Soon after extending losses in early afternoon trade, key benchmark indices bounced back in afternoon trade. The barometer index, the S&P BSE Sensex, was currently off 27.02 points or 0.1% at 26,960.44. The market breadth indicating the overall health of the market was negative. Global crude oil prices hit 5-1/2-year low amid continuing concerns about a global supply glut. Investors fear that the rout in global crude oil prices signals a weak global economy. Asian stocks were in green.
Foreign portfolio investors sold shares worth a net Rs 1570.76 crore yesterday, 6 January 2015, as per provisional data.
FMCG major Hindustan Unilever (HUL) extended gains registered during the previous trading session. Index heavyweight Reliance Industries edged higher in volatile trade. Castrol India and Gulf Oil Lubricants India gained as falling crude oil prices will result in lower raw material costs for the company. Metal and mining stocks dropped. Realty stocks declined, with shares of Anant Raj Industries hitting 52-week low. Among auto stocks, shares of commercial vehicles maker Ashok Leyland scaled record high. Biotech major Biocon hit 52-week low. Shares of biscuits major Britannia Industries scaled record high.
Meanwhile, Finance Minister Arun Jaitley yesterday, 6 January 2015, said that ease of doing business is high priority for the government.
Global crude oil prices hit 5-1/2-year low amid continuing concerns about a global supply glut. Deregulation of diesel price announced by the Indian government in October 2014 and a sharp decline in global crude oil prices over the past few months will help reduce the government's fuel subsidy burden and help contain its fiscal deficit. The steep slide in global crude oil prices will also help India in containing its current account deficit and fuel price inflation. India imports 80% of its crude oil requirement.
Earlier, the Sensex and the 50-unit CNX Nifty had, both, hit 3-week low in early afternoon trade. The Sensex failed to hold the psychological 27,000 level. Earlier, the barometer index had regained the psychological 27,000 level amid initial volatility.
In overseas markets, Asian stocks edged higher. The US stock market endured another day of selling yesterday, 6 January 2015, due to slumping oil prices.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude futures hit 5-1/2-year low amid continuing concerns about a global supply glut.
At 13:15 IST, the S&P BSE Sensex was down 27.02 points or 0.1% at 26,960.44. The index dropped 211.34 points at the day's low of 26,776.12 in early afternoon trade, its lowest level since 17 December 2014. The index rose 64.14 points at the day's high of 27,051.60 in mid-morning trade.
The CNX Nifty was down 1.10 points or 0.01% at 8,126.25. The index hit a low of 8,065.45 in intraday trade, its lowest level since 17 December 2014. The index hit a high of 8,151.20 in intraday trade.
The BSE Mid-Cap index was off 3.82 points or 0.04% at 10,231.92. The decline in the index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index was off 13.91 points or 0.13% at 10,972.31. The decline in the index was higher than the Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was negative. On BSE, 1,507 shares declined and 1,066 shares advanced. A total of 112 shares were unchanged.
The total turnover on BSE amounted to Rs 1982 crore by 13:15 IST.
Among the 30-share Sensex pack, 16 stocks declined and rest of them gained.
NTPC (up 1.76%), Bajaj Auto (up 1.14%) and ONGC (up 1.04%) edged higher from the Sensex pack. Bharat Heavy Electricals (Bhel) (down 3.03%), GAIL (India) (down 2.82%) and ICICI Bank (down 2.4%) edged lower from the Sensex pack.
FMCG major Hindustan Unilever (HUL) surged 3.23% to Rs 800.10. The stock hit a high of Rs 803.85 and low of Rs 777 so far during the day.
Index heavyweight Reliance Industries edged higher in volatile trade. The stock was up 1.96% to Rs 852.45. The stock hit a high of Rs 853.45 and low of Rs 837.20 so far during the day.
Castrol India (up 2.27%) and Gulf Oil Lubricants India (up 1.8%) edged higher as falling crude oil prices will result in lower raw material costs for the company.
Metal and mining stocks dropped. JSW Steel (down 1.74%), Sesa Sterlite (down 0.55%), Tata Steel (down 1.56%), NMDC (down 1.86%), Hindustan Copper (down 1.43%), National Aluminium Company (down 0.58%), Hindustan Zinc (down 1.75%), Jindal Steel & Power (down 0.75%) and Hindalco Industries (down 1.96%) edged lower. Steel Authority of India (Sail) rose 0.19%.
Shares of biscuits major Britannia Industries advanced 2.31% to Rs 1,935.10 after scaling a record high of Rs 1,959.95 in intraday trade.
Ashok Leyland gained 1.86% to Rs 57.60 after scaling a record high of Rs 58.50 in intraday trade.
Biocon declined 1.82% to Rs 406.50 after hitting a 52-week low of Rs 402.45 in intraday trade.
Realty stocks declined. DLF (down 0.37%), Housing Development and Infrastructure (down 1.79%), D B Realty (down 1.36%), Unitech (down 2.93%), Godrej Properties (down 0.98%), Oberoi Realty (down 2.75%) and Parsvnath Developers (down 13.45%) declined. Indiabulls Real Estate rose 0.97%.
Anant Raj Industries fell 1.6% to Rs 43.05 after hitting a 52-week low of Rs 42.50 in intraday trade.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 63.39, compared with its close of 63.58 during the previous trading session.
Brent crude futures hit 5-1/2-year low amid continuing concerns about a global supply glut. Brent for February settlement was off 87 cents at $50.23 a barrel. The contract had lost $2.01 a barrel or 3.78% to settle at $51.10 a barrel during the previous trading session, its lowest settlement since April 2009.
Finance Minister Arun Jaitley yesterday, 6 January 2015, said that ease of doing business is high priority for the government. The Finance Minister made these comments during the Pre Budget Consultative Meeting with the representatives of Trade and Industry. Jaitley said that implementation of nationwide goods and services tax (GST) is expected to improve the tax administration regime and would help in bringing more transparency in the system and ensure smooth flow of goods. It will also help in better implementation and collection of taxes, he said. The Finance Minister said that reforms measures undertaken by the government in coal sector, insurance and amendments in Land Acquisition Act etc will make a major difference in improving the Indian economy's performance.
Asian equity markets edged higher today, 7 January 2015. Key indices in China, Taiwan, Singapore, South Korea, Japan, Hong Kong and Indonesia were up 0.07% to 0.82%.
Trading in US index futures indicated that the Dow could gain 43 points at the opening bell today, 7 January 2015. The US stock market endured another day of selling yesterday, 6 January 2015, due to slumping oil prices. Investors appear to discount positive effect of lower oil prices on broader economy and continue to view the slide in crude as a symptom of slower global growth, which will threaten improving US economy. The US services sector expanded in December at its slowest rate since February as growth in new business and employment declined, an industry report showed yesterday, 6 January 2015.
The Fed will release minutes of the Federal Open Market Committee (FOMC) meeting held on 16 and 17 December 2014 later in the global day today, 7 January 2015. The Fed minutes may shed light on policy makers' views on the appropriate timing of the first interest-rate increase since 2006 and the conditions that would prompt them to tighten policy. At the two-day meeting in December, the FOMC had said it would be patient on the timing of an increase, replacing an earlier pledge to keep borrowing costs low for a "considerable time".
The US Labor Department reports monthly payroll data for December 2014 on Friday, 9 January 2015.
Meanwhile, Vietnam devalued its currency by weakening dong's reference rate for the second time since June, according to a statement on the central bank's website posted late yesterday, 6 January 2015. The currency is allowed to trade as much as 1 percent either side of the rate, which was reduced by 1 percent to 21,458 dong per dollar, effective today, 7 January 2015.
In Europe, the latest data showed that German retail sales in November rose by 1% in calendar- and inflation-adjusted terms compared with October, while in annual terms they fell by 0.8%.
Meanwhile, uncertainties over the status of Greece including a possible exit from the eurozone are likely to persist until the early election in the country later this month. Greece is set to hold snap elections on 25 January 2015 after it failed to elect a new president in a third round of voting late last year. A radical left opposition party is leading in opinion polls ahead of the vote on promises to raise wages, increase government jobs and persuade the euro area to write off some Greek debt.
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