Key equity benchmark indices in India extended losses in afternoon trade as European stocks edged lower in early trade there. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their lowest level in more than a week. The Sensex was currently off 263.02 points or 0.91% at 28,536.67.
The broad market depicted weakness. There were more than two losers against every gainer on BSE. The BSE Mid-Cap index was off 1.26%. The BSE Small-Cap index was off 1.27%. Both these indices underperformed the Sensex. Losses ranged from 2% to about 16% for quite a few stocks which are the constituents of the BSE Small-Cap index. European stocks edged lower after global crediting rating agency Standard & Poor's Ratings Services yesterday, 15 April 2015, slashed its credit ratings on Greece's debt deeper into junk territory. Brent crude oil futures edged lower after a sharp surge overnight.
Telecom stocks bucked the weak trend. Cement stocks dropped.
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, European stocks edged lower after global crediting rating agency Standard & Poor's Ratings Services yesterday, 15 April 2015, slashed its credit ratings on Greece's debt deeper into junk territory. 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 was currently almost unchanged against the dollar.
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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 13:16 IST, the S&P BSE Sensex was down 263.02 points or 0.91% at 28,536.67. The index lost 276.95 points at the day's low of 28,522.74 in afternoon trade, its lowest level since 7 April 2015. The index gained 76.54 points at the day's high of 28,876.23 in opening trade.
The CNX Nifty was down 93.45 points or 1.07% at 8,656.75. The index hit a low of 8,651.90 in intraday trade, its lowest level since 7 April 2015. The index hit a high of 8,760 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. 1,790 shares declined and 823 shares rose. A total of 84 shares were unchanged.
The BSE Mid-Cap index was off 139.37 points or 1.26% at 10,931.39. The BSE Small-Cap index was off 151.12 points or 1.27% at 11,750.27. The decline in both these indices was higher than the Sensex's decline in percentage terms.
Telecom stocks gained. Bharti Airtel (up 0.7%), Idea Cellular (up 1.18%), and Reliance Communications (up 0.14%) gained. Tata Teleservices (Maharashtra) fell 1.65%.
Cement stocks dropped. ACC (down 2.74%), Ambuja Cements (down 2.4%), and UltraTech Cement (down 3.77%) declined. Shree Cement rose 0.09%.
Grasim Industries declined 1.28%. Grasim has exposure to the cement sector through its subsidiary UltraTech Cement.
Tata Steel rose 0.24%. The company's hot metal production rose 0.67% to 2.67 million tonnes in Q4 March 2015 over Q4 March 2014. Crude steel production fell 1.45% to 2.44 million tonnes in Q4 March 2015 over Q4 March 2014. Saleable steel production fell 1.68% to 2.38 million tonnes in Q4 March 2015 over Q4 March 2014. Sales rose 0.04% to 2.4 million tonnes in Q4 March 2015 over Q4 March 2014. The company announced the production data during market hours today, 16 April 2015.
In the foreign exchange market, the rupee edged was currently almost unchanged against the dollar. The partially convertible rupee was hovering at 62.3775, compared with its close 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 76 cents at $62.56 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.
In overseas markets, European stocks edged lower today, 15 April 2015, after global crediting rating agency Standard & Poor's Ratings Services (S&P) yesterday, 15 April 2015, slashed its credit ratings on Greece's debt deeper into junk territory. Key indices in France, Germany and UK were off 0.21% to 0.81%.
Greece remained in focus after S&P slashed its credit ratings on Greece's debt deeper into junk territory, saying it expects the country's debt and financial commitments to be unsustainable without deep economic reform. The country's Syriza-led government has been locked in negotiations with its international creditors since coming to power in late January, with progress slow. Greece needs to strike a deal within the next few months to secure billions of euros in bailout aid to avoid defaulting on its debts and potentially exiting the euro.
The European Central Bank (ECB) yesterday, 15 April 2015, left official interest rates unchanged after a monetary policy review. 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.
Asian stocks edged higher today, 16 April 2015, tracking overnight gains in US markets. Key benchmark indices in China, Hong Kong, Taiwan, Japan, Indonesia and South Korea rose by 0.15% to 2.71%. Singapore's Straits Times fell 0.41%.
Chinese Premier Li Keqiang was quoted as saying that it will not be easy for China to grow its economy by 7% this year, but he ruled out currency devaluation to promote growth through exports. Chinese economy is still under downward pressure, Li was quoted as saying in an interview to a newspaper.
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 a flat opening for US stocks 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.
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