A bout of volatility was witnessed as key benchmark indices pared gains after extending intraday gains in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was currently hovering below the psychological 26,000 level, having alternately moved above and below that mark in intraday trade so far. A rout in global stock markets took the Sensex below the psychological 26,000 level yesterday, 24 August 2015. The Sensex was currently up 116.68 points or 0.45% at 25,858.24. The gains for the 50-unit CNX Nifty in percentage terms were higher than those for the Sensex. The Nifty was currently up 56.10 points or 0.72% at 7,865.10. A rebound in European stocks after a steep slide during the preceding trading session and rally in US index futures aided recovery on the domestic bourses.
But, the market breadth indicating the overall health of the market was weak. The BSE Mid-Cap index was up 1.19%, outperforming the Sensex.
Most auto stocks were trading higher. Most FMCG stocks were also in green.
Earlier, the Sensex and the Nifty, both, hit their lowest level in more than a year in early afternoon trade.
Meanwhile, Parliamentary Affairs Minister Venkaiah Naidu reportedly said today, 25 August 2015, that the government is considering reconvening Parliament to get the Parliament's nod for the Goods and Service Tax bill.
There was massive selling of Indian stocks by foreign portfolio investors (FPIs) yesterday, 24 August 2015, when carnage was witnessed on the domestic bourses as part of a global rout in equities sparked by worries that China's economy is slowing down more than anticipated. FPIs sold shares worth a net Rs 5275.40 crore yesterday, 24 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 4097.83 crore yesterday, 24 August 2015, as per provisional data released by the stock exchanges.
Indian stocks may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near month August 2015 series to September 2015 series. The near month August 2015 derivatives contracts are set to expire on Thursday, 27 August 2015.
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At 14:16 IST, the S&P BSE Sensex was up 116.68 points or 0.45% at 25,858.24. The index jumped 383.27 points at the day's high of 26,124.83 at the onset of trading session. The index fell 443.14 points at the day's low of 25,298.42 in early afternoon trade, its lowest level since 8 August 2014.
The Nifty was up 56.10 points or 0.72% at 7,865.10. The index hit a high of 7,925.40 in intraday trade. The index hit a low of 7,667.25 in intraday trade, its lowest level since 12 August 2014.
The BSE Mid-Cap index was up 123.37 points or 1.19% at 10,478.11, outperforming the Sensex. The BSE Small-Cap index was up 29.11 points or 0.27% at 10,617.01, underperforming the Sensex.
The market breadth indicating the overall health of the market was weak. On BSE, 1,639 shares fell and 980 shares rose. A total of 94 shares were unchanged.
Most auto stocks were trading higher. Tata Motors (up 4.67%), TVS Motor Company (up 3.32%), Escorts (up 2.39%), Ashok Leyland (up 1.89%), Eicher Motors (up 1.41%) and Mahindra & Mahindra (up 1.33%), edged higher. Bajaj Auto (down 0.39%), Hero MotoCorp (down 0.85%) and Maruti Suzuki (India) (down 0.94%), edged lower.
Most FMCG stocks edged higher. Jyothy Laboratories (up 5.89%), GlaxoSmithKline Consumer Healthcare (up 4.86%), Godrej Consumer Products (up 4.74%), Hindustan Unilever (up 1.82%), Nestle India (up 1.58%), Tata Global Beverages (up 0.96%) and Procter & Gamble Hygiene & Health Care (up 0.38%), edged higher. Marico (down 0.32%), Britannia Industries (down 0.59%), Dabur India (down 1.37%), Colgate Palmolive (India) (down 1.65%) and Bajaj Corp (down 3.23%), edged lower.
Meanwhile, Parliamentary Affairs Minister Venkaiah Naidu reportedly said today, 25 August 2015, that the government is considering reconvening Parliament to get the Parliament's nod for the Goods and Service Tax (GST) bill. The government failed to get the GST bill passed during the recently concluded monsoon session of parliament.
Meanwhile, Finance Minister Arun Jaitley yesterday, 24 August 2015, said that though the Indian economy is not impervious to global events, yet the growth in manufacturing and services sector, as reflected by the increase in indirect tax collections and a fair monsoon indicate that the economy is showing strong revival and growth.
India's weather office, the India Meteorological Department (IMD), said in a daily report issued yesterday, 24 August 2015, that for the country as a whole, cumulative rainfall during this year's monsoon season was 11% below the Long Period Average (LPA) until 24 August 2015. Region wise, the rainfall was 19% below the LPA in South Peninsula, 14% below the LPA in Central India, 6% below the LPA in East & Northeast India and 4% below the LPA in Northwest India until 24 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, European stocks edged higher today, 25 August 2015, with bargain hunters wading back into the market after it suffered its worst selloff in nearly seven years. Key benchmark indices in Germany, UK and France were up 2.64% to 3.64%.
Data released by the Destatis in Germany showed the economy continued to improve in the second quarter despite the Greek crisis. The gross domestic product (GDP) increased by 0.4% (after price, seasonal and calendar adjustment) in the second quarter of 2015 compared with the first quarter.
Chinese stocks sank again as investors despaired at the lack of policy action from Beijing in response to recent data suggesting the downturn in the world's second-largest economy is deepening. In mainland China, the Shanghai Composite lost 7.63%. In Hong Kong, the Hang Seng index shed 0.72%. The Shanghai Composite index had plunged more than 8% in a single trading session yesterday, 24 August 2015, that sent shockwaves through global financial markets. After a year of heady gains, Chinese markets have been buffeted by increasing signs that economic growth is faltering in the world's second biggest economy.
Japanese stocks also witnessed a sharp slide. The Nikkei 225 Average lost 3.96%.
But other Asian markets were in green. Key benchmark indices in Indonesia, Singapore, South Korea and Taiwan were up 0.92% to 3.58%.
Trading in US index futures indicated that the Dow could jump 505 points at the opening bell today, 25 August 2015. US stocks slid again yesterday, 24 August 2015, with the Dow Jones industrial average briefly plunging more than 1,000 points in a sell-off that sent a shiver of fear through investors. The Dow finished with a loss of 588 points, the eighth-worst single-day point decline and the second straight fall of more than 500.
Atlanta Fed President Dennis Lockhart yesterday, 24 August 2015, said that the Federal Reserve is likely to begin raising rates sometime this year.
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