A rally in global markets sent Indian stocks surging. The barometer index, the S&P BSE Sensex, jumped 560.62 points or 2.18% to 26,275.28, as per provisional closing data. The 50-unit CNX Nifty jumped 157.10 points or 2.02% at 7,948.95, as per provisional closing data. Oil, metal and pharma stocks and index heavyweight HDFC led the rally for key benchmark indices. The Sensex provisionally settled above the psychological 26,000 mark. Earlier, the Sensex reclaimed the psychological 26,000 level after an initial surge. 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. US index futures surged.
The broad market depicted strength. There were nearly three gainers against every loser on BSE. The BSE Mid-Cap index was up 2.49%. The BSE Small-Cap index was up 2.56%. 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, tracking gains in Asian and US markets overnight.
Shares of oil exploration and production companies were in demand as crude oil prices edged higher. Index heavyweight ITC edged higher.
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.
As per provisional closing, the S&P BSE Sensex was up 560.62 points or 2.18% to 26275.28. The index jumped 588.11 points at the day's high of 26,302.77 in late 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.
The CNX Nifty was up 157.10 points or 2.02% at 7,948.95, as per provisional closing. The index hit a high of 7,963.60 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 261.22 points or 2.49% at 10,738.38. The BSE Small-Cap index was up 273.81 points or 2.56% at 10,985.54. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was quite strong. There were nearly three gainers against every loser on BSE. 1,995 shares rose and 684 shares fell. A total of 96 shares were unchanged.
The total turnover on BSE amounted to Rs 3003 crore, lower than turnover of Rs 3134.13 crore registered during the previous trading session.
Index heavyweight and housing finance major HDFC rose 8.14% to Rs 1,192.20. The stock hit a high of Rs 1,205.25 and a low of Rs 1,120 in intraday trade.
Index heavyweight and cigarette major ITC rose 3.26% to Rs 328. The stock hit a high of Rs 328.90 and a low of Rs 316.65 in intraday trade.
Shares of oil exploration and production companies were in demand as crude oil prices edged higher. ONGC (up 3.11%), Oil India (up 2.08%) and Reliance Industries (RIL) (up 1.82%), edged higher. A recovery in crude oil prices from a steep slide recently has eased concerns of lower realizations from crude sales.
In the global commodities markets, Brent crude oil futures edged higher as global equities rose. Brent for October settlement was currently up $1.81 a barrel at $44.95 a barrel. The contract had fallen 7 cents or 0.16% to settle at $43.14 a barrel during the previous trading session.
Cairn India jumped 6.94% to Rs 139.50 on reports the company is set to expand its crude oil and natural gas carrying capacity by laying a new gas pipeline from its Barmer Rajasthan field with an investment outlay of Rs 1400 crore. The crude oil output would be expanded from 2 lakh bopd (barrels of oil per day) to 3 lakh bopd and natural gas carrying capacity from 6.3 mmscfd (million standard cubic feet per day) to 40 mmscfd, report said.
Metal shares edged higher. NMDC (up 6%), Jindal Steel & Power (up 5.22%), JSW Steel (up 4.90%), Bhushan Steel (up 2.63%), Hindustan Zinc (up 2.59%), Steel Authority of India (up 2.34%) and Hindustan Copper (up 1.84%), edged higher. Hindalco Industries (down 0.25%) and National Aluminium Company (down 1.85%), edged lower.
Vedanta rose 6.95% to Rs 91.50. The stock hit a high of Rs 92 and a low of Rs 86.30 in intraday trade. With reference to the news item titled, "Vedanta Kicks off process to shut Lanjigarh refinery," Vedanta clarified during trading hours today, 27 August 2015, that aluminium prices the world over have collapsed in the past few months and current indications are that this trend will continue. The company's Lanjigarh operations have additionally been affected by the non-availability of bauxite from Odisha. As a result, the company's cost of production is significantly higher and is impacting the viability of the Lanjigarh operations. The company said that it may implement gradual closure of the operations at the Lanjigarh unit.
Tata Steel rose 5.61% at Rs 227.60. The stock hit a high of Rs 229.25 and a low of Rs 215.30 in intraday trade. Tata Steel announced during trading hours today, 27 August 2015, that it has decided to focus on production of hot rolled coils at its hot strip mill in Port Talbot in south Wales in the UK. Tata Steel further said that it will stop production at some coil processing facilities and also at the hot strip mill at Llanwern in south Wales in the UK. Tata Steel said that the decision has been taken because cheap imports and a strong British pound have created a challenging business environment. Employees at the Llanwern mill will be redeployed within the business and the company will discuss possible impact with contracting companies which provide services to this unit, the company said.
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 today, 27 August 2015, tracking gains in Asian and US markets overnight. Key indices in Germany, France and UK were up 2.55% to 3.02%.
French business sentiment in manufacturing improved more than expected in August, data showed today, 27 August 2015. The index for confidence in manufacturing rose to 103 in August from 102 in July as business leaders were more upbeat about their order books and recent output, national statistics agency Insee said. A wider measure of business sentiment--including wholesale, construction, retail and services--rose to 100 from 99 in the previous month, Insee said.
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 5.34%. In Hong Kong, the Hang Seng index was up 3.60%.
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 4.55%.
Trading in US index futures indicated that the Dow could rise 193 points at the opening bell today, 27 August 2015. 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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