Market breadth turns weak

Key indices extended decline and hit fresh intraday low in afternoon trade, tracking weak European markets. The barometer index, the S&P BSE Sensex, and, the 50-unit CNX Nifty, both, hit their lowest level in 4 weeks. The market breadth indicating the overall health of the market was weak. The Sensex was currently off 238.03 points or 0.89% at 26,599.17.

IT shares were mixed. Cement shares were mixed.

Meanwhile, the India Meteorological Department (IMD) yesterday, 3 June 2015 said that conditions are favourable for onset of southwest monsoon over Kerala during next 48 hours.

Foreign portfolio investors sold shares worth a net Rs 727.61 crore yesterday, 3 June 2015, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 412.66 crore yesterday, 3 June 2015, as per provisional data released by the stock exchanges.

In overseas markets, European stocks edged lower today, 4 June 2015. Asian stocks were mixed. Overnight, US stocks rose at the end of trade, following positive US economic data and as negotiations between Greece and its international creditors continued to move forward.

At 14:16 IST, the S&P BSE Sensex was down 238.03 points or 0.89% at 26,599.17. The index fell 285.23 points at the day's low of 26,551.97 in mid afternoon trade, its lowest level since 7 May 2015. The index rose 111.64 points at the day's high of 26,948.84 at the onset of trading session.

The CNX Nifty was down 67 points or 0.82% at 8,068.10. The index hit a low of 8,056.75 in intraday trade, its lowest level since 7 May 2015. The index hit a high of 8,160.05 in intraday trade.

The BSE Mid-Cap index was down 59.37 points or 0.57% at 10,270.09. The BSE Small-Cap index was down 76.55 points or 0.71% at 10,751.63. The decline in both these indices was lower than the Sensex's decline in percentage terms.

The market breadth indicating the overall health of the market was weak. On BSE, 1,562 shares fell and 968 shares rose. A total of 107 shares were unchanged.

IT shares were mixed. Hexaware Technologies (down 1.83%), Oracle Financial Services Software (down 1.24%), HCL Technologies (down 1.18%), MindTree (down 0.74%), TCS (down 0.37%) and CMC (down 0.21%), edged lower. Persistent Systems (up 0.35%), MphasiS (up 1.03%), Tech Mahindra (up 1.61%) and Wipro (up 1.63%), edged higher.

IT major Infosys was down 0.09% to Rs 2,021.25. The company announced during trading hours today that it completed the acquisition of Kallidus Inc. (d.b.a Skava) and its affiliate, a leading provider of digital experience solutions, including mobile commerce and in-store shopping experiences to large retail clients. The acquisition is in accordance with the terms set out in the agreement announced on 24 April 2015. The acquisition of Skava is part of Infosys' strategy to help clients bring new digital experiences to their customers through IP-led technology offerings, new automation tools and unparalleled skill and expertise in these new emerging areas.

Cement shares were mixed. Shree Cement (up 1.07%) and UltraTech Cement (up 0.90%), edged higher. ACC (down 0.44%) and Ambuja Cements (down 0.69%), edged lower.

Grasim Industries was up 0.03%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

The India Meteorological Department (IMD) yesterday, 3 June 2015 said that conditions are favourable for onset of southwest monsoon over Kerala during next 48 hours.

In global commodity markets, Brent crude oil futures edged lower today, 4 June 2015. Brent for July settlement was off 17 cents at $63.63 a barrel. The contract had fallen $1.69 a barrel or 2.58% to settle at $63.80 a barrel during the previous trading session.

Oil cartel OPEC is expected to keep its production target of 30 million barrels of oil per day unchanged at a meeting scheduled in Vienna tomorrow, 5 June 2015. The OPEC meeting is being closely watched for clues about the organization's next moves.

The decline in global crude oil prices and deregulation of diesel price announced by the Indian government in October 2014 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.

In overseas markets, European stocks edged lower today, 4 June 2015. Key indices in Germany, UK and France were off 1.30% to 2.02%.

France's unemployment rate fell to 10.3% in the first quarter from 10.4% in the previous three months, national statistics office Insee said today, 4 June 2015.

European Central Bank (ECB) left its main interest rates unchanged at record-low levels. Upbeat news around Greece's ability to pay its international creditors later this week also lingered in the market.

Asian stocks were mixed. Key benchmark indices in Hong Kong, Taiwan and Indonesia were down by 0.38% to 2.18%. Key benchmark indices in China, Japan, Singapore and South Korea were up by 0.07% to 0.76%.

China revised down its estimate of consumption's contribution to economic growth last year, trimming the figure to 50.2% from 51.2% previously. Investment and exports contributed 48.5% and 1.3%, respectively to gross domestic product in 2014, the National Bureau of Statistics said Wednesday. Consumption contributed an average 52.9% annually to the country's GDP over the past five years, official data showed. Investment averaged 51.2% while exports averaged a negative 4.1%.

Overnight, US stocks rose at the end of trade, following positive US economic data and as negotiations between Greece and its international creditors continued to move forward.

In economic readings ahead of the latest session, the Commerce Department said the US trade deficit contracted by 19.2% in April, the sharpest drop in more than six years. The West Coast port strike, which was resolved in February, caused big swings in the trade gap the first several months of the year. In March, the deficit increased to its highest level in more than six years.

Separately, an employment report showed private payrolls in the US increased at a modest clip in May, but at a pace that was below expectations.

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