Sensex scales record high

Key benchmark indices edged higher in early trade as firmness in Asian stocks following a steady close of US stocks on Wednesday, 27 August 2014, boosted sentiment. The barometer index, the S&P BSE Sensex scaled record high. The Sensex was currently up 58.81 points or 0.22% at 26,618.96. The market breadth indicating the overall health of the market was strong. The market sentiment was also boosted by provisional data showing that foreign funds were net buyers of Indian stocks during the previous trading session.

Sun Pharmaceutical Industries and Ranbaxy Laboratories edged lower after both the companies in their statements said that they received direction under Section 29(2) of the Competition Act, 2002 from Competition Commission of India (CCI), directing Sun Pharma to publish the details of the proposed combination of Sun Pharma and Ranbaxy Laboratories within 10 working days from 27 August 2014.

At 9:25 IST, the S&P BSE Sensex was up 58.81 points or 0.22% at 26,618.96. The index gained 82.66 points at the day's high of 26,642.81 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 20.95 points or 0.26% to 7,957. The index hit a high of 7,964.65 in intraday trade. The index hit a low of 7,942.25 in intraday trade.

The market breadth indicating the overall health of the market was strong. On BSE, 912 shares gained and 469 shares fell. A total of 42 shares were unchanged.

The BSE Mid-Cap index was up 20.98 points or 0.22% at 9,347.57, with gains matching with the Sensex's performance in percentage terms. The BSE Small-Cap index was up 54.16 points or 0.53% at 10,308.03, outperforming the Sensex.

Bajaj Auto (up 0.9%), Tata Motors (up 0.84%) and ICICI Bank (up 0.84%) edged higher from the Sensex pack.

Reliance Industries (RIL) rose 0.37%. The company after market hours on Wednesday, 27 August 2014 said it has scheduled a planned turnaround at its Hazira manufacturing site. The cracker unit will be shut for a period of about 4 week, starting from the last week of September 2014, RIL said. This opportunity will be utilized to carry out other routine maintenance and turnaround activities to enhance productivity, the company added. RIL's crackers at other locations will continue at normal levels of operations, the company said. With advance planning and inventory management, impact on external sales is likely to be minimal, RIL added.

Sun Pharmaceutical Industries shed 0.39% and Ranbaxy Laboratories dropped 0.22% after both the companies in their statements said before market hours that they received direction under Section 29(2) of the Competition Act, 2002 from Competition Commission of India (CCI), directing Sun Pharma to publish the details of the proposed combination of Sun Pharma and Ranbaxy Laboratories within 10 working days from 27 August 2014 in Form IV contained in Schedule II to the Combination Regulations. In April 2014, Sun Pharma acquired Ranbaxy in $ 4 billion landmark transaction.

DLF fell 0.57%. The company after market hours on Wednesday, 27 August 2014 said that the appeal filed by DLF against the Order of the 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. The copy of the order passed by the Supreme Court is still awaited, DLF said. 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.

The market sentiment was also boosted by provisional data showing that foreign funds were 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.

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.

The stock markets remain close tomorrow, 29 August 2014, on account of Ganesh Chaturthi.

In macro economic data, the government will release Q1 June 2014 GDP data tomorrow, 29 August 2014. India's Gross Domestic Product (GDP) rose at steady 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 climbed for a third day today, 28 August 2014, after a steady close for US stocks Wednesday, 27 August 2014. Key benchmark indices in Indonesia, Hong Kong, Singapore and South Korea rose 0.2% to 0.35%. Key benchmark indices in China, Japan and Taiwan fell 0.22% to 0.52%.

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.

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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