A bout of volatility was witnessed as key benchmark indices pared gains in mid-afternoon trade. There was high volatility on the bourses. The market breadth indicating the overall health of the market was positive. The barometer index, the S&P BSE Sensex, was currently up 67.26 points or 0.24% at 27,526.49. Meanwhile, in the global commodities markets, Brent crude oil futures edged lower on persistent worries about a global supply glut. The decline in crude oil prices augurs well for India. In overseas stock markets, Chinese stocks bounced back, recovering partly from a steep slide that helped spark a global selloff at the beginning of this week.
Pharmaceutical shares were mixed. IT stocks were in demand.
Indian stocks may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near month July 2015 series to August 2015 series. The near month July 2015 derivatives contracts expire tomorrow, 30 July 2015.
Foreign portfolio investors sold shares worth a net Rs 1375.66 crore yesterday, 28 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 665.05 crore yesterday, 28 July 2015, as per provisional data released by the stock exchanges.
In overseas markets, European stocks edged higher. Asian stocks were mixed. US stocks advanced yesterday, 28 July 2015, as investors were encouraged by strong results from UPS, Ford and other big companies.
At 14:20 IST, the S&P BSE Sensex was up 67.26 points or 0.24% at 27,526.49. The index jumped 150.06 points at the day's high of 27,609.29 in afternoon trade. The index gained 10.86 points at the day's low of 27,470.09 in early trade.
The CNX Nifty was up 23.20 points or 0.28% at 8,360.20. The index hit a high of 8,381.50 in intraday trade. The index hit a low of 8,338.45 in intraday trade.
The BSE Mid-Cap index was up 69.94 points or 0.64% at 11,043.94. The BSE Small-Cap index was up 76.66 points or 0.67% at 11,599.59. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,564 shares rose and 1,138 shares fell. A total of 119 shares were unchanged.
Pharmaceutical shares were mixed. Piramal Enterprises (up 2.96%), GlaxoSmithKline Pharmaceuticals (up 1.65%), Sun Pharmaceutical Industries (up 0.97%), Cipla (up 0.48%), Lupin (up 0.29%), Divi's Laboratories (up 0.28%) and Wockhardt (up 0.03%), edged higher. Aurobindo Pharma (down 0.27%), Strides Arcolab (down 0.73%), IPCA Laboratories (down 0.85%), Cadila Healthcare (down 1.46%), Dr Reddy's Laboratories (down 1.6%) and Glenmark Pharmaceuticals (down 5.39%), edged lower.
IT stocks were in demand. HCL Technologies (up 2.41%), Hexaware Technologies (up 1.93%), MphasiS (up 1.90%), MindTree (up 1.64%), Infosys (up 1.63%), Oracle Financial Services Software (up 0.90%), CMC (up 0.64%), Tech Mahindra (up 0.42%) and TCS (up 0.24%), edged higher. Persistent Systems was down 0.57%
Wipro was up 1.46% to Rs 564.80. The stock hit a high of Rs 565.55 and a low of Rs 557.65 so far during the day. The company announced before trading hours today, 29 July 2015, that it has been selected by DSM, a global, science based company active in health, nutrition and materials, as its strategic IT partner to provide Workplace Services. Wipro will bring next generation workplace technology features such as predictive analytics, automation, self-help, self-heal, multi-channel support and user experience management to DSM through this multi-year strategic partnership. This technology deployment will help DSM optimize costs, while providing users (i.e. DSM's employees) with an Internet-centric and sustainable workplace, with smart systems which will enable a seamless user experience.
Meanwhile, in the global commodities markets, Brent crude oil futures edged lower amid concerns over global oil supply glut. Brent for September settlement was currently off 48 cents at $52.82 a barrel. The contract had fallen 17 cents or 0.32% to settle at $53.30 a barrel during the previous trading session.
India imports about 80% of its crude requirements and a decline in crude eases concerns on fiscal deficit, inflation and gives more room for the government to boost growth through spending on infrastructure.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued yesterday, 28 July 2015, that the Southwest Monsoon was vigorous over West Rajasthan and Gujarat state and was active over Gangetic West Bengal, Odisha, Jharkhand, East Rajasthan and West Madhya Pradesh during past 24 hours until 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was 3% below the Long Period Average (LPA) until 28 July 2015. Region wise, the rainfall was 17% below the LPA in South Peninsula, 8% below the LPA in East & Northeast India, 2% below the LPA in Central India and 12% above the LPA in Northwest India until 28 July 2015.
The quantum of and the spatial distribution of rainfall this month holds key; July accounts for about 33% of precipitation during the June-September monsoon season and is critical for crops. 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, European stocks edged higher today, 29 July 2015. Key indices in UK and France were up 0.08% to 0.32%. Germany's DAX was down 0.39%.
Asian shares depicted a mixed trend today, 29 July 2015. Key benchmark indices in South Korea, Japan and Taiwan were off 0.07% to 0.22%. Key benchmark indices in Singapore and Indonesia were up 0.11% to 0.14%
Japan's retail sales rose 0.9% year-on-year, far outpacing a 0.5% increase seen, and a third straight increase spurred by higher nominal wages and tourists flocking to the country on a weaker yen.
Chinese stocks bounced back, recovering partly from a steep slide that helped spark a global selloff at the beginning of this week. In mainland China, the Shanghai Composite jumped 3.44%. In Hong Kong, the Hang Seng index rose 0.47%.
US stocks advanced yesterday, 28 July 2015, as investors were encouraged by strong results from UPS, Ford and other big companies. It was a reversal of five straight days of losses for US stock indexes.
Meanwhile, the latest data showed that US consumer confidence deteriorated this month. The Conference Board, a market research group, said its index of consumer confidence fell to 90.9 this month from a downwardly revised 99.8 in June. Meanwhile, the Case-Shiller home-price index for May showed that home prices rose 1.1% but after seasonal adjustments, the reading showed a decline of 0.2%.
A two-day policy meeting of the Federal Reserve Open Market Committee (FOMC) concludes today, 29 July 2015. The US central bank is widely expected to keep interest rates at a record low at the meeting, but expectations are rising that a rate hike could come later this year. Investors are looking ahead to the latest Fed statement to see if policymakers would give any indication on the timing of an initial rate hike.
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