Banking and IT stocks led decline as an increase in global crude oil prices and weakness in global stocks triggered a sharp slide in key equity benchmark indices in India. Nevertheless, key indices trimmed losses after a steep intraday slide in late trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their lowest closing level in more than 10 weeks. After falling below the psychological 28,000 mark at onset of the day's trading session, the Sensex traded below that level throughout the trading day. The Sensex slumped 654.25 points or 2.33% to settle at 27,457.58. The market breadth indicating the overall health of the market was weak.
Global stocks fell as weak US durable goods data sparked concerns about the pace of economic recovery in the world's biggest economy. Geopolitical worries triggered by escalating conflict in Yemen also weighed on global stocks.
IT stocks declined as soft US economic data released yesterday, 25 March 2015, raised concerns about US growth. Index heavyweights HDFC, ITC and Reliance Industries dropped.
Brent crude oil futures rose amid concern over the worsening geopolitical situation in the Middle East after Saudi Arabia said it and its allies had launched airstrikes on rebel forces in Yemen dampened sentiment on domestic bourses.
Higher crude oil prices could increase fiscal deficit and current account deficit and stoke fuel price inflation. India imports 80% of its crude oil requirement.
Meanwhile, in the futures & options (F&O) segment the near month March 2015 derivatives contracts expired today, 26 March 2015.
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Foreign portfolio investors (FPIs) bought shares worth Rs 874.29 crore from the secondary equity market yesterday, 25 March 2015, as per data from Central Depository Services (India). Domestic institutional investors (DIIs) bought shares worth a net Rs 96.52 crore yesterday, 25 March 2015, as per provisional data released by the stock exchanges.
In overseas markets, European stocks declined following an overnight sell-off in US stocks. Asian stocks edged lower as tensions in the Middle East and overnight losses on Wall Street soured sentiment. US markets dropped sharply yesterday, 25 March 2015, as downbeat economic data and continued concerns over the strong US dollar hit investor sentiment.
In the foreign exchange market, the rupee edged lower against the dollar on global risk-off sentiment.
The S&P BSE Sensex fell 654.25 points or 2.33% to settle at 27,457.58, its lowest closing level since 14 January 2015. The index lost 726.96 points at the day's low of 27,384.87 in late trade. The index fell 114.69 points at the day's high of 27,997.14 in early trade.
The CNX Nifty fell 188.65 points or 2.21% to settle at 8,342.15, its lowest closing level since 14 January 2015. The index hit a low of 8,325.35 in intraday trade. The index hit a high of 8,499.45 in intraday trade.
The market breadth indicating the overall health of the market was weak. On BSE, 1,822 shares declined and 979 shares gained. A total of 115 shares were unchanged.
The BSE Mid-Cap index fell 88.16 points or 0.84% at 10,355.03. The BSE Small-Cap index fell 105.40 points or 1% at 10,474.56. The fall in both these indices was lower than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 2978 crore, lower than turnover of Rs 4405.75 crore registered yesterday, 25 March 2015.
Among the sectoral indices on BSE, the S&P BSE Bankex (down 2.52%) and the S&P BSE IT index (down 2.63%) underperformed the Sensex. The S&P BSE Capital Goods index (up 0.08%), the S&P BSE Power index (down 0.78%), the S&P BSE Consumer Durables index (down 0.85%), the S&P BSE Oil & Gas index (down 1.11%), the S&P BSE FMCG index (down 1.42%), the S&P BSE Realty index (down 1.48%), the S&P BSE Auto index (down 1.5%), the S&P BSE Healthcare index (down 1.9%), the S&P BSE Teck index (down 2.04%) and the S&P BSE Metal index (down 2.24%), outperformed the Sensex.
Index heavyweight Reliance Industries lost 1.67% to Rs 830.60. The stock hit high of Rs 848.75 and low of Rs 824.55.
Index heavyweight and cigarette maker ITC lost 1.15% to Rs 322.65. The stock hit high of Rs 328.95 and low of Rs 320.80.
Index heavyweight and housing finance major HDFC lost 5.32% to Rs 1,283.20. The stock hit high of Rs 1,350 and low of Rs 1,270.95.
Software pivotals declined as downbeat US economic data released yesterday, 25 March 2015, raised concerns about US growth. US is the biggest outsourcing market for Indian IT services firms. Wipro (down 4.01%), Infosys (down 3.3%), CMC (down 2.31%), HCL Technologies (down 1.85%), MphasiS (down 0.97%) and Tech Mahindra (down 0.78%), edged lower. Oracle Financial Services Software (up 1.16%) and MindTree (up 1.67%), edged higher.
TCS fell 2.32% to Rs 2,513.35. TCS today, 26 March 2015, launched ElectUK, a smartphone application that allows users to track, analyse and visualise Twitter conversations about the 2015 UK General Election. The announcement was made during market hours today, 26 March 2015. ElectUK has been created to engage voters, their representatives and political commentators by turning their smartphone into a Big Data social media analytics tool. The app is free to download and is available on both iOS and Android devices.
Bank stocks edged lower. Among private bank stocks, Axis Bank (down 3.03%), HDFC Bank (down 2.58%), Federal Bank (down 2.2%), Kotak Mahindra Bank (down 1.48%), IndusInd Bank (down 0.94%), City Union Bank (down 0.62%) and Yes Bank (down 0.21%), edged lower. ING Vysya Bank rose 1.36%.
ICICI Bank fell 2.90% to Rs 307.55. The Ministry of Defence after trading hours yesterday, 25 March 2015, announced the signing of a Memorandum of Understanding (MoU) between the Indian Army and ICICI Bank on the Defence Salary Package. The first MoU between ICICI Bank and the Indian Army was signed in 2011 and was valid for a period of three years. The revised MoU is tailor made to suit the requirements of serving soldiers, pensioners and families. The Ministry of Defence said that India Army is confident that this MoU will benefit a large number of serving and retired Army personnel who are having their accounts with ICICI Bank and also provide them an opportunity to access modern banking facilities. The basic features of the MoU are the same as before, the Ministry of Defence said. Some features which have been improved from before are enhancement of Personal Accident Insurance (PAI) cover, enhancement of Air Accident Insurance cover, insurance cover on house loan and enhancement of purchase protection.
Among PSU bank stocks, Punjab National Bank (down 4.28%), Bank of Baroda (down 2.89%), Union Bank of India (down 2.38%), Allahabad Bank (down 2.31%), Indian Bank (down 2.31%), Bank of India (down 2.3%), Canara Bank (down 2.26%), Andhra Bank (down 1.85%), Syndicate Bank (down 1.55%), UCO Bank (down 1.55%), IDBI Bank (down 1.03%) and Vijaya Bank (down 1%), edged lower. Bank of Maharashtra (up 1.15%), Dena Bank (up 1.37%), Punjab and Sind Bank (up 1.57%), Central Bank of India (up 2.04%) and United Bank of India (up 5.01%), edged higher.
State Bank of India (SBI) shed 3.18% to Rs 256.90. SBI before market hours today, 26 March 2015, announced that consequent upon the promulgation of the Insurance Laws (Amendment) Ordinance, 2014 and subsequently passed by both the houses of parliament, the Executive Committee of the Central Board (ECCB) of the bank yesterday, 25 March 2015, decided to initiate the necessary action as per joint venture (JV) agreement for dilution of SBI's stake in SBI General Insurance from 76% to 51% with corresponding increase of stake of IAG from 26% to 49%, including appointment of a valuer to facilitate valuation and price discovery.
Telecom stocks were mixed after the Ministry of Communications & Information Technology after market hours yesterday, 25 March 2015, said that the auction of spectrum in 2100 MHz, 1800 MHz, 900 MHz and 800 MHz bands came to an end yesterday, 25 March 2015 after 115 rounds of bidding.
Bharti Airtel (up 0.98%) and Idea Cellular (up 4.04%) rose. Reliance Communications (down 1.23%) and Tata Teleservices (Maharashtra) (down 0.26%) declined.
The Ministry of Communications & Information Technology said in a statement issued yesterday, 25 March 2015, that about 89% of the spectrum has been provisionally allocated to bidders at a value of approximately Rs 1.09 lakh crore.
Meanwhile, the Supreme Court today, 26 March 2015, reportedly allowed the central government to finalize the result of the telecom spectrum auction, which ended yesterday, 25 March 2015. The court was modifying its order of 26 February 2015, by which it had asked the Union government not to finalize the result of the auction which began on 4 March 2015. The court will hear the case next on 16 April 2015.
Key benchmark indices dropped for the seventh trading session in a row today, 26 March 2015. From a recent high of 28,736.38 on 17 March 2015, the Sensex has declined 1,278.80 points or 4.45% in seventh trading sessions. The Sensex has declined 1,903.92 points or 6.48% in this month so far (till 26 March 2015). The Sensex has fallen 41.84 points or 0.15% in this calendar year so far (till 26 March 2015). From a 52-week low of 22,094.29 on 27 March 2014, the Sensex has risen 5,363.29 points or 24.27%. The Sensex is off 2,567.16 points or 8.55% from a record high of 30,024.74 hit on 4 March 2015.
In the foreign exchange market, the rupee edged lower against the dollar on global risk-off sentiment. The partially convertible rupee was hovering at 62.71, compared with its close of 62.335 during the previous trading session.
Brent crude oil futures rose amid concern over the worsening geopolitical situation in the Middle East after Saudi Arabia said it and its allies had launched airstrikes on rebel forces in Yemen dampened sentiment on domestic bourses. Brent for May settlement was up $2.13 a barrel at $58.61 a barrel. The contract had gained $1.37 a barrel or 2.48% to settle at $56.48 a barrel during the previous trading session.
Finance Minister Arun Jaitley reportedly said yesterday, 25 March 2015, that the government hopes to pass the Constitution Amendment Bill for the introduction of a nationwide Goods and Services Tax (GST) in the country during the second half of the Budget session of the parliament. The second half of the Budget session of the parliaments begins on 20 April 2015. The government tabled the Constitution Amendment Bill for GST in the Lok Sabha during the winter session of parliament. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. Central taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST. At the state level, taxes like VAT/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. would be subsumed in GST.
European stocks declined today, 26 March 2015, following an overnight sell-off in US stocks. Key benchmark indices in UK, France and Germany were down 1.03% to 1.39%.
Asian stocks edged lower today, 26 March 2015, as tensions in the Middle East and overnight losses on Wall Street soured sentiment. Key benchmark indices in Taiwan, Indonesia, Japan, Hong Kong and South Korea fell by 0.13% to 1.39%. Key benchmark indices in China and Singapore rose by 0.37% to 0.58%.
Trading in US index futures indicated that the Dow could fall 123.50 points at the opening bell today, 26 March 2015. US markets dropped sharply yesterday, 25 March 2015 as downbeat economic data and continued concerns over the strong US dollar hit investor sentiment.
In economic data, US business investment spending plans fell for a sixth straight month in February weighed down by a strengthening dollar, weak global demand and restrained activity due to poor weather. The Commerce Department said yesterday, 25 March 2015, that non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, dropped 1.4% in February after a revised 0.1% dip in January.
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