Volatility ruled the roost as key benchmark indices recovered from lower level in morning trade. Earlier, key indices had trimmed gains in early trade after a sharp surge at the onset of the trading session. The barometer index, the S&P BSE Sensex, was currently hovering above the psychological 26,000 mark, having alternately moved above and below that level in intraday trade so far. Earlier, the Sensex reclaimed the psychological 26,000 level after an initial surge. The Sensex was currently up 350.82 points or 1.36% at 26,065.48. Gains in global stocks underpinned sentiment on the domestic bourses.
The broad market depicted strength. There were nearly four gainers against every loser on BSE. The BSE Mid-Cap index was up 1.69%. The BSE Small-Cap index was up 2.03% at 10,928.95. Both these indices outperformed the Sensex.
In overseas markets, Asian stocks edged higher as a sharp rebound on Wall Street and gains in battered Chinese shares eased fears of a deep and protracted global market rout. US stocks rallied yesterday, 26 August 2015, on expectations that the US central bank will hold off from hiking interest rates next month due to mounting global uncertainties.
Metal shares were in demand. Realty stocks also edged higher. Shares of oil exploration and production companies were in demand as crude oil prices edged higher.
Foreign portfolio investors (FPIs) pressed substantial sales of Indian stocks yesterday, 26 August 2015. FPIs sold shares worth a net Rs 2345.77 crore yesterday, 26 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1881.08 crore yesterday, 26 August 2015, as per provisional data released by the stock exchanges.
Indian stocks may remain volatile today, 27 August 2015, 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 today, 27 August 2015.
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At 10:16 IST, the S&P BSE Sensex was up 350.82 points or 1.36% at 26,065.48. The index jumped 455.73 points at the day's high of 26,170.39 at the onset of trading session, its highest level since 24 August 2015. The index gained 298.48 points at the day's low of 25,943.75 in early trade.
The CNX Nifty was up 108.60 points or 1.39% at 7,900.45. The index hit a high of 7,930.80 in intraday trade, its highest level since 24 August 2015. The index hit a low of 7,862.30 in intraday trade.
The BSE Mid-Cap index was up 177.40 points or 1.69% at 10,654.56. The BSE Small-Cap index was up 217.22 points or 2.03% at 10,928.95. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was quite strong. There were nearly four gainers against every loser on BSE. 1,533 shares rose and 391 shares fell. A total of 41 shares were unchanged.
Realty stocks edged higher. Housing Development and Infrastructure (HDIL) (up 3.40%), D B Realty (up 2.77%), Prestige Estates Projects (up 2.55%), Unitech (up 2.51%), Oberoi Realty (up 2.40%), DLF (up 1.94%), Anant Raj (up 1.68%), Indiabulls Real Estate (up 1.67%), Sobha (up 1.54%), Phoenix Mills (up 1.32%), Godrej Properties (up 1.27%), Peninsula Land (up 0.87%) and Parsvnath Developers (up 0.84%), edged higher.
Metal shares were in demand. Vedanta (up 5.73%), Jindal Steel & Power (up 2.83%), Hindustan Copper (up 2.72%), National Aluminium Company (up 2.35%), JSW Steel (up 1.99%), Bhushan Steel (up 1.66%), Steel Authority of India (up 1.22%), Hindustan Zinc (up 1.18%) and Hindalco Industries (up 1.05%), edged higher. NMDC was down 1.14%.
Tata Steel was up 3.09% to Rs 222.15. Tata Steel will reportedly mothball a plant located at south Wales in the UK as tough markets persist, forcing the company to focus on higher-value products. According to reports, the company will redeploy employees at the plant, which makes strip products used in autos, construction, domestic goods and packaging. Overseas media reports said that the company will cut 250 jobs.
Shares of oil exploration and production companies were in demand as crude oil prices edged higher. Cairn India (up 6.09%), ONGC (up 1.84%), Reliance Industries (RIL) (up 1.76%) and Oil India (up 1.28%), edged higher. A recovery in crude oil prices from a steep slide recently has eased concerns of lower realizations from crude sales.
In the global commodities markets, Brent crude oil futures edged higher. Brent for October settlement was currently up 98 cents at $44.12 a barrel. The contract had fallen 7 cents or 0.16% to settle at $43.14 a barrel during the previous trading session.
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, 26 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 26 August 2015. Region wise, the rainfall was 20% below the LPA in South Peninsula, 15% below the LPA in Central India, 6% below the LPA in East & Northeast India and 6% below the LPA in Northwest India, until 26 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 higher today, 27 August 2015, as a sharp rebound on Wall Street and gains in battered Chinese shares eased fears of a deep and protracted global market rout. Key benchmark indices in Indonesia, Japan, Singapore, South Korea and Taiwan were up by 1.01% to 3.21%.
In mainland China, the Shanghai Composite was up 1.55%. In Hong Kong, the Hang Seng index was up 2.53%. After the close of trading yesterday, 26 August 2015, China's central bank said it would inject $21.8 billion into the financial system in a new easing effort, following the central bank's interest-rate cut early this week.
US stocks rallied yesterday, 26 August 2015, on expectations that the US central bank will hold off from hiking interest rates next month due to mounting global uncertainties. The rally followed six days of losses for markets that have been shaken by news about China's currency and economy. New York Fed President William Dudley yesterday, 26 August 2015, said that the case for a rate hike in September is less compelling given recent international developments and volatility in financial markets.
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