Market breadth turns negative from positive

Key benchmark trimmed gains and the market breadth turned negative from positive in early afternoon trade. The BSE Mid-Cap index slipped into the red from green. The barometer index, the S&P BSE Sensex, was currently up 66.24 points or 0.25% at 26,626.39. A day after the government notified increase in foreign direct investment (FDI) ceiling in the defence sector, the government on Wednesday, 27 August 2014, issued a notification allowing 100% FDI through the automatic route in railway infrastructure. Provisional data showed that foreign funds remained net buyers of Indian stocks during the previous trading session.

Realty stocks edged lower. Shares of power generation and power distribution companies dropped as the next Supreme Court hearing on coal blocks case is scheduled on 1 September 2014.

Earlier during the day, the Sensex had surged to a record high after a higher opening.

In overseas markets, Asian stocks were mixed. Brent crude oil futures fell as expectations of ample supply weighed on prices.

At 12:15 IST, the S&P BSE Sensex was up 66.24 points or 0.25% at 26,626.39. The index jumped 114.23 points at the day's high of 26,674.38 in early trade, a record high for the index. The index rose 36.52 points at the day's low of 26,596.67 in early trade.

The CNX Nifty was up 19.25 points or 0.24% to 7,955.30. The index hit a high of 7,967.80 in intraday trade, its highest level since 25 August 2014. The index hit a low of 7,942.25 in intraday trade.

The market breadth indicating the overall health of the market turned negative from positive in early afternoon trade. On BSE, 1,316 shares fell and 1,235 shares rose. A total of 95 shares were unchanged.

The BSE Mid-Cap index was down 8.61 points or 0.09% at 9,317.98, underperforming the Sensex. The BSE Small-Cap index was up 27.37points or 0.27% at 10,281.24, outperforming the Sensex.

Realty stocks edged lower. Housing Development & Infrastructure (HDIL) (down 0.27%), Godrej Properties (down 0.27%), Oberoi Realty (down 0.19%) and Unitech (down 1.36%) dropped. Sobha rose 0.17%.

DLF fell 2.19%. The company after market hours on Wednesday, 27 August 2014 said that the appeal filed by DLF against the Order of the Competition Appellate Tribunal (COMPAT) has been admitted on Wednesday, 27 August 2014, by the Supreme Court of India. The Supreme Court directed DLF to deposit Rs 630 crore in an interest-bearing fixed deposit with the court for the duration of the appeal proceedings. The amount is to be deposited within a period of three months, of which Rs 50 crore is to be deposited within three weeks, DLF said. The entire deposit is subject to the final decision of the Supreme Court, DLF added. DLF will take all steps to comply with the directions of the Supreme Court and remains confident of the merits of its case, DLF added.

Shares of power generation and power distribution companies dropped as the next Supreme Court hearing on coal blocks case is scheduled on 1 September 2014. NTPC (down 0.79%), Adani Power (down 1.64%), Reliance Infrastructure (down 0.64%), Reliance Power (down 2.28%), Torrent Power (down 1.62%) and Power Grid Corporation of India (down 0.15%) declined. The Supreme Court on 25 August 2014 deemed all coal block allocations made since 1993 as illegal. The allocations had no objective criteria and no fair and transparent procedure was followed, the court had said.

Provisional data released by the stock exchanges showed that foreign funds remained net buyers of Indian stocks during the previous trading session. Foreign portfolio investors (FPIs) bought shares worth a net Rs 290.18 crore on Wednesday, 27 August 2014, as per provisional data from the stock exchanges. FPIs bought shares worth a net Rs 2628.07 crore from the secondary equity market in this month so far till 26 August 2014, as per data from Securities & Exchange Board of India (Sebi). The inflow totaled Rs 70870.60 crore in this calendar year so far.

The market may remain volatile today, 28 August 2014, as traders roll over positions in the futures & options (F&O) segment from the near month August 2014 series to September 2014 series. The near-month August 2014 F&O contracts expire today, 28 August 2014.

Brent crude oil futures fell as expectations of ample supply weighed on prices. Brent for October settlement was down 15 cents at $102.57 a barrel. The contract rose 22 cents to settle at $102.72 a barrel yesterday, 27 August 2014, after swinging by $1 between $102.05 and $103.07.

Global credit rating agency Moody's Investors Service today, 28 August 2014, reportedly said that India's sovereign ratings are constrained by persistently high inflation. Recurrent inflationary pressures keep domestic capital costs high, erode domestic purchasing power as well as savings and lower India's international competitiveness, the rating agency said. Without a significant increase in food output, the risk from continued inflation could limit India's growth prospects, Moody's said.

Meanwhile, the government on Wednesday, 27 August 2014, took a decision to allow the Ministry of Road Transport and Highways to decide on mode of delivery and amendments in Model Concession Agreement in respect of national highways projects for expediting of implementation of road infrastructure projects in the country.

In the foreign exchange market, the rupee was almost unchanged against the dollar. The partially convertible rupee was hovering at 60.4575, compared with its close of 60.455 during the previous trading session.

The stock market remains closed tomorrow, 29 August 2014, on account of Ganesh Chaturthi.

The government will release Q1 June 2014 GDP data tomorrow, 29 August 2014. India's Gross Domestic Product (GDP) rose at a muted pace of 4.6% in Q4 March 2014. The GDP grew 4.7% in the fiscal year ended 31 March 2014 (FY 2014).

Asian stocks were mixed today, 28 August 2014, after a steady close for US stocks Wednesday, 27 August 2014. Key benchmark indices in Indonesia, Singapore and South Korea were up 0.04% to 0.43%. Key benchmark indices in China, Hong Kong, Japan and Taiwan were off 0.08% to 0.59%.

China's industrial profits rose 13.5% in July after climbing 17.9% in June, the fastest pace since September, according to data released by the National Bureau of Statistics today, 28 August 2014.

Trading in US index futures indicated that the Dow could fall 3 points at the opening bell on Thursday, 28 August 2014. Most US stocks edged higher on Wednesday, 27 August 2014, with the S&P 500 index creeping up to another record closing high in a lethargic session, though a number of retail stocks traded heavily after reporting results.

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