A range bound movement was witnessed as key benchmark indices languished in negative zone in mid-morning trade. The barometer index, the S&P BSE Sensex, was currently off 58.13 points or 0.2% at 28,792.84. The broad market depicted weakness. The market breadth indicating the overall health of the market was quite weak, with more than two losers for every gainer on BSE. The BSE Mid Cap index was off 0.93%. The Small Cap index was off 1.41%. The decline in both these indices was higher than the Sensex's decline in percentage terms. Brent crude oil futures extended gains after a sharp surge in prices overnight triggered by conflict in producer Libya.
Meanwhile, as a measure to incentivise long term investors, the Reserve Bank of India (RBI) yesterday, 5 February 2015, allowed foreign portfolio investors (FPIs) to invest in government securities the coupons received on their existing investments in government securities.
IT stocks advanced. Tata Motors tumbled after weak Q3 earnings. Index heavyweight HDFC Bank edged lower after announcing successful completion of raising funds through issue of shares to institutional investors in the domestic market and via issue of American Depository Receipts (ADR).
Earlier, the Sensex and the 50-unit CNX Nifty, both, hit their lowest level in more than two weeks in mid-morning trade as these two key benchmark indices lost ground after seeing volatility earlier during the trading session.
Foreign portfolio investors sold shares worth a net Rs 27.43 crore yesterday, 5 February 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 325.61 crore yesterday, 5 February 2015, as per provisional data.
In the overseas markets, Asian stock markets were mixed today, 6 February 2015, as investors awaited the closely-watched US jobs report. US stock markets surged yesterday, 5 February 2015, buoyed by a rebound in oil prices, deal news and upbeat quarterly earnings.
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In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude oil futures extended gains after a sharp surge in prices overnight triggered by conflict in producer Libya. Global crude oil prices have witnessed high volatility recently after a steep slide in prices over the past few months. The recent rebound in global crude oil prices will raise concerns pertaining to India's fiscal deficit, current account deficit and fuel price inflation. The rebound in crude oil prices comes after a steep slide in prices over the past few months. India imports about 80% of its crude oil requirements.
At 11:22 IST, the S&P BSE Sensex was down 58.13 points or 0.2% at 28,792.84. The index fell 129.73 points at the day's low of 28,721.24 in mid-morning trade, its lowest level since 20 January 2015. The index rose 71.88 points at the day's high of 28,922.85 in morning trade.
The CNX Nifty was down 29.30 points or 0.34% at 8,682.40. The index hit a low of 8,661.65 in intraday trade, its lowest level since 20 January 2015. The index hit a high of 8,726.20 in intraday trade.
The BSE Mid-Cap index was down 98.49 points or 0.93% at 10,505.08. The BSE Small-Cap index was down 158.85 points or 1.41% at 11,124.29. The decline in both these indices was higher than the Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was quite weak, with more than two losers for every gainer on BSE. 1,649 shares declined and 627 shares advanced. A total of 92 shares were unchanged.
IT stocks advanced. MindTree (up 1.34%), Wipro (up 1.29%), Infosys (up 1.14%), Oracle Financial Services Software (up 1.02%), CMC (up 1.19%), TCS (up 0.72%), MphasiS (up 0.37%) edged higher. HCL Technologies (down 0.62%) edged lower.
Tech Mahindra rose 0.65% at Rs 2,895. Tech Mahindra during market hours today, 6 February 2015, said that Three Ireland's new customer service centre in Waterford was officially opened by Three Ireland and Tech Mahindra. The new centre in Waterford will bolster Three's operation and help deliver market-leading support and services to its customers, Tech Mahindra said.
Tata Motors tumbled 5.54% at Rs 556.90. Tata Motors' consolidated net profit declined 25.5% to Rs 3581 crore on 9.6% growth in revenue (net of excise) to Rs 69973 crore in Q3 December 2014 over Q3 December 2013. The result was announced after market hours yesterday, 5 February 2015. Tata Motors said that its topline in Q3 December 2014 grew despite continuing weak operating environment in the standalone business which was more than offset by, increase in wholesale volumes, richer product mix and market mix at Jaguar Land Rover (JLR).
Tata Motors' British luxury car unit JLR's net profit declined 4.2% to GBP 593 million on 10.3% growth in revenue to GBP 5879 million in Q3 December 2014 over Q3 December 2013. Operating profit (EBITDA) rose 7.8% to GBP 1096 million in Q3 December 2014 over Q3 December 2013. Continued strong revenue and operating performance were driven by wholesale volume increase, richer product mix supported by the ongoing success of Range Rover Sport, Range Rover and Jaguar F-TYPE and rich market mix, Tata Motors said. JLR's profit before tax (PBT) dropped 18.6% to GBP 685 million in Q3 December 2014 over Q3 December 2013. The decline in PBT was due to unfavourable revaluation of foreign currency debt and unrealised hedges and higher depreciation and amortisation.
In the standalone business, Tata Motors reported a massive net loss of Rs 2123 crore for Q3 December 2014. Loss before tax for Q3 December 2014 was Rs 2105 crore. The loss before tax for the quarter ended 31 December 2014 includes provision of Rs 310 crore to the carrying cost of buildings at Singur due to uncertainty on the timing of the resolution of the legal case pending in the Supreme Court of India and the unamortized exchange loss of Rs 216 crores due to the prepayment of the existing foreign currency borrowings with new foreign currency borrowings in the quarter.
HDFC Bank fell 1.64% at Rs 1,059.55. The stock hit a high of Rs 1,080 and a low of Rs 1,057.20 so far during the day. HDFC Bank after market hours yesterday, 5 February 2015, said that the special committee of the bank, at its meeting held on 5 February 2015, inter alia, declared the closure of the issue period for the QIP on 5 February 2015. The committee approved the issue price of Rs 1,067 per equity share for the equity shares to be allotted to determined and approved eligible qualified institutional buyers (QIBs) in the QIP.
Separately, HDFC Bank after market hours yesterday, 5 February 2015 said that the special committee of the bank, at its meeting held on 5 February 2015, inter alia, declared the closure of the issue period for the ADR offering on 5 February 2015. The committee approved the issue price of $57.76 per ADR to be issued to eligible investors in the ADR offering.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.7575, compared with its close of 61.74 during the previous trading session.
Brent crude oil futures extended gains after a sharp surge in prices overnight triggered by conflict in producer Libya. Global crude oil prices have witnessed high volatility recently after a steep slide in prices over the past few months. Brent for March settlement was up 52 cents at $57.09 a barrel. The contract had advanced $2.41 a barrel or 4.44% to settle at $56.57 a barrel during the previous trading session.
Meanwhile, as a measure to incentivise long term investors, the Reserve Bank of India (RBI) yesterday, 5 February 2015, allowed foreign portfolio investors (FPIs) to invest in government securities the coupons received on their existing investments in government securities. These investments shall be kept outside the applicable limit for investments by FPIs in government securities, currently capped at $30 billion, the RBI said in a notification.
Asian stock markets were mixed today, 6 February 2015, ahead of the closely-watched US jobs report while apprehension about Greece's bailout program also weighed on sentiment. Key indices in Japan, Singapore, and Indonesia were up 0.58% to 0.95%. Key indices in Taiwan, and South Korea were off 0.11% to 1.17%.
Stocks fell in China after a senior official from the People's Bank of China said the latest reserve-ratio cut by the central bank is not the start of strong stimulus, according to state media reports in the previous day. In mainland China, the Shanghai Composite index was off 0.8%. In Hong Kong, the Hang Seng index was off 0.2%.
Trading in US index futures indicated that the Dow could fall 8 points at opening bell today, 6 February 2015. US stock markets advanced yesterday, 5 February 2015, encouraged by stabilization in oil and shaking off concerns about Greece ahead of US jobs report. The US government is schedule to release nonfarm payroll data for January 2015 later in the global day today, 6 February 2015.
In the week ending 30 January, the advance figure for seasonally adjusted initial jobless claims in the US was 278,000, an increase of 11,000 from the previous week's revised level, data from Labor Department showed yesterday, 5 February 2015. The previous week's level was revised up by 2,000 from 265,000 to 267,000.
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