A range bound movement was witnessed, with key benchmark indices hovering near the flat line in morning trade. The barometer index, the S&P BSE Sensex, was currently up 8.83 points or 0.03% at 28,110.55. The market breadth indicating the overall health of the market was positive.
IT stocks rose on a weak rupee. Metal & mining stocks were mixed. Tata Steel and NMDC declined ahead of their Q1 results today, 11 August 2015.
Earlier, the Sensex and the 50-unit CNX Nifty recovered from lower level after both these key benchmark indices hit one-week low in early trade.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 14.43 crore yesterday, 10 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 50.05 crore yesterday, 10 August 2015, as per provisional data released by the stock exchanges.
In overseas markets, Asian stocks edged lower after China's central bank moved to devalue its tightly controlled currency. US stocks surged yesterday, 10 August 2015, buoyed by remarks from one Federal Reserve official suggesting a September interest-rate hike may not be a done deal, as well as from a bounce-back in Chinese equities.
At 10:18 IST, the S&P BSE Sensex was up 8.83 points or 0.03% at 28,110.55. The index fell 88.55 points at the day's low of 28,013.17 in early trade, its lowest level since 4 August 2015. The index gained 103.40 points at the day's high of 28,205.12 at the onset of the trading session.
The Nifty was up 0.70 points or 0.01% at 8,526.30. The index hit a low of 8,494.60 in intraday trade, its lowest level since 4 August 2015. The index hit a high of 8,556.25 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,065 shares gained and 931 shares fell. A total of 86 shares were unchanged.
The BSE Mid-Cap index was up 24.70 points or 0.21% at 11,580.10. The BSE Small-Cap index was up 21.18 points or 0.18% at 12,076.17. Both these indices outperformed the Sensex.
Metal & mining stocks were mixed. JSW Steel (down 0.72%), Hindustan Copper (down 0.62%), Hindalco Industries (down 1.95%), and Steel Authority of India (Sail) (down 2.32%) declined. Vedanta (up 0.86%), Hindustan Zinc (up 0.45%), Bhushan Steel (up 0.32%), Jindal Steel & Power (up 5.42%), and National Aluminum Company (up 1.44%) gained.
Tata Steel shed 1.9% ahead of its Q1 results today, 11 August 2015.
NMDC declined 1.68% ahead of its Q1 results today, 11 August 2015.
IT stocks rose on a weak rupee. Tech Mahindra (up 0.65%), HCL Technologies (up 0.67%), TCS (up 0.57%), and Infosys (up 1.85%), edged higher. Wipro fell 0.73%. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
In the foreign exchange market, the rupee fell below 64 against the dollar, tracking a stronger US dollar after China devalued the yuan by nearly 2%. The partially convertible rupee was currently hovering at 64.135, compared with its close of 63.8675 during the previous trading session.
Meanwhile, investors continue to watch the progress of the monsoon rains which will have a bearing on food prices and rural income. India's weather office, the India Meteorological Department (IMD), said in a daily report issued yesterday, 10 August 2015, that for the country as a whole, cumulative rainfall during this year's monsoon season was 9% below the Long Period Average (LPA) until 10 August 2015. Region wise, the rainfall was 22% below the LPA in South Peninsula, 11% below the LPA in East & Northeast India, 8% below the LPA in Central India and 2% above the LPA in Northwest India until 10 August 2015.
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.
Among key macro economic announcements, the government is scheduled to unveil the consumer price index (CPI) data for the month of July 2015 and industrial production data for June 2015 at 17:30 IST tomorrow, 12 July 2015. The CPI inflation accelerated to 5.4% in June 2015 from 5.01% in May 2015. Industrial production rose 2.7% in May 2015, compared with a revised growth of 3.4% in April 2015.
The government will release data on inflation based on the wholesale price index (WPI) for July 2015 at around 12:00 noon on Friday, 14 August 2015. The WPI inflation continued to be in negative zone for the eighth straight month in June 2015. The WPI inflation stood at negative 2.4% in June 2015, unchanged from the level in May 2015.
In overseas markets, Asian stocks edged lower today, 11 August 2015, after China's central bank moved to devalue its tightly controlled currency. Key indices in China, Taiwan, Indonesia, Japan and Singapore were off 0.18% to 0.99%. Key benchmark indices in South Korea and Hong Kong were up 0.03% to 0.96%.
China reportedly devalued the yuan today, 11 August 2015, after a run of poor economic data, guiding the currency to its lowest point in almost three years. The central bank described the move as a one-off depreciation of nearly 2%, based on a new way of managing the exchange rate that better reflected market forces. Since China's trade in goods continues to post relatively large surpluses, the yuan's real effective exchange rate is still relatively strong versus various global currencies, and is deviating from market expectations. China's central bank reportedly said that it was therefore necessary to further improve the yuan's midpoint pricing to meet the needs of the market.
US stocks surged yesterday, 10 August 2015, buoyed by remarks from one Federal Reserve official suggesting a September interest-rate hike may not be a done deal, as well as from a bounce-back in Chinese equities. Federal Reserve Vice Chairman Stanley Fischer reportedly said in an interview to a television channel yesterday, 10 August 2015, that he doesn't expect the first interest-rate hike by the US central bank in more than nine years to occur until after inflation returns closer to the Fed's target of around 2%. The inflation rate has dipped close to zero in recent months and hasn't been above 2% since April 2012.
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