- Created: Monday, 21 July 2014 11:19
Indian markets surged highest in one and a half week as steep growth in banks pushed up the benchmark indices. S&P BSE Sensex opened 205.40 points up at 25846.96 and the Nifty rose 54.15 points or 0.71 percent at 7718.05. Major reasons buckling up the markets include higher foreign investments and improved monsoon reviews.
Foreign portfolio investors (FPIs) invested in Indian shares worth a net Rs 574.47 crore on Friday, 18 July 2014, as per provisional data from the stock exchanges.
Union Minister of State (MoS) Science and Technology (Independent Charge), Earth Sciences (Independent Charge), MoS in Prime Minister's Office (PMO), Department of Personnel and Training, Atomic Energy, Space and Earth Sciences, Dr. Jitendra Singh said on Sunday, 20 July 2014, "There has been significant increase in the monsoon during the last one week beginning from 13 July 2014." He added that although rains during the month of June and first two weeks of July, recorded deficiency of 43%, in the week beginning 13 July 2014, the figures contracted to 32%, recording 11% improvement in the monsoon level."
The monsoon forecast for next two weeks is very good, particularly in Central India and coastal regions of South India. There is, therefore, no reason to unnecessarily alarmist on the issue of monsoon, Dr. Singh said
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee swung with an average at 60.20, compared with its close of 60.275 on Friday, 18 July 2014.
The market pulse stayed positive as the gainers showed up for every loser on BSE. In figures, 1,439 shares surged and 405 slugged.
BSE Mid-Cap index climbed 1.2 percent and BSE Small-Cap index jumped 1.31 percent in the morning report. Both the indices exceeded predictions indicating healthy strong potential growth in the market.
Stocks in the Asian market poised the growth trend with optimistic foreign portfolio investors walking in and improved monsoon predictions as rains hit towns boosting domestic stock exchanges. Key benchmark indices in Taiwan, Singapore, Indonesia, Hong Kong, and South Korea rose by 0.01% to 0.7%. China's Shanghai Composite fell 0.18%.
Shares of Banking sector pushed up domestic growth channels. Axis Bank set a new record in its portfolio hitting highest values ever. Axis Bank climbed 0.98 percent to Rs 2,015.65 after hitting record high of Rs 2,022.65 in intra-day trade.
Kotak Mahindra Bank announced its entrant in Share Purchase Agreement with FTIL purchasing 76.49 lakh shares aggregating to 15 percent equity stake in Multi Commodity Exchange of India (MCX) for Rs 459 crore. Though, the final closing is waiting for regulatory approvals. Kotak gained 2.63 percent as the news came into light.
ICICI Bank moved up 0.72 percent, IndusInd Bank hiked 1.38 percent, Yes Bank surged 1.09 percent, and Federal Bank climbed 1.11 percent.
HDFC Bank boosted 1.52 percent ahead of its Q1 results today, 21 July 2014. After first quarter results, the bank grew further up 129.58 points or 0.51%, off close to 90 points from the day's high and up about 40 points from the day's low.
Among PSU bank stocks, State Bank of India (SBI) stepped up 2.34 percent, Canara Bank walked up 2.48 percent, Union Bank of India rose 1.53 percent, Bank of India climbed 1.12 percent, Bank of Baroda jumped 1.03 percent and Punjab National Bank gained 0.89 percent.
Trading in US index futures indicated that the Dow predict falling 11 points at the opening bell on Monday, 21 July 2014. US stocks grew on Friday, 18 July 2014, where better earnings from Google Inc., the world's third-largest company, refocused investors on economic growth amid crises in the Middle East and Ukraine.