Strong market breadth

Firmness continued on the bourses in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was up 135.37 points or 0.53%, up about 85 points from the day's low and off close to 5 points from the day's high. The market breadth indicating the overall health of the market was strong. The BSE Small-Cap index was up more than 1%, outperforming the Sensex. The market sentiment was boosted by provisional data showing that foreign investors made substantial purchases of Indian stocks on Monday, 30 June 2014.

Realty stocks gained on renewed buying. Shree Cement rose after the company said it has commissioned a grinding unit of 2 million tons per annum (MTPA) capacity at Aurangabad in Bihar. Airline stocks shrugged off a small hike of jet fuel prices.

At 14:20 IST, the S&P BSE Sensex was up 135.37 points or 0.53% to 25,549.15. The index jumped 142.50 points at the day's high of 25,556.28 in afternoon trade, its highest level since 18 June 2014. The index rose 52.99 points at the day's low of 25,466.67 in mid-morning trade.

The CNX Nifty was up 27.30 points or 0.36% to 7,638.65. The index hit a high of 7,647.65 in intraday trade, its highest level since 18 June 2014. The index hit a low of 7,618.15 in intraday trade.

The market breadth indicating the overall health of the market was strong. On BSE, 1,848 shares gained and 1,110 shares fell. A total of 95 shares were unchanged.

The BSE Mid-Cap index was up 61.99 points or 0.66% at 9,440.94. The BSE Small-Cap index was up 134.30 points or 1.32% at 10,337.49. Both these indices outperformed the Sensex.

Realty stocks gained on renewed buying. DLF (up 0.07% to Rs 215.30), Housing Development & Infrastructure (HDIL) (up 1.98% to Rs 102.90), Unitech (up 0.3% to Rs 33.90) and Anant Raj (up 3.65% to Rs 78.15) gained.

Airline stocks shrugged off a small hike of jet fuel prices. Jet Airways (India (up 2.93% and SpiceJet (up 1.83%) gained. The price of jet fuel or aviation turbine fuel (ATF), at Delhi was increased by Rs. 413.78 per kilolitre (kl), or 0.6%, to Rs. 70,161.76 per kl effective 1 July 2014. Jet fuel constitutes over 40% of an airline's operating costs.

Shree Cement rose 0.5% to Rs 7,282.45. The company said during market hours that it has commissioned a grinding unit of 2 million tons per annum (MTPA) capacity at Aurangabad in Bihar on 30 June 2014.

Separately, the company said it has lighted up its clinker manufacturing unit having capacity of 6,000 ton per day (TPD) at Bangur City, Ras in Pali District of Rajasthan on 30 June 2014.

Key benchmark indices edged higher in early trade after provisional data showed that foreign investors made substantial purchases of Indian stocks on Monday, 30 June 2014. The Sensex hovered in positive terrain in morning trade. The Sensex regained strength after paring intraday gains in mid-morning trade. IT extended gains and hit fresh intraday high in early afternoon trade. The Sensex and the 50-unit CNX Nifty, both, hit their highest level in almost two weeks. A bout of volatility was witnessed as key benchmark indices pared gains after hitting fresh intraday high in afternoon trade. Firmness continued on the bourses in mid-afternoon trade.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 1288.16 crore on Monday, 30 June 2014, as per provisional data from the stock exchanges.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.08, compared with its close of 60.17/18 on Monday, 30 June 2014.

A survey from Markit Economics showed that growth in India's manufacturing sector was maintained in June 2014. Adjusted for seasonal variations, the seasonally adjusted HSBC India Purchasing Managers' Index (PMI) rose marginally to 51.5 in June from 51.4 in May. Greater domestic and foreign demand led companies to increase production levels further. Buying activity expanded at a faster rate, while employment continued to rise. Input cost and output price inflation accelerated over the month, although in both cases the rates of increase were below their respective long-run averages, the survey showed today, 1 July 2014.

Manufacturing production rose for the eighth successive month in June 2014. There was a moderate expansion of incoming new orders, with growth in export orders at three-month high, the survey showed.

Data released by the government after trading hours on Monday, 30 June 2014, showed that the government's fiscal deficit for the period April-May 2014 at Rs 2.40 lakh crore amounted to 45.6% of the budget estimates (BE) compared with 33.3% of BE during the same period last year. In the Interim Budget for 2014-15 presented in February this year, the previous government estimated that the fiscal deficit will fall to 4.1% of gross domestic product in the year through March 2015 from 4.6% the previous year.

The output of eight core industries, having a combined weight of 37.90% in the Index of Industrial Production (IIP) recorded an increase of 2.3% in May 2013. The output has shown an increase of 3.3% for April-May 2014, data released by the government after trading hours on Monday, 30 June 2014, showed.

European stocks edged higher on Tuesday, 1 July 2014, as investors awaited reports on American and euro-area manufacturing. Key benchmark indices in UK, France and Germany were up 0.09% to 0.45%.

German unemployment unexpectedly increased for a second month amid signs of a slowdown in Europe's largest economy. The number of people out of work rose a seasonally adjusted 9,000 to 2.916 million in June, the Nuremberg-based Federal Labor Agency said today.

Asian stocks were mixed on Tuesday, 1 July 2014. Key benchmark indices in Indonesia, South Korea and Singapore were off 0.05% to 0.56%. Key benchmark indices in China, Japan and Taiwan rose 0.1% to 1.08%. Stock markets in Hong Kong and Thailand were closed for holidays.

China's manufacturing expanded in June at the fastest pace this year, adding to signs that the government's efforts to arrest a slowdown are helping to stabilize the world's second-biggest economy. The Purchasing Managers' Index was at 51, increasing from May's 50.8, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today in Beijing.

A similar index from HSBC Holdings Plc and Markit Economics rose to 50.7 in June from the previous month's 49.4. Numbers above 50 signal expansion.

Trading in US index futures indicated that the Dow could gain 28 points at the opening bell on Tuesday, 1 July 2014. Most US stocks edged lower on Monday, 30 June 2014. The number of contracts to purchase previously owned US homes jumped 6.1% in May, the most in more than four years. Another data showed that the Institute for Supply Management-Chicago Inc.'s business barometer fell to 62.6 in June from 65.5 in May.

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