Market edges higher in early trade

Key benchmark indices surged in early trade as firmness in Asian stocks and provisional data showing that foreign funds were net buyers of Indian stocks on Tuesday, 22 July 2014, boosted sentiment. The barometer index, the S&P BSE Sensex, was up 95.16 points or 0.37%, up about 5 points from the day's low and off about 50 points from the day's high. The market breadth indicating the overall health of the market was strong.

Axis Bank fell on profit taking after reporting Q1 results. Tata Power Company dropped as the stock turned ex-dividend today, 23 July 2014, for dividend of Rs 1.25 per share for the year ended 31 March 2014 (FY 2014). TCS gained after the company announced a new partnership with MapR Technologies, Inc. Cairn India dropped ahead of its Q1 results today, 23 July 2014.

At 9:30 IST, the S&P BSE Sensex was up 95.16 points or 0.37% to 26,120.96. The index jumped 147.93 points at the day's high of 26,173.73 in early trade. The index rose 89.63 points at the day's low of 25,780.39 in early trade.

The CNX Nifty was up 22.15 points or 0.29% to 7,790. The index hit a high of 7,806.05 in intraday trade. The index hit a low of 7,784.80 in intraday trade.

The market breadth indicating the overall health of the market was strong. On BSE, 938 shares rose and 370 shares fell. A total of 43 shares were unchanged.

The BSE Mid-Cap index was up 45.91 points or 0.49% at 9,357. The BSE Small-Cap index was up 52.31 points or 0.51% at 10,321.07. Both these indices outperformed the Sensex.

Cairn India dropped 0.07% ahead of its Q1 results today, 23 July 2014.

TCS gained 0.52%. The company after market hours on Tuesday, 22 July 2014, announced a new partnership with MapR Technologies, Inc., provider of the top-ranked distribution for Apache Hadoop, to help enterprise customers easily and rapidly capture critical big data insights. The partnership's new big data offerings will shift the IT cost curve and allow companies to strategically reimagine their business models, TCS said. The announcement was made after market hours on Tuesday, 22 July 2014.

Tata Power Company dropped 0.62% as the stock turned ex-dividend today, 23 July 2014, for dividend of Rs 1.25 per share for the year ended 31 March 2014 (FY 2014).

Tata Power after trading hours on Tuesday, 22 July 2014, said that the Appellate Tribunal for Electricity (APTEL) in its interim order has directed procurer states to make electricity payments raised during and after March 2014 by Mundra ultra mega power project (UMPP) as per the compensatory tariffs directed by the Central Electricity Regulatory Commission (CERC) in February this year. Coastal Gujarat Power (CGPL) which operates the 4,000 megawatts (MW) Mundra project has to keep an account of the amount received from procurers as compensatory tariff until further notice. The next hearing of the matter is scheduled on 19 August 2014. CGPL is a subsidiary of Tata Power.

Tata Power said that CGPL has been delivering the full potential of Mundra across beneficiary states despite incurring losses. The company said that the indicative compensatory tariff of about Rs 2.80 per unit is much lower and very competitive compared to the average purchase price in all five states and is also substantially lower than the current market rate for providing replacement power at a cost upwards of Rs 4.10 per unit, which could leave all five states prone to load shedding. If Mundra UMPP were to be rendered unviable, the cost of purchasing replacement power would mean higher tariffs by at least Rs 1 per unit for all five states, Tata Power said.

Axis Bank fell 0.3% on profit taking after reporting Q1 results. The bank after market hours on Tuesday, 22 July 2014 reported 18.29% rise in net profit to Rs 1666.76 crore on 10.17% rise in total income to Rs 9980.47 crore in Q1 June 2014 over Q1 June 2013.

Axis Bank's gross non-performing assets (NPAs) were at 1.34% of gross advances as on 30 June 2014, higher than 1.22% as on 31 March 2014 and 1.1% as on 30 June 2013. Net NPAs were 0.44% of net advances as on 30 June 2014, higher than 0.4% as on 31 March 2014 and 0.35% as on 30 June 2013.

The market sentiment was boosted by provisional data showing that foreign funds were net buyers of Indian stocks on Tuesday, 22 July 2014. Foreign portfolio investors (FPIs) bought shares worth a net Rs 412.03 crore on Tuesday, 22 July 2014, as per provisional data from the stock exchanges.

Asian stocks advanced for a third day today, 23 July 2014, boosted by better-than-expected inflation and housing reports in the US. Key benchmark indices in Hong Kong, South Korea, China, Indonesia, and Japan were up 0.18% to 0.97%. South Korea's Kospi fell 0.01%.The stock market in Taiwan was closed due to a typhoon.

US stocks closed modestly higher on Tuesday, 22 July 2014, boosted by better-than-expected inflation and housing reports as well as a flood of second-quarter earnings reports.

The US consumer price index increased 0.3% in June 2014 after a 0.4% gain in May 2014, figures from the Labor Department showed yesterday, 22 July 2014, in Washington. Purchases of existing houses advanced 2.6% to a 5.04 million annual rate in June 2014, the National Association of Realtors reported.

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