Benchmark index of the Bombay Stock Exchange (BSE) rose by 617.21 points to close at 25,641.60, as ease in retail inflation in June 2014, decent growth in merchandise exports in June 2014, and Reserve Bank of India’s (RBI) incentives for banks to raise long term bonds for financing infrastructure projects, boosted sentiment.
Easing inflation provides space for the Reserve Bank of India (RBI) to cut policy rates to revive economic growth.
The market gained in four out of five trading sessions in the week just gone by.
The Nifty of National Stock Exchange (NSE) advanced by 204.30 points to close at at 7,663.90 The BSE Mid-Cap index gained 1.32 percent to 9,252.80, underperforming the Sensex. The BSE Small-Cap index vaulted 5.08 percent to 10,180.84, outperforming the Sensex.
Key benchmark indices registered small losses after moving in a narrow range during the trading session on Monday, July 14, 2014. The S&P BSE Sensex shed 17.37 points to settle at 25,006.98 on that day, while Nifty to eased by 5.45 points. Key benchmark indices snapped five-day losing streak on Tuesday, July 15, 2014, as data released by the government after trading hours Monday, July 14, 2014, showed that retail inflation eased in June 2014. The S&P BSE Sensex garnered 221.67 points to settle at 25,228.65, while Nifty to rose by 72.50 points. Key benchmark indicies advanced on Wednesday, July 16, 2014. The Sensex garnered 321.07 points to settle at 25,549.72, and Nifty advanced by 97.75 points. Key benchmark indices eked out small gains after moving in a narrow range in intraday trade on Thursday, July 17, 2014. The S&P BSE Sensex garnered 11.44 points or 0.04 pc to settle at 25,561.16, Nifty also advanced by 16.05 points. Key benchmark indices edged higher in choppy session of trade on Friday, July 18, 2014, as the sentiment was positive after data showed that foreign portfolio investors made substantial purchases of Indian stocks on Thursday, July 17, 2014. The BSE Sensex was up 80.40 points or 0.31 pc to 25,641.56, and the Nifty rose by 23.45 points.
From the 30-share Sensex pack, 22 stocks rose and rest fell in the week under review. Infosys declined 2.18 pc, TCS rose 1.86 pc, while Wipro shed 0.88 pc.
Sun Pharmaceutical Industries gained 0.11 pc, Cipla rose 1.19 pc, Dr Reddy’s Laboratories dropped 2.24 pc. Shares of Coal India (CIL) rose 3.56 pc. Tata Power Company surged 3.83 pc. Delhi Electricity Regulatory Commission has reportedly approved a tariff hike of 8.32 pc for the power distribution subsidiaries of these two companies in the national capital for the fiscal 2014-15. NTPC gained 0.07 pc, ONGC gained 3.65 pc. Index heavyweight Reliance Industries (RIL) gained 1 pc. RIL after trading hours on Wednesday, July 16, 2014, issued a clarification to recent news reports that said that the government has imposed an additional penalty of $579 million on RIL for the year 2013-14 for failing to meet the gas production target for its flagship KG-D6 block.
Metal and mining stocks rose as latest data showed acceleration in China’s GDP growth to 7.5 pc in Q2 June 2014, from 7.4 pc in Q1 March 2014. China is the world’s largest consumer of copper and aluminium. Hindalco Industries surged 10.87 pc. The stock was the second biggest gainer from the Sensex pack. Shares of Sesa Sterlite rose 1.62 pc, Tata Steel jumped 12.19 pc. The stock was the biggest gainer from the Sensex pack. Higher outlay for housing, road, port, urban and rural housing and infrastructure development in Union Budget 2014-15 would help improve steel consumption. Hindustan Unilever declined 2.95 pc. The stock was the biggest loser from the Sensex pack. Bank stocks gained. Axis Bank rose by 9.91 pc, HDFC Bank by 2.5 pc, and ICICI Bank by 8.97 pc, State Bank of India (SBI) gained 5.78 pc. Among the infrastructure developers, L&T jumped 7.09 pc. Maruti Suzuki India rose 0.48 pc, Mahindra & Mahindra (M&M) by 1.44 pc and Tata Motors by 6.67 pc, Bajaj Auto dropped 2.56 pc, Hero MotoCorp gained 3.03 pc. Index heavyweight and cigarette maker ITC lost 0.55 pc.
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