Key benchmark indices regained strength after trimming intraday gains in early afternoon trade. The barometer index, the S&P BSE Sensex, was currently up 111.41 points or 0.42% at 26,554.22. The market breadth indicating the overall health of the market was positive. The market sentiment was boosted by provisional data showing that foreign funds were net buyers of Indian during the previous trading session. Auto stocks gained with Mahindra & Mahindra (M&M) hitting record high. Maruti Suzuki India fell as the stock turned ex-dividend.
Key indices have remained in green after a strong opening triggered by higher Asian stocks and a first closing for S&P 500 in the US above 2,000 overnight.
Asian stocks rose after US data on durable goods and consumer confidence boosted optimism in the strength of the world's largest economy. Meanwhile, there are expectations of quantitative easing and other steps by the European Central Bank (ECB) to bolster growth and counter downward pressures on prices in the euro zone. Crude oil prices rose ahead of the weekly US oil inventory data from the US government.
At 12:16 IST, the S&P BSE Sensex was up 111.41 points or 0.42% at 26,554.22. The index jumped 156.31 points at the day's high of 26,599.12 in early trade, its highest level since 25 August 2014. The index rose 83.66 points at the day's low of 26,526.47 in early afternoon trade.
The CNX Nifty was up 24.60 points or 0.31% to 7,929.35. The index hit a high of 7,946.85 in intraday trade, its highest level since 25 August 2014. The index hit a low of 7,924.30 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,457 shares gained and 1,143 shares fell. A total of 95 shares were unchanged.
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The BSE Mid-Cap index was up 50.63 points or 0.55% at 9,309.45. The BSE Small-Cap index was up 92.62 points or 0.91% at 10,266. Both these indices outperformed the Sensex.
Auto stocks gained. Mahindra & Mahindra (M&M) rose 0.19% to Rs 1,402.60 after hitting record high of Rs 1,413.90 in intraday trade. M&M proposes to appeal against the Competition Commission of India's recent order before the appropriate forum. The Competition Commission of India (CCI) on 25 August 2014 levied a total penalty of Rs 2544.64 crore on 14 car makers at the rate of 2% of the average turnover after it found them to be in contravention of the provisions of the Competition Act, 2002. The amount of penalty imposed on M&M is Rs 292.25 crore.
Tata Motors gained 0.84%. The company after market hours on Tuesday, 26 August 2014, said that it would be filing an appeal against the CCI order before the appropriate authorities. The penalty levied on Tata Motors is Rs 1346.46 crore.
Maruti Suzuki India fell 0.19% as the stock turned ex-dividend today, 27 August 2014, for final dividend of Rs 12 per share for the year ended 31 March 2014. The CCI's penalty on Maruti is Rs 471.14 crore.
The CCI said it found that the conduct of the car companies was in violation of the provisions of section 3(4) of the Competition Act, 2002 with respect to its agreements with local Original Equipment Suppliers (OESs) and agreements with authorized dealers whereby it imposed absolute restrictive covenants and completely foreclosed the aftermarket for supply of spare parts and other diagnostic tools.
Ashok Leyland gained 1.25%.
Shares of two wheeler makers gained. Hero MotoCorp (up 0.33%), TVS Motor Company (up 2.57%) and Bajaj Auto (up 1.87%) rose.
Jindal Saw rose 1.61% after the company entered into a Memorandum of Understanding with SULA Shipping and Logistics to restructure transhipment business of wholly owned subsidiary Jindal ITF. The announcement was made after market hours on Tuesday, 26 August 2014.
The sentiment on the bourses was boosted by provisional data showing that foreign funds were net buyers of Indian during the previous trading session. Foreign portfolio investors (FPIs) bought shares worth a net Rs 364.72 crore on Tuesday, 26 August 2014, as per provisional data from the stock exchanges.
The market may remain volatile in the near future 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 tomorrow, 28 August 2014.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 60.4775, compared with its close of 60.44 on Tuesday, 26 August 2014.
Crude oil prices rose ahead of the weekly US oil inventory data from the US government. Brent for October settlement was up 24 cents at $102.74 a barrel. The contract fell 15 cents to settle at $102.50 a barrel yesterday, 26 August 2014, after reaching $103.40 during the session. The US is the world's biggest oil consumer.
At a meeting yesterday, 26 August 2014, the Central Board of Trustees (CBT) of the Employees' Provident Fund Organization (EPFO) decided against investing in equities and Exchange Traded Funds (ETFs). The finance ministry had suggested EPFO to invest in equities to enhance returns for subscribers.
The government yesterday, 26 August 2014, notified increase in foreign direct investment limit to 49% from 26% in the defence sector. The hike in FDI ceiling could encourage domestic manufacture of defence goods which are imported.
Asian stocks rose today, 27 August 2014, after data signaled a stronger US economy and Russia's president hailed as "positive" talks over Ukraine. Key benchmark indices in Indonesia, Japan, China, Taiwan, Singapore and South Korea were up 0.09% to 0.98%. Hong Kong's Hang Seng fell 0.06%.
Trading in US index futures indicated that the Dow could gain 8 points at the opening bell on Wednesday, 27 August 2014. US stocks edged higher on Tuesday, 26 August 2014, to lift the S&P 500 index just a hair above the 2,000 mark, its first close above that milestone, after data that pointed to a brighter future for the US economy.
Bookings for goods meant to last at least three years climbed by a record 22.6% in July after a 2.7% gain in June that was bigger than previously reported, data from the Commerce Department in Washington showed. The Conference Board's US consumer confidence index rose to 92.4 in August, the highest since October 2007, the New York-based private research group said.
Russian President Vladimir Putin yesterday, 26 August 2014, said talks with his Ukrainian counterpart over separatist fighting that's killed more than 2,000 people were "positive."
Meanwhile, there are expectations of quantitative easing and other steps by the European Central Bank (ECB) to bolster growth and counter downward pressures on prices in the euro zone. At US Federal Reserve's annual symposium in the United States on 22 August 2014, ECB President Mario Draghi said that expectations of future inflation in Europe exhibited significant declines at all horizons this month.
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