Volatility continued as key benchmark indices regained positive terrain in mid-afternoon trade. The S&P BSE Sensex was up 50.95 points or 0.28%, off about 60 points from the day's high and up close to 80 points from the day's low. The market breadth, indicating the overall health of the market, was positive. Indian stocks rose today, 26 August 2013, after Finance Minister P. Chidambaram met foreign investors on Saturday, 24 August 2013, to seek suggestions on attracting dollar inflows, according to media reports. The reports quoted Secretary for Department of Financial Services Rajeev Takru as saying the government could announce some measures in 8-10 days.
Metal and mining stocks gained. Shares of Sesa Goa jumped ahead of its inclusion in the 30-share benchmark S&P BSE Sensex from Tuesday, 27 August 2013. Pharma stocks also gained.
The market edged higher in early trade on firm Asian stocks. The market extended initial gains to hit fresh intraday high in morning trade, with the Sensex and the 50-unit CNX Nifty, both, hitting their highest level in more than a week. The market trimmed gains to hit fresh intraday low in mid-morning trade. The market regained strength in early afternoon trade. Key benchmark indices slipped into the red in afternoon trade. The market regained positive terrain in mid-afternoon trade.
The market is expected to remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month August 2013 series to September 2013 series. The near month August 2013 derivatives contract expire on Thursday, 29 August 2013.
Meanwhile, the rupee weakened against the dollar today, 26 August 2013. The partially convertible rupee was trading at 64.23 per dollar sharply lower than its close of 63.20/21 on Friday, 23 August 2013.
At 14:20 IST, the S&P BSE Sensex was up 50.95 points or 0.28% to 18,570.39. The index jumped 208.75 points at the day's high of 18,728.19 in morning trade, its highest level since 16 August 2013. The index fell 30.51 points at the day's low of 18,488.93 in afternoon trade.
The CNX Nifty was up 6.30 points or 0.12% to 5,478.05. The index hit a high of 5,528.70 in intraday trade, its highest level since 16 August 2013. The index hit a low of 5,454.45 in intraday trade.
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The market breadth, indicating the overall health of the market, was positive. On BSE, 1,245 shares rose and 950 shares fell. A total of 144 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks rose and rest of them fell. Bhel (up 4.95%), NTPC (up 3.14%) and Wipro (up 2.81%), edged higher from the Sensex pack.
Metal and mining stocks were in demand. Shares of Sesa Goa rose 4.94% ahead of its inclusion in the 30-share benchmark S&P BSE Sensex from tomorrow, 27 August 2013.
Shares of Sterlite Industries rose 1.65%.
Sesa Goa will replace Sterlite Industries in the Sensex from 27 August 2013. The move comes in the wake of the scheme of amalgamation between the two Vedanta group firms whereby Sterlite Industries has been merged with Sesa Goa.
Tata Steel rose 0.27% to Rs 283, with the stock extending prior 2-day 13.83% rally. Shares of Tata Steel rallied 13.83% in two trading sessions to settle at Rs 282.25 on Friday, 23 August 2013, from a recent low of Rs 247.95 on 21 August 2013.
Among other metal stocks, JSW Steel (up 0.23%), Jindal Steel & Power (up 1.73%), Hindalco Industries (up 3.09%), Sail (up 1.49%), and Hindustan Zinc (up 1.64%), edged higher.
Pharma stocks also gained. Cipla (up 0.63%), Dr Reddy's Laboratories (up 1.95%), Ranbaxy Laboratories (up 5.97%) and Sun Pharmaceutical Industries (up 2.23%), gained.
Power Grid Corporation of India rose 0.31% to Rs 98. A total of three block deals were executed in the counter on BSE today, 26 August 2013. First block deal of 1.83 lakh shares was struck at Rs 98.25 at 13:53 IST. Another block deal of 21.16 lakh shares at executed at Rs 98.30 at around the same time. A third block deal of 9.82 lakh shares was struck at Rs 98.25 at 13:54 IST.
Shares of Future Retail jumped 8.72%.
Global credit rating agency Fitch ratings today, 26 August 2013, said it was getting more challenging for India to meet its fiscal deficit target in the current fiscal year ending March 2014 with revenues slowing. The rating agency is also monitoring India's growth, inflation, public finances and the current account deficit and its funding. Last week, Fitch said India and Indonesia are not at immediate risk of credit rating downgrades, but warned it could act if the governments of these countries fail to calm current financial market tensions.
European stock markets dropped on Monday, 26 August 2013, as investors awaited durable-goods data from the US to gauge if they weaken or strengthen the case for the Federal Reserve to taper its asset purchases. Key benchmark indices in Germany and France were down by 0.3% and 0.70%. UK markets were closed for a bank holiday.
Asian stocks rose for a second day on Monday, 26 August 2013, after a slump in US home sales eased speculation the Federal Reserve will reduce economic stimulus next month. Key benchmark indices in Singapore, Hong Kong, China, Taiwan and South Korea were up by 0.10% to 1.90%. Key benchmark indices in Singapore, Indonesia and Japan fell by 0.04% to 0.89%.
Trading in US index futures indicated that the Dow could fall 13 points at the opening bell on Monday, 26 August 2013. US stocks rose on Friday, 23 August 2013 as investors watched Federal Reserve officials for signals on stimulus cuts after data showed home sales plunged. Data from the Commerce Department showed purchases of new US homes plunged in July by the most in more than three years and previous months were revised down, a sign that growth in the industry may be taking a pause as mortgage rates rise.
On Monday, durable-goods data from the US were on tap, expected to show a decline in July.
Federal Reserve officials rebuffed international calls to take the threat of fallout in emerging markets into account when tapering US monetary stimulus. The risk that the Fed's trimming of bond buying will hurt economies from India to Turkey by sparking an exodus of cash and higher borrowing costs was a dominant theme at the annual meeting of central bankers and economists in Jackson Hole, Wyoming, that ended 24 August 2013.
The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities in a bid to hold interest rates low and encourage economic growth. Federal Reserve Chairman Ben Bernanke has on several occasions stressed that the tapering process is dependent on an improvement in data. Fed's bond-buying program has kept global markets flush with liquidity in recent years.
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