After hovering in green in morning trade, key benchmark indices reversed direction in mid-morning trade. IT stocks led decline for key indices. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their lowest level in more than a year. The Sensex failed to retain the psychological 26,000 level after piercing that mark in early trade. The Sensex was currently off 269.08 points or 1.05% at 25,472.48. The decline for Nifty in percentage terms was higher than the Sensex's decline. The Nifty was currently off 119.65 points or 1.53% at 7,689.35.
The broad market depicted weakness. There were more than 4 losers against every gainer on BSE. The BSE Mid-Cap index was down 1.55%. The BSE Small-Cap index was down 2.62%. The decline in both these indices was higher than the Sensex's decline in percentage terms. In overseas markets, Chinese stocks sank again as investors despaired at the lack of policy action from Beijing in response to recent data suggesting the downturn in the world's second-largest economy is deepening. Japanese stocks also witnessed a sharp slide.
Most power generation stocks declined. Tata Power declined sharply.
There was massive selling of Indian stocks by foreign portfolio investors (FPIs) yesterday, 24 August 2015, when carnage was witnessed on the domestic bourses amid a sell off in global markets triggered by a rout in Chinese equities. FPIs sold shares worth a net Rs 5275.40 crore yesterday, 24 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 4097.83 crore yesterday, 24 August 2015, as per provisional data released by the stock exchanges.
Indian stocks may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near month August 2015 series to September 2015 series. The near month August 2015 derivatives contracts are set to expire on Thursday, 27 August 2015.
At 11:18 IST, the S&P BSE Sensex was down 269.08 points or 1.05% at 25,472.48. The index fell 269.48 points at the day's low of 25,472.08 in mid morning trade, its lowest level since 11 August 2014. The index jumped 383.27 points at the day's high of 26,124.83 at the onset of trading session.
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The Nifty was down 119.65 points or 1.53% at 7,689.35. The index hit a low of 7,689.10 in intraday trade, its lowest level since 12 August 2014. The index hit a high of 7,925.40 in intraday trade.
The BSE Mid-Cap index was down 160.18 points or 1.55% at 10,194.56. The BSE Small-Cap index was down 276.89 points or 2.62% at 10,311.01. 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. There were more than 4 losers for every gainer on BSE. 1,887 shares fell and 429 shares rose. A total of 60 shares were unchanged.
Most power generation stocks declined. Jaiprakash Power Ventures (down 5.86%), GMR Infrastructure (down 5.19%), Reliance Power (down 3.34%), Reliance Infrastructure (down 2.45%), Adani Power (down 1.66%) and Torrent Power (down 0.7%), edged lower. NHPC (up 0.62%), NTPC (up 0.65%), JSW Energy (up 1.13%) and CESC (up 4.88%), edged higher.
Tata Power was down 7.95% at Rs 57.35. The stock hit a high of Rs 63.20 and a low of Rs 57.25 so far during the day.
IT stocks edged lower. Hexaware Technologies (down 6.51%), Oracle Financial Services Software (down 3.24%), Infosys (down 3.08%), MindTree (down 3%), HCL Technologies (down 2.87%), Persistent Systems (down 2.69%), MphasiS (down 2.02%), Wipro (down 1.85%), CMC (down 0.1%) and TCS (down 0.07%), edged lower.
Tech Mahindra was down 2.64% to Rs 509.60. The company after market hours yesterday, 24 August 2015, announced that its in-house developed platform TAP (Tech Mahindra Analytics Platform) for Big Data solutions has been certified by Hortonworks, a technology leader and ecosystem builder for the Apache Hadoop industry. TAP, an asset-based delivery kit, addresses the critical and evolving needs of customers with a multitude of diverse use cases in Big Data Analytics. It is one of the major technology initiatives in the Analytics area and the certification by Hortonworks adds further value to this asset and enables the delivery of analytics solutions on the HWX platform, Tech Mahindra said in a statement.
Meanwhile, Finance Minister Arun Jaitley yesterday, 24 August 2015, said that though the Indian economy is not impervious to global events, yet the growth in manufacturing and services sector, as reflected by the increase in indirect tax collections and a fair monsoon indicate that the economy is showing strong revival and growth.
In the global commodities markets, Brent crude oil futures edged higher. Brent for October settlement was up 68 cents at $43.37 a barrel. The contract had fallen $2.77 a barrel or 6.09% to settle at $42.69 a barrel during the previous trading session.
India's weather office, the India Meteorological Department (IMD), said in a daily report issued yesterday, 24 August 2015, that for the country as a whole, cumulative rainfall during this year's monsoon season was 11% below the Long Period Average (LPA) until 24 August 2015. Region wise, the rainfall was 19% below the LPA in South Peninsula, 14% below the LPA in Central India, 6% below the LPA in East & Northeast India and 4% below the LPA in Northwest India until 24 August 2015.
The June-September southwest 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, Chinese stocks sank again as investors despaired at the lack of policy action from Beijing in response to recent data suggesting the downturn in the world's second-largest economy is deepening. In mainland China, the Shanghai Composite was down 6.18%. In Hong Kong, the Hang Seng index was down 1.13%. The Shanghai Composite index had plunged more than 8% in a single trading session yesterday, 24 August 2015, that sent shockwaves through global financial markets. After a year of heady gains, Chinese markets have been buffeted by increasing signs that economic growth is faltering in the world's second biggest economy.
Japanese stocks also witnessed a sharp slide. The Nikkei 225 Average was off 3.96%.
But stocks in other Asian markets were in green. Key benchmark indices in Indonesia, Singapore, South Korea and Taiwan were up 1.29% to 3.48%.
Trading in US index futures indicated that the Dow could jump 225 points at the opening bell today, 25 August 2015. US stocks slid again yesterday, 24 August 2015, with the Dow Jones industrial average briefly plunging more than 1,000 points in a sell-off that sent a shiver of fear through investors. The Dow finished with a loss of 588 points, the eighth-worst single-day point decline and the second straight fall of more than 500.
Atlanta Fed President Dennis Lockhart yesterday, 24 August 2015, said that the Federal Reserve will likely to begin raising rates sometime this year.
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