A bout of volatility was witnessed as key benchmark indices trimmed gains after a strong intraday rebound took the indices to positive zone from negative zone in mid-afternoon trade. The two index heavyweights ITC and Reliance Industries and banking pivotals led intraday rebound in key indices. The barometer index, the S&P BSE Sensex, was currently up 53.01 points or 0.21% at 25,718.28. Realty stocks reversed intraday losses. Cement stocks gained. The market breadth indicating the overall health of the market was negative.
Key benchmark indices had languished in red till afternoon trade on weak Asian stocks. Earlier, the key benchmark indices had once again slipped into the red in mid-morning trade after moving into positive zone from negative zone in morning trade.
At 14:17 IST, the S&P BSE Sensex was up 53.01 points or 0.21% to 25,718.28. The index rose 112.78 points at the day's high of 25,778.05 in mid-afternoon trade. The index declined 126.51 points at the day's low of 25,538.76 in afternoon trade, its lowest level since 4 August 2014.
The CNX Nifty was up 24.70 points or 0.32% to 7,696.75. The index hit a high of 7,708.95 in intraday trade. The index hit a low of 7,638.70 in intraday trade, its lowest level since 5 August 2014.
The market breadth indicating the overall health of the market was negative. On BSE, 1,428 shares fell and 1,333 shares rose. A total of 114 shares were unchanged.
The BSE Mid-Cap index was down 17.42 points or 0.19% at 9,183.82. The BSE Small-Cap index was down 0.71 points or 0.01% at 10,095.57. Both these indices underperformed the Sensex.
Cement stocks gained. ACC (up 3.0%), Ambuja Cements (up 1.2%), and UltraTech Cement (up 1.19%), gained.
Grasim Industries rose 0.89%. Grasim has exposure to the cement sector through its subsidiary UltraTech Cement.
Shree Cement fell 0.3%.
Realty stocks reversed intraday losses. DLF (up 0.54%), Housing Development & Infrastructure (HDIL) (up 2.58%), Anant Raj (up 0.94%) and Unitech (up 1.65%) gained.
The Reserve Bank of India (RBI) after a monetary policy review on Tuesday, 5 August 2014, kept policy rates unchanged. Purchases of both residential and commercial property are largely driven by finance.
ONGC rose 0.98%. The company clarified during market hours with respect to the media report "ONGC, OIL in $105 billion joint bid for Murphy Oil's Malaysia assets," that ONGC or ONGC Videsh, as a policy do not comment on unsubstantiated media or market speculations. ONGC Videsh is a overseas arm of ONGC.
Shares of Oil India lost 0.14%.
Pricol lost 8.26% after net profit declined 86.09% to Rs 6.14 crore on 11.07% growth in total income from operations to Rs 231.16 crore in Q1 June 2014 over Q June 2013. The Q1 result was announced after market hours on Wednesday, 6 August 2014.
Gati rose 4.98% after consolidated net profit jumped 71.64% to Rs 11.50 crore on 23.39% growth in total income to Rs 397.63 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced after market hours on Wednesday, 6 August 2014.
The government has opened up the defense and railway industries to more investment by foreign firms, in a move to attract more international capital and expertise to the sectors. The Union Cabinet on Wednesday, 6 August 2014, approved raising the maximum amount of foreign ownership allowed in military-equipment making firms to 49% from the previous cap of 26%. It also agreed to allow up to 100% foreign direct investment in railway-construction companies.
Last month, Finance Minister Arun Jaitley in the Union Budget 2014-15 had announced proposed to raise the ceiling on FDI in defence equipment manufacturing companies to 49% from 26%. In his maiden rail budget, Railway Minister D V Sadananda Gowda had last month said that the government was planning to open up the cash-starved railways to FDI.
The latest measures to open up the economy come at a time when the government is struggling to get the Insurance Laws (Amendment) Bill, 2008 passed in Rajya Sabha. The insurance bill seeks to increase the FDI limit in the insurance sector from 26% to 49%. While the Narendra Modi government has a majority in Lok Sabha, it is in a minority in the Rajya Sabha and needs the help of opposition parties to pass the bill. The insurance bill has to be passed by both the Houses of Parliament to become a law. Congress and few other opposition parties are demanding that the insurance bill be sent to a select committee of the Rajya Sabha as it has undergone substantive changes since the time it was introduced by the erstwhile UPA government.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 61.3675, compared with its close of 61.5025 on Wednesday, 6 August 2014.
European indices edged lower today, 7 August 2014, before the European Central Bank decides monetary policy today, 7 August 2014. Key benchmark indices in France, UK and Germany were off 0.07% to 0.25%.
A policy meeting of the Governing Council of the European Central Bank (ECB) will be held today, 7 August 2014, in Frankfurt to decide euro zone interest rates. The Bank of England also holds its policy meeting today, 7 August 2014.
Asian stocks fell today, 7 August 2014, as tensions mounted over Ukraine. Key benchmark indices in China, Taiwan, Hong Kong, Singapore, and South Korea were off 0.14% to 1.34%. Key benchmark indices in Japan and Indonesia rose 0.14% to 0.48%.
Trading in US index futures indicated that the Dow could gain 29 points at the opening bell on Thursday, 7 August 2014. US stocks edged higher on Wednesday, 6 August 2014, on gains in consumer-staples shares.
The US on Wednesday, 6 August 2014, joined NATO and Poland in warning there's a risk Russia could send troops into Ukraine.
Russia will reportedly ban billions of dollars of food imports from the US and other nations in retaliation for sanctions imposed over the turmoil in Ukraine. Russian President Vladimir Putin yesterday ordered restrictions on imports for one year from countries that have imposed or supported sanctions against Russia
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