A bout of volatility was witnessed as key benchmark indices trimmed losses in mid-afternoon trade after extending intraday slide in afternoon trade. The barometer index, the S&P BSE Sensex, was currently off 215.19 points or 0.75% at 28,584.50. The broad market depicted weakness. There were more than two losers against every gainer on BSE. The BSE Mid-Cap index was off 1.08%. The BSE Small-Cap index was off 1.09%. Both these indices underperformed the Sensex. Losses ranged from 2% to about 17% 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.
IndusInd Bank rose in volatile trade after the private sector bank reported good Q4 March 2015 results. Realty stocks declined.
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.
Earlier, the Sensex and the 50-unit CNX Nifty, both, had hit their lowest level in more than a week in afternoon trade as these two key benchmark indices extended intraday losses.
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.
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In the foreign exchange market, the rupee edged higher 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. 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. India imports about 80% of its crude oil requirements.
At 14:16 IST, the S&P BSE Sensex was down 215.19 points or 0.75% at 28,584.50. The index lost 301.99 points at the day's low of 28,497.70 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 75.45 points or 0.86% at 8,674.75. The index hit a low of 8,645.65 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. 1,811 shares declined and 892 shares rose. A total of 101 shares were unchanged.
The BSE Mid-Cap index was off 119.34 points or 1.08% at 10,951.42. The BSE Small-Cap index was off 129.90 points or 1.09% at 11,771.49. The decline in both these indices was higher than the Sensex's decline in percentage terms.
Bharat Heavy Electricals (Bhel) shed 0.79%. Bhel during market hours today, 16 April 2015, said that with the commissioning of the fourth 600 megawatts (MW) thermal unit, the company has successfully commissioned the 2400 MW OP Jindal Super Thermal Power Project (STPP) Extension, in Chhattisgarh. Bhel has added three units of 600 MW aggregating to 1800 MW capacity in the state of Chhattisgarh in the last three months. The unit has been commissioned at Jindal Power's (JPL) project located at Tamnar in Raigarh district of Chhattisgarh.
Shares of Jindal Steel & Power (JSPL) were off 0.38%. JPL is power generation subsidiary of JSPL.
IndusInd Bank rose in volatile trade after the private sector bank reported good Q4 March 2015 results. The stock was up 0.05% at Rs 948.50. The stock hit high of Rs 960.80 and low of Rs 935.50 so far during the day. The bank's net profit rose 25.05% to Rs 495.27 crore on 19.81% increase in total income to Rs 3,237.43 crore in Q4 March 2015 over Q4 March 2014. The result was announced during trading hours today, 16 April 2015.
In terms of a Reserve Bank of India (RBI) circular dated 26 February 2014, in respect of assets sold to SC/RCs, during the quarter ended 31 March 2015, the shortfall arrived at by deducting sale consideration and provisions held as on the date of sale from the outstanding amount, is being amortized over two years. Accordingly, the bank has charged an amount of Rs 32.09 crore in Q4 March 2015.
IndusInd Bank's ratio of net non-performing assets (NPAs) to net advances stood at 0.31% as on 31 March 2015, compared with 0.32% as on 31 December 2014 and 0.33% as on 31 March 2014. The bank's ratio of gross NPAs to gross advances stood at 0.81% as on 31 March 2015, compared with 1.05% as on 31 December 2014 and 1.12% as on 31 March 2014.
Lupin fell 3.08% to Rs 1,887.70. Shares of Aurobindo Pharma were up 1.18%. A foreign brokerage had reportedly said that the generic approval for Lupin's Suprax in the United States would hurt Lupin's earnings as this approval has come earlier than expected. This is the first generic approval for Suprax. It may be recalled that Aurobindo Pharma during market hours yesterday, 15 April 2015, said that it has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Cefixime, a bioequivalent to Lupin's Suprax for oral suspension USP, 100mg/5mL and 200mg/5mL.
Realty stocks declined. Indiabulls Real Estate (down 4.09%), Housing Development and Infrastructure (down 5.07%), D B Realty (down 2.78%), Unitech (down 2.29%) Sobha (down 3.94%), Godrej Properties (down 1.57%) declined.
DLF lost 1.95%. DLF after market hours yesterday,, 15 April 2015, said that the Securities Appellate Tribunal (SAT) has passed an order taking on record Securities and Exchange Board of India's (Sebi) undertaking that Sebi will not take any action to enforce the payment of penalty amount against the company during the pendency of the appeal and has posted the appeal on 9 July 2015 for hearing. It may be recalled that DLF has filed an appeal before SAT against Sebi's order imposing cumulative penalty of Rs 26 crore against the company.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade. The partially convertible rupee was hovering at 62.34, 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 73 cents at $62.59 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 0.07% to 0.53%.
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 and South Korea rose by 0.08% to 2.71%. Key benchmark indices in Indonesia and Singapore fell 0.18% to 0.38%.
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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