After extending gains in morning trade, key benchmark indices pared gains in mid-morning trade. The barometer index, the S&P BSE Sensex, was currently hovering below the psychological 28,000 level, having alternately moved above and below that level in intraday trade so far. The Sensex fell below the psychological 28,000 level yesterday, 17 August 2015, after registering modest losses. The Sensex was currently up 75.65 points or 0.27% at 27,953.92. The broad market depicted strength. There were almost two gainers for every loser on BSE.
IT stocks edged higher after strong US housing data released overnight. Shares of public sector banks (PSU banks) extended gains registered during the previous trading session triggered by the government announcing a revamp plan for PSU banks. Shares of private sector banks were mixed.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 142.34 crore yesterday, 17 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 183.72 crore yesterday, 17 August 2015, as per provisional data released by the stock exchanges.
In overseas markets, Asian stocks edged lower. US stocks edged higher yesterday, 17 August 2015, as investors put more weight on strong housing data than a dismal manufacturing report for the New York region.
At 11:18 IST, the S&P BSE Sensex was up 75.65 points or 0.27% at 27,953.92. The index jumped 162.46 points at the day's high of 28,040.73 in early trade. The index rose 57.26 points at the day's low of 27,935.53 in mid-morning trade.
The CNX Nifty was up 18.15 points or 0.21% at 8,495.45. The index hit a high of 8,525.75 in intraday trade. The index hit a low of 8,493.10 in intraday trade.
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The BSE Mid-Cap index was up 46.24 points or 0.4% at 11,534.56. The BSE Small-Cap index was up 93.70 points or 0.79% at 11,885.31. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was quite strong. There were almost two gainers for every loser on BSE. 1,528 shares gained and 797 shares fell. A total of 93 shares were unchanged.
IT stocks edged higher after strong US housing data released overnight. Infosys (up 2.58%), MindTree (up 1.69%), TCS (up 2.23%), Wipro (up 1.37%), HCL Technologies (up 0.72%) and Tech Mahindra (up 1.16%) edged higher. Oracle Financial Services Software (down 0.03%) edged lower. The US is the biggest outsourcing market for Indian IT firms.
Shares of public sector banks (PSU banks) extended gains registered during the previous trading session triggered by the government announcing a revamp plan for PSU banks. Corporation Bank (up 3.07%), United Bank of India (up 3.93%), Canara Bank (up 2.01%), State Bank of India (up 1.68%), Andhra Bank (up 0.88%), Bank of Baroda (up 0.92%) and Union Bank of India (up 0.37%) edged higher. IDBI Bank (down 0.21%), Punjab National Bank (down 0.09%) and Bank of India (down 1.24%) edged lower.
The government on Friday, 14 August 2015, announced the appointment of MD and CEOs of five public sector banks (PSU banks) and Non-executive Chairman of five PSU banks. The government also announced capital allocation of Rs 20088 crore to a total of 13 PSU banks as part of Tranche 1 and Tranche 2 of recapitalization of PSU banks for the current financial year. The government also announced the structure of Bank Board Bureau (BBB) which will replace the Appointments Board for appointment of Whole-Time Directors and non-executive Chairman of PSU banks. The government also announced a new framework of Key Performance Indicators (Kpis) to be measured for evaluating the performance of PSU banks. The government further said that it is considering offering ESOPs for top management of PSU banks.
Shares of private sector banks were mixed. Yes Bank (up 0.4%), IndusInd Bank (up 0.38%) and Axis Bank (up 0.07%) edged higher. ICICI Bank (down 0.51%), HDFC Bank (down 0.52%) and Kotak Mahindra Bank (down 0.54%) edged lower.
Adani Ports and Special Economic Zone (APSEZ) was up 1.95% at Rs 365.30. APSEZ after market hours yesterday, 17 August 2015, clarified that the company has signed a Concession Agreement for development and operation/maintenance of Vizhinjam International Deepwater Multipurpose Seaport project on public private partnership mode with the Fisheries & Ports (E) Department of the Kerala state government. The project will be undertaken on design-build-finance-operate-transfer (DBFOT) basis. Earlier, APSEZ had 15 July 2015 announced that it had received Letter of Award for the project from the Fisheries & Ports (E) Department of the Kerala state government.
Meanwhile, India and the United Arab Emirates (UAE) yesterday, 17 August 2015, agreed that the investment institutions of UAE will be strive to raise their investments in India by setting up UAE-India Infrastructure Investment Fund. The infrastructure fund aims to finance infrastructure development in India. The infrastructure fund will target a corpus of $75 billion, according to a joint statement issued by India and UAE. Prime Minister Narendra Modi concluded hit two day visit to UAE yesterday, 17 August 2015.
Meanwhile, investors continue to watch the progress of the monsoon rains which will have a bearing on food prices and rural income. India's weather office, the India Meteorological Department (IMD), said in a daily report issued yesterday, 17 August 2015, that for the country as a whole, cumulative rainfall during this year's monsoon season was 10% below the Long Period Average (LPA) until 17 August 2015. Region wise, the rainfall was 20% below the LPA in South Peninsula, 12% below the LPA in East & Northeast India, 9% below the LPA in Central India while rainfall was normal in Northwest India until 17 August 2015.
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 lower today, 18 August 2015. Key indices in Japan, China, South Korea, Indonesia, Hong Kong and Taiwan were off 0.28% to 2.17%.
In China, monthly home prices climbed for a third straight month in July, latest data released by National Bureau of Statistics showed today, 18 August 2015. Nationwide new home prices rose 0.3% on month in July, as against 0.4% gain in June and May's 0.2% rise. On an annual basis, July prices fell 3.7%, compared to the previous month's 4.9% slide, indicating the market could be in the nascent stage of a recovery.
US stocks edged higher yesterday, 17 August 2015, as investors put more weight on strong housing data than a dismal manufacturing report for the New York region. US homebuilder sentiment rose in August to its highest level since a matching reading almost a decade ago, the National Association of Home Builders said yesterday, 17 August 2015. The NAHB/Wells Fargo Housing Market index rose to 61 from 60 in July, the group said in a statement. Readings above 50 indicate more builders view market conditions as favorable than poor.
The Federal Reserve is due to release the minutes of the two-day policy meeting held on 28-29 July 2015 tomorrow, 19 August 2015. The minutes could offer some clues on the timing of the Fed's plans to raise interest rates for the first time in a decade.
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