A rebound in global stocks aided recovery on the domestic bourses after the carnage witnessed yesterday, 24 August 2015. The barometer index, the S&P BSE Sensex, was up 351.37 points or 1.36% to 26,092.93, as per provisional closing data. The gains for the Sensex in percentage terms were higher than those for the 50-unit CNX Nifty. The Nifty was was up 71.70 points or 0.92% at 7,880.70, as per provisional closing data. Oil, metal and banking stocks led recovery for key benchmark indices. The Sensex provisionally settled above the psychological 26,000 level, having alternately moved above and below that mark in intraday trade. A rout in global stock markets triggered by concerns of a slowdown in China's economic growth took the Sensex below the psychological 26,000 level yesterday, 24 August 2015.
Most IT stocks declined. The market breadth indicating the overall health of the market was negative. The BSE Mid-Cap index was up 1.99%, outperforming the Sensex. The BSE Small-Cap index was up 1.01%.
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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As per provisional closing, the S&P BSE Sensex was up 351.37 points or 1.36% to 26,092.93. 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 71.70 points or 0.92% at 7,880.70, as per provisional closing. 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 205.58 points or 1.99% at 10,560.32, outperforming the Sensex. The BSE Small-Cap index was up 106.77 points or 1.01% at 10,694.67, underperforming the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,475 shares fell and 1243 shares rose. A total of 110 shares were unchanged.
The total turnover on BSE amounted to Rs 4793 crore, higher than turnover of Rs 4386.38 crore registered during the previous trading session.
Banks shares edged higher. Among PSU banks, State Bank of India (up 3.42%), Indian Bank (up 3.38%), Vijaya Bank (up 2.42%), Punjab National Bank (up 2.18%), Union Bank of India (up 1.88%), Canara Bank (up 1.68%), Dena Bank (up 1.56%), Allahabad Bank (up 1.28%), Andhra Bank (up 1.24%), Bank of India (up 1.21%), Corporation Bank (up 0.85%), Bank of Baroda (up 0.79%), United Bank of India (up 0.70%), Syndicate Bank (up 0.23%), Bank of Maharashtra (up 0.15%) and UCO Bank (up 0.11%), edged higher. Punjab and Sind Bank (down 1.4%), IDBI Bank (down 1.66%) and Central Bank of India (down 9.66%), edged lower.
Among private sector banks, ICICI Bank (up 5.47%), Axis Bank (up 4.90%), City Union Bank (up 3.47%), IndusInd Bank (up 2.33%) and Federal Bank (up 1.56%), edged higher. HDFC Bank (down 0.22%) and Kotak Mahindra Bank (down 0.8%), edged lower.
Yes Bank rose 8.49% to Rs 682.50. The bank announced during trading hours today, 25 August 2015, that it has received approval from the Reserve Bank of India for re-appointment of Rana Kapoor as Managing Director and Chief Executive Officer for a period of three years with effect from 1 September 2015.
Most IT stocks declined. MindTree (down 4.65%), HCL Technologies (down 1.45%), Persistent Systems (down 1.27%), TCS (down 0.5%), Infosys (down 0.38%), Wipro (down 0.3%) and CMC (down 0.28%) edged lower. Oracle Financial Services Software (up 0.76%), MphasiS (up 1.38%) and Hexaware Technologies (up 5.75%) edged higher.
Tech Mahindra rose 0.96% to Rs 528.40. The company after market hours yesterday, 24 August 2015, announced that its in-house developed platform TAP (Tech Mahindra Analytics Platform) for Big Data solutions has been certified by Hortonworks, a technology leader and ecosystem builder for the Apache Hadoop industry. TAP, an asset-based delivery kit, addresses the critical and evolving needs of customers with a multitude of diverse use cases in Big Data Analytics. It is one of the major technology initiatives in the Analytics area and the certification by Hortonworks adds further value to this asset and enables the delivery of analytics solutions on the HWX platform, Tech Mahindra said in a statement.
Most metal shares edged higher. Vedanta (up 7.66%), Tata Steel (up 4.29%), Hindustan Zinc (up 3.38%), JSW Steel (up 3.29%), Hindalco Industries (up 2.60%), Steel Authority of India (up 2.38%), Jindal Steel & Power (up 1.70%), Bhushan Steel (up 1.40%) and NMDC (up 0.11%), edged higher. National Aluminium Company (down 0.17%) and Hindustan Copper (down 2.29%) 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 2.3% to 3.07%.
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.
Earlier during the global day, Chinese stocks sank for the second trading session in a row. In mainland China, the Shanghai Composite lost 7.63%. In Hong Kong, the Hang Seng index shed 0.72%. The People's Bank of China injected more cash into the country's financial system today, 25 August 2015, as part of a routine money market operation. 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.
Japanese stocks also witnessed a sharp slide. The Nikkei 225 Average lost 3.96%.
But other Asian markets edged higher. Key benchmark indices in Indonesia, Singapore, South Korea and Taiwan gained 0.92% to 3.58%.
Trading in US index futures indicated that the Dow could jump 485 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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