A range bound movement was witnessed as key benchmark indices languished in negative terrain in mid-afternoon trade. The market breadth indicating the overall health of the market was negative. The barometer index, the S&P BSE Sensex, was currently off 144.97 points or 0.53% at 27,419.69. In overseas markets, stocks in Shanghai fell sharply as stake sales of two state-owned banks by a Chinese sovereign-wealth fund rattled investors. European stocks edged lower as a reported deal between debt-laden Greece and its creditors hasn't come through, the prospect of which sent shares soaring in the previous session.
Pharma stocks declined. ONGC dropped amid volatility ahead of its Q4 March 2015 results today, 28 May 2015.
Earlier, the Sensex and 50-unit CNX Nifty, both, hit their lowest level in almost two weeks in afternoon trade as these two indices extended intraday losses.
Indian stocks may remain volatile during the remaining part of the trading session as traders roll over positions in the futures & options (F&O) segment from the near month May 2015 series to June 2015 series. The near month May 2015 F&O contracts expire today, 28 May 2015.
Foreign portfolio investors sold shares worth a net Rs 934.98 crore yesterday, 27 May 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 594.03 crore yesterday, 27 May 2015, as per provisional data released by the stock exchanges.
In overseas markets, European stocks edged lower as a reported deal between debt-laden Greece and its creditors hasn't come through, the prospect of which sent shares soaring in the previous session. Stocks in Shanghai fell sharply as stake sales of two state-owned banks by a Chinese sovereign-wealth fund rattled investors. US stocks edged higher yesterday, 27 May 2015, recovering most of the losses from the previous session on the back of a big rally in tech stocks, which propelled the Nasdaq Composite to a fresh record close.
At 14:15 IST, the S&P BSE Sensex was down 144.97 points or 0.53% at 27,419.69. The index fell 210.31 points at the day's low of 27,354.35 in afternoon trade, its lowest level since 15 May 2015. The index rose 101.71 points at the day's high of 27,666.37 in early trade, its highest level since 26 May 2015.
The Nifty was down 45.70 points or 0.55% at 8,288.90. The index hit a low of 8,270.15 in intraday trade, its lowest level since 15 May 2015. The index hit a high of 8,364.50 in intraday trade, its highest level since 26 May 2015.
The BSE Mid-Cap index was down 62.97 points or 0.59% at 10,553.50. The decline in this index was higher than the Sensex's decline in percentage terms. The BSE Small-Cap index was down 26.51 points or 0.24% at 11,135.90. The decline in this index was lower than the Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was negative. On BSE, 1,386 shares fell and 1,109 shares rose. A total of 112 shares were unchanged
Pharma stocks declined. Wockhardt (down 7.25%), Cipla (down 3.08%), Dr Reddy's Laboratories (down 2.07%), Sun Pharmaceutical Industries (down 1.71%), Ipca Laboratories (down 1.74%), Strides Arcolab (down 1.27%), Glenmark Pharmaceuticals (down 0.73%) and Lupin (down 0.06%) edged lower. GlaxoSmithkline Pharmaceuticals (up 0.37%) edged higher.
ONGC dropped amid volatility ahead of its Q4 March 2015 results today, 28 May 2015. The stock was off 0.77% at Rs 328.70. The stock hit a high of Rs 337.15 and a low of Rs 325 so far during the day.
Meanwhile, private weather forecaster Skymet yesterday, 27 May 2015, said that conditions are favorable for the onset of Southwest Monsoon in India. It expects monsoon to hit Kerala around 30 May 2015. The progress of monsoon over Peninsular India is expected to be delayed by a week, according to Skymet.
The government is scheduled to announce the data on gross domestic product (GDP) growth for Q4 March 2015 tomorrow, 29 May 2015. India's GDP grew 7.5% in Q3 December 2014.
Meanwhile, economists expects the Reserve Bank of India (RBI) to cut its benchmark lending rate viz. the repo rate by 25 basis points to 7.25% after a monetary policy review early next week. The RBI is scheduled to announce the outcome of its second bi-monthly monetary policy review for the year 2015-16 at 11:00 IST on Tuesday, 2 June 2015.
In overseas markets, European shares edged lower today, 28 May 2015, as a reported deal between debt-laden Greece and its creditors hasn't come through, the prospect of which sent shares soaring in the previous session. Key benchmark indices in UK, France and Germany were down by 0.05% to 0.57%.
Greece, which is feared to be running out of cash, needs to cut a deal to unlock its next round of bailout funds. Greece is scheduled to repay euro 1.6 billion ($1.76 billion) to the International Monetary Fund (IMF) between June 5-19. Meanwhile, European Central Bank (ECB) Governing Council member Ewald Nowotny today, 28 May 2015, reportedly said the ECB can't provide interim funding to Greece under current rules.
Nowotny also reportedly said that the ECB will have to be very careful when it eventually unwinds its quantitative-easing (QE) program. He, however, indicated that the ECB has no plans to end QE prematurely. The ECB launched its 60-billion-euro ($66 billion) a-month QE program in March, and the economic data out of the eurozone have been surprisingly good since. That has fueled speculation the ECB will have to begin the tapering process sooner than the planned September 2016 timetable.
Stocks in Shanghai fell sharply today, 28 May 2015, as stake sales of two state-owned banks by a Chinese sovereign-wealth fund rattled investors. The Shanghai Composite index lost 6.5%. The filings to Hong Kong Exchanges & Clearing showed that China Central Huijin Investment, a unit of China's sovereign wealth fund China Investment Corp. (CIC), reduced its stakes in the country's biggest state-owned banks for the first time. Meanwhile, Chinese securities firms also took a hard hit after several brokers tightened up their margin-financing requirements in recent days, including increasing the amount of cash clients must put down for their deposits.
In Hong Kong, the Hang Seng index was off 2.23%. In other Asian markets, Key indices in Singapore and Indonesia were off 0.15% to 0.17%. Key indices in Japan, Taiwan and South Korea were up 0.16% to 0.39%.
US stocks edged higher yesterday, 27 May 2015, recovering most of the losses from the previous session on the back of a big rally in tech stocks, which propelled the Nasdaq Composite to a fresh record close.
The President of the San Francisco Fed John Williams today, 28 May 2015, said that it is not clear how the Federal Reserve should respond to the purported effect that low interest rates are causing excessive risk-taking in financial markets. In a speech to the Monetary Authority of Singapore, Williams said it could either argue for a more rapid rate hike to discourage further risk or imply a more gradual course of action to mitigate the risk of a market tantrum. Overall, Williams said he was "convinced" that monetary policy should not be used to address risks to financial stability given the "very real and sizable costs, not to mention that the potential benefits, are anything but certain."
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