The recovery for key benchmark indices gathered steam in afternoon trade. The barometer index, the S&P BSE Sensex, continued to trade below the psychological 26,000 level. Earlier, the Sensex had fallen below the the psychological 26,000 level after piercing that mark in early trade. The Sensex was currently up 224.69 points or 0.87% at 25,966.25. The gains for the Sensex in percentage terms were higher than those for the 50-unit CNX Nifty. The Nifty was currently up 60.55 points or 0.78% at 7,869.55. 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 broad market depicted weakness. There were more than 2 losers against every gainer on BSE. The BSE Mid-Cap index was up 1.16%, outperforming the Sensex.
Cement stocks edged lower. Telecom stocks also dropped.
Earlier, the Sensex and the Nifty, both, hit their lowest level in more than a year in early afternoon trade.
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 13:22 IST, the S&P BSE Sensex was up 224.69 points or 0.87% at 25,966.25. 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 60.55 points or 0.78% at 7,869.55. 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 120.06 points or 1.16% at 10,474.80, outperforming the Sensex. The BSE Small-Cap index was down 11.41 points or 0.11% at 10,576.49, underperforming the Sensex.
The market breadth indicating the overall health of the market was quite weak. There were more than 2 losers for every gainer on BSE. 1,756 shares fell and 773 shares rose. A total of 88 shares were unchanged.
Cement stocks edged lower. Ambuja Cements (down 1.71%), ACC (down 1.25%) and Shree Cement (down 1.81%) dropped. UltraTech Cement (up 1.34%) edged higher.
Grasim Industries was off 0.38%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Telecom stocks dropped. Tata Teleservices (Maharashtra) (down 2.72%), Reliance Communications (down 2.37%), Mahanagar Telephone Nigam (down 2.87%) and Bharti Airtel (down 1.16%) edged lower. Idea Cellular (up 3.78%) edged higher.
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 in early trade 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 1.86% to 2.06%.
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 was up 0.8%. 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 379.50 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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