Key benchmark indices extended losses and hit fresh intraday low in afternoon trade. The 50-unit CNX Nifty hit 4-1/2-week low. The barometer index, the S&P BSE Sensex, was currently off 198.54 points or 0.74% at 26,569.95. The market breadth indicating the overall health of the market was quite weak, with 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 1.09%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
PSU OMCs fell as crude oil prices rose and rupee weakened. FMCG shares edged lower.
In overseas markets, European shares were mostly lower. Asian stocks were mixed. The US stock market finished mostly lower during the previous trading session on Friday, 5 June 2015, as an upbeat jobs report raised expectations of early rate increase by the Federal Reserve.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 550.29 crore during the previous trading session on Friday, 5 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 879.50 crore on Friday, 5 June 2015, as per provisional data released by the stock exchange.
At 13:20 IST, the S&P BSE Sensex was down 198.54 points or 0.74% at 26,569.95. The index lost 213.93 points at the day's low of 26,554.56 in afternoon trade, its lowest level since 4 June 2015. The index rose 58.57 points at the day's high of 26,827.06 at onset of the day's trading session.
The CNX Nifty was down 66.20 points or 0.82% at 8,048.50. The index hit a low of 8,047.10 in intraday trade, its lowest level since 7 May 2015. The index hit a high of 8,131 in intraday trade.
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The market breadth indicating the overall health of the market was quite weak, with more than two losers against every gainer on BSE. On BSE, 1,667 shares declined and 744 shares rose. A total of 107 shares were unchanged.
The BSE Mid-Cap index was off 130.83 points or 1.26% at 10223.10. The BSE Small-Cap index was off 117.75 points or 1.09% at 10,733.75. The fall in both these indices was higher than the Sensex's decline in percentage terms.
PSU OMCs fell as crude oil prices rose and rupee weakened. BPCL (down 1.18%), HPCL (down 1.02%) and Indian Oil Corporation (down 1%), edged lower.
In global commodity markets, Brent crude oil futures edged lower today, 8 June 2015. Brent for July settlement was off 4 cents at $63.27 a barrel. The contract had gained $1.28 a barrel or 2.06% to settle at $63.31 a barrel during the previous trading session on Friday, 5 June 2015.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 64.0575, compared with its close of 63.7550 during the previous trading session.
Higher crude oil prices could increase under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel. A weak rupee will increase cost of crude oil imports.
FMCG shares edged lower. Nestle India (down 5.29%), Tata Global Beverages (down 2.85%), GlaxoSmithKline Consumer Healthcare (down 2.62%), Dabur India (down 2.34%), Bajaj Corp (down 1.96%), Hindustan Unilever (down 1.71%), Colgate Palmolive (India) (down 1.41%), Jyothy Laboratories (down 0.88%), Britannia Industries (down 0.46%) and Procter & Gamble Hygiene & Health Care (down 0.17%), edged lower. Marico (up 1.57%) and Godrej Consumer Products (up 1.80%), edged higher.
Coal India rose 1.57% to Rs 411.95. A foreign brokerage has added state-run coal mining company Coal India and petrochemical major Reliance Industries to its focus list by replacing Bank of India and ITC.
Meanwhile, another foreign brokerage has reportedly given a buy rating on Coal India.
On the macro front, the Reserve Bank of India (RBI) is scheduled to announce current account deficit (CAD) data for Q4 March 2015 today, 8 June 2015. India's CAD narrowed to $8.2 billion or 1.6% GDP in Q3 December 2014 from $10.1 billion or 2% of GDP in Q2 September 2014.
Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update yesterday, 7 June 2015, that conditions are favourable for further advance of southwest monsoon into some more parts of central Arabian Sea & Karnataka, remaining parts of Tamilnadu, some parts of Rayalaseema and Coastal Andhra Pradesh and some more parts of central Bay of Bengal during next two days. The Southwest Monsoon has been active over Arunachal Pradesh, Assam & Meghalaya, Sub-Himalayan West Bengal & Sikkim and Lakshadweep during past 24 hours, the IMD said.
On Friday, 5 June 2015, the IMD had announced the onset of the southwest monsoon at the Kerala coast. The annual monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.
In overseas markets, European shares were mostly lower. Key benchmark indices in France and Germany were down by 0.08% to 0.29%. UK's FTSE 100 was up 0.10%.
Germany's industrial production data for the month of April 2015 is due today, 8 June 2015.
Meanwhile, the head of the European Union reportedly rebuked Greek Prime Minister Alexis Tsipras in unusually sharp terms on Sunday, 7 June 2015, and warned that time was running out for Athens to reach a debt deal with its lenders to avert default. Greece had opted to bundle its June loan payments to the International Monetary Fund and make them at the end of the month.
Asian stocks were mixed today, 8 June 2015. Key benchmark indices in China, Hong Kong and Taiwan rose by 0.3% to 2.17%. Key benchmark indices in Japan, Singapore, Indonesia and South Korea fell by 0.02% to 1.65%.
China's exports fell 2.5% in May from a year earlier in dollar terms, after a drop of 6.4% in April, data from the General Administration of Customs showed today, 8 June 2015. Imports in May fell 17.6% from a year earlier, compared with a 16.2% drop in April. China's trade surplus widened in May to $59.49 billion from $34.1 billion in April.
Japan's economy grew faster than initially estimated in the first quarter, as the world's third largest economy continued its gradual recovery from last year's recession on the back of robust exports to the US and China. Gross domestic product, the broadest measure of the nation's economic activity, expanded at an annualized pace of 3.9% in January-March, according to data released today, 8 June 2015 by the Cabinet Office. The revised figure compares with a preliminary reading of 2.4% growth.
US stocks finished mostly lower on Friday, 5 June 2015 as an upbeat jobs report raised expectations for an interest-rate hike this fall.
In economic data, the Labor Department said the US economy generated 280,000 new jobs in May. The Labor Department also revised the jobs figures from March and April. March was revised up to 119,000 from 85,000, while April was revised a touch lower to 221,000 from 223,000. The unemployment rate edged up to 5.5%, but mainly because more Americans entered the labor force in search of work.
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