A bout of volatility was witnessed as key benchmark indices extended losses in early afternoon trade. The barometer index, the S&P BSE Sensex was currently off 124.95 points or 0.44% at 28,338.36. The market breadth indicating the overall health of the market was positive.
Realty stocks edged lower. Bank stocks also dropped. Federal Bank tumbled after the bank reported weak Q1 numbers on Saturday, 18 July 2015.
In overseas stock markets, Asian stocks edged lower today, 20 July 2015. US stocks closed mixed on Friday, 17 July 2015, but posted solid gains for the week, as strong earnings boosted the Nasdaq to another record high.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 605.56 crore during the previous trading session on Friday, 17 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 175.15 crore during the previous trading session on Friday, 17 July 2015, as per provisional data.
At 12:15 IST, the S&P BSE Sensex was down 124.95 points or 0.44% at 28,338.36. The index fell 143.48 points at the day's low of 28,319.83 in early afternoon trade, its lowest level since 16 July 2015. The index gained 85.82 points at the day's high of 28,549.13 in early trade.
The CNX Nifty was down 46.95 points or 0.55% at 8,562.90. The index hit a low of 8,559 in intraday trade, its lowest level since 16 July 2015. The index hit a high of 8,623.90 in intraday trade.
The BSE Mid-Cap index was up 19.19 points or 0.17% at 11,239.37. The BSE Small-Cap index was up 9.98 points or 0.09% at 11,726.35. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,311 shares gained and 1,105 shares fell. A total of 113 shares were unchanged.
Realty stocks edged lower. DLF (down 3.9%), Prestige Estates Projects (down 2.29%), Indiabulls Real Estate (down 1.94%), Housing Development & Infrastructure (down 1.5%), Unitech (down 1.3%), D B Realty (down 0.94%) and Sobha (down 1.27%) edged lower. Godrej Properties (up 0.87%), Oberoi Realty (up 1.48%) and Phoenix Mills (up 1.16%) edged higher.
Bank stocks edged lower. Among public sector banks, Oriental Bank of Commerce (down 3.26%), Andhra Bank (down 2.76%), Canara Bank (down 3.31%), Punjab National Bank (down 2.94%), Bank of India (down 2.96%), Union Bank of India (down 2.87%), IDBI Bank (down 2.18%), Bank of Baroda (down 2.24%) and United Bank of India (down 1.62%) edged lower.
Among private sector banks, Axis Bank (down 1.64%), ICICI Bank (down 1.17%), Yes Bank (down 1.03%), HDFC Bank (down 0.17%) and Kotak Mahindra Bank (down 0.6%) edged lower. IndusInd Bank (up 0.16%) edged higher.
Federal Bank tumbled after the bank reported weak Q1 numbers on Saturday, 18 July 2015. The stock was off 8.11% at Rs 69.70. Federal Bank's net profit fell 35.8% to Rs 141.39 crore on 9.3% rise in total income to Rs 2107.09 crore in Q1 June 2015 over Q1 June 2014.
Federal Bank's ratio of net non-performing assets (NPAs) to net advances stood at 0.98% as on 30 June 2015, compared with 0.73% as on 31 March 2015 and 0.68% as on 30 June 2014. The bank's ratio of gross NPAs to gross advances stood at 2.59% as on 30 June 2015, compared with 0.73% as on 31 March 2015 and 2.22% as on 30 June 2014.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued yesterday, 19 July 2015, that the Southwest Monsoon was vigorous over Nagaland, Manipur, Mizoram & Tripura and West Madhya Pradesh and active over Haryana, Chandigarh & Delhi, South Interior Karnataka and Kerala during 24 hours ending until 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was 8% below the Long Period Average (LPA) until 19 July 2015. Region wise, the southwest monsoon was 10% above the LPA in Northwest India, 6% below the LPA in East & Northeast India, 13% below the LPA in South Peninsula and 16% below the LPA in Central India until 19 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.
Meanwhile, the weekly data released by the Ministry of Agriculture after trading hours on Friday, 17 July 2015, showed a pick up in the sowing of Kharif crops. The total sown area for Kharif crops as on 17 July 2015 stood at 563.35 lakh hectares compared with 346.34 lakh hectares at this time last year. July is the crucial month for the sowing of Kharif crops.
Meanwhile, the Ministry of Water Resources announced in its weekly report issued after trading hours on Friday, 17 July 2015, that the water storage available in 91 important reservoirs of the country was 51.22 BCM as on 16 July 2015, which is 33% of total storage capacity of these reservoirs. This storage is 133% of the storage of corresponding period of last year and 112% of storage of average of last ten years. The present storage position during current year is better than the storage position of last year and is also better than the storage of average of last ten years.
Meanwhile, the three-week monsoon session of Parliament will begin tomorrow, 21 July 2015, as per reports. The government is looking forward to push through key bills and get approval for the recently-promulgated ordinances in the monsoon session of the Parliament.
In overseas stock markets, Asian stocks edged lower today, 20 July 2015. Key indices in Hong Kong, Taiwan and South Korea were off 0.09% to 0.78%. Key indices in China and Singapore were up 0.38% to 0.58%. Stock markets in Japan and Indonesia were shut for public holidays.
US stocks closed mixed on Friday, 17 July 2015, but posted solid gains for the week, as strong earnings boosted the Nasdaq to another record high.
Federal Reserve Vice Chair Stanley Fischer reportedly said on Friday, 17 July 2015, that there should be no further limits put on the US central bank's emergency lending powers. Fischer reportedly said the Fed could work with the post-financial crisis restrictions on the types of companies it could lend to. But he said the process had gone as far as it should, reports added.
In Europe, Greece has reached the deadline it couldn't afford to miss, for a bill it can finally afford to pay. Greece must today, 20 July 2015, reimburse the European Central Bank (ECB) 4.2 billion euros ($4.5 billion), including interest, as bonds bought during its last debt crisis mature.
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