Firmness continued on the bourses in mid-morning trade. The barometer index, the S&P BSE Sensex, was currently up 115.76 points or 0.5% at 26,573.79. The market breadth indicating the overall health of the market was positive. The market sentiment was boosted by provisional data showing that foreign funds were net buyers of Indian during the previous trading session. ONGC gained on hopes of announcement of reforms by the government on subsidies and gas prices ahead of its share sale. IT stocks rose on positive economic data in US, the biggest outsourcing market for the Indian IT firms. HCL Technologies hit record high.
Key indices have remained in green after a strong opening triggered by higher Asian stocks and a first closing for S&P 500 in the US above 2,000 overnight.
Asian stocks rose after US data on durable goods and consumer confidence boosted optimism in the strength of the world’s largest economy. Meanwhile, there are expectations for quantitative easing and other steps by the European Central Bank. Crude oil prices rose ahead of the weekly US oil inventory data from the US government.
At 11:16 IST, the S&P BSE Sensex was up 115.76 points or 0.5% at 26,573.79. The index jumped 156.31 points at the day’s high of 26,599.12 in early trade, its highest level since 25 August 2014. The index rose 101.63 points at the day’s low of 26,544.44 in mid-morning trade.
The CNX Nifty was up 29.85 points or 0.38% to 7,934.60. The index hit a high of 7,946.85 in intraday trade, its highest level since 25 August 2014. The index hit a low of 7,929.50 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,404 shares gained and 946 shares fell. A total of 78 shares were unchanged.
The BSE Mid-Cap index was up 43.05 points or 0.46% at 9,301.87, underperforming the Sensex. The BSE Small-Cap index was up 83.45 points or 0.82% at 10,256.83, outperforming the Sensex.
ONGC gained 1.99% on hopes of announcement of reforms by the government on subsidies and gas prices ahead of its share sale. The government plans to sell a stake in ONGC later this year. State run upstream companies share a part of the under recoveries of state-run oil marketing companies (PSU OMCs) by allowing discount in the prices of crude oil, PDS kerosene, and domestic LPG based on the rates of discount communicated by the Ministry of Petroleum and Natural Gas and the Petroleum Planning and Analysis Cell.
Oil India gained 2.08%.
GAIL (India) fell 1.27% as the stock turned ex-dividend today, 27 August 2014, for final dividend of Rs 5.90 per share for the year ended 31 March 2014.
IT stocks rose on positive economic data in US, the biggest outsourcing market for the Indian IT firms. Wipro (up 0.65%), and TCS (up 0.43%) edged higher. Tech Mahindra fell 0.01%.
HCL Technologies rose 3.21% to Rs 1,648.60 after hitting record high of Rs 1,649 in intraday trade.
Infosys rose 0.09%. At an investor conference yesterday, 26 August 2014, Infosys’ chief operating officer UB Pravin Rao reportedly reiterated the company’s 7% to 9% US dollar revenue growth guidance for the current financial year. Rao also reportedly said that Infosys would look to maintain operating profit margins at 24-25% for the current year.
Hindustan Media Ventures advanced 3.32% to Rs 165 after 0.47% equity changed hands in a bulk deal on BSE today, 27 August 2014. A bulk deal of 3.50 lakh shares was executed on the Hindustan Media Ventures counter at Rs 163 per share in opening trade on BSE today, 27 August 2014.
The market sentiment was boosted by provisional data showing that foreign funds were net buyers of Indian during the previous trading session. Foreign portfolio investors (FPIs) bought shares worth a net Rs 364.72 crore on Tuesday, 26 August 2014, as per provisional data from the stock exchanges.
The market may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near month August 2014 series to September 2014 series. The near-month August 2014 F&O contracts expire tomorrow, 28 August 2014.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 60.49, compared with its close of 60.44 on Tuesday, 26 August 2014.
Crude oil prices rose ahead of the weekly US oil inventory data from the US government. Brent for October settlement was up 22 cents at $102.72 a barrel. The contract fell 15 cents to settle at $102.50 a barrel yesterday, 26 August 2014, after reaching $103.40 during the session. The US is the world’s biggest oil consumer.
At a meeting yesterday, 26 August 2014, the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organization (EPFO) decided against investing in equities and Exchange Traded Funds (ETFs). The finance ministry had suggested EPFO to invest in equities to enhance returns for subscribers.
Asian stocks rose today, 27 August 2014, after data signaled a stronger US economy and Russia’s president hailed as “positive” talks over Ukraine. Key benchmark indices in Indonesia, Hong Kong, Japan, China, Taiwan, Singapore and South Korea were up 0.06% to 0.78%.
Trading in US index futures indicated that the Dow could gain 11 points at the opening bell on Wednesday, 27 August 2014. US stocks edged higher on Tuesday, 26 August 2014, to lift the S&P 500 index just a hair above the 2,000 mark, its first close above that milestone, after data that pointed to a brighter future for the US economy.
Bookings for goods meant to last at least three years climbed by a record 22.6% in July after a 2.7% gain in June that was bigger than previously reported, data from the Commerce Department in Washington showed. The Conference Board’s US consumer confidence index rose to 92.4 in August, the highest since October 2007, the New York-based private research group said.
Russian President Vladimir Putin yesterday, 26 August 2014, said talks with his Ukrainian counterpart over separatist fighting that’s killed more than 2,000 people were “positive.”
Meanwhile, there are expectations for quantitative easing and other steps by the European Central Bank. Ever since ECB President Mario Draghi’s comments at US Federal Reserve’s annual symposium in the United States on 22 August 2014, there have been expectations of quantitative easing and other steps by the ECB. Draghi said expectations of future inflation in Europe exhibited significant declines at all horizons this month.