After an initial volatility, key benchmark indices extended gains in morning trade, with 50-unit CNX Nifty hitting one-week high. The Nifty retained the psychological 8,000 mark. Earlier, the Nifty regained the psychological 8,000 mark after opening with an upward gap on positive cues from global markets. The barometer index, the S&P BSE Sensex, was currently up 404.32 points or 1.54% at 26,635.51. Asian stocks edged higher after US stocks surged overnight on the back of upbeat economic data.
The broad market depicted strength. There were more than three gainers against every loser on BSE. The BSE Small-Cap index was up 1.72%, outperforming the Sensex. The BSE Mid-Cap index was up 1.42%, underperforming the Sensex.
Shares of oil exploration and production companies edged higher as crude oil prices surged. Metal shares also moved higher. IT stocks rose across the board.
In overseas markets, Asian stocks edged higher after US stocks surged overnight on the back of upbeat economic data. US stocks surged yesterday, 27 August 2015, as China showed signs that measures to stabilize its economy and stock market may be taking hold.
There was massive selling of Indian stocks by foreign portfolio investors (FPIs) yesterday, 27 August 2015. FPIs sold shares worth a net Rs 3347.35 crore yesterday, 27 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 2577.06 crore yesterday, 27 August 2015, as per provisional data released by the stock exchanges.
At 10:16 IST, the S&P BSE Sensex was up 404.32 points or 1.54% at 26,635.51. The index jumped 429.01 points at the day's high of 26,660.20 in morning trade, its highest level since 24 August 2015. The index gained 247.91 points at the day's low of 26,479.10 in early trade.
The CNX Nifty was up 127.30 points or 1.60% at 8,076.25. The index hit a high of 8,084.50 in intraday trade, its highest level since 21 August 2015. The index hit a low of 8,023.70 in intraday trade.
The BSE Mid-Cap index was up 152.47 points or 1.42% at 10,890.85, underperforming the Sensex. The BSE Small-Cap index was up 189.34 points or 1.72% at 11,174.88, outperforming the Sensex.
The market breadth indicating the overall health of the market was quite strong. There were more than three gainers against every loser on BSE. 1,569 shares rose and 413 shares fell. A total of 48 shares were unchanged.
Shares of oil exploration and production companies edged higher as crude oil prices surged. Cairn India (up 6.27%), ONGC (up 6.41%), Oil India (up 3.02%) and Reliance Industries (RIL) (up 0.91%) 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. Brent for October settlement was currently up 25 cents at $47.81 a barrel. The contract had risen $4.42 a barrel or 10.25% to settle at $47.56 a barrel during the previous trading session.
Metal shares were in demand. National Aluminium Company (up 3.79%), Hindalco Industries (up 3.72%), Vedanta (up 3.57%), Hindustan Copper (up 3.42%), Steel Authority of India (up 2.67%), Bhushan Steel (up 2.64%), Jindal Steel & Power (up 2.64%), Tata Steel (up 2.41%), NMDC (up 1.29%), Hindustan Zinc (up 1.04%) and JSW Steel (up 0.91%) edged higher.
IT stocks rose across the board. Infosys (up 3.10%), Hexaware Technologies (up 2.70%), MindTree (up 2.13%), HCL Technologies (up 1.96%), Wipro (up 1.57%), MphasiS (up 1.30%), Tech Mahindra (up 1.29%), Persistent Systems (up 1.05%), Oracle Financial Services Software (up 0.80%), TCS (up 0.78%) and CMC (up 0.43%) edged higher.
Meanwhile, investors continue to watch the performance 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, 27 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 27 August 2015. Region wise, the rainfall was 20% below the LPA in South Peninsula, 15% below the LPA in Central India, 7% below the LPA in Northwest India and 6% below the LPA in East & Northeast India, until 27 August 2015.
Separately, the IMD in its weekly report released yesterday, 27 August 2015, said that as per its extended range forecast till 13 September 2015, normal to above normal rainfall activity is likely over east and northeast India during next 7 days. Below normal rainfall activity is likely over many parts of northwest, westcentral and central India during next two weeks, the IMD said. The IMD further said there is a possibility of normal to slightly above normal rainfall activity over south peninsula between 4 to 13 September.
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 trading higher today, 28 August 2015, after US stocks surged overnight on the back of upbeat economic data. Key benchmark indices in Indonesia, Japan, Singapore, South Korea and Taiwan were up by 1.88% to 2.71%. In mainland China, the Shanghai Composite was up 1.93%. In Hong Kong, the Hang Seng index was up 0.50%.
US stocks surged yesterday, 27 August 2015, as China showed signs that measures to stabilize its economy and stock market may be taking hold. US GDP expanded by 3.7% between April and June, up from the previous estimate of 2.3%, according to the Commerce Department. Initial jobless claims dropped by 6,000 for the week ending in 22 August 2015 to a seasonally adjusted 271,000, according to the Department of Labor. Together, the brighter reports may be giving investors confidence that the US economy could withstand a continuing slowdown in China.
The weekend will bring the Federal Reserve's annual conference in Jackson Hole, Wyo., where the central bank might offer fresh clues about a possible interest-rate hike. Kansas City Fed President Esther George yesterday, 27 August 2015, said the market turmoil complicates any decision to raise rates. Yet, she repeated her long-held call for a rate increase.
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