Key benchmark indices extended gains in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was currently up 148.48 points or 0.56% at 26,591.29. The market breadth indicating the overall health of the market was positive. The market sentiment was boosted by provisional data showing that foreign funds were net buyers of Indian during the previous trading session. Capital goods stocks were mixed. Hospitality shares rallied.
Key indices have remained in green throughout the trading session so far after a firm opening triggered by higher Asian stocks and a first closing for S&P 500 index in the US above 2,000 on Tuesday, 26 August 2014.
European shares edged lower after worse-than-projected German confidence data. Asian stocks rose after US data on durable goods and consumer confidence boosted optimism in the strength of the world's largest economy. Crude oil prices rose ahead of the weekly US oil inventory data from the US government.
At 14:16 IST, the S&P BSE Sensex was up 148.48 points or 0.56% at 26,591.29. The index jumped 156.31 points at the day's high of 26,599.12 in early trade, its highest level since 25 August 2014. The index rose 83.66 points at the day's low of 26,526.47 in early afternoon trade.
The CNX Nifty was up 33.95 points or 0.43% at 7,938.70. The index hit a high of 7,946.85 in intraday trade, its highest level since 25 August 2014. The index hit a low of 7,924.30 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,496 shares gained and 1,306 shares fell. A total of 122 shares were unchanged.
The BSE Mid-Cap index was up 64.24 points or 0.69% at 9,323.06. The BSE Small-Cap index was up 86.44 points or 0.85% at 10,259.82. Both these indices outperformed the Sensex.
Capital goods stocks were mixed. ABB (India) (down 0.64%), Crompton Greaves (down 1.04%), Bharat Heavy Electricals (down 1.22%) and Siemens (down 1.11%) declined. BEML (up 4.99%), L&T (up 0.07%) and Thermax (up 1.08%) gained.
Venus Remedies surged 15.95% after the company said it has entered into a collaborative agreement with Israel-based generic drug maker Teva Pharmaceutical Industries for selling an anti-cancer drug in the Canadian market. The announcement was made after market hours on Tuesday, 26 August 2014.
GVK Power & Infrastructure was locked at 5% upper circuit at Rs 13.02 on BSE after the company led consortium leased a land parcel in Mumbai for commercial development to Oasis Realty for Rs 580 crore.
Hospitality shares rallied. Taj GVK Hotels (up 4.58%), Hotel Leela Ventures (up 4.3%), Indian Hotels (up 2.98%), EIH (up 4.89%) and EIH Associated Hotels (up 4.3%) gained.
Mangalore Refinery and Petrochemicals (MRPL) rose 0.66% after the company said that Petro Fluidized Catalytie Cracking unit has been successfully commissioned today, 27 August 2014 in Phase-III project of the company and products are being routed to respective destinations. This will increase LPG, light distillates and production of Propylene which is a feed for Polypropylene unit, MRPL said.
The sentiment on the bourses was boosted by provisional data showing that foreign funds were net buyers of Indian during the previous trading session. Foreign portfolio investors (FPIs) bought shares worth a net Rs 364.72 crore on Tuesday, 26 August 2014, as per provisional data from the stock exchanges.
The market may remain volatile in the near future 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 tomorrow, 28 August 2014.
In the foreign exchange market, the rupee reversed losses against the dollar. The partially convertible rupee was hovering at 60.4225, compared with its close of 60.44 on Tuesday, 26 August 2014.
Crude oil prices rose ahead of the weekly US oil inventory data from the US government. Brent for October settlement was up 40 cents at $102.90 a barrel. The contract fell 15 cents to settle at $102.50 a barrel yesterday, 26 August 2014, after reaching $103.40 during the session. The US is the world's biggest oil consumer.
Geopolitical developments were in focus. Talks between the Russian and Ukrainian presidents yesterday, 26 August 2014, were inconclusive, and the conflict in eastern Ukraine continued with Kiev releasing videos of captured Russian soldiers.
At a meeting yesterday, 26 August 2014, the Central Board of Trustees (CBT) of the Employees' Provident Fund Organization (EPFO) decided against investing in equities and Exchange Traded Funds (ETFs). The finance ministry had suggested EPFO to invest in equities to enhance returns for subscribers.
The government yesterday, 26 August 2014, notified increase in foreign direct investment limit to 49% from 26% in the defence sector. The hike in FDI ceiling could encourage domestic manufacture of defence goods which are imported.
European shares edged lower after worse-than-projected German confidence data. Key indices in Germany and France were off 0.14% to 0.16%. In UK, the FTSE 100 index was up 0.06%.
A consumer confidence index in Germany will fall to 8.6 in September from a revised 8.9 in August, GfK AG forecast in a report today, 27 August 2014.
There are expectations of quantitative easing and other steps by the European Central Bank (ECB) to bolster growth and counter downward pressures on prices in the euro zone. At US Federal Reserve's annual symposium in the United States on 22 August 2014, ECB President Mario Draghi said that expectations of future inflation in Europe exhibited significant declines at all horizons this month.
Asian stocks rose today, 27 August 2014, after data signaled a stronger US economy and Russia's president hailed as "positive" talks over Ukraine. Key benchmark indices in Indonesia, Japan, China, Taiwan, Singapore and South Korea were up 0.09% to 0.98%. Hong Kong's Hang Seng fell 0.62%.
Trading in US index futures indicated that the Dow could gain 13 points at the opening bell on Wednesday, 27 August 2014. US stocks edged higher on Tuesday, 26 August 2014, to lift the S&P 500 index just a hair above the 2,000 mark, its first close above that milestone, after data that pointed to a brighter future for the US economy.
Bookings for goods meant to last at least three years climbed by a record 22.6% in July after a 2.7% gain in June that was bigger than previously reported, data from the Commerce Department in Washington showed. The Conference Board's US consumer confidence index rose to 92.4 in August, the highest since October 2007, the New York-based private research group said.
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