After seeing immense volatility in early trade, key benchmark indices moved within a range in morning trade. The benchmark indices alternately swung between positive and negative zone. The barometer index, the S&P BSE Sensex, was currently trading above the psychological 27,000 level, having alternately moved above and below that mark so far during the trading session. The Sensex had fallen below the psychological 27,000 after a steep slide yesterday, 6 January 2015. The Sensex was currently up 42.12 points or 0.16% at 27,029.58. The market breadth indicating the overall health of the market was strong. Asian stocks were in green.
Shares of public sector banks (PSBs) were mixed. Punjab National Bank dropped amid volatility after the bank said it has decided to realign the interest rates in case of single domestic and NRE term deposits. Maruti Suzuki India advanced after the company reported strong production numbers for December 2014.
Global crude oil prices hovered near 5-1/2-year low amid continuing concerns about a global supply glut. Deregulation of diesel price announced by the Indian government in October 2014 and a sharp decline in global crude oil prices over the past few months will help reduce the government's fuel subsidy burden and help contain its fiscal deficit. The steep slide in global crude oil prices will also help India in containing its current account deficit and fuel price inflation. India imports 80% of its crude oil requirement.
Earlier, the Sensex had hit 3-week low and the 50-unit CNX Nifty had hit its lowest level in almost 3 weeks amid initial volatility.
Foreign portfolio investors sold shares worth a net Rs 1570.76 crore yesterday, 6 January 2015, as per provisional data.
In overseas markets, Asian stocks edged higher. The US stock market endured another day of selling yesterday, 6 January 2015, due to slumping oil prices.
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In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude futures extended losses from 5-1/2-year low amid speculation that US inventories will expand, deepening a global supply glut.
At 10:16 IST, the S&P BSE Sensex was up 42.12 points or 0.16% at 27,029.58. The index dropped 110.88 points at the day's low of 26,876.58 in early trade, its lowest level since 17 December 2014. The index rose 62.54 points at the day's high of 27,050 in morning trade.
The CNX Nifty was up 9.90 points or 0.12% at 8,137.25. The index hit a low of 8,098 in intraday trade, its lowest level since 18 December 2014. The index hit a high of 8,150.65 in intraday trade.
The BSE Mid-Cap index was up 44.83 points or 0.44% at 10,280.57. The BSE Small-Cap index was up 43.20 points or 0.39% at 11,029.42. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,153 shares advanced and 768 shares declined. A total of 73 shares were unchanged.
Shares of public sector banks (PSBs) were mixed. Andhra Bank (up 0.67%), State Bank of India (up 0.67%), Vijaya Bank (up 0.5%), IDBI Bank (up 0.49%), Allahabad Bank (up 0.44%), UCO Bank (up 0.5%), Bank of Maharashtra (up 0.12%), and Syndicate Bank (up 0.08%) edged higher. Bank of India (down 0.09%), Indian Overseas Bank (down 0.25%), Bank of Baroda (down 0.09%), Canara Bank (down 0.42%), Corporation Bank (down 0.09%), Central Bank (down 0.37%), Union Bank of India (down 0.33%), Oriental Bank of Commerce (down 0.56%), and United Bank of India (down 0.23%) edged lower.
The Department of Financial Services, Ministry of Finance, after trading hours yesterday, 6 January 2015, said it has issued a circular to the Chief Executive Officers (CEOs) of all public sector banks (PSBs), financial institutions (FIs) and insurance companies assuring them of freedom of non-interference in matters of commercial decisions, transfers, and postings etc. PSBs should take all commercial decisions in the best interest of the organization without any fear or favour, according to the circular. The Department of Financial Services has also stated in the circular that each bank/FI should have a robust grievance redressal mechanism for borrowers, depositors as well as staff. The aggrieved person should have an opportunity to represent his case at least at two levels.
Punjab National Bank (PNB) fell 0.05% at Rs 207.75. The stock hit a high of Rs 208.55 and a low of Rs 205. The bank after market hours yesterday, 6 January 2015, said it has decided to realign its interest rates in case of single domestic and NRE deposits for domestic term deposits of less than Rs 1 crore, in the maturity bucket of 7-14 days to 4.5% from 4%, in the maturity bucket of 30-45 days to 5% from 4.5%, in the maturity bucket of 180-270 days to 7.75% from 7.5%, in the maturity bucket of 271 days and less than one year to 7.75% from 8.25%, in the maturity bucket of 1-3 years to 8.75% from 9% and in the maturity bucket of 5-10 years to 8.5% from 8.75%.
For domestic term deposits of Rs 1 crore to Rs 10 crore, the bank has realigned its interest rates in the maturity bucket of 91-179 days to 7.5% from 8%, in the maturity bucket of 180-270 days to 7.75% from 8%, in the maturity bucket of 271 days to 1 year to 8.25% from 8.5% and in the maturity bucket of 1-3 years to 8.5% from 8.75%. The changes are applicable from 8 January 2015, PNB said.
Maruti Suzuki India rose 0.61% at Rs 3,416.40 after the company during market hours today, 7 January 2015, said its total production rose 18.21% to 95,400 units in December 2014 over December 2013.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 63.4625, compared with its close of 63.58 during the previous trading session.
Brent crude futures extended losses from 5-1/2-year low amid speculation that US inventories will expand, deepening a global supply glut. Brent for February settlement was off 22 cents at $50.88 a barrel. The contract had lost $2.01 a barrel or 3.78% to settle at $51.10 a barrel during the previous trading session, its lowest settlement since April 2009.
Asian equity markets were higher today, 7 January 2015. Key indices in China, Hong Kong, Japan, Taiwan, Singapore, South Korea, and Indonesia were up 0.01% to 0.74%.
Trading in US index futures indicated that the Dow could gain 46 points at the opening bell today, 7 January 2015. The US stock market endured another day of selling yesterday, 6 January 2015, due to slumping oil prices. Investors appear to discount positive effect of lower oil prices on broader economy and continue to view the slide in crude as a symptom of slower global growth, which will threaten improving US economy.
The US services sector expanded in December at its slowest rate since February as growth in new business and employment declined, an industry report showed yesterday, 6 January 2015.
The Fed will release minutes of the Federal Open Market Committee (FOMC) meeting held on 16 and 17 December 2014 later in the global day today, 7 January 2015. The Fed minutes may shed light on policy makers' views on the appropriate timing of the first interest-rate increase since 2006 and the conditions that would prompt them to tighten policy. At the two-day meeting in December, the FOMC had said it would be patient on the timing of an increase, replacing an earlier pledge to keep borrowing costs low for a "considerable time".
The US Labor Department reports monthly payroll data for December 2014 on Friday, 9 January 2015.
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