Key benchmark indices pared losses after hitting fresh intraday low in 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 337.27 points or 1.20% at 27,774.56. The Nifty was currently off 81.45 points or 0.95% at 8,449.35. The decline in Sensex was higher than the decline in Nifty in percentage terms as the two index heavyweights HDFC and Infosys which dropped today, 26 March 2015, both, have a higher weightage on Sensex than on Nifty.
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.
Shares of most pharmaceutical companies declined. Most power generation stocks were trading higher, while shares of gas distribution companies also rose after the Cabinet Committee on Economic Affairs (CCEA) yesterday, 25 March 2015, approved reviving and improving utilization of the stranded gas-based power generation capacity in the country.
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.
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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.
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 13:17 IST, the S&P BSE Sensex was down 337.27 points or 1.2% at 27,774.56. The index lost 373.09 points at the day's low of 27,738.74 in 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 81.45 points or 0.95% at 8,449.35. The index hit a low of 8,434.65 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. 1,697 shares declined and 880 shares gained. A total of 105 shares were unchanged.
The BSE Mid-Cap index was off 48.27 points or 0.46% at 10,394.92. The BSE Small-Cap index was off 63.84 points or 0.6% at 10,516.12. The fall in both these indices was lower than the Sensex's decline in percentage terms.
Index heavyweight and IT major Infosys was down 2.94% to Rs 2,152.50. The stock hit a high of Rs 2,213.50 and a low of Rs 2,149.75 so far during the day.
Shares of most pharmaceutical companies declined. Strides Arcolab (down 3.57%), IPCA Laboratories (down 2.3%), Aurobindo Pharma (down 1.88%), Cadila Healthcare (down 1.74%), Dr. Reddy's Laboratories (down 1.63%), Wockhardt (down 1.6%), Sun Pharmaceutical Industries (down 1.17%), GlaxoSmithKline Pharmaceuticals (down 1.11%), Lupin (down 0.97%), Glenmark Pharmaceuticals (down 0.81%) and Ranbaxy Laboratories (down 0.74%), edgd lower. Cipla (up 0.12%), Divi's Laboratories (up 0.12%) and Piramal Enterprises (up 0.46%), edged higher.
Most power generation stocks were trading higher, while shares of gas distribution companies also rose after the Cabinet Committee on Economic Affairs (CCEA) yesterday, 25 March 2015, approved reviving and improving utilization of the stranded gas-based power generation capacity in the country.
Among power generation stocks, Torrent Power (up 3.60%), Reliance Infrastructure (up 1.06%), Adani Power (up 0.75%), GMR Infrastructure (up 0.65%), Jaiprakash Power Ventures (up 0.49%), NHPC (up 0.26%) and Tata Power (up 0.06%), edged higher. JSW Energy (down 0.57%), Reliance Power (down 0.63%), NTPC (down 0.75%) and CESC (down 1.26%), edged lower.
Shares of gas distribution companies rose. Gujarat State Petronet (up 4.91%), Petronet LNG (up 1.25%) and GAIL (India) (up 0.37%), edged higher.
The government has approved a mechanism to import Regasified Liquified Natural Gas (RLNG) for supply to stranded power plants so that the plants can generate power. The mechanism also envisages sacrifices to be made collectively by all stakeholders, including the Central and State Governments by way of exemptions from certain applicable taxes and levies on the incremental RLNG being imported for the purpose. Besides, gas transporters and re-gasification terminals have agreed to reduce their transportation tariff, marketing margin and re-gasification charges on the incremental RLNG. Power developers would completely forego the return on their equity. The Government of India also proposes to provide support to Discoms from the Power System Development Fund (PSDF) through a transparent reverse e-bidding process. This will make the cost of power affordable, the government said in a statement.
With this arrangement, electricity generation in the country would be enhanced significantly by around 79 billion units, valued at about Rs 42,000 crore, CCEA added.
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 62.6350, 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 $2.02 a barrel at $58.50 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 0.22% to 1.39%. Key benchmark indices in China and Singapore rose by 0.55% to 0.58%.
Trading in US index futures indicated that the Dow could fall 68 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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