Weakness persisted on the bourses in early afternoon trade as the key benchmark indices languished in negative territory. The barometer index, the S&P BSE Sensex was currently off 135.05 points or 0.47% at 28,664.67. The market breadth indicating the overall health of the market was weak. Losses ranged from 2% to about 8% for quite a few stocks which are the constituents of the BSE Small-Cap index. Global crude oil prices surged overnight.
IT stocks declined after US industrial production fell by more than expected in March. Auto stocks rose after public sector oil marketing companies announced a reduction in retail selling price of petrol and diesel yesterday, 15 April 2015.
Earlier during the day, the barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit one-week low in mid-morning trade.
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, 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 lower 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 12:16 IST, the S&P BSE Sensex was down 135.05 points or 0.47% at 28,664.67. The index lost 176.83 points at the day's low of 28,622.86 in mid-morning trade, its lowest level since 9 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 55.80 points or 0.64% at 8,694.40. The index hit a low of 8,684.15 in intraday trade, its lowest level since 9 April 2015. The index hit a high of 8,760 in intraday trade.
The market breadth indicating the overall health of the market was weak. On BSE, 1,530 shares declined and 901 shares rose. A total of 94 shares were unchanged.
The BSE Mid-Cap index was off 75.95 points or 0.69% at 10,994.81. The BSE Small-Cap index was off 90.65 points or 0.76% at 11,810.74. The decline in both these indices was higher than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 1489 crore by 12:15 IST, compared with turnover of Rs 1131 crore by 11:15 IST.
IT stocks declined after US industrial production fell by more than expected in March. The United States is the biggest outsourcing market for Indian IT firms.
Infosys (down 1.68%), Wipro (down 2.27%), and HCL Technologies (down 0.83%) declined.
IT major TCS lost 1.23%. TCS announces its Q4 March 2015 and year ended 31 March 2015 results today, 16 April 2015.
Tech Mahindra fell 1.2%. Tech Mahindra and Comverse announced after market hours yesterday, 15 April 2015, that they have reached an agreement in principle on a strategic relationship, whereby Comverse will accelerate its transformation as a global innovator in digital services by leveraging Tech Mahindra's expertise and scale in development and delivery of digital offerings. As part of this initiative, employees from certain functions within Comverse's Digital Services business unit are anticipated to join Tech Mahindra. Tech Mahindra is a specialist in digital transformation, consulting and business re-engineering, particularly in the global technology industry.
Auto stocks rose after public sector oil marketing companies announced a reduction in retail selling price of petrol and diesel yesterday, 15 April 2015.
Mahindra & Mahindra (up 0.63%), Maruti Suzuki India (up 0.27%), and Bajaj Auto (up 0.09%) edged higher. TVS Motor Company declined 1.35%.
Tata Motors rose 0.99%. Tata Motors after market hours yesterday, 15 April 2015 said that Tata Motors group global wholesales, including Jaguar Land Rover (JLR) rose 9% to 1.03 lakh units in March 2015 over March 2014. Global wholesales of Tata Motors' passenger vehicles rose 17% to 15,373 units in March 2015 over March 2014. Global wholesales of JLR rose 15.65% to 50,093 units in March 2015 over March 2014.
Eicher Motors rose 1.39%. The Reserve Bank of India (RBI) yesterday, 15 April 2015, notified increase in the limit of shareholding by Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) to 49% of the company's paid up capital from 24% earlier. Total holding of FIIs in Eicher Motors stood at 19.47% as on 31 December 2014
Hero MotoCorp fell 1.34%. Hero MotoCorp before market hours today, 16 April 2015, clarified that the company's future product line-up would not be adversely affected despite Erik Buell Racing, Inc. (EBR) ceasing its operations. The Board of Directors of EBR has passed a resolution for an assignment for the Benefit of Creditors under Chapter 128 of the Wisconsin Statutes for itself and its subsidiary viz. Erik Buell Racing LLC and to direct the proposed assignee or his counsel to file such assignment in the court for the County of Walworth, State of Wisconsin, Hero MotoCorp said. This is similar to the federal bankruptcy law of the United States. Hero MotoCorp had invested $25 million in EBR through a wholly owned subsidiary in Delaware, USA by the name of HMCL (NA), Inc.
Hero MotoCorp said that the company has strong in-house R&D capabilities and therefore the management remains confident that the company's future product line-up would not be affected despite EBR ceasing operations. Hero MotoCorp said that the company's Centre for Global Innovation, Research & Design coming up at Kukas on the outskirts of Jaipur in Rajasthan is expected to commence operations during the current financial year. It will have around 600 engineers from India and around the world, the company said.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 62.3825, 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 26 cents at $63.06 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.
Asian stocks edged higher today, 16 April 2015, tracking overnight gains in US markets. Key benchmark indices in China, Taiwan, Japan, Indonesia and South Korea rose by 0.08% to 1.24%. Key benchmark indices in Hong Kong and Singapore fell 0.06% to 0.36%.
Chinese Premier Li Keqiang was quoted today, 16 April 2015 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. While China is on the receiving end of deflation due to falling global commodity prices, China is not in deflation, as per reports. China would welcome steady growth in its property market, but the government would guard against housing bubbles, reports added.
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 that the Dow could rise 11 points 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.
In Europe, the European Central Bank (ECB), as expected, left official interest rates unchanged after a monetary policy review yesterday, 15 April 2015. 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.
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