After intraday rebound in afternoon trade, a divergent trend was witnessed among the two key benchmark indices in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was trading with small gains while the 50-unit CNX Nifty was trading a tad lower. The Sensex was currently up 26.41 points or 0.1% at 27,483.99. The Nifty was currently off 4.05 points or 0.05% at 8,338.10. The market breadth indicating the overall health of the market was quite weak, with more than two losers against every gainer on BSE.
Banking stocks were mixed. Oil & gas stocks declined. Index heavyweights Reliance Industries edged lower in volatile trade.
Earlier, the Sensex and the Nifty, both, hit their lowest level in more than 10 weeks in afternoon trade as these two key benchmark indices extended intraday losses.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 521.23 crore yesterday, 26 March 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 687.09 crore yesterday, 26 March 2015, as per provisional data.
In overseas markets, European stocks edged higher as a renewed fall in the euro currency helped boost the shares of exporting companies. Asian stocks were mixed. US stocks edged lower yesterday, 26 March 2015, as a better-than-expected report on weekly jobless claims did little to alleviate concerns of a marked slowdown in the US economy during the first quarter.
In the foreign exchange market, the rupee edged higher against the dollar.
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Brent crude oil futures declined after sharp gains in the previous session as worries of a disruption to crude supplies due to Saudi Arabia-led air strikes in Yemen eased.
At 14:15 IST, the S&P BSE Sensex was up 26.41 points or 0.1% at 27,483.99. The index fell 209.13 points at the day's low of 27,248.45 in afternoon trade, its lowest level since 14 January 2015. The index jumped 236.83 points at the day's high of 27,694.41 at the onset of the trading session.
The 50-unit CNX Nifty was off 4.05 points or 0.05% at 8,338.10. The index hit a low of 8,269.15 in intraday trade, its lowest level since 14 January 2015. The index hit a high of 8,413.20 in intraday trade.
The market breadth indicating the overall health of the market was quite weak, with more than two losers against every gainer on BSE. 1,817 shares declined and 871 shares rose. A total of 113 shares were unchanged.
The BSE Mid-Cap index was off 48.86 points or 0.47% at 10,306.17. The BSE Small-Cap index was off 68.89 points or 0.66% at 10,405.67. Both these indices underperformed the Sensex.
Banking stocks were mixed. Among PSU bank stocks, State Bank of India (SBI) (up 2.49%), Andhra Bank (up 2.08%), Allahabad Bank (up 1.31%) and Bank of India (up 0.08%) gained. Punjab National Bank (down 1.34%), Bank of Baroda (down 0.31%), Canara Bank (down 1.18%) and Union Bank of India (down 1.42%) declined.
Among private bank stocks, HDFC Bank (up 1.06%), IndusInd Bank (up 0.74%), ING Vysya Bank (up 0.58%), and ICICI Bank (up 2.26%) gained. Kotak Mahindra Bank (down 0.41%) and Axis Bank (down 0.31%) declined.
Yes Bank slipped 0.35%.
Jindal Steel & Power (JSPL) jumped 4.06% after the Delhi High Court reportedly said yesterday, 26 March 2015, that the government's decision to cancel the bid of the company's power unit Jindal Power (JPL) for two Chhattisgarh coal mines by annulling the tender process and allotting them to Coal India (CIL) is prima facie wrong. It may be recalled that that the Government of India had rejected JSPL's bids for Gare Palma IV/2 & IV/3 and Tara coal blocks in the recently concluded coal auctions.
Yes Bank today, 27 March 2015, replaced Jindal Steel & Power as a constituent in the 50-unit CNX Nifty index.
Shares of oil exploration and production (E&P) companies edged lower. Cairn India lost 2.71%.
Oil India fell 2.54%. ONGC rose 0.18%. Both these state-run companies may reportedly be exempt from paying subsidies to fuel retailers in the March 2015 quarter.
PSU OMCs fell as crude oil prices surged yesterday, 26 March 2015. HPCL (down 0.54%), BPCL (down 1.79%), and Indian Oil Corporation (down 1%) declined. Higher crude oil prices could increase under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. However, gains in rupee against the dollar will mitigate the negative impact of higher crude oil price. Gains in local currency will reduce the cost of imports. The government has already freed pricing of petrol and diesel.
Shares of state-run gas transmission and distribution firm GAIL (India) were off 0.33%. GAIL (India) bears a part of the subsidy burden of PSU OMCs on sale of LPG.
Prime Minister Narendra Modi,today, 27 March 2015, appealed to well-to-do sections of Indian society to voluntarily give up LPG subsidy so that the benefit of the same could be shared more widely with poorer sections of society. Delivering the inaugural address at the global energy summit - Urja Sangam-2015 - in New Delhi, the Prime Minister said about 2.8 lakh people from across the country had already given up LPG subsidy. He said this was an important contribution for the service of the poor.
The Prime Minister called for enhancing domestic production to reduce the energy import burden of the country by at least 10%, till 2022 , the occasion of the platinum jubilee of India's independence. The Prime Minister called upon India's energy sector to plan for the next five decades with a global perspective. He said India, with one-sixth of the world's population, should shoulder one-sixth of the world's energy responsibility, hence contributing to global prosperity.
The Prime Minister highlighted various achievements of the Union Government, and reforms initiated in the energy sector over the last ten months. He said these reforms were motivated by the quest for greater energy security, which is both a necessity and responsibility. He said transfer of LPG subsidy directly into bank accounts through the world's largest cash subsidy transfer programme in the world - PAHAL - had resulted in elimination of leakages, and curbing corruption. He also mentioned deregulation of diesel prices, ethanol blended petrol to help sugarcane farmers, promotion of bio-diesel, and extension of the gas grid in eastern India, as some of the other major initiatives of the Government. The Prime Minister said the Union Government aims to extend piped natural gas (PNG) to one crore houses over the next five years.
Index heavyweight Reliance Industries (RIL) was down 1.72% at Rs 816.30. The stock hit a high of Rs 835.15 and a low of Rs 801.50 so far during the day. Reliance Jio Infocomm (RJIL), a subsidiary of RIL, announced before market hours today, 27 March 2015, that it has successfully acquired the right to use spectrum in 13 key circles across India in the recently concluded spectrum auction conducted by DoT, Government of India. RJIL plans to provide seamless 4G services using LTE in 800MHz, 1800MHz and 2300MHz bands through an integrated ecosystem.
With this investment, in addition to the pan-India 2300MHz spectrum, RJIL has spectrum in either 800MHz or 1800MHz or both in 20 out of total 22 circles in the country. The payment to be made for the right to use this technology agnostic spectrum for a period of 20 years is Rs 10077.53 crore, RJIL said.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.56, compared with its close of 62.68 during the previous trading session.
Brent crude oil futures declined after sharp gains in the previous session as worries of a disruption to crude supplies due to Saudi Arabia-led air strikes in Yemen eased. Brent for May settlement was off 96 cents at $58.23 a barrel. The contract had gained $2.71 a barrel or 4.79% to settle at $59.19 a barrel yesterday, 26 March 2015. Global oil prices had surged yesterday, 26 March 2015, as air strikes in Yemen by Saudi Arabia and its Gulf Arab allies sparked fears that escalation of the Middle East battle could disrupt world crude supplies.
In overseas market, European stocks rose today, 27 March 2015, halting a sharp two-day retreat as a renewed fall in the euro currency helped boost the shares of exporting companies. Key benchmark indices in France and Germany were up 0.41% to 0.46%. In UK, the FTSE 100 shed 0.18%.
Greece is locked in talks with the IMF and European creditors on a deal on economic reforms that would unlock 7.2 billion euros in aid. Greece needs the funding as it faces several major debt repayments in early April.
Asian stocks were mixed today, 27 March 2015. Key benchmark indices in Japan, Hong Kong, Taiwan and South Korea fell by 0.04% to 1.2%. Key benchmark indices in China, Indonesia and Singapore rose by 0.24% to 0.47%.
Trading in US index futures indicated that the Dow could rise 14 points at the opening bell today, 27 March 2015. US stocks edged lower yesterday, 26 March 2015, as a better-than-expected report on weekly jobless claims did little to alleviate concerns of a marked slowdown in the US economy during the first quarter.
In economic data, the number of people who applied for US unemployment benefits fell by 9,000 to 282,000 in the seven days from March 15 to March 21. The average of new claims over the past month, meanwhile, dipped below the key 300,000 threshold for the first time since late February. The four-week average dropped by 7,750 to 297,000, the Labor Department said yesterday, 26 March 2015.
Investors are today, 27 March 2015 awaiting revised fourth-quarter GDP figures, consumer sentiment data and a key speech by Federal Reserve Chair Janet Yellen on monetary policy for further clues on the interest rate outlook.
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