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Reports India

Indian stock market daily morning report (July 01, 2014, Tuesday)

July 1, 2014, Tuesday, 09:29 GMT | 04:29 EST | 12:59 IST | 15:29 SGT
Contributed by Keynote Capitals

Views on markets today

- Benchmark share indices ended over 1% higher with state-owned banks rallying the most amid reports that the government has decided to create a holding company structure for them before the Budget amid decline in crude oil prices.

The 30-share Sensex closed 313.86 points higher or 1.2% up and the 50-share Nifty ended up 102.55 points or 1.3% up at 25,413.7- and 7,611.35 levels, respectively.

- All the 12 BSE Sectoral Indices ended the day in positive. Top Gainers: BSE Power up by 2.88%, BSE Capital Goods by 2.18% and BSE Healthcare by 1.80%.

Market breadth was sharply positive at ~2.03 as investors bought large cap stocks. On provisional basis, FII's bought Rs 12.88bn worth of Indian equities and DII's sold Rs 1.81bn worth of equities.

Economic and Corporate Developments

- Prime Minister Narendra Modi never had a high opinion of the Planning Commission, an institutional vestige of the country's attempts to mimic the Soviet command economy during the infancy of its independence more than half a century ago.

Now, as prime minister of the country, he looks set to clip the central agency's wings, or perhaps abandon it altogether.

- Propelled by the gush of liquidity in hope that of a stable, reform-oriented government would help revive economic growth has made the India the best performing equity market across the globe year-to-date (YTD) in the first of calendar year 2014.

Registering their best half yearly gain in five years, the S&P BSE Sensex and the CNX Nifty have moved up nearly 19% each in first half (January-June) of calendar year 2014 (CY14), the highest rise since 2009 (CY09) when they had gained 21% in the second half of CY09. Incidentally, the indices had recorded 50% rise in first of 2009, after the United Progressive Alliance's (UPA) government was voted back into power for the second term.

Thus far in CY14, foreign investors have pumped in over $10 billion (Rs 60,000 crore) on hopes that the new government will take steps to revive the economy amid a favourable interest rate scenario.

Buzzing Stocks

- ONGC closed 3.08% up at Rs 423.70 on BSE after the company said it will invest over Rs 5,700 crore in redevelopment of its giant Mumbai High (North) oil and gas field.

Cipla rose 0.96%, in the morning trade, to Rs 441.50 on BSE after the company said it signed a pact to acquire a 51% stake in a pharmaceuticals manufacturing and distribution business in Yemen.

- CEAT closed 4.20% up at Rs 685.55 on BSE after the company said workers at Nasik plant called off a flash strike on 27th June, 2014.

- GAIL (India) closed 1.37% up at Rs 462.35 on BSE, with the stock reversing initial fall in volatile trade.

- Torrent Pharmaceuticals closed 1.01% up at Rs 709.65 on BSE after the company said it completed acquisition of Elder Pharmaceuticals' branded domestic formulations business in India and Nepal.

- Housing Development & Infrastructure closed 4.13% up at Rs 100.90 on BSE, after a foreign fund acquired 0.95% stake in the realty firm on Friday, 27th June, 2014.

Ranbaxy Laboratories closed 3.67% up at Rs 515.40 on BSE, extending Friday's 5.38% rise triggered by the company winning US drug regulator's approval to make a generic version of Diovan, a blood pressure drug from Novartis AG.

- WABCO India closed 5.69% up at Rs 3,317.35 on BSE on reports the government has made anti-lock braking system compulsory on all new models of commercial vehicles starting April, 2015.

- Eicher Motors closed 3.35% up at Rs 7,986.75 on BSE on reports a foreign brokerage raised target price on the stock to Rs 8,825 per share.

Firstsource Solutions gained 3.14% to Rs 41 on BSE after the company's wholly owned subsidiary successfully made its fifth quarterly repayment on its outstanding debt.

- United Spirits closed 4.21% down at Rs 2,394.95 on BSE, extending recent losses after Diageo plc's open offer for acquiring additional stake in United Spirits ended on 19th June, 2014.

Dr Reddy's Laboratories closed 2.43% up at Rs 2,615.15 on BSE on reports that the company's expenses would reduce after FY 2016.

- JK Cement rose 1.28%, in the morning trade, to Rs 386.95 on BSE after the company said that its unit at Jharli, Haryana has commenced commercial production.

- Reliance Industries was up 0.16% at Rs 1,014.70 on BSE on reports the Securities Appellate Tribunal dismissed the company's plea against market regulator Securities & Exchange Board of India.