A surge in crude oil prices and weak global stocks pulled key benchmark indices to fresh intraday low in mid-afternoon trade. The barometer index, the S&P BSE Sensex, hit its lowest level in more than 10 weeks. The 50-unit CNX Nifty hit 10-week low. The Sensex was currently trading below the psychological 28,000 mark after falling below that level in opening trade. The Sensex was currently off 428.69 points or 1.52% at 27,683.14. The market breadth indicating the overall health of the market was quite weak, with almost two losers against every gainer on BSE.
Index heavyweight and housing finance major HDFC dropped sharply. Telecom stocks were mixed after the Ministry of Communications & Information Technology after market hours yesterday, 25 March 2015, said that the auction of spectrum in 2100 MHz, 1800 MHz, 900 MHz and 800 MHz bands came to an end yesterday, 25 March 2015 after 115 rounds of bidding.
Brent crude oil futures rose amid concern over the worsening geopolitical situation in the Middle East after Saudi Arabia said it and its allies had launched airstrikes on rebel forces in Yemen dampened sentiment on domestic bourses.
Higher crude oil prices could increase fiscal deficit and current account deficit and stoke fuel price inflation. India imports 80% of its crude oil requirement.
Indian stocks may remain volatile during the remaining part of the trading session today, 26 March 2015, as traders roll over positions in the futures & options (F&O) segment from the near month March 2015 series to April 2015 series. The near month March 2015 derivatives contracts expire today, 26 March 2015.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 813.19 crore yesterday, 25 March 2015, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 96.52 crore yesterday, 25 March 2015, as per provisional data.
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In overseas markets, European stocks declined following an overnight sell-off in US stocks. Asian stocks edged lower as tensions in the Middle East and overnight losses on Wall Street soured sentiment. US markets dropped sharply yesterday, 25 March 2015, as downbeat economic data and continued concerns over the strong US dollar hit investor sentiment.
In the foreign exchange market, the rupee edged lower against the dollar on global risk-off sentiment.
At 14:18 IST, the S&P BSE Sensex was down 428.69 points or 1.52% at 27,683.14. The index lost 466.99 points at the day's low of 27,644.84 in mid-afternoon trade, its lowest level since 14 January 2015. The index fell 114.69 points at the day's high of 27,997.14 in early trade.
The CNX Nifty was down 123.40 points or 1.45% at 8,407.40. The index hit a low of 8,400.70 in intraday trade, its lowest level since 15 January 2015. The index hit a high of 8,499.45 in intraday trade.
The market breadth indicating the overall health of the market was quite weak, with almost two losers against every gainer on BSE. 1,748 shares declined and 882 shares gained. A total of 116 shares were unchanged.
The BSE Mid-Cap index was off 52.82 points or 0.51% at 10,390.37. The BSE Small-Cap index was off 85.01 points or 0.8% at 10,494.95. The fall in both these indices was lower than the Sensex's decline in percentage terms.
Index heavyweight and housing finance major HDFC lost 4.56% to Rs 1,293.45. The stock hit high of Rs 1,350 and low of Rs 1,284.15 so far during the day.
Telecom stocks were mixed after the Ministry of Communications & Information Technology after market hours yesterday, 25 March 2015, said that the auction of spectrum in 2100 MHz, 1800 MHz, 900 MHz and 800 MHz bands came to an end yesterday, 25 March 2015 after 115 rounds of bidding.
Bharti Airtel (up 1.18%) and Idea Cellular (up 1.87%) rose. Reliance Communications (down 0.41%) and Tata Teleservices (Maharashtra) (down 0.9%) declined
The Ministry of Communications & Information Technology said in a statement issued at the end of the 19th day of bidding for spectrum yesterday, 25 March 2015, that about 89% of the spectrum has been provisionally allocated to bidders at a value of approximately Rs 1.09 lakh crore.
Meanwhile, the Supreme Court today, 26 March 2015, reportedly allowed the central government to finalize the result of the telecom spectrum auction, which ended yesterday, 25 March 2015. The court was modifying its order of 26 February 2015, by which it had asked the Union government not to finalize the result of the auction which began on 4 March 2015. The court will hear the case next on 16 April 2015.
Tyre stocks declined. Apollo Tyres (down 2.2%), Balkrishana Industries (down 1.42%), CEAT (down 1.34%), Goodyear India (down 0.19%), JK Tyre & Industries (down 2%), and MRF (down 1.03%) declined.
In the foreign exchange market, the rupee edged lower against the dollar as global oil prices rose amid tensions in the Middle East. The partially convertible rupee was hovering at 62.60, compared with its close of 62.335 during the previous trading session.
Brent crude oil futures rose amid concern over the worsening geopolitical situation in the Middle East after Saudi Arabia said it and its allies had launched airstrikes on rebel forces in Yemen dampened sentiment on domestic bourses. Brent for May settlement was up $3.23 a barrel at $59.71 a barrel. The contract had gained $1.37 a barrel or 2.48% to settle at $56.48 a barrel during the previous trading session.
Finance Minister Arun Jaitley reportedly said yesterday, 25 March 2015, that the government hopes to pass the Constitution Amendment Bill for the introduction of a nationwide Goods and Services Tax (GST) in the country during the second half of the Budget session of the parliament. The second half of the Budget session of the parliaments begins on 20 April 2015. The government tabled the Constitution Amendment Bill for GST in the Lok Sabha during the winter session of parliament. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. Central taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST. At the state level, taxes like VAT/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. would be subsumed in GST.
European stocks declined today, 26 March 2015, following an overnight sell-off in US stocks. Key benchmark indices in UK, France and Germany were down 0.37% to 1.42%.
Asian stocks edged lower today, 26 March 2015, as tensions in the Middle East and overnight losses on Wall Street soured sentiment. Key benchmark indices in Taiwan, Indonesia, Japan, Hong Kong and South Korea fell by 0.13% to 1.39%. Key benchmark indices in China and Singapore rose by 0.36% to 0.58%.
Trading in US index futures indicated that the Dow could fall 102 points at the opening bell today, 26 March 2015. US markets dropped sharply yesterday, 25 March 2015 as downbeat economic data and continued concerns over the strong US dollar hit investor sentiment.
In economic data, US business investment spending plans fell for a sixth straight month in February weighed down by a strengthening dollar, weak global demand and restrained activity due to poor weather. The Commerce Department said yesterday, 25 March 2015, that non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, dropped 1.4% in February after a revised 0.1% dip in January.
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