Key indices extended gains and hit fresh intraday high in mid afternoon trade. The barometer index, the S&P BSE Sensex, was currently hovering above the psychological 26,000 mark. Earlier, the Sensex reclaimed the psychological 26,000 level after an initial surge. The Sensex was currently up 536.29 points or 2.09% at 26,250.95. Gains in global stocks underpinned sentiment on the domestic bourses. 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 more than two gainers against every loser on BSE. The BSE Mid-Cap index was up 2.16%. The BSE Small-Cap index was up 2.29%. 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.
Banks were in demand. Power generation stocks also 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.
Indian stocks may remain volatile for the remaining part of the trading session today, 27 August 2015, as traders roll over positions in the futures & options (F&O) segment from the near month August 2015 series to September 2015 series. The near month August 2015 derivatives contracts are set to expire today, 27 August 2015.
At 14:16 IST, the S&P BSE Sensex was up 536.29 points or 2.09% at 26,250.95. The index jumped 551.84 points at the day's high of 26,266.50 in afternoon 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 164.20 points or 2.11% at 7,956.05. The index hit a high of 7,960.90 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 252.02 points or 2.41% at 10,729.18. The BSE Small-Cap index was up 269.67 points or 2.52% at 10,981.40. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was quite strong. There were more than two gainers against every loser on BSE. 1,885 shares rose and 664 shares fell. A total of 84 shares were unchanged.
Banks were in demand. Among PSU banks, Bank of Baroda (up 4.35%), IDBI Bank (up 3.74%), Andhra Bank (up 3.55%), UCO Bank (up 3.32%), Union Bank of India (up 3.26%), Central Bank of India (up 2.28%), Allahabad Bank (up 2.22%), Bank of India (up 2.16%), Corporation Bank (up 2.02%), Dena Bank (up 1.65%), Canara Bank (up 1.63%), Punjab National Bank (up 1.62%), State Bank of India (up 1.61%), Vijaya Bank (up 1.41%), Bank of Maharashtra (up 1.31%), United Bank of India (up 1.16%%), Punjab and Sind Bank (up 1.05%) and Syndicate Bank (up 0.78%), edged higher. Indian Bank was down 0.3%.
Among private sector banks, Kotak Mahindra Bank (up 3.18%), ICICI Bank (up 1.81%), Federal Bank (up 1.49%), HDFC Bank (up 1.38%), IndusInd Bank (up 1.17%), Axis Bank (up 0.97%), Yes Bank (up 0.43%) and City Union Bank (up 0.31%), edged higher.
Power generation stocks edged higher. JSW Energy (up 8.65%), Adani Power (up 6.68%), Jaiprakash Power Ventures (up 4.01%), NHPC (up 2.13%), Torrent Power (up 1.96%), Reliance Power (up 1.50%), CESC (up 0.93%), Reliance Infrastructure (up 0.80%) and Tata Power (up 0.50%), edged higher. NTPC (down 0.63%) and GMR Infrastructure (down 1.18%), edged lower.
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 1.99% to 2.76%.
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 4.42%.
Trading in US index futures indicated that the Dow could rise 183 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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