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Key indices slide in volatile trade

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Capital Market
Last Updated : Mar 11 2015 | 12:01 AM IST

Key benchmark indices edged lower amid high volatility during the latter part of the trading session. The benchmark indices trimmed losses in late trade after extending intraday slide in mid-afternoon trade. The barometer index, the S&P BSE Sensex, trimmed losses after hitting its lowest level in almost four weeks. The 50-unit CNX Nifty trimmed losses after hitting its lowest level in almost two weeks. Earlier, key indices had seen a range bound movement until afternoon trade. The market breadth indicating the overall health of the market was negative. The Sensex was provisionally off 117.36 points or 0.41% at 28,727.42. Asian and European stocks were in red.

Realty stocks edged lower. Telecom stocks edged higher in choppy trade on buzz the auction of telecom spectrum has reached the final stage.

Meanwhile, Minister of Parliamentary Affairs M.Venkaiah Naidu said in the Lok Sabha yesterday, 9 March 2015, that the government is willing to consider some further amendments to ensure minimum land acquisition based on the views and suggestion of the opposition parties.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 838.30 crore yesterday, 9 March 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 35.31 crore yesterday, 9 March 2015, as per provisional data.

In the foreign exchange market, the rupee edged lower against the dollar as speculation an improving US economy will prompt the Federal Reserve to raise interest rates as early as June boosted the dollar.

Brent crude oil futures lower in volatile trade as investors awaited this week's energy agency reports for a fresh assessment of global oil supply and demand balances. Global crude oil prices have witnessed high volatility recently after a steep slide in prices during the second half of calendar year 2014. Deregulation of diesel price announced by the Indian government in October 2014 and a decline in global crude oil prices will help reduce the government's fuel subsidy burden and help contain its fiscal deficit. The slide in global crude oil prices will also help India in containing its current account deficit and fuel price inflation. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports. India imports 80% of its crude oil requirement.

In overseas markets, European stocks declined as renewed worries over Greece weighed on the sentiment. Asian stocks declined after the latest data showed China's factory prices extended their prolonged fall amid a slowing economy. US stocks closed higher yesterday, 9 March 2015, recovering from a sharp decline registered during the preceding trading session as investors took a more positive outlook on the strong February job report.

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As per provisional figures, the S&P BSE Sensex was down 117.36 points or 0.41% at 28,727.42. The index slumped 260.29 points at the day's low of 28,584.49 in late trade, its lowest level since 12 February 2015. The index jumped 104.33 points at the day's high of 28,949.11 in early trade.

The Nifty was down 45.65 points or 0.52% at 8,711.10, as per provisional figures. The index hit a low of 8,677.35 in intraday trade, its lowest level since 26 February 2015. The index hit a high of 8,778 in intraday trade.

The BSE Mid-Cap index was down 24.86 points or 0.23% at 10,876.38. The BSE Small-Cap index was down 23.32 points or 0.21% at 11,328.62. The decline in both these indices was lower than the Sensex's decline in percentage terms.

The total turnover on BSE amounted to Rs 3612 crore, lower than turnover of Rs 4610.46 crore during the previous trading session.

The market breadth indicating the overall health of the market was negative. On BSE, 1,575 shares fell and 1,263 shares rose. A total of 127 shares were unchanged.

L&T lost 0.15%. The company said during market hours that its Metallurgical and Material Handling (L&T-MMH) business has secured orders worth Rs 1242 crore across various business segments in Q4 March 2015 so far.

Realty stocks edged lower. Sobha (down 0.87%), DLF (down 4.38%), Unitech (down 0.53%), Godrej Properties (down 1.86%), Indiabulls Real Estate (down 0.41%) and Prestige Estates (down 3.42%), edged lower. Housing Development & Infrastructure (HDIL) rose 1.58%.

Telecom stocks edged higher in choppy trade on buzz the auction of telecom spectrum has reached the final stage.

Bharti Airtel was up 6.99% at Rs 367.55. The stock hit a high of Rs 379.70 and a low of Rs 341.50.

Idea Cellular was up 3.15% at Rs 153.85. The stock hit a high of Rs 162.40 and a low of Rs 145.40.

Tata Teleservices (Maharashtra) was up 1.99% at Rs 8.70. The stock hit a high of Rs 9.24 and a low of Rs 8.40.

Reliance Communications was up 2.46% at Rs 64.45. The stock hit a high of Rs 67 and a low of Rs 61.70.

At the end of day five of telecom spectrum auction yesterday, 9 March 2015, a value of approximately Rs 94000 crore was committed by bidders in respect of provisionally won spectrum, according to a statement from the Ministry of Communications & Information Technology issued late yesterday, 9 March 2015. There is still spectrum, which is yet to be sold, the ministry said. The bidding will recommence on Tuesday, 10 March 2015, the ministry said.

In the foreign exchange market, the rupee edged lower against the dollar as speculation an improving US economy will prompt the Federal Reserve to raise interest rates as early as June boosted the dollar. The partially convertible rupee was hovering at 62.71, compared with its close of 62.55 during the previous trading session yesterday, 9 March 2015.

Brent crude oil futures lower in volatile trade as investors awaited this week's energy agency reports for a fresh assessment of global oil supply and demand balances. Brent for April settlement was down 65 cents at $57.88 a barrel. The contract had declined $1.20 a barrel or 2% to settle at $58.53 a barrel during the previous trading session.

Meanwhile, Minister of Parliamentary Affairs M.Venkaiah Naidu said in the Lok Sabha yesterday, 9 March 2015, that the government is willing to consider some further amendments to ensure minimum land acquisition based on the views and suggestion of the opposition parties. He said so while intervening in the debate on the proposed Right to Fair Remuneration and Transparency in Rehabilitation and Resettlement (Amendment) Bill, 2015 in the Lok Sabha. Naidu said that the government could consider deleting social infrastructure projects from the exempted categories, states coming out with land banks of vacant lands for acquisition for development projects, hassle free mechanism for redressal of grievances of land losers, mandatory employment for losers of livelihoods on account of land acquisition etc. He said that the Minister of Rural Development Birendra Chowdhary, who is a farmer himself, would come forward with official amendments in this regard.

Naidu asserted that the government's decision to issue an Ordinance on land acquisition was not unilateral one but was based on the suggestions and views of all the states, reflecting their collective yearning for an enabling legislation that will not stifle development. Naidu said that without compromising on the remuneration of four times the market value to be paid to land owners against acquisition of their land, the government has proposed some amendments to the Land Act of 2013 to facilitate development by adding only five more categories like defence and national security, infrastructure including rural infrastructure, housing for the poor and affordable housing, industrial corridors including PPP projects where the land ownership will be with the government to be exempted from the provisions of the Act of 2013. He further said that 13 more categories have been brought under the purview of the new Bill which would immensely benefit the farmers.

Reacting to the suggestion of Mallikharjuna Kharge of the Congress to refer the Bill to the Standing Committee, Naidu said that so much time is not available since the Land Ordinance lapses by 5 April 2015 and the Ordinance is to be replaced by an Act of Parliament by 20 March 2015 when the Parliament will be adjourned for a month.

On the macro front, the government will unveil industrial production data for January 2015 on Thursday, 12 March 2015. The government will release the combined consumer price index (CPI) data (rural/urban) for February 2015 on the same day.

In overseas markets, European stocks declined today, 10 March 2015, as renewed worries over Greece weighed on the sentiment. Key indices in France, Germany and UK shed 0.3% to 0.35%.

Euro zone ministers yesterday, 9 March 2015, warned Greece that it had "no time to lose" and agreed technical talks between finance experts from Athens and its international creditors would start on Wednesday, 11 March 2015, with the aim of unlocking further funding.

In France, the latest data showed that the nation's industrial production continued to rise in January. French industrial production rose 0.4% on the month in January after a 1.4% gain in December, national statistics agency Insee said.

Asian stocks declined today, 10 March 2015, after the latest data showed China's factory prices extended their prolonged fall amid a slowing economy. Key indices in China, Hong Kong, Singapore, South Korea, Japan and Taiwan were off 0.19% to 0.94%. Indonesia's Jakarta Composite rose 0.34%.

China's annual consumer inflation recovered in February, exceeding expectations, but producer prices continued to slide, underscoring deepening weakness in the economy and intensifying pressure on policymakers to find new ways to support growth. The consumer price index (CPI) rose 1.4% in February. The producer price index (PPI) declined 4.8% in February, the National Bureau of Statistics said today, 10 March 2015, extending factory deflation to nearly three years.

Trading in US index futures indicated that the Dow could fall 75 points at the opening bell today, 10 March 2015. US stocks closed higher yesterday, 9 March 2015, recovering from Friday's sharp decline as investors took a more positive outlook on the strong February jobs report.

A two-day meeting of the Federal Open Market Committee (FOMC) to review US monetary policy is scheduled on 17-18 March 2015. Upbeat February US job data has heightened speculation that the Fed's statement after the conclusion of two-day meeting on 17-18 March might drop a reference to being patient before raising interest rates.

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First Published: Mar 10 2015 | 3:31 PM IST

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