Key benchmark indices surged and hit fresh intraday high in mid-morning trade. The barometer index, the S&P BSE Sensex was currently up 349.81 points or 1.27% at 27,899.34. The market breadth indicating the overall health of the market was strong. The BSE Mid-Cap index was up 1.81%. The index outperformed the Sensex.
Pharma stocks gained on weak rupee.
Investors awaited the data on wholesale price index (WPI) for July 2015, which will be out at around 12:00 noon today, 14 August 2015, after data earlier this week showed consumer price inflation tumbled in July 2015, thus raising hopes for a possible rate cut by the Reserve Bank of India.
Meanwhile, the government is reportedly sounding out political parties over scheduling a two-day session of Parliament in September ahead of the Bihar elections to pass the Goods and Services Tax Bill, seen to be a crucial piece of tax reform linked to the Narendra Modi government's effort to improve ease of business and boost revenues. The monsoon session of Parliament ended yesterday, 13 August 2015, without passage of any major bills amid political tussle between the government and the opposition parties.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 625.90 crore yesterday, 13 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 545.86 crore yesterday, 13 August 2015, as per provisional data.
In overseas markets, Asian stocks were mixed. US stocks closed mostly lower yesterday, 13 August 2015, following a choppy session marked by narrow gains and losses, as readings on retail sales and jobless claims suggested the US economy is on healthy footing.
At 11:20 IST, the S&P BSE Sensex was up 349.81 points or 1.27% at 27,899.34. The index surged 409.80 points at the day's high of 27,959.33 in mid-morning trade, its highest level since 11 August 2015. The index rose 93.67 points at the day's low of 27,643.20 in early trade.
The CNX Nifty was up 112.30 points or 1.34% at 8,468.15. The index hit a high of 8,488.85 in intraday trade, its highest level since 11 August 2015. The index hit a low of 8,381.20 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,480 shares gained and 829 shares fell. A total of 80 shares were unchanged.
The BSE Mid-Cap index was up 202.25 points or 1.81% at 11,392.31. The BSE Small-Cap index was up 151.16 points or 1.31% at 11,724.05. Both these indices outperformed the Sensex.
Pharma stocks gained on weak rupee. Sun Pharmaceutical Industries (up 2.1%), Strides Arcolab (up 2.22%), Aurobindo Pharma (up 2.42%), Cipla (up 1.98%), Lupin (up 1.2%), Wockhardt (up 1.75%), Dr Reddy's Laboratories (up 0.81%), Divi's Laboratories (up 0.92%), Glenmark Pharmaceuticals (up 5.21%) and Cadila Healthcare (up 1.97%) gained. Weakness in rupee could boost sales of pharma companies in rupee terms as pharma firms derive substantial revenue from exports.
On macro front, the government will release data on inflation based on the wholesale price index (WPI) for July 2015 at around 12:00 noon today, 14 August 2015. The WPI inflation continued to be in negative zone for the eighth straight month in June 2015. The WPI inflation stood at negative 2.4% in June 2015, unchanged from the level in May 2015. Due to a large base effect, inflation based on the consumer price index (CPI) eased sharply last month. CPI inflation eased to 3.78% in July 2015 from 5.4% in June 2015, according to the data released by the Ministry of Statistics & Programme Implementation after trading hours on 12 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, 13 August 2015, that for the country as a whole, cumulative rainfall during this year's monsoon season was 9% below the Long Period Average (LPA) until 13 August 2015. Region wise, the rainfall was 20% below the LPA in South Peninsula, 13% below the LPA in East & Northeast India, 8% below the LPA in Central India and 1% above the LPA in Northwest India until 13 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, Asian stocks were mixed today, 14 August 2015. Key indices in China, Hong Kong, South Korea, and Singapore were up 0.12% to 0.83%. Key indices in Indonesia, Taiwan and Japan fell by 0.07% to 0.4%.
Investors awaited today's yuan fixing to see if China's central bank would set its official guidance rate lower for a fourth day. The People's Bank of China (PBOC) set its rate nearly 2% lower on Tuesday, 11 August 2015 a move it said was aimed at making its foreign exchange system more responsive to market forces. The PBOC reassured investors on Thursday, 13 August 2015 saying there was no reason for the yuan to fall further given the country's strong economic fundamentals, helping to calm investors who pared holdings of risk assets for fear of a currency war.
US stocks closed mostly lower yesterday, 13 August 2015, following a choppy session marked by narrow gains and losses, as readings on retail sales and jobless claims suggested the US economy is on healthy footing.
On macro front, US retail sales rose in July and were revised up for June, while the trend of weekly jobless claims pointed to a tightening job market.
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