Key benchmark indices extended losses in early afternoon trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, 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 321.63 points or 1.14% at 27,790.20. The market breadth indicating the overall health of the market was quite weak, with almost two losers against every gainer on BSE. Weakness in Asian stocks and increase in Brent crude prices weighed on sentiment.
Metal and mining stocks declined. Airline stocks declined as crude oil prices edged higher.
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.
Also Read
In overseas markets, 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 as global oil prices rose amid tensions in Middle East.
At 12:15 IST, the S&P BSE Sensex was down 321.63 points or 1.14% at 27,790.20. The index lost 365.63 points at the day's low of 27,746.20 in early afternoon trade, its lowest level since 15 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 79.90 points or 0.94% at 8,450.90. The index hit a low of 8,437.25 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. 1,590 shares declined and 820 shares gained. A total of 84 shares were unchanged.
The BSE Mid-Cap index was off 40.29 points or 0.39% at 10,402.90. The BSE Small-Cap index was off 64.06 points or 0.61% at 10,515.90. The fall in both these indices was lower than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 1260 crore by 12:15 IST compared with turnover of Rs 987 crore by 11:15 IST.
Metal and mining stocks declined. Sesa Sterlite (down 2.04%), JSW Steel (down 2.05%), Steel Authority of India (Sail) (down 0.14%), Hindustan Copper (down 2.02%), National Aluminium Company (down 0.69%), Jindal Steel & Power (down 0.62%) and Hindalco Industries (down 1.54%) edged lower.
Tata Steel (up 0.12%) and Hindustan Zinc (up 0.28%) rose.
NMDC fell 0.32%. A Memorandum of Understanding (MoU) has been signed between NMDC and Ministry of Steel on the commitments of the company pertaining to its performance for the year 2015-16. The announcement was made during market hours today, 26 March 2015. The significant parameters of the MoU are production and sale of iron ore including related financials, project implementation, research & development efforts, environment monitoring, energy conservation, quality compliance, manpower productivity, human resource management and customer satisfaction, NMDC said. However, NMDC did not disclose the actual targets of iron ore production and sale for the year 2015-16.
Airline stocks declined as crude oil prices edged higher. Jet Airways (India) (down 0.98%) and SpiceJet (down 1.86%) edged lower. Jet fuel or aviation turbine fuel (ATF) typically makes up almost half of an airline's operating cost. Prices of jet fuel are directly linked to crude oil prices.
PSU OMCs review jet fuel prices on the last day of the month based on the average imported oil price for the month.
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 62.685, 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 $1.75 a barrel at $58.23 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.
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 0.07% to 1.39%. Key benchmark indices in China and Singapore rose by 0.49% to 0.51%.
Trading in US index futures indicated that the Dow could fall 21 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.
Powered by Capital Market - Live News