A bout of volatility was witnessed as key benchmark indices trimmed gains after a firm opening took them to fresh record high. The barometer index, the S&P BSE Sensex, was currently up 64 points or 0.24% at 26,454.96. The market breadth indicating the overall health of the market was positive. The market sentiment was boosted by data showing that foreign portfolio investors (FPIs) were net buyers of Indian stocks during the preceding trading session on Monday, 18 August 2014. Asian stocks rose after a rally in US stocks on Monday, 18 August 2014. Capital goods stocks extended recent gains. Shares of PSU OMCs extended Monday's gains as Brent crude oil futures stayed near 14-month low, BPCL hitting record high.
A further decline in crude oil prices and a rally in US stocks on Monday, 18 August 2014, had triggered a firm opening on the domestic bourses, with the Sensex and the 50-unit CNX Nifty, both, hitting record high in early trade.
At 10:16 IST, the S&P BSE Sensex was up 64 points or 0.24% to 26,454.96. The index jumped 139.71 points at the day's high of 26,530.67 in early trade, a record high for the index. The index rose 42.42 points at the day's low of 26,433.38 in morning trade.
The CNX Nifty was up 25.35 points or 0.32% to 7,899.60. The index hit a high of 7,918.55 in intraday trade, a record high for the index. The index hit a low of 7,887.50 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,240 shares gained and 836 shares fell. A total of 87 shares were unchanged.
The BSE Mid-Cap index was up 61.73 points or 0.67% at 9,232.07. The BSE Small-Cap index was up 68.29 points or 0.68% at 10,115.76. Both these indices outperformed the Sensex.
Shares of PSU OMCs extended Monday's gains as Brent crude oil futures stayed near 14-month low. HPCL gained 2.37%.
BPCL rose 1.62% to Rs 659.10 after hitting record high of Rs 671.50 in intraday trade.
Indian Oil Corporation (IOC) rose 1.53%.
Lower crude oil prices will reduce under-recovery of public sector oil marketing companies (PSU OMCs) on domestic sales of diesel, kerosene and LPG at government controlled prices. The government has adopted the policy of gradually increasing diesel prices to eliminate under recovery and deregulate the diesel prices. The government has already freed pricing of petrol.
Capital goods stocks extended recent gains. Bharat Heavy Electricals (Bhel) (up 1.61%), ABB (India) (up 0.34%), L&T (up 1.6%), Crompton Greaves (up 1.03%) and Siemens (up 1.17%) gained.
Tata Power Company rose 1.2%. The company clarified during market hours that Maharashtra Electricity Regulatory Commission (MERC) on 14 August 2014 issued transmission license and distribution license to the company for the next 25 years with effect from 16 August 2014 and the license area covers from Colaba to Mahim, falling under Mumbai City Revenue district, Bandra to Dahisar and Chunabatti to Vikhroli of Mumbai suburban Revenue District and the area of Mira Bhayandar Municipal Corporation.
The license allows Tata Power to continue serving the Mumbai consumers as before in its distribution and transmission area. The distribution license is granted with a specific condition to get the network roll out approved by the Regulatory Commission. Tata Power will follow the directions of the Commission as before and grow its network to acquire balanced set of consumers to ensure tariff benefit to low end consumers, Tata Power said.
The company issued the clarification with respect to news titled "Tata Power Gets 25-yr Licence for City".
The sentiment on the bourses was boosted by data showing that foreign portfolio investors (FPIs) were net buyers of Indian stocks on Monday, 18 August 2014. Foreign portfolio investors (FPIs) bought shares worth a net Rs 473.42 crore on Monday, 18 August 2014, as per provisional data from the stock exchanges.
India's macroeconomic worries have eased on falling crude oil prices. India imports about 80% of its crude oil requirement. Brent crude oil futures edged up towards $102 a barrel today, 19 August 2014, but stayed near a 14-month low reached in the previous session on weak demand and easing concerns over risks to supply. The October Brent crude contract was up 23 cents at $101.83 a barrel. The contract fell $1.93 a barrel to settle at $ 101.60 a barrel on Monday, 18 August 2014, after Iraqi Kurds recaptured a large chunk of the biggest dam in the country from Islamist militants, with help from US air power.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.69, compared with its close of 60.78 on Thursday, 14 August 2014. The currency market remained close on Friday, 15 August 2014, and Monday, 18 August 2014 on account of holidays.
India reportedly called off on Monday, 18 August 2014, peace talks with Pakistan, giving a jolt to renewed diplomatic efforts between the two nuclear-armed neighbours and adding to the troubles of Pakistan's beleaguered government. India said it would not attend talks involving the foreign secretaries of the two countries, which had been set to take place on 25 August 2014 in Islamabad, because of plans by Pakistan to consult Kashmiri separatists ahead of the meeting.
Asian stocks rose today, 19 August 2014, after a rally in US stocks on Monday, 18 August 2014, triggered by upbeat US housing data and hopes of progress in the Ukraine crisis. Key benchmark indices in South Korea, Taiwan, Singapore, Hong Kong, Japan, and Indonesia were up 0.09% to 1.13%. China's Shanghai Composite was off 0.43%.
Trading in US index futures indicated that the Dow could gain 25 points at the opening bell on Tuesday, 19 August 2014. US stocks registered solid gains on Monday, 18 August 2014, helped by deal news and easing Ukraine-Russia tensions. A better-than-expected reading on the housing market also boosted sentiment and kicked off a big week for economic data. US homebuilder sentiment rose in August to its highest since January, the National Association of Home Builders said on Monday, marking a third straight monthly gain.
The minutes from the last Federal Open Market Committee meeting will be released tomorrow, 20 August 2014. Federal Reserve Chairwoman Janet Yellen will give a speech on Friday, 22 August 2014, at the annual Fed summit in Jackson Hole, Wyo.
Foreign ministers from Russia, Ukraine, Germany, and France gathered in Berlin over the weekend to discuss talks for a ceasefire or a political solution in Ukraine, and Russia's Foreign Ministry said on Monday a 'certain progress' was achieved during the talks.
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