After extending gains in morning trade, key benchmark indices pared gains in mid-morning trade. The Nifty retained the psychological 8,000 mark. Earlier, the Nifty regained the psychological 8,000 mark after opening with an upward gap on positive cues from global markets. The barometer index, the S&P BSE Sensex, was currently up 360.85 points or 1.38% at 26,592.04. Asian stocks edged higher after US stocks surged overnight on the back of upbeat economic data.
The broad market depicted strength. There were more than two gainers against every loser on BSE. The BSE Small-Cap index was up 1.47%. The BSE Mid-Cap index was up 1.42%. Both these indices outperformed the Sensex.
Pharmaceutical shares edged higher. Power generation stocks were also in demand.
Earlier, the Nifty hit one-week high as key benchmark indices extended gains in morning trade.
Meanwhile, Reserve Bank of India (RBI) said in its Annual Report for 2014-15 published yesterday, 27 August 2015, that inflation developments will warrant close and continuous monitoring as part of the overall disinflation strategy that requires inflation to be brought down to 5% by January 2017.
In overseas markets, Asian stocks edged higher after US stocks surged overnight on the back of upbeat economic data. US stocks surged yesterday, 27 August 2015, as China showed signs that measures to stabilize its economy and stock market may be taking hold.
There was massive selling of Indian stocks by foreign portfolio investors (FPIs) yesterday, 27 August 2015. 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 released by the stock exchanges.
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At 11:19 IST, the S&P BSE Sensex was up 360.85 points or 1.38% at 26,592.04. The index jumped 456.14 points at the day's high of 26,687.33 in morning trade, its highest level since 24 August 2015. The index gained 247.91 points at the day's low of 26,479.10 in early trade.
The CNX Nifty was up 120.70 points or 1.52% at 8,069.65. The index hit a high of 8,091.80 in intraday trade, its highest level since 21 August 2015. The index hit a low of 8,023.70 in intraday trade.
The BSE Mid-Cap index was up 152.12 points or 1.42% at 10,890.50. The BSE Small-Cap index was up 161.94 points or 1.47% at 11147.48. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was quite strong. There were more than two gainers against every loser on BSE. 1,663 shares rose and 602 shares fell. A total of 76 shares were unchanged.
Pharmaceutical shares edged higher. Wockhardt (up 4.13%), Aurobindo Pharma (up 3.36%), Strides Arcolab (up 2.05%), Piramal Enterprises (up 2.04%), Divi's Laboratories (up 1.87%), IPCA Laboratories (up 1.77%), Cadila Healthcare (up 1.43%), Cipla (up 1.06%), GlaxoSmithKline Pharmaceuticals (up 0.96%) and Sun Pharmaceutical Industries (up 0.27%), edged higher. Glenmark Pharmaceuticals (down 1.3%), edged lower.
Dr Reddy's Laboratories was up 1.67% to Rs 4,200.50. The company 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).
Lupin was off 0.36% to Rs 1,891.65. The company 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 and Gastric Ulcer. The drug is also indicated for the treatment of Gastro Esophageal Reflux Disease (GERD), for maintenance of healing of Erosive Esophagitis and for Pathological Hypersecretory conditions. Prilosec has annual sales of $185 million in the United States, according to IMS MAT June 2015 data.
Power generation stocks were in demand. NTPC (up 4.36%), Reliance Power (up 3.48%), Torrent Power (up 2.85%), Jaiprakash Power Ventures (up 2.67%), Adani Power (up 2.15%), JSW Energy (up 1.62%), Tata Power (up 1.48%), NHPC (up 0.89%), Reliance Infrastructure (up 0.81%) and GMR Infrastructure (up 0.08%), edged higher. CESC was down 0.67%.
Addressing the media persons after a review meeting of power projects in Karnataka, Minister of State (IC) for Power, Coal and Renewable Energy Piyush Goyal yesterday, 27 August 2015, said that coal block allocation will be done in a scientific manner and each state will be allotted a separate block exclusively for the power needs of the state government. Additional coal blocks will be allotted as per the need after the next round of allotment through transparent bidding process, Goyal said.
Meanwhile, Reserve Bank of India (RBI) said in its Annual Report for 2014-15 published yesterday, 27 August 2015, that inflation developments will warrant close and continuous monitoring as part of the overall disinflation strategy that requires inflation to be brought down to 5% by January 2017. Regarding the outlook for the economy for the current fiscal year, the RBI said uncertainty surrounding the progress and distribution of the monsoon remains a risk to the outlook for both growth and inflation. The RBI said that the government's resolve on fiscal consolidation should propel efforts to reach the target for the gross fiscal deficit for 2015-16 at 3.9% of GDP. The RBI said that the current account deficit for the year is likely to contained at below 1.5% of GDP.
The central bank said that the outlook for capital flows is highly uncertain in the backdrop of a widely anticipated normalisation of US monetary policy later during calendar year 2015. Increase in US interest rates for the first time in a decade will trigger capital outflows from emerging markets, the RBI said.
Meanwhile, India's weather office 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. Below normal rainfall activity is likely over many parts of northwest, westcentral and central India during next two weeks, the IMD said. The IMD further said there is a possibility of normal to slightly above normal rainfall activity over south peninsula between 4 to 13 September.
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 were trading higher today, 28 August 2015, after US stocks surged overnight on the back of upbeat economic data. Key benchmark indices in Indonesia, Japan, Singapore, South Korea and Taiwan were up by 0.83% to 2.81%. In mainland China, the Shanghai Composite was up 1.72%. In Hong Kong, the Hang Seng index was up 0.37%.
US stocks surged yesterday, 27 August 2015, as China showed signs that measures to stabilize its economy and stock market may be taking hold. US GDP expanded by 3.7% between April and June, up from the previous estimate of 2.3%, according to the Commerce Department. Initial jobless claims 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 US economy could withstand a continuing slowdown in China.
The weekend will bring the Federal Reserve's annual conference in Jackson Hole, Wyo., where the central bank might offer fresh clues about a possible interest-rate hike. Kansas City Fed President Esther George yesterday, 27 August 2015, said the market turmoil complicates any decision to raise rates. Yet, she repeated her long-held call for a rate increase.
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