A bout of volatility was witnessed as key benchmark indices extended losses in mid-morning trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit one-week low. The Sensex was currently off 139.88 points or 0.49% at 28,659.81. The market breadth indicating the overall health of the market was weak. Losses ranged from 2% to about 10% for quite a few stocks which are the constituents of the BSE Small-Cap index. Global crude oil prices surged overnight.
Bank stocks edged lower. IndusInd Bank slipped ahead of its Q4 March 2015 results today, 16 April 2015. Shares of upstream oil exploration and production (E&P) firms rose as global crude oil prices surged yesterday, 15 April 2015.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 108 crore yesterday, 15 April 2015, as per provisional data as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 60.18 crore yesterday, 15 April 2015, as per provisional data.
In overseas markets, Asian stocks edged higher after overnight gains for US stocks. US stocks edged higher yesterday, 15 April 2015, as better-than-expected earnings and a jump in oil prices invigorated stock market bulls.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude oil futures edged lower after a sharp surge overnight. The recent rise in global crude oil prices will raise concerns pertaining to India's fiscal deficit, current account deficit and fuel price inflation. India imports about 80% of its crude oil requirements.
At 11:16 IST, the S&P BSE Sensex was down 139.88 points or 0.49% at 28,659.81. The index lost 176.83 points at the day's low of 28,622.86 in mid-morning trade, its lowest level since 9 April 2015. The index gained 76.54 points at the day's high of 28,876.23 in opening trade.
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The CNX Nifty was down 57.30 points or 0.65% at 8,692.90. The index hit a low of 8,684.15 in intraday trade, its lowest level since 9 April 2015. The index hit a high of 8,760 in intraday trade.
The market breadth indicating the overall health of the market was weak. On BSE, 1,470 shares declined and 838 shares rose. A total of 81 shares were unchanged.
The BSE Mid-Cap index was off 82.46 points or 0.74% at 10,988.30. The BSE Small-Cap index was off 92.44 points or 0.78% at 11,808.95. The decline in both these indices was higher than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 1131 crore by 11:15 IST, compared with turnover of Rs 750 crore by 10:15 IST.
Bank stocks edged lower. Among private bank stocks, HDFC Bank (down 0.48%), Kotak Mahindra Bank (down 1.54%), Axis Bank (down 0.82%), Yes Bank (down 0.3%) and ICICI Bank (down 0.94%) declined.
IndusInd Bank slipped 0.38% ahead of its Q4 March 2015 results today, 16 April 2015.
Among PSU bank stocks, State Bank of India (SBI) (down 0.38%), Punjab National Bank (down 2.76%), Bank of Baroda (down 2.5%), Canara Bank (down 1.3%), Bank of India (down 0.26%) and Union Bank of India (down 1.27%) dropped.
The credit growth for Scheduled commercial banks' (SCBs) shot up to eight-month high of 12.6% to Rs 68309.65 billion as on 3 April 2015, showing sharp acceleration from 9.5% growth recorded a fortnight ago as on 20 March 2015, according to data released by the Reserve Bank of India yesterday, 15 April 2015. Non-food credit, accounting for 99% of the share of the total credit, zoomed at 11-month high pace of 13.2% to Rs 67617.38 billion as on 3 April as against a rise of 9.8% a fortnight ago.
Banks have extended loans worth Rs 2.66 trillion in the fortnight ended 3 April 2015, compared with Rs 7.66 trillion worth of loans extended in last whole year. The strong growth in advances in the fortnight ended 3 April 2015 relates to year-end or quarter end rush from the banks to meet the targets. Generally, these loans are rolled back in the early part of the new financial year or quarter, which leads to normalization of loans growth.
The overall credit-deposit ratio improved to 75.9% as on 3 April from 75.4% a fortnight ago and 75.6% a year ago.
Meanwhile, the Reserve Bank of India (RBI) today, 16 April 2015, issued a notification allowing banks to offer differential interest rates on term deposits based on whether the term deposits are with or without-premature-withdrawal-facility, subject to certain conditions. The RBI said that banks should have a board approved policy with regard to interest rates on deposits, including deposits with differential rates of interest and ensure that the interest rates offered are reasonable, consistent, transparent and available for supervisory review/scrutiny as and when required. Banks should disclose in advance the schedule of interest rates payable on deposits i.e. all deposits mobilized by banks should be strictly in conformity with the published schedule. The RBI also said that all term deposits of individuals (held singly or jointly) of Rs 15 lakh and below must have premature withdrawal facility.
Shares of upstream oil exploration and production (E&P) firms rose as global crude oil prices surged yesterday, 15 April 2015. Higher crude oil prices will result in higher realization from crude sales for oil exploration firms. Reliance Industries (up 0.19%), Cairn India (up 2.57%), and ONGC (up 2.14%) edged higher. Oil India fell 1.17%.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 62.38, compared with closing of 62.375 during the previous trading session.
Brent crude oil futures edged lower after a sharp surge overnight. Brent for June settlement was off 22 cents at $63.10 a barrel. The contract had surged $3.51 a barrel or 5.86% to settle at $63.32 a barrel during previous trading session. The surge in global crude oil prices yesterday, 15 April 2015, was triggered by a smaller-than-expected increase in weekly US crude stockpiles as well as forecast of higher demand from the International Energy Agency.
Prime Minister Narendra Modi yesterday, 15 April 2015, said during joint press interaction with Prime Minister of Canada Stephen Harper at Ottawa, Canada that India's agreement on procurement of uranium from Canada for India's civilian nuclear power plants launches a new era of bilateral nuclear cooperation between the two countries. Modi sought Canada's cooperation and investment in energy, infrastructure, manufacturing, Smart Cities, and agro-industry and Research and Education in India. Modi is currently on an official visit to Canada.
Asian stocks edged higher today, 16 April 2015, tracking overnight gains in US markets. Key benchmark indices in China, Taiwan, Hong Kong, Indonesia and South Korea rose by 0.11% to 2.12%. Key benchmark indices in Japan and Singapore fell 0.08% to 0.26%.
China attracted $12.4 billion of foreign direct investment in March, up 2.2% from a year earlier, the Ministry of Commerce said in a statement today, 16 April 2015. The figure was up from February's $8.56 billion, which was 0.9% higher than a year earlier. FDI in the January-March period rose 11.3% on year to $34.88 billion.
Trading in US index futures indicated that the Dow could rise 21 points at the opening bell today, 16 April 2015. US stocks edged higher yesterday, 15 April 2015, as better-than-expected earnings and a jump in oil prices invigorated stock market bulls.
In economic news, the Empire State manufacturing index plunged, falling to a negative reading, while, industrial production fell by more than expected in March. Both reports suggested a deceleration in economic growth. Meanwhile, a gauge of confidence among home builders rose in April, according to the National Association of Home Builders/Wells Fargo housing-market index released yesterday, 15 April 2015
St. Louis Fed President James Bullard, speaking at the annual Hyman Minsky conference yesterday, 15 April 2015, made a case for raising interest rates soon, arguing the level needs to be appropriate for the coming "boom" for the US economy.
In Europe, the European Central Bank (ECB), as expected, left official interest rates unchanged after a monetary policy review yesterday, 15 April 2015. The bank's refi rate remains at 0.05%, while the interest rate on its marginal lending facility stands at 0.3% and the deposit rate at minus 0.2%. ECB President Mario Draghi said in a news conference that the bank's stimulus efforts are beginning to take hold in the European economy and batted away concerns in financial markets that the bank may have to end its more than 1 trillion ($1.1 trillion) asset purchase program early.
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