After moving alternately between positive and negative zone in early afternoon trade, key benchmark indices lost ground in afternoon trade. While the losses for the barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty were modest, the broad market depicted weakness. There were more than two losers for every gainer on BSE. The Sensex was currently off 64.43 points or 0.22% at 28,786.54. The BSE Mid-Cap index was off 0.81%. The Small-Cap index was off 1.23%. The decline in both these indices was higher than the Sensex's decline in percentage terms. Brent crude oil futures extended gains after a sharp surge in prices overnight triggered by reports of more unrest in the oil producing country Libya.
Meanwhile, as a measure to incentivise long term investors, the Reserve Bank of India (RBI) yesterday, 5 February 2015, allowed foreign portfolio investors (FPIs) to invest in government securities the coupons received on their existing investments in government securities.
Index heavyweight and cigarette major ITC edged higher. Index heavyweight and housing finance major HDFC extended intraday gain. Banks stocks trimmed intraday losses, with some bank stocks bouncing into positive zone from negative zone. Power equipment major Bharat Heavy Electricals (Bhel) dropped in volatile trade. Shares of paint makers dropped after global crude oil prices rebounded.
Earlier, the Sensex and the 50-unit CNX Nifty had, both, hit their lowest level in more than two weeks in mid-morning trade as these two key benchmark indices lost ground after seeing volatility earlier during the trading session.
Foreign portfolio investors sold shares worth a net Rs 27.43 crore yesterday, 5 February 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 325.61 crore yesterday, 5 February 2015, as per provisional data.
In the overseas markets, Asian stock markets were mixed today, 6 February 2015, as investors awaited the closely-watched US jobs report, which could provide cues on the US economic recovery. US stock markets surged yesterday, 5 February 2015, buoyed by a rebound in oil prices, deal news and upbeat quarterly earnings.
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In the foreign exchange market, the rupee edged lower against the dollar in choppy trade.
Brent crude oil futures extended gains after a sharp surge in prices overnight triggered by reports of more unrest in the oil producing country Libya. Global crude oil prices have witnessed high volatility recently after a steep slide in prices over the past few months. The recent rebound 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 13:17 IST, the S&P BSE Sensex was off 64.43 points or 0.22% at 28,786.54. The index fell 129.73 points at the day's low of 28,721.24 in mid-morning trade, its lowest level since 20 January 2015. The index rose 71.88 points at the day's high of 28,922.85 in morning trade.
The CNX Nifty was off 23.40 points or 0.27% at 8,688.30. The index hit a low of 8,661.65 in intraday trade, its lowest level since 20 January 2015. The index hit a high of 8,726.20 in intraday trade.
The BSE Mid-Cap index was off 86.12 points or 0.81% at 10,517.45. The BSE Small-Cap index was off 139.10 points or 1.23% at 11,144.04. The decline in both these indices was higher than the Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was quite weak, with more than two losers for every gainer on BSE. 1,814 shares declined and 807 shares advanced. A total of 107 shares were unchanged.
The total turnover on BSE amounted to Rs 1876 crore by 13:15 IST.
Index heavyweight and cigarette major ITC rose 1.15% to Rs 372.90. The stock hit a high of Rs 373 and low of Rs 367 so far during the day.
Bharat Heavy Electricals (Bhel) lost 2.76% to Rs 269.85. The stock was volatile. The stock hit a high of Rs 279.60 and low of Rs 268.05 so far during the day.
Index heavyweight and housing finance major HDFC gained 2.91% to Rs 1,285.30. The stock hit a high of Rs 1,289 and low of Rs 1,245 so far during the day.
Banks stocks trimmed intraday losses, with some bank stocks bouncing into positive zone from negative zone. Among PSU bank stocks, Bank of Baroda (down 0.73%), Canara Bank (down 1.26%), and Vijaya Bank (down 1.53%) dropped.
State-run banking giant State Bank of India (SBI) rose 1.01% to Rs 293.75. The stock hit high of Rs 294.80 and low of Rs 286.15 so far during the day.
Punjab National Bank rose 1.34% to Rs 174.30. The stock hit high of Rs 175.65 and low of Rs 168.30 so far during the day
Bank of India rose 0.56% to Rs 250.95. The stock hit high of Rs 251.70 and low of Rs 243.20 so far during the day
Union Bank of India rose 0.36% to Rs 194.10. The stock hit high of Rs 196.50 and low of Rs 191.50 so far during the day.
Among private bank stocks, IndusInd Bank (down 1.18%), ING Vysya Bank (down 2.11%), Kotak Mahindra Bank (down 0.85%), Axis Bank (down 0.78%) declined. Yes Bank (up 0.66%) and ICICI Bank (up 0.12%) rose.
HDFC Bank fell 1.28% at Rs 1,063.50. The stock hit a high of Rs 1,080 and a low of Rs 1,057 so far during the day. HDFC Bank after market hours yesterday, 5 February 2015, said that the special committee of the bank, at its meeting held on 5 February 2015, inter alia, declared the closure of the issue period for the QIP on 5 February 2015. The committee approved the issue price of Rs 1,067 per equity share for the equity shares to be allotted to determined and approved eligible qualified institutional buyers (QIBs) in the QIP.
Separately, HDFC Bank after market hours yesterday, 5 February 2015 said that the special committee of the bank, at its meeting held on 5 February 2015, inter alia, declared the closure of the issue period for the ADR offering on 5 February 2015. The committee approved the issue price of $57.76 per ADR to be issued to eligible investors in the ADR offering.
The Reserve Bank of India (RBI) yesterday, 5 February 2015, said in its guidelines for implementation of Countercyclical Capital Buffer (CCCB) that the CCCB may be maintained in the form of Common Equity Tier 1 (CET 1) capital or other fully loss absorbing capital only, and that the amount of the CCCB may vary from 0 to 2.5% of total risk weighted assets (RWA) of the banks. While the framework for CCCB takes immediate effect, the activation of CCCB will take place when circumstances warrant, the RBI said. Currently, circumstances do not warrant activation of CCCB, the central bank said. All banks operating in India should maintain capital for Indian operations under CCCB framework based on their exposures in India, the RBI said. For all banks operating in India, CCCB shall be maintained on a solo basis as well as on consolidated basis, the central bank said.
The credit-to-GDP gap will be the main indicator in the CCCB framework in India. However, credit-to-GDP gap shall not be the only reference point and shall be used in conjunction with gross non-performing assets (GNPA) growth, the RBI said. Credit-to-GDP gap is the difference between credit-to-GDP ratio and the long term trend value of credit-to-GDP ratio at any point in time. The same set of indicators that are used for activating CCCB may be used to arrive at the decision for the release phase of the CCCB, the RBI said.
Maruti Suzuki India shed 0.55% at Rs 3,502.75. The company during market hours today, 6 February 2015, said its total production rose 11.07% to 1.21 lakh units in January 2015 over January 2014.
Shares of paint makers dropped after global crude oil prices rebounded. Rising crude oil prices could adversely affect operating profit margins of paints makers as titanium dioxide is a key raw material for paint companies and is derived from crude oil prices. Berger Paints (down 2.2%), Shalimar Paints (down 5.44%), Asian Paints (down 1.48%), Akzo Nobel India (down 1.18%) and Kansai Nerolac Paints (down 1.27%), edged lower.
In the foreign exchange market, the rupee edged lower against the dollar in choppy trade. The partially convertible rupee was hovering at 61.7575, compared with its close of 61.74 during the previous trading session.
Brent crude oil futures extended gains after a sharp surge in prices overnight triggered by reports of more unrest in the oil producing country Libya. Brent for March settlement was up $1.39 a barrel at $57.96 a barrel. The contract had advanced $2.41 a barrel or 4.44% to settle at $56.57 a barrel during the previous trading session.
Meanwhile, as a measure to incentivise long term investors, the Reserve Bank of India (RBI) yesterday, 5 February 2015, allowed foreign portfolio investors (FPIs) to invest in government securities the coupons received on their existing investments in government securities. These investments shall be kept outside the applicable limit for investments by FPIs in government securities, currently capped at $30 billion, the RBI said in a notification.
Asian stock markets were mixed today, 6 February 2015, as investors awaited the closely-watched US jobs report, which could provide cues on the US economic recovery. Key indices in Japan, Singapore, South Korea, and Indonesia were up 0.14% to 0.82%. In Taiwan, the Taiwan Weighted was off 0.59%.
Stocks fell in China after a senior official from the People's Bank of China said the latest reserve-ratio cut by the central bank is not the start of strong stimulus, according to state media reports in the previous day. In mainland China, the Shanghai Composite index was off 1.93%. In Hong Kong, the Hang Seng index was off 0.36%.
Australia's central bank today, 6 February 2015, lowered both its medium-term forecasts for inflation and economic growth, saying the economy won't grow fast enough in the next year to prevent a further rise in unemployment. The Reserve Bank of Australia (RBA) said GDP growth is expect to remain weak through 2015, tracking below 3%, a rate often cited as needed to prevent unemployment from rising.
Trading in US index futures indicated a flat opening of US stocks today, 6 February 2015. US stock markets advanced yesterday, 5 February 2015, buoyed by a rebound in oil prices, deal news and upbeat quarterly earnings.
The US government is schedule to release nonfarm payroll data for January 2015 later in the global day today, 6 February 2015.
In Europe, industrial output in Germany finished the last month of 2014 above the growth line, albeit just barely, data from the economy ministry showed today, 6 February 2015. Output rose only 0.1% in December 2014. Broken down by category, manufacturing output was up 0.5%, while construction output declined 2.9%.
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