If the Nifty rallies on Thursday, it will meet with selling pressure around 8,020.
We had mentioned in Tuesday’s closing report that the Indian indices were near a short-term bottom. On Wednesday, the NSE's CNX Nifty managed to keep itself much higher and was also above yesterday’s lows and close. The optimism on the bourses came back on reports that China's central bank is boosting stimulus. Investors’ hopes were also in the direction that US Federal Reserve rates will remain low for a “considerable time”, even after its bond-buying program is over.
The S&P BSE Sensex opened at 26,627 while NSE's 50-share Nifty opened at 7,972. After hitting the day’s low in the first hour of the session at 26,512 and 7,937, both Sensex and Nifty rose in the immediate next hour to the day’s high at 26,683 and 7,991, respectively. In spite of the volatility, the benchmarks managed retaining most of the intraday gains and closed at 26,631 (up 139 points or 0.52%) or 7,976 (up 43 points or 0.54%). The NSE recorded a lower volume of 88.94 crore shares. India VIX fell 2.52% to close at 12.9475.
Among the other indices on the NSE, the top five gainers were IT (1.66%), Auto (0.90%), Nifty Junior (0.66%), Midcap (0.63%) and Nifty Midcap 50 (0.59%) while the only four losers were CPSE (0.76%), PSE (0.11%), Bank Nifty (0.03%) and Finance (0.02%).
Of the 50 stocks on the Nifty, 34 ended in the green. The top five gainers were Tata Power (2.45%), Infosys (2.43%), Dr Reddy (2.33%), BHEL (2.22%) and UltraTech Cement (1.91%). The top five losers were Jindal Steel (2.13%), BPCL (1.96%), Cipla (1.73%), Coal India (1.34%) and HDFC Bank (0.74%).
Of the 1,607 companies on the NSE, 753 companies closed in the green, 800 companies closed in the red while 54 companies closed flat.
A four-member committee of secretaries has submitted its report on a new gas pricing mechanism, prescribing a rate much lower than the doubling of price approved by previous UPA government.
While the survey of ThomsonReuters/INSEAD showed that the business sentiment of the Asia's top companies fell sharply in the third quarter, companies in India were the most positive with a maximum score of 100 for the second consecutive quarter after pro-business leader Narendra Modi was elected prime minister.
Chinese President Xi Jinping is in India on a three-day tour with plans to invest billions of dollars in railways, industrial parks and roads.
Indian Sugar Mills Association (ISMA) said that the country is likely to churn out a surplus sugar for the fifth straight year despite erratic rainfall in key growing areas. ISMA said India is likely to produce 25 million tonnes to 25.50 million tonnes of sugar in 2014-15 year starting 1 October 2014.
ABB India (6.18%) hit its 52-week high today and was also among the top two gainers in ‘A’ group on the BSE. Bajaj Finserv (4.13%) was among the top four gainers in the ‘A’ group on the BSE. The company was recently in news for its plans to set up a home finance company after its plans to convert into a bank did not materialise.
Reliance Communications (4.02%) was the top loser in ‘A’ group on the BSE. It hit its 52-week low today.
Dr Reddy's Lab (2.52%) today again hit a new 52-week high and was the top gainer in Sensex 30 pack.
Cipla (1.60%) had hit its all-time high on Tuesday, but today it was the top loser in the Sensex 30 stock. Nomura downgraded the stock to reduce from neutral rating, citing valuation to be expensive.
US indices closed Tuesday in the positive.
As for the outcome on the Federal Reserve's two-day policy meeting that concludes today, the market anticipates that Fed is likely to raise short-term interest rates next year from their current near-zero levels, where they have been since December 2008.
Except for KLSE Composite (0.19%), Nikkei 225 (0.14%) and NZSE 50 (0.91%) all the other Asian indices closed in the green. Jakarta Composite (1.12%) was the top gainer.
China reportedly provided 500 billion yuan ($81.4 billion) of liquidity to its five biggest banks, as leaders in Asia's largest economy seek to support growth. The People's Bank of China started providing the banks with 100 billion yuan each through standing lending-facilities with tenor of three months. The PBOC will complete the process on 17 September 2014, according to the report.
European indices were trading in the green while US Futures are trading marginally higher on Wednesday.
UK unemployment has fallen to the lowest in six years, indicating continued strength in the labour market. The jobless rate based on International Labour Organisation methods fell to 6.2% in the three months through July from 6.4%, a bigger decline than forecast.
A separate measure for August put the claimant count rate at 2.9%. Both rates are at their lowest levels since 2008.
Keen to boost its trade ties with India, the Chinese side has already indicated that it will pledge to invest billions of dollars in India’s railway, manufacturing and infrastructure projects during its President Xi Jinping’s visit
India and China on Wednesday signed three agreements at Ahmedabad, hours within the arrival of Chinese President Xi Jinping on a three-day visit. During the visit, both the countries will focus on boosting trade and investments, besides discussing substantive issues including the contentious border dispute.
Xi, accompanied by his wife Peng Liyuan and a delegation of senior party and government officials, was received by Gujarat Governor OP Kohli and Chief Minister Anandiben Patel and other senior state Cabinet ministers and accorded a grand welcome with various folk artists performing at the airport.
Prime Minister Narendra Modi welcomed the visiting dignitary and his wife at the entrance of the Hyatt Hotel after which the Indian PM showed them an exhibition of various Buddhist artifacts and slides.
Thereafter, the two leaders had a brief meeting before heading for the signing-in ceremony of the pacts which are aimed at giving boost to Chinese investments in Gujarat.
The agreements include sister city pact between Guangzhou in China and Ahmedabad and setting up of an industrial park in the State.
Keen to boost its trade ties with India, the Chinese side has already indicated that it will pledge to invest billions of dollars in India’s railway, manufacturing and infrastructure projects during the Xi’s visit, the third by any Chinese President to India.
The immigration officials detained the activist at Delhi airport in response to a lookout notice issued by the superintendent of police in Tirunelveli
Anti-nuclear power activist SP Udaykumar was detained by the police at the IGI Airport in New Delhi on Tuesday. He was detained for questioning and then was not allowed to board his flight to Kathmandu, while on his way to attend a UN consultation on human rights.
The immigration officials detained him at the airport in response to a lookout notice issued by the superintendent of police in Tirunelveli. S P Udaykumar is widely known as the face of the agitation against the Kudankulam Nuclear Power Project in Tirunelveli district, and the founder of the organisation People's Movement Against Nuclear Energy (PMANE).
The Indian Expres quoted him as saying “I feel my human rights have been violated systematically by the state and I feel very frustrated in this land of democracy and freedom.” Numerour cases have been filed against Udaykumar in relation to his agitation against the nuclear power plant in Tirunelveli.
He has above 350 cases lodged against him including sedition, waging war against the state, laying seige through sea etc. As a result of these cases, his passport had been impounded by the local police. When he was asked for his passport at the airport on Tuesday he supplied his election ID and was subsequently questioned for over 4 hours.
When he was finally released he was told to not leave the country as a result of the pending cases against him in Tirunelveli.