A bout of volatility was witnessed as key benchmark indices firmed up after trimming gains in morning trade. The market breadth indicating the overall health of the market was strong, with more than two gainers for every loser on BSE. The barometer index, the S&P BSE Sensex, was currently up 72.99 points or 0.27% at 27,532.22. Metal shares edged higher. Realty shares were mixed.
Foreign portfolio investors sold shares worth a net Rs 1375.66 crore yesterday, 28 July 2015, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 665.05 crore yesterday, 28 July 2015, as per provisional data released by the stock exchanges.
Indian stocks may remain volatile in the near future 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 tomorrow, 30 July 2015.
In overseas markets, most Asian shares were mixed as investors looked ahead to the tone of the US Federal Reserve statement due later in the day. US stocks advanced yesterday, 28 July 2015, as investors were encouraged by strong results from UPS, Ford and other big companies. It was a reversal of five straight days of losses for US stock indexes.
At 10:16 IST, the S&P BSE Sensex was up 72.99 points or 0.27% at 27,532.22. The index rose 132.42 points at the day's high of 27,591.65 at the onset of trading session. The index gained 10.86 points at the day's low of 27,470.09 in morning trade.
The CNX Nifty was up 22.85 points or 0.27% at 8,359.85. The index hit a high of 8,374.90 in intraday trade. The index hit a low of 8,338.45 in intraday trade.
The BSE Mid-Cap index was up 91.12 points or 0.83% at 11,065.12. The BSE Small-Cap index was up 95.34 points or 0.83% at 11,618.27. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong, with more than two gainers for every loser on BSE. 1,399 shares rose and 605 shares fell. A total of 64 shares were unchanged.
Metal shares edged higher. Hindalco Industries (up 1.90%), Tata Steel (up 1.86%), Jindal Steel & Power (up 1.80%), Vedanta (up 1.75%), National Aluminum Company (up 1.68%), Bhushan Steel (up 1.12%), JSW Steel (up 0.71%), Hindustan Copper (up 0.69%) and Hindustan Zinc (up 0.32%), edged higher. Steel Authority of India (down 0.26%) and NMDC (down 0.52%), edged lower.
Realty shares were mixed. Oberoi Realty (down 1.7%), Parsvnath Developers (down 1.06%), Prestige Estates Projects (down 0.92%), Sunteck Realty (down 0.82%), Sobha (down 0.73%), Indiabulls Real Estate (down 0.34%) and Phoenix Mills (down 0.32%), edged lower. Unitech (up 0.31%), D B Realty (up 0.33%), Peninsula Land (up 0.40%), Godrej Properties (up 0.47%), DLF (up 0.57%), Anant Raj (up 1.28%) and Housing Development and Infrastructure (HDIL) (up 1.46%), edged higher.
Meanwhile, in the global commodities markets, Brent crude oil futures edged lower. Brent for September settlement was currently off 15 cents at $53.15 a barrel. The contract had fallen 17 cents or 0.32% to settle at $53.30 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, 28 July 2015, that the Southwest Monsoon has been vigorous over West Rajasthan and Gujarat state and active over Gangetic West Bengal, Odisha, Jharkhand, East Rajasthan and West Madhya Pradesh during past 24 hours until 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was 3% below the Long Period Average (LPA) until 28 July 2015. Region wise, the rainfall was 17% below the LPA in South Peninsula, 8% below the LPA in East & Northeast India, 2% below the LPA in Central India and 12% above the LPA in Northwest India until 28 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.
Asian shares were mixed as investors looked ahead to the tone of the US Federal Reserve statement due later in the day. Key benchmark indices in Hong Kong, Singapore, Indonesia and South Korea were up by 0.08% to 0.59%. Key benchmark indices in China, Japan and Taiwan were down by 0.12% to 0.26%.
Japan's retail sales rose 0.9% year-on-year, far outpacing a 0.5% increase seen, and a third straight increase spurred by higher nominal wages and tourists flocking to the country on a weaker yen.
US stocks advanced yesterday, 28 July 2015, as investors were encouraged by strong results from UPS, Ford and other big companies. It was a reversal of five straight days of losses for US stock indexes.
Overnight, data showed that US consumer confidence deteriorated this month. The Conference Board, a market research group, said its index of consumer confidence fell to 90.9 this month from a downwardly revised 99.8 in June.
Other reports showed that US house price grew in May and activity in the service sector picked up this month.
The S&P/Case-Shiller Home Price Index, covering the entire nation, rose 4.4% in the 12 months ended in May, slightly greater than a 4.3% increase in April.
The preliminary Markit US services PMI for July printed at 55.2, from the five-month low of 54.8 seen in June.
Investors were looking ahead to Wednesday's Fed statement to see if policymakers would give any indication on the timing of an initial rate hike. A two-day policy meeting of the Federal Reserve Open Market Committee (FOMC) began yesterday, 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.
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