices dropped, concerns arising from the impact of high crude oil prices on India's macroeconomic situation eased. India imports about 80% of its crude oil requirements.

Meanwhile, rain shortfall shrank in the third week since the onset of its monsoon, recovering a little after a poor start. Rains were 31% below average in the week to June 25, improving from 45% below average in the second week of the monsoon. India's farm sector accounts for 14% of its nearly $2 trillion economy.

The Reserve Bank of India on Thursday, 26 June 2014, said in its Financial Stability Report (FSR) June 2014 that the return to political stability has provided impetus to the domestic economic outlook and the capital markets reflect the expectations on policy measures to address the adverse growth-inflation dynamics and saving-investment balance as also efficient implementation of policies and programmes. Further progress on fiscal consolidation, a predictable tax and policy regime, and low and stable inflation rates will be the key anchors in promoting India's macroeconomic as well as financial stability, RBI Governor Raghuram Rajan said in his foreword to the FSR.

Asian stocks edged lower on Friday, 27 June 2014, after a Federal Reserve official said the US may raise interest rates by March. Key benchmark indices in Japan, Indonesia, Singapore, Hong Kong, South Korea and Taiwan fell by 0.06% to 1.39%. China's Shanghai index was flat.

Trading in US index futures indicated that the Dow could fall 30 points at the opening bell on Friday, 27 June 2014. US stocks slipped for the third time in four days on Thursday, 26 June 2014, after James Bullard, president of the Federal Reserve Bank of St. Louis, suggested that higher interest rates may happen sooner than people thought. Economic data showing that consumer spending rose less than forecast also led to losses in US stocks. Bullard, speaking in an interview to a business channel, predicted the central bank's first interest-rate rise will happen in the first quarter of next year.

Consumer spending, which accounts for about 70% of the economy, climbed 0.2% in May after being little changed in April, US Commerce Department figures showed.

Powered by Capital Market - Live News