Volatility ruled the roost as key benchmark indices regained positive zone after reversing intraday gains in morning trade. The barometer index, the S&P BSE Sensex, bounced back after hitting its lowest level in more than four weeks. The 50-unit CNX Nifty bounced back after hitting 2-1/2-week low. The market breadth indicating the overall health of the market was positive. The Sensex was currently up 48.01 points or 0.17% at 27,609.39. In overseas markets, Chinese shares whip-sawed between gains and losses as Beijing scrambled once again to prop up a stock market whose wild gyrations have heightened fears about the financial stability of the world's second biggest economy.
Metal shares declined. Most PSU bank shares declined. Private sector banks were mixed.
Indian stocks may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month July 2015 series to August 2015 series. The near month July 2015 derivatives contracts expire on Thursday, 30 July 2015.
Foreign portfolio investors sold shares worth a net Rs 859.94 crore yesterday, 27 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 238.66 crore yesterday, 27 July 2015, as per provisional data released by the stock exchanges.
In overseas markets, Asian stocks were mixed. US stocks fell yesterday, 27 July 2015, after the steepest decline in Chinese stocks in eight years raised concerns that cooling growth in the world's No. 2 economy could hurt China's trading partners.
At 10:16 IST, the S&P BSE Sensex was up 48.01 points or 0.17% at 27,609.39. The index jumped 100.08 points at the day's high of 27,661.46 at the onset of trading session. The index fell 55.63 points at the day's low of 27,505.75 in morning trade, its lowest level since 29 June 2015.
More From This Section
The Nifty was up 10.05 points or 0.12% at 8,371.05. The index hit a high of 8,391.75 in intraday trade. The index hit a low of 8,344.85 in intraday trade, its lowest level since 10 July 2015.
The BSE Mid-Cap index was up 24.07 points or 0.22% at 11,018.09. The BSE Small-Cap index was up 43.99 points or 0.38% at 11,587.10. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,151 shares rose and 787 shares fell. A total of 86 shares were unchanged.
Metal shares declined. NMDC (down 2.67%), Hindustan Zinc (down 2.2%), National Aluminum Company (down 1.23%), Hindalco Industries (down 1.06%), Tata Steel (down 1.01%), JSW Steel (down 0.99%), Vedanta (down 0.78%), Steel Authority of India (down 0.53%), Bhushan Steel (down 0.51%) and Jindal Steel & Power (down 0.07%) edged lower.
Most PSU bank shares declined. Bank of India (down 2.99%), Punjab National Bank (down 1.77%), Canara Bank (down 1.49%), Syndicate Bank (down 1.41%), Indian Bank (down 1.19%), Allahabad Bank (down 1.01%), Vijaya Bank (down 0.75%), Dena Bank (down 0.7%), Bank of Maharashtra (down 0.67%), United Bank of India (down 0.43%), IDBI Bank (down 0.42%), UCO Bank (down 0.1%) and State Bank of India (down 0.04%), edged lower. Central Bank of India (up 0.14%), Punjab and Sind Bank (up 0.25%), Andhra Bank (up 0.35%), Bank of Baroda (up 0.72%) and Union Bank of India (up 0.97%) edged higher.
Private sector banks were mixed. Axis Bank (down 0.66%), Federal Bank (down 0.58%), IndusInd Bank (down 0.34%) and City Union Bank (down 0.2%) edged lower. HDFC Bank (up 0.16%), ICICI Bank (up 0.31%), Yes Bank (up 0.37%) and Kotak Mahindra Bank (up 0.85%) edged higher.
The finance ministry after trading hours yesterday, 27 July 2015, announced that the government has already released Rs 11281.16 crore during the first four months of the current financial year to the Reserve Bank of India/National Bank for Agriculture and Rural Development (NABARD) for payment of interest subvention claims to banks towards implementation of interest subvention scheme of the government for short term crop loans to farmers. The government has allocated a total Rs 13000 crore in the Union Budget, 2015-16 for implementation of the interest subvention scheme for short term crop loans upto Rs 3 lakh.
Meanwhile, in the global commodities markets, Brent crude oil futures edged lower. Brent for September settlement was currently off 30 cents at $53.17 a barrel. The contract had fallen $1.15 a barrel or 2.11% to settle at $53.47 a barrel during the previous trading session.
India imports about 80% of its crude requirements and a decline in crude eases concerns on fiscal deficit, inflation and gives more room for the government to boost growth through spending on infrastructure.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued yesterday, 27 July 2015, that the Southwest Monsoon was vigorous over Rajasthan and Gujarat state and was active over Gangetic West Bengal, Odisha and West Madhya Pradesh during the past 24 hours until 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was 4% below the Long Period Average (LPA) until 27 July 2015. Region wise, the rainfall was 15% below the LPA in South Peninsula, 7% below the LPA in East & Northeast India, 5% below the LPA in Central India and 11% above the LPA in Northwest India until 27 July 2015.
The quantum of and the spatial distribution of rainfall this month holds key; July accounts for about 33% of precipitation during the June-September monsoon season and is critical for crops. 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, Chinese shares whip-sawed between gains and losses as Beijing scrambled once again to prop up a stock market whose wild gyrations have heightened fears about the financial stability of the world's second biggest economy. In mainland China, the Shanghai Composite was currently off 1.63%. In Hong Kong, the Hang Seng index was up 1.36%. China's central bank The People's Bank of China today, 28 July 2015, announced that it would inject 50 billion yuan ($8.05 billion) into money markets in its biggest liquidity boost since 7 July 2015, near the trough of the last market sell-off. The central bank also said, in a statement before the stock market opened, that it would use "various monetary tools" to maintain "appropriate levels of liquidity", a signal that the further monetary easing could be in store.
In other Asian markets, key benchmark indices in Singapore, Indonesia and South Korea were off 0.05% to 0.82%. Key benchmark indices in Japan and Taiwan was up 0.02% to 0.49%.
US stocks fell yesterday, 27 July 2015, after the steepest decline in Chinese stocks in eight years raised concerns that cooling growth in the world's No. 2 economy could hurt China's trading partners. Market reaction to better-than-expected durable-goods orders also was negative, as investors continued to view each data-point as a factor in the Federal Reserve's decision about the timing and pace of interest rate hikes.
Meanwhile, a two-day policy meeting of the Federal Reserve Open Market Committee (FOMC) begins today, 28 July 2015. The US central bank is widely expected to keep interest rates at a record low at the meeting, but expectations are rising that a rate hike could come later this year.
Powered by Capital Market - Live News