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Volatility struck the bourses in morning trade as the key benchmark indices retreated from intraday high hit in early trade only to regain strength later. The 50-unit CNX Nifty regained positive zone soon after reversing intraday gain to briefly turn negative. The barometer index, the S&P BSE Sensex, was up 51.93 points or 0.21%, off 127.67 points from the day’s high and up 50.68 points from the day’s low. The market breadth indicating the overall health of the market was positive.
India’s largest oil exploration firm ONGC dropped. IT stocks gained after the US Federal Reserve on Wednesday, 18 June 2014, gave a positive assessment of the world’s largest economy and committed to retaining its accommodative monetary policy.
At 10:15 IST, the S&P BSE Sensex was up 51.93 points or 0.21% to 25,298.18. The index jumped 179.60 points at the day’s high of 25,425.85 in early trade. The index rose 1.25 points at the day’s low of 25,247.50 in morning trade.
The CNX Nifty was up 12.75 points or 0.17% to 7,570.95. The index hit a high of 7,606.45 in intraday trade. The index hit a low of 7,549.70 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,197 shares gained and 970 shares fell. A total of 80 shares were unchanged.
The BSE Mid-Cap index was up 32.81 points or 0.36% to 9,068.06. The BSE Small-Cap index rose 47.94 points or 0.49% to 9,921.58. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 863 crore by 10:15 IST compared to Rs 338 crore by 09:30 IST.
Among the 30-share Sensex pack, 22 stocks gained and the rest of them declined.
Tata Motors (up 1.29%), Bharti Airtel (up 1.22%) and Tata Power Company (up 1%) edged higher from the Sensex pack.
India’s largest oil exploration firm ONGC dropped 3.26% to Rs 428.75.
IT stocks gained after the US Federal Reserve on Wednesday, 18 June 2014, gave a positive assessment of the world’s largest economy and committed to retaining its accommodative monetary policy. US is the biggest outsourcing market for the Indian IT firms.
Infosys (up 1.63%), Tata Consultancy Services (TCS) (up 1.18%), Wipro (up 1.02%) and Tech Mahindra (up 0.59%) gained. HCL Technologies fell 0.45%.
GMR Infrastructure rose 2.32% after favorable verdict from an arbitration tribunal with regard to concession agreement for modernization and operation of Ibrahim Nasir International Airport in Maldives. GMR Infrastructure during market hours said that after detailed proceedings lasting for more than 18 months, the tribunal has now issued an award and declared that the concession agreement with Government of Maldives (GoM) and Maldives Airport Company (MACL) for modernization and operation of Ibrahim Nasir International Airport (INIA) in 2010 was valid and binding and was not void for any mistake of law or discharged by frustration.
The tribunal has directed GoM and MACL to pay $4 million by way of costs within 42 days to GMR Male’ International Airport (GMIAL), a subsidiary of GMR Infrastructure. GMR Male’ International Airport (GMIAL), a subsidiary of GMR Infrastructure had entered into a concession agreement with Government of Maldives (GoM) and Maldives Airport Company (MACL) for modernization and operation of Ibrahim Nasir International Airport (INIA). The contract was unilaterally terminated by the Government of Maldives (GoM) and GoM initiated arbitration proceedings seeking a declaration that the concession agreement was void ab initio on 29 November 2012. GMIAL had disputed this wrongful termination.
“It has always been our firm belief that the cancellation of our concession agreement amounted to wrongful repudiation by the Government of Maldives and the Tribunal has upheld this stand”, GMR Infrastructure said in a statement.
Key benchmark indices edged higher in early trade as Asian stocks after the US Federal Reserve on Wednesday, 18 June 2014, after a monetary policy review said a highly accommodative stance of monetary policy remains appropriate at this juncture. Volatility struck the bourses in morning trade as the key benchmark indices retreated from intraday high hit in early trade only to regain strength later. The 50-unit CNX Nifty regained positive zone soon after reversing intraday gain to briefly turn negative.
Brent crude rose as investors worried about exports from Iraq as militant violence in the country continues. Brent crude futures for August delivery were up 32 cents at $114.58 a barrel.
Increase in oil prices has triggered macroeconomic worries for India which imports majority of its crude oil requirements. Increase in crude oil prices have raised concerns of increase in fuel price inflation and increase in India’s current account deficit and fiscal deficit.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 366.18 crore on Wednesday, 18 June 2014, as per provisional data from the stock exchanges.
In the foreign exchange market, the rupee edged higher against the dollar after the US Federal Reserve signalled that interest rates will stay low for a while yet. The partially convertible rupee was hovering at 59.98, compared with its close of 60.39/40 on Wednesday, 18 June 2014.
Asian markets edged higher on Thursday, 19 June 2014, on the optimism of Wall Street after the US Federal Reserve gave a positive assessment of the world’s largest economy and committed to retaining its accommodative monetary policy. Key benchmark indices in Singapore, Taiwan, Hong Kong and Japan rose by 0.1% to 1.63%. Key benchmark indices in Indonesia, China, and South Korea fell by 0.07% to 0.49%.
Chinese Premier Li Keqiang vowed that his nation’s economy will not suffer a so-called “hard landing,” a report said.
Trading in US index futures indicated that the Dow could rise 6 points at the opening bell on Thursday, 19 June 2014. US stocks rallied on Wednesday, 18 June 2014, gaining the most in four weeks, after the Federal Reserve chief signaled no hurry to raise rates.
The Federal Reserve said growth is bouncing back and the job market is improving as it continued to reduce the monthly pace of asset purchases. The Federal Open Market Committee trimmed bond-buying by $10 billion for a fifth straight meeting, to $35 billion, keeping it on pace to end the program late this year.
In a statement the Federal Open Market Committee (FOMC) said that if the incoming information broadly supports the committee’s expectation of ongoing improvement in US labor market conditions and inflation moving back toward its longer-run objective, the committee will likely reduce the pace of asset purchases in further measured steps at future meetings. However, asset purchases are not on a preset course, and the committee’s decisions about their pace will remain contingent on the committee’s outlook for the labor market and inflation as well as its assessment of the likely efficacy and costs of such purchases. To support continued progress toward maximum employment and price stability, a highly accommodative stance of monetary policy remains appropriate at this juncture, the FOMC said. In determining how long to maintain the current 0 to 1/4 percent target range for the federal funds rate, the committee will assess progress–both realized and expected–toward its objectives of maximum employment and 2% inflation, the FOMC said. The committee continues to anticipate, based on its assessment of these factors, that it likely will be appropriate to maintain the current target range for the federal funds rate for a considerable time after the asset purchase program ends, especially if projected inflation continues to run below the committee’s 2% longer-run goal, and provided that longer-term inflation expectations remain well anchored.
Source:http://www.business-standard.com/article/news-cm/it-stocks-gain-as-federal-reserve-gives-positive-assessment-on-us-economy-114061900227_1.html
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