Market opens on a firm note

Decline in crude oil prices triggered a firm opening on the domestic bourses. The barometer index, the S&P BSE Sensex, was up 161.57 points or 0.65%, up about 80 points from the day's low and off close to 30 points from the day's high. The market breadth indicating the overall health of the market was strong. As crude prices dropped, concerns arising from the impact of high crude oil prices on India's macroeconomic situation eased. Gains in Asian stocks also aided upmove on the domestic bourses.

Power Grid Corporation of India rose after the company's board of directors approved two projects involving a total outlay of Rs 5551.84 crore. Adani Ports and Special Economic Zone, L&T and Tata Steel rose after Adani Ports completed the acquisition of 100% stake in the Dhamra Port Company from L&T Infrastructure Development Projects and Tata Steel.

At 9:30 IST, the S&P BSE Sensex was up 161.57 points or 0.65% to 25,192.89. The index jumped 191.37 points at the day's high of 25,222.69 in early trade. The index gained 84.51 points at the day's low of 25,115.83 in early trade.

The CNX Nifty was up 37.90 points or 0.51% to 7,531.25. The index hit a high of 7,541.40 in intraday trade. The index hit a low of 7,515.20 in intraday trade.

The market breadth indicating the overall health of the market was strong. On BSE, 1,165 shares gained and 391 shares fell. A total of 30 shares were unchanged.

The BSE Mid-Cap index was up 82.85 points or 0.92% at 9,100.92. The BSE Small-Cap index was up 108.06 points or 1.1% at 9,924.41. Both these indices outperformed the Sensex.

GAIL (India) (up 1.66%), ITC (up 1.65%) and HDFC (up 1.51%) edged higher from the Sensex pack.

Power Grid Corporation of India rose 1.29% to Rs 133.95 after the company after trading hours on Monday, 23 June 2014, said that the board of directors of the company at its meeting held on 21 June 2014 approved two projects involving a total outlay of Rs 5551.84 crore.

Adani Ports and Special Economic Zone rose 2.05% to Rs 241.25. L&T gained 0.54% to Rs 1,662.60. Tata Steel rose 0.46% to Rs 529.40. Adani Ports and Special Economic Zone said after market hours on Monday, 23 June 2014, that further to the share purchase agreement dated 16 May 2014 executed by Adani Ports and Special Economic Zone with L&T Infrastructure Development Projects and Tata Steel, Adani Ports and Special Economic Zone has completed the acquisition of 100% stake in the Dhamra Port Company from L&T Infrastructure Development Projects and Tata Steel.

As crude prices dropped, concerns arising from the impact of high crude oil prices on India's macroeconomic situation eased. Brent crude oil futures extended Monday's losses. Brent oil futures for August delivery were off 30 cents at $113.82 a barrel. The contract recorded its largest one-day decline in seven weeks on Monday. The contract fell 0.6% to settle at $114.12 on Monday, 23 June 2014, the biggest percentage drop since 16 May 2014.

The recent spike in crude oil prices triggered by violence in Iraq sparked worries about India's macroeconomic situation as India imports majority of its crude oil requirements. Increase in crude oil prices raised concerns of increase in India's current account deficit and fiscal deficit. Firm global crude oil prices and the latest hike in railway freight rate also stoked inflation worries.

Indian stocks may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near month June 2014 series to July 2014 series. The near-month June 2014 F&O contract expire on Thursday, 26 June 2014.

Asian stocks edged higher on Tuesday, 24 June 2014. Key benchmark indices in Indonesia, South Korea, China, Singapore, Hong Kong and Taiwan were up by 0.13% to 0.93%. Japan's Nikkei Average fell 0.19%.

Most US stocks slid on Monday, 23 June 2014, with the Standard & Poor's 500 Index dropping for the first time in seven sessions, as General Electric Co. led industrial shares lower to offset gains among energy producers.

Data on Monday showed US sales of existing homes climbed 4.9% to a 4.89 million annualized rate in May, the most since October. A separate report from Markit Economics showed a measure of US manufacturing growth rose to 57.5 in June from 56.4 in May.

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