Volatility ruled the roost as the key benchmark indices trimmed gains in early afternoon trade. The barometer index, the S&P BSE Sensex, was up 72.12 points or 0.29%, off 77.22 points from the day's high and up 54.02 points from the day's low. The market breadth indicating the overall health of the market was strong. The BSE Small-Cap index was up 1.22%
India's largest mortgage lender HDFC dropped on worries about the negative impact from the RBI guidelines under which banks would be exempted from reserve requirements when raising long-term bonds for infrastructure. Shares of power finance companies also declined on worries competition to raise long-term bonds could push up long-term rates. Kotak Mahindra Bank rose in volatile trade after declaring Q1 June 2014 result during market hours today, 16 July 2014.
At 12:15 IST, the S&P BSE Sensex was up 72.12 points or 0.29% to 25,300.77. The index jumped 149.34 points at the day's high of 25,377.99 in early trade, its highest level since 11 July 2014. The index rose 18.10 points at the day's low of 25,246.75 in early afternoon trade.
The CNX Nifty was up 17.25 points or 0.23% to 7,543.90. The index hit a high of 7,571.35 in intraday trade, its highest level since 11 July 2014. The index hit a low of 7,532.45 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,594 shares gained and 927 shares fell. A total of 105 shares were unchanged.
The BSE Mid-Cap index was up 74.27 points or 0.82% at 9,119.19. The BSE Small-Cap index was up 120.56 points or 1.22% at 9,976.56. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1652 crore by 12:15 IST compared to Rs 1205 crore by 11:15 IST.
Among the 30-share Sensex pack, 17 stocks gained and rest of them declined.
ICICI Bank (up 2.84%), Axis Bank (up 1.77%) and Reliance Industries (up 1.4%) edged higher from the Sensex pack.
GAIL (India) (down 2.12%), Bajaj Auto (down 1.21%) and Sesa Sterlite (down 0.83%) edged lower from the Sensex pack.
India's largest mortgage lender Housing Development Finance Corporation (HDFC) dropped 1.84% on worries about the negative impact from the RBI guidelines under which banks would be exempted from reserve requirements when raising long-term bonds for infrastructure.
Shares of power finance companies also declined on worries competition to raise long-term bonds could push up long-term rates. REC (down 4.62%) and Power Finance Corporation (down 5.39%) declined.
Kotak Mahindra Bank rose 0.45% to Rs 875.35. The stock was volatile. The stock hit high of Rs 884.80 and low of Rs 866.15 so far during the day. Kotak Mahindra Bank's net profit rose 6.69% to Rs 429.80 crore on 1.27% growth in total income to Rs 2686.11 crore in Q1 June 2014 over Q1 June 2013. The result was announced during market hours today, 16 July 2014.
The bank's ratio of gross non-performing assets (NPA) to gross advances stood at 1.88% as on 30 June 2014 as against 1.98% as on 31 March 2014 and 1.95% as on 30 June 2013. The ratio of net NPA to net advances stood at 0.98% as on 30 June 2014 as against 1.08% as on 31 March 2014 and 0.98% as on 30 June 2013.
A bout of volatility was seen in early trade as key benchmark indices trimmed initial gains. Volatility continued as the key benchmark indices recovered from lower level after trimming intraday gains in morning trade. Key benchmark indices strengthened in mid-morning trade after the government announced trade data for June 2014. Key benchmark indices extended gains in mid-morning trade after the latest data showed a decent growth in merchandise exports in June 2014. Volatility ruled the roost as the key benchmark indices trimmed gains in early afternoon trade.
India's merchandise exports jumped 10.22% to $26.48 billion in June 2014 over June 2013, data released by the government today, 16 July 2014, showed. Imports rose 8.33% to $38.24 billion in June 2014 over June 2013. The trade deficit stood at $11.76 billion in June 2014, which was higher than trade deficit of $11.28 billion in June 2013.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 60.19, compared with its close of 60.12/13 on Tuesday, 15 July 2014.
At a summit in Brazil, the five BRICS nations -- Brazil, Russia, India, China and South Africa -- on Tuesday, 15 July 2014, announced the signing of an agreement establishing the New Development Bank (NDB), with the purpose of mobilizing resources for infrastructure and sustainable development projects in BRICS and other emerging and developing economies. The bank will have an initial authorized capital of $100 billion. The initial subscribed capital will be $50 billion, equally shared by the five BRICS nations. The five BRICS nations also announced the signing of the treaty for the establishment of the BRICS Contingent Reserve Arrangement (CRA) with an initial size of $100 billion. This arrangement will have a positive precautionary effect, help countries forestall short-term liquidity pressures, promote further BRICS cooperation, strengthen the global financial safety net and complement existing international arrangements, according to a statement issued on Tuesday. The agreement is a framework for the provision of liquidity through currency swaps in response to actual or potential short-term balance of payments pressures.
Asian stocks edged higher on Wednesday, 16 July 2014, as a slide in oil prices to the lowest in over three months on Tuesday, 15 July 2014, was taken as a potential positive for global growth. Key benchmark indices in Hong Kong, Singapore, Indonesia, and South Korea rose by 0.04% to 1.04%. Key benchmark indices in China, Japan and Taiwan fell by 0.1% to 0.88%.
China today, 16 July 2014 reported second-quarter GDP growth of 7.5% compared with 7.4% in the previous three months. Other data showed retail sales gained 12.4% in June from a year earlier and industrial production jumped 9.2%. Fixed asset investment, a mainstay driver of the Chinese economy, climbed 17.3% in the first six months.
Trading in US index futures indicated that the Dow could rise 14 points at the opening bell on Wednesday, 16 July 2014. US markets saw mixed trend on Tuesday, 15 July 2014, after the US Federal Reserve raised concerns about social-media and biotech companies' valuations.
Federal Reserve Chair Janet Yellen reportedly indicated in testimony before US lawmakers on Tuesday, 15 July 2014, that stimulus is still required for the US economy. A high degree of monetary policy accommodation continues to be appropriate, Yellen said in her semi-annual address to the Senate Banking Committee.
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