Firmness continued on the bourses in early afternoon trade. The barometer index, the S&P BSE Sensex, was currently hovering above the psychological 26,000 mark. Earlier, the Sensex reclaimed the psychological 26,000 level after an initial surge. The Sensex was currently up 340.57 points or 1.32% at 26,055.23. Gains in global stocks underpinned sentiment on the domestic bourses. Stocks surged in mainland China after the nation's central bank after trading hours yesterday, 26 August 2015, announced that it will inject $21.8 billion into the financial system.
The broad market depicted strength. There were nearly three gainers against every loser on BSE. The BSE Mid-Cap index was up 1.82%. The BSE Small-Cap index was up 1.96%. Both these indices outperformed the Sensex.
In overseas markets, Chinese stocks led gains for Asian markets after the nation's central bank after trading hours yesterday, 26 August 2015, announced that it will inject $21.8 billion into the financial system. US stocks witnessed a solid rally yesterday, 26 August 2015, on expectations that the US central bank will hold off from hiking interest rates next month due to mounting global uncertainties.
Pharmaceutical shares were in demand. IT stocks also edged higher.
Foreign portfolio investors (FPIs) pressed substantial sales of Indian stocks yesterday, 26 August 2015. FPIs sold shares worth a net Rs 2345.77 crore yesterday, 26 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1881.08 crore yesterday, 26 August 2015, as per provisional data released by the stock exchanges.
Indian stocks may remain volatile today, 27 August 2015, as traders roll over positions in the futures & options (F&O) segment from the near month August 2015 series to September 2015 series. The near month August 2015 derivatives contracts are set to expire today, 27 August 2015.
At 12:18 IST, the S&P BSE Sensex was up 340.57 points or 1.32% at 26,055.23. The index jumped 455.73 points at the day's high of 26,170.39 at the onset of trading session, its highest level since 24 August 2015. The index gained 298.48 points at the day's low of 25,943.75 in early trade.
The CNX Nifty was up 109.70 points or 1.41% at 7,901.55. The index hit a high of 7,930.80 in intraday trade, its highest level since 24 August 2015. The index hit a low of 7,862.30 in intraday trade.
The BSE Mid-Cap index was up 190.36 points or 1.82% at 10,667.52. The BSE Small-Cap index was up 209.94 points or 1.96% at 10,921.67. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was quite strong. There were nearly three gainers against every loser on BSE. 1,747 shares rose and 597 shares fell. A total of 79 shares were unchanged.
Pharmaceutical shares were in demand. Strides Arcolab (up 4.07%), Cipla (up 3.69%), Cadila Healthcare (up 3.51%), IPCA Laboratories (up 2.80%), Lupin (up 2.66%), Aurobindo Pharma (up 2.53%), Wockhardt (up 2.53%), Piramal Enterprises (up 1.82%), Sun Pharmaceutical Industries (up 1.79%), Dr. Reddy's Laboratories (up 1.51%), Divi's Laboratories (up 1.37%) and GlaxoSmithKline Pharmaceuticals (up 0.28%), edged higher. Glenmark Pharmaceuticals was down 0.99%.
IT stocks edged higher. Hexaware Technologies (up 2.53%), Tech Mahindra (up 2.39%), Infosys (up 2.05%), HCL Technologies (up 1.77%), Persistent Systems (up 1.19%), MphasiS (up 1.14%), Oracle Financial Services Software (up 0.62%), Wipro (up 0.37%) and MindTree (up 0.15%), edged higher. CMC (down 0.21%) and TCS (down 0.21%) edged lower.
Meanwhile, investors continue to watch the progress of the monsoon rains which will have a bearing on food prices and rural income. India's weather office, the India Meteorological Department (IMD), said in a daily report issued yesterday, 26 August 2015, that for the country as a whole, cumulative rainfall during this year's monsoon season was 12% below the Long Period Average (LPA) until 26 August 2015. Region wise, the rainfall was 20% below the LPA in South Peninsula, 15% below the LPA in Central India, 6% below the LPA in East & Northeast India and 6% below the LPA in Northwest India, until 26 August 2015.
The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.
In overseas markets, Chinese stocks led gains for Asian markets today, 27 August 2015, after China's central bank after trading hours yesterday, 26 August 2015, announced that it will inject $21.8 billion into the financial system. In mainland China, the Shanghai Composite was up 5.34%. In Hong Kong, the Hang Seng index was up 3.22%.
Gains were spread across Asian markets after US stocks witnessed a solid rally overnight. Key benchmark indices in Indonesia, Japan, Singapore, South Korea and Taiwan were up by 0.73% to 3.37%.
US stocks witnessed a solid rally yesterday, 26 August 2015, on expectations that the US central bank will hold off from hiking interest rates next month due to mounting global uncertainties. The rally followed six days of losses for markets that have been shaken by news about China's currency and economy.
Latest economic data showed that orders for durable or long-lasting US goods rose 2% in July, led by demand for automobiles and military hardware.
Meanwhile, New York Fed President William Dudley yesterday, 26 August 2015, said that the case for a rate hike in September is less compelling given recent international developments and volatility in financial markets.
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