Don’t miss the latest developments in business and finance.

Market turns volatile in early trade

Image
Capital Market
Last Updated : May 18 2015 | 5:51 PM IST

A bout of volatility was witnessed in early trade as key benchmark indices trimmed gains after a firm start. The market breadth indicating the overall health of the market was strong. The barometer index, the S&P BSE Sensex, was currently up 80.10 points or 0.29% at 27,404.10.

Foreign portfolio investors sold shares worth a net Rs 38.31 crore on Friday, 15 May 2015, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 563.60 crore on Friday, 15 May 2015, as per provisional data released by the stock exchanges.

Among the overseas market, Asian markets were mixed. US stocks closed mostly higher Friday, 15 May 2015, as investors grappled with weaker-than-expected economic reports which left the timing of the Federal Reserve's next rate hike still uncertain for investors.

At 9:25 IST, the S&P BSE Sensex was up 80.10 points or 0.29% at 27,404.10. The index rose 126.47 points at the day's high of 27,450.47 at the onset of trading session, its highest level since 12 May 2015. The index gained 46.28 points at the day's low of 27370.28 at the onset of trading session.

The CNX Nifty was up 25.45 points or 0.31% at 8,287.80. The index hit a high of 8,294.60 in intraday trade, its highest level since 12 May 2015. The index hit a low of 8,271.95 in intraday trade.

The BSE Mid-Cap index was up 46.26 points or 0.44% at 10,610.18. The BSE Small-Cap index was up 42.13 points or 0.38% at 11,082.92. Both these indices outperformed the Sensex.

The market breadth indicating the overall health of the market was strong. On BSE, 773 shares rose and 305 shares fell. A total of 41 shares were unchanged.

More From This Section

Tata Motors rose 0.62%. The Tata Motors Group global wholesales including Jaguar Land Rover (JLR) rose 4% to 77,701 units in April 2015 over April 2014. Global wholesales of all commercial vehicles - Tata, Tata Daewoo were flat at 26,680 units in April 2015 over April 2014. Global wholesales of all passenger vehicles, including Jaguar Land Rover rose 6% to 51,021 units in April 2015 over April 2014. Global wholesales of Tata passenger vehicles rose 32% at 10,356 units in April 2015 over April 2014. Global wholesales for Jaguar Land Rover including CJLR wholesales stood at 40,665 vehicles in April 2015. Tata Motors Group global wholesales figures for April 2015 were announced after market hours on Friday, 15 May 2015.

Bharti Airtel rose 0.27%. Bharti Airtel announced on Saturday, 16 May 2015, that it has received financing commitments of up to $2.5 billion from China Development Bank and Industrial and Commercial Bank of China. The company signed the term sheets for the financing options in the presence of Prime Minister of India, Narendra Modi, who was on an official visit to China. Subject to final agreements and requisite approvals, Bharti Airtel can draw these funds over a long availability period, depending on its financing requirements.

China Development Bank has committed financing of up to $2 Billion with an average maturity of about nine years. This is the single largest bilateral commitment by China Development Bank to any telecom operator globally and the largest bilateral commitment to a private Indian company. Industrial and Commercial Bank of China has committed $500 million with an average life of about nine years, making it the largest and longest bilateral commitment to an Indian telecom operator, Bharti Airtel said in a statement.

These financing options will allow the company to diversify its global financing pool and access funds to invest in the growth of data networks across its global operations, the company added.

Federal Bank rose 0.47%. The bank announced before market hours that the board of directors of the bank in their meeting held on 16 May 2015 have recommended 1:1 bonus issue.

Reliance Industries (RIL) was flat at Rs 874. With respect to news titled "Strike at RIL's Patalganga factory on wage issue," RIL clarified after market hours on Friday, 15 May 2015, that a part of the contract workforce at its Patalganga factory have not been reporting for work predominantly in the Polyester area. All others including the regular staff and contract workforce are at work. The appropriate authorities have advised that the action of the contract workforce not reporting for work is unwarranted and uncalled for. The manufacturing operations in both the Petrochemicals and the Polyester area have not been impacted and continue to be normal.

India's merchandise exports declined 13.96% to $22.05 billion in April 2015 over April 2014, according to data released by the Ministry of Commerce & Industry after trading hours on Friday, 15 May 2015. Imports declined 7.48% to $33.04 billion in April 2015 over April 2014. Oil imports fell 42.65% to $7.44 billion in April 2015 over April 2014. Non-oil imports rose 12.58% to $25.60 billion in April 2015 over April 2014. The trade deficit for April 2015 was estimated at $10.99 billion, which was higher than trade deficit of $10.08 billion in April 2014.

Asian indices were mixed. Key benchmark indices in China, Indonesia, Japan, and Taiwan were up by 0.02% to 0.43%. Key benchmark indices in Hong Kong, Singapore and South Korea were down by 0.16% to 0.67%.

US stocks closed mostly higher Friday, 15 May 2015, with the S&P 500 index setting a record for the second straight session. The Dow Jones Industrial Average came within 16 points of its record close, while the Nasdaq ended the session slightly lower, but within roughly 50 points of its closing high. Investors grappled with weaker-than-expected economic reports which left the timing of the Federal Reserve's next rate hike still uncertain for investors.

US consumer sentiment fell more than expected in May, a survey released on Friday showed. The University of Michigan's preliminary sentiment index for May plunged to 88.6, the lowest since October 2014, from 95.9 in April 2015.

Separately, industrial production, which measures the output of US manufacturers, utilities and mines, decreased for the fifth consecutive month in April 2015, the Federal Reserve said. Industrial production fell 0.3% in April from the prior month, according to the latest report from the Federal Reserve. The data suggested weak global demand, a stronger US dollar and lower oil prices continue to limit output.

In Europe, German politicians kept up the pressure on Greece over the weekend to implement reforms, with Economy Minister Sigmar Gabriel warning Athens in an interview that a third aid package would not be on the cards unless the Greeks made some changes.

Greece is fast running out of cash and talks with its lenders have been deadlocked over their demands for Greece to implement reforms, including pension cuts and labour market liberalisation.

Finance Minister Wolfgang Schaeuble suggested on Monday that Greece might need a referendum to approve painful economic reforms on which its creditors are insisting, and Mr. Gabriel said such a vote might speed up decisions. Athens has said it had no plans for a referendum at the moment.

Athens has depended on money from its 240 billion euro bailout by the European Union and the International Monetary Fund to pays its bills since 2010. It has not received any loan tranches since last August.

Powered by Capital Market - Live News

Also Read

First Published: May 18 2015 | 9:15 AM IST

Next Story