Key benchmark indices held firm after a strong opening triggered by higher Asian stocks and a first closing for S&P 500 in the US above 2,000 overnight. The barometer index, the S&P BSE Sensex, was currently up 130.98 points or 0.5% at 26,573.79. The market breadth indicating the overall health of the market was strong, with more than two gainers for every loser on BSE. The BSE Small-Cap index was up more than 1%, outperforming the Sensex. The market sentiment was boosted by provisional data showing that foreign funds were net buyers of Indian during the previous trading session. Shares of defence equipment makers rose after the government notified increase in foreign direct investment limit to 49% from 26% in the defence sector.
Asian stocks rose after US data on durable goods and consumer confidence boosted optimism in the strength of the world's largest economy. Crude oil prices rose ahead of the weekly US oil inventory data from the US government.
At 10:16 IST, the S&P BSE Sensex was up 130.98 points or 0.5% at 26,573.79. 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 106.94 points at the day's low of 26,549.75 in early trade.
The CNX Nifty was up 33.25 points or 0.42% to 7,938. 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 7,932.40 in intraday trade.
The market breadth indicating the overall health of the market was strong, with more than two gainers for every loser on BSE. On BSE, 1,358 shares gained and 591 shares fell. A total of 55 shares were unchanged.
The BSE Mid-Cap index was up 63.97 points or 0.69% at 9,322.79. The BSE Small-Cap index was up 105.57 points or 1.04% at 10,278.95. Both these indices outperformed the Sensex.
More From This Section
ONGC (up 1.89%), Bajaj Auto (up 1.8%) and Dr Reddy's Laboratories (up 1.57%) edged higher from the Sensex pack.
Shares of defence equipment makers rose after the government notified increase in foreign direct investment limit to 49% from 26% in the defence sector. Bharat Electronics (up 6.88%), BEML (up 4.99%), Astra Microwave Products (up 4.79%), Bharat Forge (up 0.76%), Punj Lloyd (up 3.07%), L&T (up 0.17%), Tata Power Company (up 0.63%), Dynamatic Technologies (up 2.84%), Walchandnagar Industries (up 3.61%) and Pipavav Defence & Offshore Engineering Company (up 3.04%), edged higher.
The Department of Industrial Policy and Promotion (DIPP) yesterday, 26 August 2014, notified increase in foreign direct investment (FDI) limit to 49% from 26% in the defence sector. The FDI limit of 49% is a composite ceiling. It includes all kinds of foreign investments such as FDI, Foreign Institutional Investors (FIIs), Foreign Portfolio Investors (FPIs), Non-Resident Indians (NRIs), Foreign Venture Capital Investors (FVCI) and Qualified Foreign Investors (QFIs). Portfolio investment by FPIs, FIIs, NRIs, QFIs and investments by FVCIs has been capped at 24% of the total equity of the investee or joint venture company.
The applicant company seeking permission of the government for FDI up to 49% in defence sector should be an Indian company owned and controlled by resident Indian citizens. The management of the applicant company should be in Indian hands.
Foreign direct investment proposals in the defence sector above 49% will have to seek the approval of the Cabinet Committee on Security on case to case basis, wherever it is likely to result in access to modern and state of the art technology in the country, according to the press note of DIPP.
IIFL Holdings rose 4.85% after the company said it received registration from Securities and Exchange Board of India to undertake investment advisory services. The announcement was made after market hours on Tuesday, 26 August 2014.
The market sentiment 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 60.47, 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 22 cents at $102.72 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.
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, China, Taiwan, Singapore and South Korea were up 0.19% to 0.85%. Key benchmark indices in Hong Kong and Japan were off 0.03% to 0.29%.
Trading in US index futures indicated that the Dow could gain 5 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."
Powered by Capital Market - Live News