After the barometer index, the S&P BSE Sensex, hit fresh record high in early trade, the key benchmark indices retained positive zone in morning trade. The Sensex was currently up 90.09 points or 0.34% at 26,650.24. 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. The market breadth indicating the overall health of the market was positive. The market sentiment was boosted by provisional data showing that foreign funds remained net buyers of Indian stocks during the previous trading session. Shares of companies in the railway infrastructure sector rose after the government allowed 100% FDI in rail infrastructure.
PSU OMCs and GAIL (India) rose after the government on Wednesday, 27 August 2014, removed the restriction of one subsidized LPG cylinder per month for each consumer.
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.
Asian stocks were mixed. Brent crude oil futures fell as expectations of ample supply weighed on prices.
At 10:15 IST, the S&P BSE Sensex was up 90.09 points or 0.34% at 26,650.24. 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 23.30 points or 0.29% to 7,959.35. 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 was positive. On BSE, 1,095 shares gained and 769 shares fell. A total of 62 shares were unchanged.
The BSE Mid-Cap index was up 1.86 points or 0.02% at 9,328.45, underperforming the Sensex. The BSE Small-Cap index was up 42 points or 0.41% at 10,295.87, outperforming the Sensex.
PSU OMCs and GAIL (India) rose after the government on Wednesday, 27 August 2014, removed the restriction of one subsidized LPG cylinder per month for each consumer. HPCL (up 1.63%), Indian Oil Corporation (IOCL) (up 1.13%) and BPCL (up 1.95%), edged higher. The restriction of 12 subsidized cylinders per consumer per annum continues.
Shares of state run gas distribution firm GAIL (India) rose 1.38%.
Shares of companies in the railway infrastructure sector rose after the government on Wednesday, 27 August 2014, issued a notification allowing 100% FDI through the automatic route in railway infrastructure. Texmaco Rail and Engineering (up 9.8%), Kernex Microsystems (India) (up 5%), Titagarh Wagons (up 5%), BEML (up 4.99%), Kalindee Rail Nirman (Engineers) (up 4.96%), Zicom Security Systems (up 4.69%), Stone India (up 4.99%), Container Corporation of India (up 2.49%), Bharat Heavy Electricals (up 1.03%) and Hind Rectifiers (up 3.36%) edged higher.
The Department of Industrial Policy and Promotion (DIPP) on Wednesday, 27 August 2014, issued a notification allowing 100% foreign direction investment (FDI) through the automatic route in railway infrastructure viz. suburban corridor projects, high speed train projects, dedicated freight lines, rolling stock, locomotives manufacturing, railway electrification, signaling systems, freight terminals, passenger terminals, infrastructure in industrial park pertaining to railway line/sidings and mass rapid transport systems.
Rollatainers hit an upper circuit limit of 5% at Rs 314.40 on BSE after the company said it entered into a license agreement through Sierra Nevada Restaurants, a company in which Rollatainers is having 50% equity stake, with the Wendy's Company to develop and operate the Wendy's brand across India.. Rollatainers and International Market Management (IMM) each have a 50% equity interest in Sierra Nevada Restaurants.
The sentiment on the stock market was boosted by provisional data showing 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.
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 4 cents at $102.68 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.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.38, 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 an anemic 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, Hong Kong, Singapore and South Korea were up 0.08% to 0.41%. Key benchmark indices in China, Japan and Taiwan were off 0.03% to 0.5%.
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 gain 1 point 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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