Market hits fresh intraday high
Key benchmark indices extended intraday gains and hit fresh intraday high in mid-morning trade as fall in crude oil prices boosted sentiment. India imports two-third of its crude oil requirement. Lower crude oil prices ease concerns about India's unfavorable fiscal and current account deficit situation. Firmness in Asian stocks also supported domestic bourses. The barometer index, the S&P BSE Sensex was currently up 155.14 points or 0.61% at 25,635.98. The BSE Small-Cap index rose over 1%. The market breadth indicating the overall health of the market was strong. IT stocks gained. HCL Technologies rose after the company said that CRISIL has upgraded the credit rating of the company in respect of the secured, non-convertible debentures of the company to CRISIL AAA/Stable (Upgraded from CRISIL AA+/Stable).
At 11:30 IST, the S&P BSE Sensex was up 155.14 points or 0.61% to 25,635.98. The index gained 207.37 points at the day's high of 25,688.21 in mid-morning trade. The index rose 50.54 points at the day's low of 25,531.38 in morning trade.
The CNX Nifty was up 54 points or 0.71% to 7,656.60. The index hit a high of 7,671.70 in intraday trade. The index hit a low of 7,622.05 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,571 shares rose and 759 shares fell. A total of 106 shares were unchanged.
The BSE Mid-Cap index was up 61.23 points or 0.67% at 9,175.56. The BSE Small-Cap index was up 105.30 points or 1.06% at 9,996.27. Both these indices outperformed the Sensex.
IT stocks edged higher. TCS (up 0.22%), Infosys (up 1.67%), Tech Mahindra (up 1.07%) and Wipro (up 1.06) gained.
HCL Technologies rose 2.66% after the company after market hours on Friday, 1 August 2014 said that CRISIL has upgraded the credit rating of the company in respect of the secured, non-convertible debentures of the company to CRISIL AAA/Stable (Upgraded from CRISIL AA+/Stable).
Brent crude rose to just over $105 a barrel on Monday as it came off a four-month low hit in the previous session, although worries about global oversupply still outweigh concerns about violence in the Middle East and North Africa. Brent crude oil futures for September delivery rose 26 cents at $105.10 a barrel in electronic trade today, 4 August 2014. The contract fell $1.18 on Friday to $104.84 a barrel, its lowest settlement since April 2.
Monsoon was 9% below long period average (LPA) in the week from 24 July to 30 July 2014, Indian Meteorological Department (IMD) said on 1 August 2014. The cumulative rainfall during this year's monsoon has so far upto 30 July 2014 was 23% below the LPA.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.955, compared with its close of 61.1875 on Friday, 1 August 2014.
The Reserve Bank of India (RBI) announces monetary policy review tomorrow, 5 August 2014.
Asian stocks were mostly higher in choppy trade today, 4 August 2014, as investors weighed a smaller-than-forecast increase in US payrolls and the bailout of a Portuguese bank. Key benchmark indices in Hong Kong, South Korea, China, Indonesia, and Taiwan were up 0.15% to 1.11%. Key benchmark indices in Japan and Singapore fell by 0.14% to 0.55%.
The People's Bank of China warned that the country's credit and money supply have increased rapidly and indicated that it will refrain from broader monetary easing to support growth.
A Chinese services-industry index declined to a six-month low in July, dragged down by a weaker property market. The non-manufacturing Purchasing Managers' Index fell to 54.2 from 55 in June, the Beijing-based National Bureau of Statistics and China Federation of Logistics and Purchasing said in Beijing. A reading above 50 indicates expansion.
Portugal's central bank took control of Banco Espirito Santo SA in a 4.9 billion-euro ($6.6 billion) bailout. Banco Espirito Santo has been forced to take government money after regulators uncovered potential losses on loans to other companies tied to Portugal's Espirito Santo family and ordered the lender to raise capital. Bank of Portugal Governor Carlos Costa had sought to find private investors to inject the cash, and said government funds would only be used as a last resort.
Trading in US index futures indicated that the Dow could gain 51 points at the opening bell on Monday, 4 August 2014. US stocks declined on Friday, 1 August 2014, as concern over Argentina and Portugal overshadowed data that signaled the Federal Reserve may have leeway to keep rates low.
US added more than 200,000 jobs for a sixth straight month in July, the longest such period since 1997. The 209,000 advance fell short of forecasts. The jobless rate climbed to 6.2% from 6.1% in June as more people entered the labor force. Wages and hours were unchanged from June.
Manufacturing expanded in July at the fastest pace in more than three years, showing US factories will help power the economy after a second-quarter rebound. The Institute for Supply Management's index increased to 57.1, the highest since April 2011, from 55.3 a month earlier, the Tempe, Arizona-based group's report showed. Readings above 50 indicate growth.
Argentina's failure to pay interest on its bonds is a credit event that will trigger settlement of $1 billion of default insurance, according to the International Swaps & Derivatives Association. Argentina is the first nation to trigger default swaps since Greece restructured its debt in 2012.
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