A bout of volatility was witnessed as key benchmark indices regained strength after trimming intraday gains in early afternoon trade. The 50-unit CNX Nifty retained the psychological 8,000 mark. Earlier, the Nifty regained the psychological 8,000 mark after opening with an upward gap on positive cues from global markets. The barometer index, the S&P BSE Sensex, was currently up 403.85 points or 1.54% at 26,635.04. In overseas markets, Chinese stocks led gains in Asian markets after US stocks surged overnight on the back of upbeat economic data.
The broad market depicted strength. There were more than two gainers against every loser on BSE. The BSE Small-Cap index was up 1.4%. The BSE Mid-Cap index was up 1.45%. Both these indices underperformed the Sensex.
Bank stocks edged higher. Realty stocks also nudged higher.
Earlier, the Nifty hit one-week high as key benchmark indices extended gains in morning trade.
Meanwhile, Reserve Bank of India (RBI) said in its Annual Report for 2014-15 published yesterday, 27 August 2015, that inflation developments will warrant close and continuous monitoring as part of the overall disinflation strategy that requires inflation to be brought down to 5% by January 2017.
In overseas markets, Asian stocks edged higher after US stocks surged overnight on the back of upbeat economic data. US stocks surged yesterday, 27 August 2015, as China showed signs that measures to stabilize its economy and stock market may be taking hold.
There was massive selling of Indian stocks by foreign portfolio investors (FPIs) yesterday, 27 August 2015. FPIs sold shares worth a net Rs 3347.35 crore yesterday, 27 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 2577.06 crore yesterday, 27 August 2015, as per provisional data released by the stock exchanges.
At 12:19 IST, the S&P BSE Sensex was up 403.85 points or 1.54% at 26,635.04. The index jumped 456.14 points at the day's high of 26,687.33 in morning trade, its highest level since 24 August 2015. The index gained 247.91 points at the day's low of 26,479.10 in early trade.
The CNX Nifty was up 127.45 points or 1.6% at 8,076.40 The index hit a high of 8,091.80 in intraday trade, its highest level since 21 August 2015. The index hit a low of 8,023.70 in intraday trade.
The BSE Mid-Cap index was up 156.24 points or 1.45% at 10,894.62. The BSE Small-Cap index was up 153.36 points or 1.4% at 11,138.90. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was quite strong. There were more than two gainers against every loser on BSE. 1,686 shares rose and 735 shares fell. A total of 85 shares were unchanged.
Bank stocks were in demand. Among PSU banks, United Bank of India (up 3%), IDBI Bank (up 2.04%), Canara Bank (up 2.03%), State Bank of India (up 2%), Allahabad Bank (up 1.94%), UCO Bank (up 1.88%), Vijaya Bank (up 1.79%), Indian Bank (up 1.61%), Syndicate Bank (up 1.58%), Central Bank of India (up 1.43%), Bank of Baroda (up 1.31%), Punjab National Bank (up 1.27%), Corporation Bank (up 1.16%), Union Bank of India (up 1.16%), Bank of Maharashtra (up 1%), Punjab and Sind Bank (up 0.78%), Andhra Bank (up 0.30%) and Dena Bank (up 0.12%), edged higher.
Bank of India was up 2.45% to Rs 146.25. The state-run bank after market hours yesterday, 27 August 2015, announced that the bank will seek shareholders' approved at an extra-ordinary general meeting (EGM) on 28 September 2015 for the preferential allotment of equity shares of the bank aggregating Rs 2455 crore to the Government of India, its principle shareholder.
Among private sector banks, Axis Bank (up 2.87%), HDFC Bank (up 1.91%), Yes Bank (up 1.62%), ICICI Bank (up 1.60%), Federal Bank (up 1.46%), IndusInd Bank (up 1%), Kotak Mahindra Bank (up 0.73%) and City Union Bank (up 0.10%), edged higher.
Realty shares edged higher. Anant Raj (up 4.39%), Prestige Estates Projects (up 3.52%), DLF (up 3.19%), Unitech (up 2.73%), Housing Development and Infrastructure (HDIL) (up 2.69%), Oberoi Realty (up 2.60%), Sunteck Realty (up 1.82%), Parsvnath Developers (up 1.67%), Peninsula Land (up 1.48%), D B Realty (up 1.42%), Godrej Properties (up 1.30%) and Sobha (up 1.15%), edged higher. Phoenix Mills (down 3.14%) and Indiabulls Real Estate (down 3.19%), edged lower.
Meanwhile, Reserve Bank of India (RBI) said in its Annual Report for 2014-15 published yesterday, 27 August 2015, that inflation developments will warrant close and continuous monitoring as part of the overall disinflation strategy that requires inflation to be brought down to 5% by January 2017. Regarding the outlook for the economy for the current fiscal year, the RBI said uncertainty surrounding the progress and distribution of the monsoon remains a risk to the outlook for both growth and inflation. The RBI said that the government's resolve on fiscal consolidation should propel efforts to reach the target for the gross fiscal deficit for 2015-16 at 3.9% of GDP. The RBI said that the current account deficit is likely to be contained at below 1.5% of GDP in 2015-16.
The central bank said that the outlook for capital flows is highly uncertain in the backdrop of a widely anticipated normalisation of the US monetary policy later during calendar year 2015. Increase in US interest rates for the first time in a decade will trigger capital outflows from emerging markets, the RBI said.
Meanwhile, India's weather office India Meteorological Department (IMD), said in a daily report issued yesterday, 27 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 27 August 2015. Region wise, the rainfall was 20% below the LPA in South Peninsula, 15% below the LPA in Central India, 7% below the LPA in Northwest India and 6% below the LPA in East & Northeast India, until 27 August 2015.
Separately, the IMD in its weekly report released yesterday, 27 August 2015, said that as per its extended range forecast till 13 September 2015, normal to above normal rainfall activity is likely over east and northeast India during next 7 days. Below normal rainfall activity is likely over many parts of northwest, westcentral and central India during next two weeks, the IMD said. The IMD further said there is a possibility of normal to slightly above normal rainfall activity over south peninsula between 4 to 13 September.
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, Asian stocks edged higher today, 28 August 2015, after US stocks surged overnight on the back of upbeat economic data. Key benchmark indices in Indonesia, Singapore, South Korea and Taiwan were up by 0.83% to 2.49%. In mainland China, the Shanghai Composite was up 3.7%. In Hong Kong, the Hang Seng index was up 0.67%.
In Japan, the Nikkei 225 Average jumped 3.03% to settle at 19,136.32. The latest data showed Japan's primary inflation gauge was flat in July. The core consumer price index was unchanged from a year earlier in July after a modest 0.1% increase in the previous month, the government said today, 28 August 2015. Core inflation has softened since peaking at 1.5% in April last year, driven lower by drops in global oil prices and Japan's sluggish domestic demand.
Separately, household spending fell 0.2% from a year earlier in July, adjusted for price changes, after slipping 2.0% in the previous month, according to the latest data. The unemployment rate was at 3.3% last month, down 0.1% from the previous month.
US stocks surged yesterday, 27 August 2015, as China showed signs that measures to stabilize its economy and stock market may be taking hold. US GDP expanded by 3.7% between April and June, up from the previous estimate of 2.3%, according to the Commerce Department. Initial jobless claims dropped by 6,000 for the week ending in 22 August 2015 to a seasonally adjusted 271,000, according to the Department of Labor. Together, the brighter reports may be giving investors confidence that the US economy could withstand a continuing slowdown in China.
The weekend will bring the Federal Reserve's annual conference in Jackson Hole, Wyo., where the central bank might offer fresh clues about a possible interest-rate hike. Kansas City Fed President Esther George yesterday, 27 August 2015, said the market turmoil complicates any decision to raise rates. Yet, she repeated her long-held call for a rate increase.
Powered by Capital Market - Live News
