The rally on the bourses gathered further steam with key indices extending gains in afternoon trade. The barometer index, the S&P BSE Sensex, was currently hovering above the psychological 26,000 mark. Earlier, the Sensex reclaimed the psychological 26,000 level after an initial surge. The Sensex was currently up 474.05 points or 1.84% at 26,188.71. Gains in global stocks underpinned sentiment on the domestic bourses. Stocks surged in mainland China after the nation's central bank after trading hours yesterday, 26 August 2015, announced that it will inject $21.8 billion into the financial system.
The broad market depicted strength. There were more than two gainers against every loser on BSE. The BSE Mid-Cap index was up 2.16%. The BSE Small-Cap index was up 2.29%. Both these indices outperformed the Sensex.
In overseas markets, Chinese stocks led gains for Asian markets after the nation's central bank after trading hours yesterday, 26 August 2015, announced that it will inject $21.8 billion into the financial system. US stocks witnessed a solid rally 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. European stocks edged higher in early trade, tracking gains in Asian and US markets overnight.
Telecom stocks edged higher. Reliance Communications edged higher after the company announced a tie up with California based Jasper to enable clients to roll out IoT (Internet of Things) services. Bosch edged higher after the company announced that it has formally inaugurated its new manufacturing facility at Bidadi, Bengaluru in Karnataka. Aurobindo Pharma edged higher after the company received the final approval from the United States Food and Drug Administration (USFDA) to manufacture and market Entecavir Tablets, 0.5mg and 1mg.
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 for the remaining part of the trading session 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.
At 13:21 IST, the S&P BSE Sensex was up 474.05 points or 1.84% at 26,188.71. The index jumped 502.08 points at the day's high of 26,216.74 in afternoon trade, 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.
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The CNX Nifty was up 145.85 points or 1.87% at 7,937.70. The index hit a high of 7,945.45 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 226.02 points or 2.16% at 10,703.18. The BSE Small-Cap index was up 245.50 points or 2.29% at 10,957.23. 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. 1,829 shares rose and 630 shares fell. A total of 77 shares were unchanged.
Telecom stocks edged higher on renewed buyin. Tata Teleservices (Maharashtra) (up 1.1%), Idea Cellular (up 1.22%) and Mahanagar Telephone Nigam (up 1.32%) edged higher.
Bharti Airtel was up 1.21% at Rs 343.85. Bharti Airtel has signed a definitive agreement to acquire 100% equity stake in Augere Wireless Broadband India (Augere), which holds 20 MHz of BWA spectrum in the telecom circles of Madhya Pradesh (MP) and Chhattisgarh. The company made announcement after market hours yesterday, 26 August 2015.
Reliance Communications edged higher after the company announced a tie up with California based Jasper to enable clients to roll out IoT (Internet of Things) services. The stock was up 1.72% at Rs 53.10. This partnership pairs the capabilities of Reliance's 11 data center facilities and its Global Cloud Exchange (Cloud X) platform with Jasper's global IoT services platform to enable enterprises to capitalize on IoT services, the two companies said in a joint statement. Reliance is Jasper's sole telecom partner in India. Reliance Group companies will be the anchor clients for the IoT rollout in India.
Bosch edged higher after the company announced that it has formally inaugurated its new manufacturing facility at Bidadi, Bengaluru in Karnataka. The stock was up 2.25% at Rs 23,239. The construction of the Bidadi plant spans over two phases, with the second phase scheduled to be completed by 2018. This new state-of-the-art manufacturing facility will produce diesel products that were previously manufactured at the Adugodi plant, and would have over 2,600 associates working at the facility, Bosch said. The new plant in Bidadi will produce common rail pumps & rails in the first phase & conventional fuel injection pumps production will start in the second phase, Bosch said. The announcement was made during market hours today, 27 August 2015.
Adani Enterprises was up 10.22% at Rs 79.25. With regard to news item titled "Adani, SunEdison may drop JV plans, Adani Enterprises clarified during market hours today, 27 August 2015, that the Memorandum of Understanding (MOU) signed with Sun Edison on 30 December 2014 is still subsisting. Adani Enterprises provided no other information in this regard.
Aurobindo Pharma edged higher after the company said it has received the final approval from the United States Food and Drug Administration (USFDA) to manufacture and market Entecavir Tablets, 0.5mg and 1mg. The stock was up 3.33% at Rs 747.10. The approved abbreviated new drug application (ANDA) is bioequivalent and therapeutically equivalent to the reference listed drug product (RLD) Baraclude Tablets, 0.5mg and 1mg, of Bristol-Myers Squibb. Entecavir Tablets are indicated for treatment of chronic hepatitis B virus infection of the liver. The product had an estimated market size of $294 million in the United States for the twelve months ended June 2015, according to IMS data. The announcement was made during market hours today, 27 August 2015.
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, European stocks edged higher in early trade today, 27 August 2015, tracking gains in Asian and US markets overnight. Key indices in Germany, France and UK were up 1.99% to 2.87%.
Chinese stocks led gains for Asian markets today, 27 August 2015, after China's central bank after trading hours yesterday, 26 August 2015, announced that it will inject $21.8 billion into the financial system. In mainland China, the Shanghai Composite was up 5.4%. In Hong Kong, the Hang Seng index was up 4.13%.
Gains were spread across Asian markets after US stocks witnessed a solid rally overnight. Key benchmark indices in Indonesia, Japan, Singapore, South Korea and Taiwan were up by 0.73% to 4.17%.
US stocks witnessed a solid rally 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.
Latest economic data showed that orders for durable or long-lasting US goods rose 2% in July, led by demand for automobiles and military hardware.
Meanwhile, 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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