Intraday volatility continued as key benchmark indices trimmed losses after hitting fresh intraday low in early afternoon trade. The intraday recovery for key benchmark indices materialized as Brent crude oil prices dropped after a news agency reported that Iran and six major powers have reached a historic nuclear deal today, 14 July 2015, which will grant Tehran sanctions relief in exchange for curbs on its nuclear programme. The market breadth indicating the overall health of the market was positive. The barometer index, the S&P BSE Sensex, was currently off 55.22 points or 0.2% at 27,905.97.
Metal & mining stocks were mixed. IT stocks dropped.
On macro front, the data released by the government during market hours today, 14 July 2015, showed that inflation based on the wholesale price index (WPI) remained in negative zone last month. Data released by the government after trading hours yesterday, 13 July 2015, showed increase in consumer price inflation last month.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 527.98 crore yesterday, 13 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 171.55 crore yesterday, 13 July 2015, as per provisional data released by the stock exchanges.
In overseas stock markets, Asian stocks were mixed. US stocks closed sharply higher yesterday, 13 July 2015, as investors were relieved that Greece and its creditors reached an agreement for a third bailout program, averting a potential 'Grexit'.
At 12:17 IST, the S&P BSE Sensex was down 55.22 points or 0.2% at 27,905.97. The index lost 107.23 points at the day's low of 27,853.96 in early afternoon trade. The index gained 33.85 points at the day's high of 27,995.04 at the onset of the trading session.
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The 50-unit CNX Nifty was down 13.85 points or 0.16% at 8,445.80. The index hit a low of 8,424.10 in intraday trade. The index hit a high of 8,470.60 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,420 shares gained and 1,057 shares fell. A total of 114 shares were unchanged.
The BSE Mid-Cap index was up 44.16 points or 0.4% at 11,071.57. The BSE Small-Cap index was up 57.91 points or 0.5% at 11,538.03. Both these indices outperformed the Sensex.
Metal & mining stocks were mixed. Bhushan Steel (up 0.58%), Hindustan Copper (up 0.57%), Hindustan Zinc (up 1.25%), Steel Authority of India (Sail) (up 0.09%), and National Aluminum Company (up 0.01%) gained. NMDC (down 0.3%), Vedanta (down 0.75%), Hindalco Industries (down 1.22%), Jindal Steel & Power (down 0.42%), and Tata Steel (down 0.62%) declined.
JSW Steel rose after crude steel production rose 10% to 3.40 million tonnes in Q1 June 2015 over Q1 June 2014. The stock gained 0.45%. JSW Steel said production of rolled products (flat) rose 3% to 2.50 million tonnes in Q1 June 2015 over Q1 June 2014. Production of rolled products (long) jumped 32% to 0.69 million tonnes in Q1 June 2015 over Q1 June 2014. The company has commenced commercial production of Continuous Annealing line (CAL2) unit at Vijaynagar works. The announcement was made after trading hours yesterday, 13 July 2015.
IT stocks dropped. Infosys (down 0.11%), Oracle Financial Services Software (down 0.07%) and Wipro (down 0.04%) edged lower. Tech Mahindra rose 0.24%.
Tata Consultancy Services (TCS) declined 0.54%. The company after trading hours yesterday, 13 July 2015, announced that it has been selected by Adobe, a global leader in digital marketing and digital media solutions, as a Premier Partner, the highest level of partnership among Adobe's global ecosystem. This new partnership enables TCS clients to fully leverage Adobe's Marketing Platform and its core solutions, allowing them to design and execute customized strategies and integrated marketing campaigns to suit specific target audiences and customer profiles.
HCL Technologies (HCL) lost 0.39%. The company after trading hours yesterday, 13 July 2015, announced that it has entered into a definitive agreement to acquire certain assets of privately held Trygstad Technical Services Inc. (Trygstad), a US based provider of IT consulting services & solutions in an all cash deal. Trygstad is a niche company with deep expertise in the areas of core engineering (including operating systems), Internet Of Things (los), Embedded Systems and Intelligent Systems, HCL said. With this strategic acquisition, HCL enhances its ability to provide additional value and turnkey solutions to ecosystems of large Independent Software Vendors (ISVs), the company said.
Kotak Mahindra Bank fell 1.24% to Rs 706.50 after 91.28 crore bonus shares of the company were admitted for trading on the bourses today, 14 July 2015. Out of 91.28 crore bonus shares of Kotak Mahindra Bank admitted for trading today, 14 July 2015, 5.89 crore shares are under lock-in period until 21 April 2016.
Meanwhile, in global commodities markets, Brent crude oil prices edged lower after a news agency reported said that Iran and six major powers have reached a historic nuclear deal today, 14 July 2015, which will grant Tehran sanctions relief in exchange for curbs on its nuclear programme. The lifting of economic sanctions on Iran could lead to a gradual increase in its oil exports. Brent for August settlement was currently off $1.02 per barrel at $56.83 a barrel. The contract had declined 88 cents or 1.49% to settle at $57.85 a barrel during the previous trading session. The August Brent contract is set to expire on 16 July 2015. Brent for September settlement was currently off $1 per barrel at $57.15 a barrel.
India imports about 80% of its crude requirements and a decline in crude eases concerns on fiscal deficit, inflation and gives more room for the government to boost growth through spending on infrastructure.
On macro front, the rate of inflation based on the consumer price index (CPI) accelerated to 5.4% in June 2015 from 5.01% in May 2015, data released by the government after trading hours yesterday, 13 July 2015, showed. The increase in CPI was driven by food price inflation. Consumer Food Price Index (CFPI) surged to 5.48% in June 2015 from 4.8% in May 2015.
Meanwhile, data released by the government during trading hours today, 14 July 2015, showed that the rate of inflation based on the wholesale price index (WPI) stood at negative 2.4% in June 2015 compared with a reading of minus 2.36% in May 2015. Build up inflation rate in the financial year so far was 1.42% compared to a build up rate of 1.5% in the corresponding period of the previous year. Meanwhile, the government revised upwards the reading on WPI for April 2015 to minus 2.43% from a reading of minus 2.65% reported on 14 May 2015.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued yesterday, 13 July 2015, that the Southwest Monsoon was active over West Uttar Pradesh, Haryana, Chandigarh & Delhi, Punjab and Jammu & Kashmir during past 24 hours ending until 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was 3% below the Long Period Average (LPA) until 13 July 2015. Region wise, the southwest monsoon was 26% above the LPA in Northwest India, 7% below the LPA in East & Northeast India, 8% below the LPA in Central India and 12% below the LPA in South Peninsula and until 13 July 2015.
The quantum of and the spatial distribution of rainfall this month holds key, with July being a crucial month for the sowing of Kharif crops. 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, Asian stocks were mixed today, 14 July 2015. Key benchmark indices in Japan, Taiwan and Indonesia were up 0.09% to 1.47%. In South Korea, the Seoul Composite was off 0.12%. Singapore's Straits Times was off 0.11%
Chinese stocks edged lower in volatile trade. In mainland China, the Shanghai Composite was off 1.16%. In Hong Kong, the Hang Seng index was off 0.5%.
US stocks closed sharply higher yesterday, 13 July 2015, as investors were relieved that Greece and its creditors reached an agreement for a third bailout program, averting a potential 'Grexit'.
In Europe, the Syriza party led coalition government in Greece faces a tough battle to win support for a third bailout of the country. By Wednesday, 15 July 2015, Greece's Parliament has to pass pension overhauls and sales tax increases that the country's voters overwhelmingly rejected in a referendum held on 5 July 2015. If the deal fails, Greece's banks face collapse and the country could then be forced to leave the euro. Greece and its creditors yesterday, 13 July 2015, reached an agreement for a third bailout program for cash-strapped Greece, averting a potential 'Grexit'. After a 17-hour meeting, eurozone leaders agreed on a package of reform measures in principle for the debt-laden country, paving the way for formal negotiations on financial aid through the eurozone's bailout fund, the European Stability Mechanism, or ESM.
The left-wing Syriza party won elections in January on a promise to end austerity. Greece has already received two bailouts totalling euro 240 billion since 2010. Greek banks have been closed for two weeks, with withdrawals at cash machines limited to 60 euro per day, and will remain closed until after Wednesday, 15 July 2015.
Parliaments in several eurozone states also have to approve the bailout deal for Greece.
Meanwhile, finance ministers from all 28 European Union countries are holding a scheduled meeting in Brussels today, 14 July 2015, where they will discuss the situation in Greece.
Germany's annual inflation rate slowed sharply in June, as expected, a sign that the European Central Bank's bond purchase program has yet to have its desired effect in Europe's largest economy. Consumer prices measured according to common European standards, or the HICP, decreased 0.2% from May, pushing down the annual inflation rate to 0.1% in June from 0.7% in May, the federal statistics office said today, 14 July 2015, confirming preliminary estimates.
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