After reversing intraday gains in morning trade, key benchmark indices slumped in mid-morning trade. The barometer index, the S&P BSE Sensex, 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. The market breadth indicating the overall health of the market was quite weak. There were almost two losers against every gainer on BSE. The Sensex was currently off 236.66 points or 0.88% at 26,603.84.
Auto stocks dropped. Bank stocks also edged lower. Jindal Steel & Power (JSPL) dropped sharply and hit 52-low.
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.
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 11:18 IST, the S&P BSE Sensex was down 236.66 points or 0.88% at 26,603.84. The index lost 295.96 points at the day's low of 26,544.54 in mid-morning trade. 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 83.25 points or 1.02% at 8,041.20. The index hit a low of 8,029.25 in intraday trade. 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. 1,405 shares gained and 734 shares fell. A total of 85 shares were unchanged.
The BSE Mid-Cap index was off 59.37 points or 0.58% at 10,211.40. The BSE Small-Cap index was off 56.09 points or 0.52% at 10,723.66. The fall in both these indices was lower than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 953 crore by 11:15 IST compared with turnover of Rs 481 crore by 10:15 IST.
Auto stocks dropped. Tata Motors (down 2.45%), Mahindra & Mahindra (M&M) (down 1.67%), Eicher Motors (down 1.2%), Ashok Leyland (down 0.89%), Bajaj Auto (down 1.26%) and Hero MotoCorp (down 0.19%) declined. Maruti Suzuki India (up 0.16%) and TVS Motor Company (up 1.56%) rose.
Bank stocks also edged lower. Among private bank stocks, HDFC Bank (down 0.54%), IndusInd Bank (down 1.47%), Kotak Mahindra Bank (down 0.16%), Yes Bank (down 2.39%), and ICICI Bank (down 1.27%) declined.
Axis Bank fell 1.67%. The Ministry of Urban Development after trading hours yesterday, 10 June 2015, announced that Axis Bank has decided to issue co-branded cards to the users of Kochi Metro for paying the fares. Axis Bank will issue co-branded cards to the users of Kochi Metro for paying the fares as well as using them for all kinds of merchandise including e-commerce, according to a statement from the Ministry of Urban Development. Axis Bank will install the required complex hardware and software for fare collection from passengers and in addition will pay Kochi Metro Rail (KMRL) a sum of Rs 208 crore over the next 10 years besides undertaking the entire maintenance of Automated Fare Collection (AFC) for ten years. KMRL will also be paid 0.2% of Axis Bank's gross revenues from the utlilisation of co-branded pre-paid cards outside Kochi Metro system. Axis Bank has formed a consortium of service providers and will soon start work on installing AFC system. KMRL is undertaking the metro rail project in Kochi, Kerala. Of the project length of 25.612 kms, 18 km is scheduled to be commissioned by June 2016 and the rest by June 2017.
Among PSU bank stocks, State Bank of India (SBI) (down 2.21%), Punjab National Bank (down 1.85%), Bank of Baroda (down 2.28%), Canara Bank (down 2.39%), Bank of India (down 1.92%) and Union Bank of India (down 2.21%) dropped.
Jindal Steel & Power (JSPL) dropped 7.38% to Rs 96.10. The stock hit a 52-low of Rs 93.30 in intraday trade today, 11 June 2015. With respect to media reports titled "JSPL Africa arm to build $400-m power plant in Mozambique", JSPL clarified during market hours today, 11 June 2015, that this development is in a very preliminary stage and the discussions have been held with the Government of Mozambique for setting up of a 150 megawatt thermal power plant. Nothing has been finalised in this regard so far, JSPL said.
Glenmark Pharmaceuticals rose 1.43%. Glenmark Pharmaceuticals before market hours today, 11 June 2015, said that Glenmark Pharmaceuticals Inc., USA has been granted final approval by the United States Food & Drug Administration (USFDA) for Calcipotriene Cream, 0.005%, the therapeutic equivalent of Dovonex Cream, 0.005% of Leo Pharma A/S. Glenmark plans to commence shipping of Calcipotriene Cream, 0.005% immediately. According to IMS Health sales data, for the 12 month ending April 2015, the Dovonex market achieved annual sales of approximately $91.90 million in the US.
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 1.42%. Indonesia's Jakarta Composite fell 0.11%.
Meanwhile investors are awaiting China's industrial production data and retail sales data, both, for the month of May 2015 due today, 11 June 2015 for more clues on the health of the world's second-largest economy.
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.
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