After moving in a narrow range in afternoon trade, key benchmark indices extended gains in mid-afternoon trade. The August 2014 derivatives contracts are set for expiry today, 28 August 2014. The barometer index, the S&P BSE Sensex, was currently up 94.49 points or 0.36% at 26,654.64. The market breadth indicating the overall health of the market was negative. The BSE Mid-Cap index remained in red whereas the BSE Small-Cap index retained positive zone. A day after the government notified increase in foreign direct investment (FDI) ceiling in the defence sector, the government on Wednesday, 27 August 2014, issued a notification allowing 100% FDI through the automatic route in railway infrastructure. Sugar stocks dropped. Capital goods stocks gained. Provisional data showed that foreign funds remained net buyers of Indian equities during the previous trading session.
Earlier during the day, the Sensex had surged to a record high after a higher opening.
In overseas markets, European shares edged lower ahead of the release of the revised US gross domestic product figures for the second quarter later in the global day. Asian stocks declined as a rising yen dragged Japanese shares lower. Brent crude oil futures fell as expectations of ample supply weighed on prices.
At 14:14 IST, the S&P BSE Sensex was up 94.49 points or 0.36% at 26,654.64. The index jumped 114.23 points at the day's high of 26,674.38 in early trade, a record high for the index. The index rose 36.52 points at the day's low of 26,596.67 in early trade.
The CNX Nifty was up 18.25 points or 0.23% to 7,954.30. The index hit a high of 7,967.80 in intraday trade, its highest level since 25 August 2014. The index hit a low of 7,942.25 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,497 shares fell and 1,295 shares rose. A total of 125 shares were unchanged.
The BSE Mid-Cap index was down 12.02 points or 0.13% at 9,314.57. The BSE Small-Cap index was up 27.72 points or 0.27% at 10,281.59. Both these indices underperformed the Sensex.
Capital goods stocks gained. ABB (India) (up 0.23%), Bharat Heavy Electricals (Bhel) (up 1.99%), L&T (up 1.03%) and Crompton Greaves (up 0.44%) gained.
Sugar stocks dropped. Rana Sugars (down 4.38%), Sakthi Sugars (down 3.06%), EID Parry (India) (down 1.65%). Bajaj Hindusthan (down 0.91%), Balrampur Chini Mills (down 0.43%) and Shree Renuka Sugars (2.28%) declined.
Adani Enterprises declined 0.83% on reports it has agreed to pay A$155 million ($145 million) to Linc Energy to buy out the Australian firm's rights to future royalties from Adani's huge but delayed Carmichael coal project, already four years behind schedule.
Provisional data released by the stock exchanges showed that foreign funds remained net buyers of Indian stocks during the previous trading session. Foreign portfolio investors (FPIs) bought shares worth a net Rs 290.18 crore on Wednesday, 27 August 2014, as per provisional data from the stock exchanges. FPIs bought shares worth a net Rs 2628.07 crore from the secondary equity market in this month so far till 26 August 2014, as per data from Securities & Exchange Board of India (Sebi). The inflow totaled Rs 70870.60 crore in this calendar year so far.
The market may remain volatile during the last one hour or so of trade today, 28 August 2014, as traders roll over positions in the futures & options (F&O) segment from the near month August 2014 series to September 2014 series. The near-month August 2014 F&O contracts expire today, 28 August 2014.
Brent crude oil futures fell as expectations of ample supply weighed on prices. Brent for October settlement was down 17 cents at $102.55 a barrel. The contract rose 22 cents to settle at $102.72 a barrel yesterday, 27 August 2014, after swinging by $1 between $102.05 and $103.07.
The US Energy Information Administration (EIA) in its weekly inventory report on Wednesday, 27 August 2014, said US crude oil stocks fell by a greater-than-expected 2.07 million barrels in the week ended 22 August 2014, but inventories at Cushing, the delivery point for US crude futures, rose 508,000 barrels.
Global credit rating agency Moody's Investors Service today, 28 August 2014, reportedly said that India's sovereign ratings are constrained by persistently high inflation. Recurrent inflationary pressures keep domestic capital costs high, erode domestic purchasing power as well as savings and lower India's international competitiveness, the rating agency said. Without a significant increase in food output, the risk from continued inflation could limit India's growth prospects, Moody's said.
Meanwhile, the government on Wednesday, 27 August 2014, took a decision to allow the Ministry of Road Transport and Highways to decide on mode of delivery and amendments in Model Concession Agreement in respect of national highways projects for expediting of implementation of road infrastructure projects in the country.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 60.4925, compared with its close of 60.455 during the previous trading session.
The stock market remains closed tomorrow, 29 August 2014, on account of Ganesh Chaturthi.
The government will release Q1 June 2014 GDP data tomorrow, 29 August 2014. India's Gross Domestic Product (GDP) rose at a muted pace of 4.6% in Q4 March 2014. The GDP grew 4.7% in the fiscal year ended 31 March 2014 (FY 2014).
European shares edged down from one-month highs today, 28 August 2014, ahead of the release of the revised US gross domestic product figures for the second quarter later in the global day. Key indices in Germany, France and UK were off 0.16% to 0.68%.
Asian stocks declined today, 28 August 2014, as a rising yen dragged Japanese shares lower. Key benchmark indices in China, Hong Kong, Singapore, Japan and Taiwan were down 0.08% to 0.71%. Key benchmark indices in Indonesia and South Korea were up 0.04% to 0.31%.
China's industrial profits rose 13.5% in July after climbing 17.9% in June, the fastest pace since September, according to data released by the National Bureau of Statistics today, 28 August 2014.
Trading in US index futures indicated that the Dow could fall 22 points at the opening bell on Thursday, 28 August 2014. Most US stocks edged higher on Wednesday, 27 August 2014, with the S&P 500 index creeping up to another record closing high in a lethargic session, though a number of retail stocks traded heavily after reporting results.
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