A range bound movement was witnessed as key benchmark indices languished in negative terrain in afternoon trade. The fall in the 50-unit CNX Nifty in percentage terms was higher than the decline in the barometer index, the S&P BSE Sensex. The Sensex was currently off 97.28 points or 0.34% at 28,568.76. The Nifty was currently off 66.50 points or 0.76% at 8,640.20. The fall in the Nifty in percentage terms was higher than the decline in the Sensex because a number of Nifty constituents which are not part of the Sensex declined. Lupin, IndusInd Bank, Idea Cellular, Yes Bank, Tech Mahindra, Cairn India and Zee Entertainment dropped. All these are Nifty constituents which are not part of the Sensex. Shares of all the three cement makers - ACC, Ambuja Cements and UltraTech Cement - which are Nifty constituents but are not part of the Sensex also dropped. The market breadth indicating the overall health of the market was negative.
Shares of public sector banks rose. Shares of private sector banks declined. Realty stocks declined.
Meanwhile, Finance Minister Arun Jaitley yesterday, 16 April 2015, signaled that the government is unlikely to intervene with regard to income tax notices directing payment of Minimum Alternate Taxation (MAT) by foreign institutional investors (FIIs) for past years.
Separately, Prime Minister Narendra Modi assured investors of a predictable and stable tax regime while interacting with major pension fund managers of Canada yesterday, 16 April 2015.
Meanwhile, Reserve Bank of India (RBI) Governor Raghuram Rajan was quoted as saying in a newspaper interview that talks between RBI and the government have not yet focused on the composition of a planned monetary policy committee.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 214.36 crore yesterday, 16 April 2015, as per provisional data as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 432.27 crore yesterday, 16 April 2015, as per provisional data.
In overseas markets, European stocks edged higher. Asian stocks edged lower. US stocks closed slightly lower yesterday, 16 April 2015, as investors digested a mixed batch of economic reports.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude oil futures edged lower as data showing increase in oil production from the Organization of the Petroleum Importing Countries last month tempered some of the bullishness among investors.
At 13:16 IST, the S&P BSE Sensex was down 97.28 points or 0.34% at 28,568.76. The index lost 150.74 points at the day's low of 28,515.30 in morning trade. The index gained 30.15 points at the day's high of 28,696.19 at onset of the day's trading session.
The CNX Nifty was down 66.50 points or 0.76% at 8,640.20. The index hit a low of 8,635.55 in intraday trade, its lowest level since 7 April 2015. The index hit a high of 8,699.85 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,366 shares fell and 1,212 shares rose. A total of 121 shares were unchanged.
The BSE Mid-Cap index was off 101.01 points or 0.89% at 10,895.18. The BSE Small-Cap index was off 77.81 points or 0.66% at 11,714.93. The fall in both these indices was higher than the Sensex's decline in percentage terms.
Shares of public sector banks rose. UCO Bank (up 0.44%), Syndicate Bank (up 1.39%), Corporation Bank (up 0.41%), Allahabad Bank (up 0.82%), Bank of Baroda (up 0.25%), State Bank of India (SBI) (up 0.51%), Union Bank of India (up 0.85%), Canara Bank (up 1.21%), and Bank of India (up 2.02%) edged higher.
Punjab National Bank (PNB) rose 1.83%. The bank has reduced interest rate on rupee term deposits below Rs 1 crore in the maturity bucket of 1 to 5 years to 8.5% from 8.75%. The bank reduced interest rate on rupee term deposits below Rs 1 crore in the maturity bucket of over 5 years to 10 years to 8.25% from 8.5%. The bank reduced interest rate on rupee term deposits of Rs 1 crore to Rs 10 crore in the maturity bucket of 91 days to 179 days has been reduced to 7.25% from 7.5%. The bank reduced interest rate on rupee term deposits of Rs 1 crore to Rs 10 crore in the maturity bucket of 1 year to 8.5% from 8.75%. The bank reduced interest rate on rupee term deposits of Rs 1 crore to Rs 10 crore in the maturity bucket of 2 years to 5 years to 8.25% from 8.5%. The bank reduced interest rate on rupee term deposits of Rs 1 crore to Rs 10 crore in the maturity bucket of 5 years to 10 years to 8% from 8.5%. The revised interest rates will take effect from 23 April 2015, PNB said.
Shares of private sector banks declined. Axis Bank (down 1.27%), HDFC Bank (down 0.9%), ICICI Bank (down 0.8%), Kotak Mahindra Bank (down 0.9%), Yes Bank (down 2.49%) and IndusInd Bank (down 3.01%) edged lower.
The Reserve Bank of India (RBI) said in a notification issued to commercial banks yesterday, 16 April 2015, that it has been decided by Government of India (GoI) to implement the Interest Subvention Scheme for 2015-16 for short-term crop loans until 30 June 2015 on the same terms and conditions approved for the scheme for 2014-15 as an interim measure. The RBI stated that GoI is examining various alternative approaches for improving the efficacy of the Interest Subvention Scheme for short-term crop loans and its finalization may take some time.
Realty stocks declined. Sobha (down 0.89%), Indiabulls Real Estate (down 0.68%), Oberoi Realty (down 1.1%), Phoenix Mills (down 0.53%), Anant Raj (down 0.23%), DLF (down 1.1%) and Godrej Properties (down 1.34%) edged lower. Unitech (up 0.59%) and Housing Development & Infrastructure (HDIL) (up 1.45%) edged higher.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 62.3375, compared with closing of 62.30 during the previous trading session.
Brent crude oil futures edged lower as data showing increase in oil production from the Organization of the Petroleum Importing Countries last month tempered some of the bullishness among investors. Brent for June settlement was off 24 cents at $63.74 a barrel. The contract had gained 66 cents or 1.04% to settle at $63.98 a barrel during previous trading session.
Meanwhile, Finance Minister Arun Jaitley yesterday, 16 April 2015, signaled in his speech at a seminar in Washington that the government is unlikely to intervene with regard to income tax notices directing payment of Minimum Alternate Taxation (MAT) by foreign institutional investors (FIIs) for past years. Many foreign investors have been receiving notices requesting their MAT calculations for financial year 2011-2012. This has also sparked worries among FIIs that the income tax department will raise MAT demand on FIIs for earlier years. In the Union Budget 2015-16 presented in parliament on 28 February 2015, Jaitley had announced that capital gains on sale of shares by foreign institutional investors (FIIs) will not be subject to the provisions of the minimum alternate tax (MAT) from 1 April 2015. Jaitley yesterday, 16 April 2015, reportedly said that with regard to applicability of MAT for previous years, FIIs had gone to a judicial tribunal and lost. He suggested that if they want relief, they should appeal rather than asking for him to step in.
Separately, Prime Minister Narendra Modi assured investors of a predictable and stable tax regime while interacting with major pension fund managers of Canada yesterday, 16 April 2015. Modi is currently in Canada for an official visit.
Meanwhile, Reserve Bank of India (RBI) Governor Raghuram Rajan was quoted as saying in a newspaper interview that talks between RBI and the government have not yet focused on the composition of a planned monetary policy committee.
In overseas markets, European stocks edged higher today, 17 April 2015. Key indices in France and UK rose by 0.18% to 0.27%. Germany's DAX fell 0.02%.
Meanwhile, Greek Prime Minister Alexis Tsipras yesterday, 16 April 2015, reportedly said that he was "firmly optimistic" his government would reach an agreement with its creditors by the end of April despite friction over issues such as pension and labour reform. Greece needs to strike a deal within the next few months to secure billions of euros in bailout aid to avoid defaulting on its debts and potentially exiting the euro.
Asian stocks edged lower today, 17 April 2015. Key benchmark indices in Indonesia, Singapore, Hong Kong, Taiwan and Japan fell by 0.05% to 1.17%. Key benchmark indices in China and South Korea were up 0.17% to 2.2%.
Singapore's key non-oil domestic exports unexpectedly surged in March due to growth in both electronics and non-electronic shipments. Exports of goods made in Singapore rose 18.5% in March compared with a year earlier, after falling 9.7% in February, trade promotion agency International Enterprise Singapore said today, 17 April 2015.
Trading in US index futures indicated that the Dow could fall 20 points at the opening bell today, 17 April 2015. US stocks closed slightly lower yesterday, 16 April 2015 as investors digested a mixed batch of economic reports.
US economic data released yesterday, 16 April 2015 showed housing starts rose far less than expected in March and factory activity in the mid-Atlantic region grew modestly this month, suggesting the economic momentum will probably not be strong enough for the Federal Reserve to decide to start raising interest rates as early as June.
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