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Market may rise on strong global cues

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Last Updated : Aug 28 2015 | 12:47 PM IST

Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could rise 125 points at the opening bell on strong global cues.

In overseas markets, Asian stocks were trading higher. US stocks closed higher for the second straight session yesterday, 27 August 2015.

Foreign portfolio investors (FPIs) sold shares worth a net Rs 3347.35 crore yesterday, 27 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 2577.06 crore yesterday, 27 August 2015, as per provisional data.

Among corporate news, shares of BPCL turn ex-dividend today, 28 August 2015, for dividend of Rs 22.50 per share for the year ended 31 March 2015.

Shares of Cairn India will be in focus. With regard to news item titled "Cairn to invest Rs. 1,400 crore to raise oil, gas carrying capacity", Cairn India clarified after market hours yesterday, 27 August 2015 that the details in the media report have been picked up from the website of the Ministry of Environment, Forest & Climate Change as part of the minutes of the 44th Expert Appraisal Committee meeting. The media journalist has referred to this as part of the news report. This is part of an earlier plan of the company which has already been informed to the market and is not a new development, Cairn India said. Further, the pipeline is subject to the approval of the Regulators, Cairn India added.

Bank Of India after market hours yesterday, 27 August 2015 said that its board of directors have decided to convene an extra-ordinary general meeting (EGM) of the shareholders of the bank on 28 September 2015, to get the shareholders approval for the preferential allotment of equity shares of the bank, aggregating to Rs 2455 crore, to the Government of India.

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Lupin after market hours yesterday, 27 August 2015, announced that the company has received final approval from the United States Food and Drug Administration (USFDA) to market a generic version of AstraZeneca Pharmaceuticals LP's (AstraZeneca) Prilosec Delayed-Release capsules 40mg. Lupin's Omeprazole Delayed-Release capsules 40mg are the AB rated generic equivalent of AstraZeneca's Prilosec Delayed-Release capsules 40mg. The drug is indicated for the short-term treatment of Duodenal Ulcer, Gastric Ulcer, treatment of Gastro Esophageal Reflux Disease (GERD), maintenance of healing of Erosive Esophagitis and Pathological Hypersecretory conditions. Prilosec had annual sales of $185 million in the United States, according to IMS MAT June 2015 data.

Dr Reddy's Laboratories after market hours yesterday, 27 August 2015, announced senior level changes in its global management structure. Umang Vohra is moving out of the organization and has consequently stepped down from the position of Executive Vice President & Head North America Generics. Alok Sonig, Executive Vice President & Head India Generics will now take over as Executive Vice President & Head North America Generics. MV Ramana, who is currently Executive Vice President - Emerging Markets, has assumed additional charge and is now Executive Vice President & Head Branded Markets (India and Emerging countries).

India's weather office, the India Meteorological Department (IMD), said in a daily report issued yesterday, 27 August 2015, that for the country as a whole, cumulative rainfall during this year's monsoon season was 12% below the Long Period Average (LPA) until 27 August 2015. Region wise, the rainfall was 20% below the LPA in South Peninsula, 15% below the LPA in Central India, 7% below the LPA in Northwest India and 6% below the LPA in East & Northeast India, until 27 August 2015.

Separately, the IMD in its weekly report released yesterday, 27 August 2015, said that as per its extended range forecast till 13 September 2015, normal to above normal rainfall activity is likely over east and northeast India during next 7 days and likely to become normal to below normal during second and third week of September. Below normal rainfall activity likely over many parts of northwest, westcentral and central India during next two weeks, the IMD said. Possibility of normal to slightly above normal rainfall activity likely over south peninsula between 4 to 13 September, the IMD said.

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.

A rally in global markets sent Indian stocks surging yesterday, 27 August 2015. The S&P BSE Sensex garnered 516.53 points or 2.01% to settle at 26,231.19, its highest closing level since 21 August 2015. The CNX Nifty surged 157.10 points or 2.02% to settle at 7,948.95, its highest closing level since 21 August 2015.

In overseas markets, Asian stocks were trading higher. Key benchmark indices in Indonesia, Japan, Singapore, South Korea and Taiwan were up by 1.40% to 2.77%.

In mainland China, the Shanghai Composite was up 1.98%. In Hong Kong, the Hang Seng index was up 0.76%.

US stocks closed higher for the second straight session yesterday, 27 August 2015. All three major indexes jumped more than 2% after new reports showed the US economy rebounded in the April-June quarter. The numbers signal that economic growth bounced back after the previous quarter saw labor disputes at West Coast shipping ports that led to a lackluster showing.

Gross domestic product expanded by 3.7% between April and June, up from the previous estimate of 2.3%, according to the Commerce Department. Initial jobless claims also dropped by 6,000 for the week ending in 22 August 2015 to a seasonally adjusted 271,000, according to the Department of Labor. Together, the brighter reports may be giving investors confidence that the U.S. economy could withstand a continuing slowdown in China.

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First Published: Aug 28 2015 | 8:44 AM IST

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