Rupee Gains, Market Records High on Finance Minister's Optimism

The Indian stock market on Wednesday opened on bullish note, after Finance Minister Arun Jaitley inaugurated digital banks across the nation on Tuesday.

The stocks of banking sector surged, but BSE Information Technology stocks declined during trading hours.

Besides, the Indian rupee gained for second day on budget optimism. Rupee opened stronger at 60.04 per dollar on Wednesday, versus previous closing of 60.08 a dollar on Tuesday.

"Overall rupee is in a range of 59.80 to 60.40, but one can expect the rupee to rise above 59.80 after the next critical trigger of budget 2014," Reuters quoted Hemal Doshi, current strategist at Geojit Comtrade on Tuesday.

Majority of Indian stock indices appeared surging during trading hours on Wednesday. India's BSE and NSE index breached its all time high of 25735.87 points and 7700.05 points respectively as on June 11.

The BSE index recorded 25746.77 points at 10:25 am, while the NSE breached its highest record to 7710.35 points at 10:42 am.

The Sensex on Wednesday opened higher at 25660.57 points with a surge of 144.22 points and Nifty opened at 7686.20 points with an increase of 21 points. On Tuesday, BSE index closed at 25516.35 points, while the Nifty index recorded 7634.70 points.

Top gainers from BSE as on July 2, Wednesday at 11:10 am:

Top losers from BSE as on July 2, Wednesday at 11:10 am:

NSE top gainers were Texmo Pipes and Products, Blue Star Infotech, Kamdhenu Ispat Ltd, Ankit Metal & Power and ELGI Rubber Co ltd , whereas, top losers were FCS Software Solutions, R Systems International, Gujarat Ambuja Exports, REI Agro Ltd and Simplex Projects Ltd. However positions of the companies changed frequently during the trading hours.

On Tuesday, Indian government received ₹68.09 billion ($1.13 billion) worth bids from overseas investors in auction, which was higher than the offer, reported Reuters. Besides, foreign investors bought shares worth ₹8.56 billion on Tuesday.

At 11:40 am on Wednesday, among all Indian stock indices, only BSE IT declined, while remaining indices appeared surging.

BSE IT stock price was recorded at 9239.36 with loss of 19.42. Over 60 percent stock prices declined during trading hours. But, stock of Mindtree, MphasiS, Tata Consultancy Services and Wipro surged by 1.70, 32.50, 1.65 and 6.35 during trading hours. In the mean time, Infosys stock price declined by 18.45 at 3203.30 and Orace Financial Service Software's stock recorded 3070 with a loss of 29.30.

On the other hand, BSE Power and BSE Healthcare topped the list with surge of 1.21 percent and 1.11 percent. Among 12 Indian stock indices, metals, capital goods, realty, power and health care stocks rose above one percent, and IT sector recorded the lowest with -0.15 percent change.

After Jaitley launched six digital branches of SBI across the nation in Delhi on Tuesday, bank stocks recorded high on Wednesday. The Stock price of State Bank of India (SBI) recorded 2713, as it gained 32.90 with change of 1.23 percent at 12:10 pm.

In the meantime, most bank stocks rose, except BOI, Canara bank and Federal Bank. However, the loss was negligible at 0.40, 0.60 and 0.55 respectively. Following SBI, ICICI Bank topped the list with profit of 15.75 per stock at 1453.45 during trading hours.

While the stock price of Apollo Hospitals Enterprise rose at 1019 with profit of 30.35 and 3.07 percent change, as Citigroup raised its share price through heavy inflows.

Global Markets:

NSE index futures traded on the Singapore Exchange rose 0.76 percent, while Morgan Stanley Capital International (MSCI) - Asia Pacific along with Japan rose 0.89 percent.

At 12:45 pm, Japan's Nikkei surged by 43.77 points at 15369.97 points with change of 0.29 percent and Hong Kong based Hang Seng rose at 23468.98 points with an increase of 278.26 points and change of 1.20 percent.

All US stock indices appeared surging during trading hours on Wednesday, as DOW, S&P, NASDAQ and TR Index recorded high with an increase of 129.47 points, 13.09 points, 50.47 points and 1.22 points respectively.

On the other hand, all major European stock indices surged, except TR Europe, as it declined by 0.11 percent at 181.75 points. However, the loss was negligible. While, FTSE 100, DAX and CAC 40 rose by 58.98 points, 69.34 points and 38.28 points respectively on Wednesday.