A bout of volatility was witnessed as key benchmark indices trimmed losses after extending intraday losses in early afternoon trade. The market breadth indicating the overall health of the market was quite weak. There were almost two losers against every gainer on BSE. The barometer index, the S&P BSE Sensex, was currently off 245.80 points or 0.92% at 26,594.70. In overseas markets, Asian stocks edged higher after a rally for US stocks overnight.
Power generation stocks declined. Capital goods stocks also edged lower.
Meanwhile, the government's indirect tax revenue collections jumped 37.3% at Rs 49993 crore in May 2015 over May 2014, according to provisional figures released by the finance ministry after trading hours yesterday, 10 June 2015. India's current account deficit (CAD) narrowed sharply in Q4 March 2015 from Q3 December 2014, according to data released by the Reserve Bank of India (RBI) after trading hours yesterday, 10 June 2015.
In overseas markets, Asian stocks edged higher following overnight gains in US markets. US stocks jumped yesterday, 10 June 2015, after a weaker dollar boosted commodities and on fresh hopes that Greece's creditors will release more bailout cash.
Meanwhile, the World Bank Group has again revised down its growth forecast for the world economy to 2.8% this year, while developing countries are now projected to grow by 4.4%, it said in a statement issued yesterday, 10 June 2015. With an expected liftoff in US interest rates, borrowing will become more expensive for emerging and developing economies over the coming months, the World Bank said.
The Sensex today, 11 June 2015, failed to retain the psychological 27,000 mark. Earlier, the Sensex had hit the psychological 27,000 mark at the onset of the trading session after a firm opening.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 482.11 crore yesterday, 10 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 788.06 crore yesterday, 10 June 2015, as per provisional data released by the stock exchanges.
At 12:18 IST, the S&P BSE Sensex was down 245.80 points or 0.92% at 26,594.70. The index lost 353.89 points at the day's low of 26,486.61 in early afternoon trade, its lowest level since 9 June 2015. The index gained 159.64 points at the day's high of 27,000.14 at onset of the day's trading session, its highest level since 5 June 2015.
The CNX Nifty was down 85.10 points or 1.05% at 8,039.35. The index hit a low of 8,009 in intraday trade, its lowest level since 9 June 2015. The index hit a high of 8,163.05 in intraday trade, its highest level since 5 June 2015.
The market breadth indicating the overall health of the market was quite weak. There were almost two losers against every gainer on BSE. 1,529 shares gained and 770 shares fell. A total of 90 shares were unchanged.
The BSE Mid-Cap index was off 49.94 points or 0.49% at 10,220.83. The BSE Small-Cap index was off 50.21 points or 0.47% at 10,729.54. The fall in both these indices was lower than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 1238 crore by 12:15 IST compared with turnover of Rs 953 crore by 11:15 IST.
Power generation stocks declined. Reliance Infrastructure (down 2.53%), CESC (down 0.52%), NTPC (down 2.03%), Reliance Power (down 2.54%), NHPC (down 0.52%), Jaiprakash Power Ventures (down 1.95%), Adani Power (down 3.41%), JSW Energy (down 3.16%) edged lower.
Tata Power Company fell 0.68%. With respect to media reports titled Tata Power too plugs into 5/25 scheme, near deal for Rs 10,000cr refinance, Tata Power Company during market hours today, 11 June 2015, clarified that the company is in discussions with the lenders' consortium to refinance the loans of Coastal Gujarat Power by extending the tenure of loan repayments for refinancing project loans. The final approvals are yet to be obtained from lenders, Tata Power Company said
Capital goods stocks dropped. Bharat Heavy Electricals (Bhel) (down 1.73%), ABB India (down 0.95%), Bharat Electronics (down 1.19%), Crompton Greaves (down 1.67%), L&T (down 1.1%), Siemens (down 0.43%) and Thermax (down 0.17%) fell. BEML (up 2.35%) rose.
Nestle India rose 0.37% to Rs 6,079. The stock was volatile. The stock hit high of Rs 6,307.40 and low of Rs 5,971 so far during the day. Nestle India during market hours today, 11 June 2015, said that as part of the effort to resolve the Maggi noodles issue, the company today, 11 June 2015, approached the Bombay High Court raising issues of interpretation of the Food Safety and Standards Act 2011, whilst seeking judicial review of the order dated 6 June 2015 passed by the Food and Drug Administration in Maharashtra and the order dated 5 June 2015 passed by the Food Safety and Standards Authority of India (FSSAI).
At the same time, Nestle India said it is continuing the withdrawal of Maggi noodles products. The company will proceed further as per orders that may be passed by the Bombay High Court, Nestle India said.
Meanwhile, the government's indirect tax revenue collections jumped 37.3% at Rs 49993 crore in May 2015 over May 2014, according to provisional figures released by the finance ministry after trading hours yesterday, 10 June 2015. Central excise collections jumped 84.2% at Rs 21809 crore in May 2015 over May 2014. Customs collections rose 16% to Rs 15700 crore in May 2015 over May 2014. Service Tax collections rose 13.2% at Rs 12484 crore in May 2015 over May 2014.
Indirect tax collections jumped 39.2% to Rs 96128 crore during the two-month period April-May 2015 from Rs 69069 crore during the two-month period April-May 2014.
Responding to the indirect tax collection figures, Finance Minister Arun Jaitley said in a statement that the indirect tax collections reflect in part the effect of the additional measures taken by the government including the Central Excise increase on diesel and petrol, increase in clean energy cess, and the withdrawal of exemptions for motor vehicles and consumer durables. He said that even after taking-out the impact of these additional measures, indirect tax collections have shown an increase of 16.9% in May 2015 over May 2014; and by 12.6% for the two month period April-May 2015 over the same period last year i.e. April- May 2014. Jaitley further said that the underlying momentum in the economy is improving across all sectors including manufacturing as reflected in healthy excise collections during the first two months of the current financial year.
India's current account deficit (CAD) narrowed sharply to $1.3 billion or 0.2% of GDP in Q4 March 2015 from $8.3 billion or 1.6% of GDP in Q3 December 2014, according to data released by the Reserve Bank of India (RBI) after trading hours yesterday, 10 June 2015. On a year-on-year (y-o-y) basis, the CAD registered a small increase to $1.3 billion in Q4 March 2015 from $1.2 billion in Q4 March 2014. The sharp reduction in CAD in Q4 March 2015 on quarter-on-quarter (q-o-q) basis was primarily on account of lower trade deficit as net earnings through services and primary income (profit, dividend and interest) witnessed a decline on q-o-q basis, the RBI said.
The government is scheduled to unveil industrial production data for April 2015 tomorrow, 12 June 2015. Industrial output growth touched a five-month low of 2.1% in March from a revised 4.9% in February on the back of an across-the-board slowdown in production. On the same day, the government is scheduled to unveil the consumer price index (CPI) data for the month of May 2015. Consumer price index-based retail inflation eased to a four-month low of 4.87% in April from a revised 5.25% in March.
Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update yesterday, 10 June 2015, that the southwest monsoon has further advanced into remaining parts of South Interior Karnataka, Tamilnadu and southwest Bay of Bengal and some parts of North Interior Karnataka and Rayalaseema. The Southwest Monsoon has been vigorous over Assam & Meghalaya and active over Arunachal Pradesh, Sub-Himalayan West Bengal & Sikkim and Coastal Karnataka during past 24 hours, the IMD said.
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 edged higher today, 11 June 2015, following overnight gains in US markets. Key benchmark indices in Singapore, Hong Kong, Taiwan, China, Japan and South Korea rose by 0.04% to 1.68%. Indonesia's Jakarta Composite fell 0.03%.
A slew of data from China, including retail sales and industrial production, released today, 11 June 2015 broke a recent string of worse than expected figures from the world's second-largest economy. Value-added industrial output in China rose 6.1% in May from a year earlier, accelerating from 5.9% growth in April, data from the National Bureau of Statistics showed.
Retail sales grew 10.1% in May from a year earlier, accelerating slightly from a 10% increase in April. Fixed-asset investment in non-rural areas of China climbed 11.4% from a year earlier in the January-May period, compared with an increase of 12% for the first four months of the year.
South Korea's central bank today, 11 June 2015, cut its benchmark interest rate to a record low of 1.5% to support the economy, which faces a potential fresh blow from a deadly viral outbreak. The Bank of Korea's 25 basis point cut, the second this year, comes amid concerns that an outbreak of Middle East Respiratory Syndrome (MERS) may knock billions of dollars off economic output as consumers and foreign tourists worried about infection stay home.
US stocks jumped yesterday, 10 June 2015, after a weaker dollar boosted commodities and on fresh hopes that Greece's creditors will release more bailout cash.
A two-day meeting of the Federal Open Market Committee (FOMC) to review US monetary policy is scheduled on 16-17 June 2015.
In Europe, German Chancellor Angela Merkel reportedly said yesterday, 10 June 2015 her goal is to keep Greece in the euro area. The chairman of euro zone finance ministers reportedly said a cash-for-reform deal with Athens was still possible in time for their June 18 meeting, with just a few issues remaining to be solved, but Greek counter-proposals were not yet satisfactory. Greece deferred a payment to the International Monetary Fund last week and needs to crack a deal or get another extension before its euro-area bailout package expires on 30 June 2015.
Meanwhile, Standard & Poor's Ratings Services has downgraded Greece's credit rating to triple-C, reflecting its view that the government will likely default on its commercial debt within the next 12 months, without an agreement with its creditors. S&P has a negative outlook for the rating, which was cut one notch. Triple-C is a highly speculative rating on S&P's scale.
Meanwhile, the World Bank Group has again revised down its growth forecast for the world economy to 2.8% this year, while developing countries are now projected to grow by 4.4%, it said in a statement issued yesterday, 10 June 2015. With an expected liftoff in US interest rates, borrowing will become more expensive for emerging and developing economies over the coming months, the World Bank said. This process is expected to unfold relatively smoothly since the US economic recovery is continuing and interest rates remain low in other major global economies. However, there are considerable risks around this expectation, the World Bank's latest Global Economic Prospects report argues. Just as the initial announcement of US policy normalization caused turmoil in financial markets in 2013 - now referred to as the "taper tantrum" - the US Federal Reserve's first interest rate increase, or liftoff, since the global financial crisis could ignite market volatility and reduce capital flows to emerging markets by up to 1.8 percentage points of GDP, the report says.
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