Indian benchmark indices opened with an upgap on Aug 27 but gradually eroded during the day as news of Beijing firing missiles into the South China Sea and uncertainty ahead of the US Fed Chair's address today at Jackson Hole Conference led to profit taking. Also the US on Wednesday imposed sanctions and restrictions on 24 Chinese companies and associated officials for taking part in building artificial islands in the disputed waters in the South China Sea.
Finally the Nifty ended up 10 points or 0.08% at 11559, rising for the fifth consecutive session. In the process the Nifty also closed the F&O month with a gain - the third such consecutive gain. Realty, PSU Banks, Pharma and Auto led the gains while FMCG and IT sectors were laggards. Volumes on the NSE were above average. India VIX fell 2.2% lower to a six month low of 18.9.
GST Council meet outcome was awaited when the markets shut for trade. Realty stocks rose even as Maharashtra cut stamp duties on sale of homes to 2% from 5% through 2020.
The outcome of the US Fed Chair's address tonight in the US will have a bearing on global markets and may impact markets in India on Aug 28.
Indices have taken a pause ahead of crucial events today. Advance decline ratio was almost equal suggesting caution and mild profit taking. Markets could stabilize and take breath for the next 1-2 sessions before resuming the upmove.