A range bound movement was witnessed as key benchmark indices languished in negative zone in morning trade. The market breadth indicating the overall health of the market was negative. The barometer index, the S&P BSE Sensex, was currently off 118.93 points or 0.43% at 27,730.06. In overseas markets, Asian stocks edged lower after an encouraging reading on US manufacturing activity in May increased the likelihood that the US Federal Reserve will raise interest rates this year.
Interest rate sensitive realty stocks rose on expectations the Reserve Bank of India (RBI) will cut its benchmark lending rate viz. the repo rate by 25 basis points to 7.25% after a monetary policy review today, 2 June 2015.
Economists expect the RBI to cut its benchmark lending rate viz. the repo rate by 25 basis points to 7.25% after a monetary policy review today, 2 June 2015. Economists expect rate cut from the central bank in an attempt spur growth. 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 today, 2 June 2015.
Meanwhile, data released by the government after trading hours yesterday, 1 June 2015, showed that the output of eight core infrastructure sector, carrying 38% weight in the Index of Industrial Production, declined 0.4% in April 2015.
Foreign portfolio investors bought shares worth a net Rs 113.47 crore yesterday, 1 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 49.34 crore yesterday, 1 June 2015, as per provisional data released by the stock exchanges.
In overseas markets, Asian stocks edged lower after an encouraging reading on US manufacturing activity in May increased the likelihood that the US Federal Reserve will raise interest rates this year. US stocks ended with modest gains yesterday, 1 June 2015, recovering part of last week's losses in a session marked by cautious trading as investors reacted to mixed economic data.
At 10:16 IST, the S&P BSE Sensex was down 118.93 points or 0.43% at 27,730.06. The index fell 219.76 points at the day's low of 27,629.23 in early trade, its lowest level since 29 May 2015. The index rose 53.54 points at the day's high of 27,902.53 in early trade.
The CNX Nifty was down 39.40 points or 0.47% at 8,394. The index hit a low of 8,364.80 in intraday trade, its lowest level since 29 May 2015. The index hit a high of 8,445.35 in intraday trade.
The BSE Mid-Cap index was down 18.31 points or 0.17% at 10,694.12. The BSE Small-Cap index was down 31.06 points or 0.28% at 11,248.72. The fall in both these indices was lower than the Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was negative. On BSE, 1,015 shares fell and 816 shares rose. A total of 77 shares were unchanged.
Interest rate sensitive realty stocks rose on expectations the Reserve Bank of India (RBI) will cut its benchmark lending rate viz. the repo rate by 25 basis points to 7.25% after a monetary policy review today, 2 June 2015. Unitech (up 0.07%), Housing Development & Infrastructure (HDIL) (up 0.41%), DLF (up 0.51%), Phoenix Mills (up 0.3%), and Anant Raj (up 0.14%) edged higher. Godrej Properties (down 0.17%), Sobha (down 1.62%), Indiabulls Real Estate (down 0.85%) declined. Lower interest rates may help revive demand for properties. Purchases of both residential and commercial property are largely driven by finance.
In global commodity markets, Brent crude oil futures edged lower. Brent for July settlement was off 6 cents at $64.82 a barrel. The contract had lost 68 cents or 1.03% to settle at $64.88 a barrel during the previous trading session.
Oil cartel OPEC is expected to keep its production target of 30 million barrels of oil per day unchanged at a meeting scheduled in Vienna on Friday, 5 June 2015. The OPEC meeting is being closely watched for clues about the organization's next moves.
Meanwhile, data released by the government after trading hours yesterday, 1 June 2015, showed that the output of eight core infrastructure sector, carrying 38% weight in the Index of Industrial Production, declined 0.4% in April 2015.
Meanwhile, the onset of monsoon in Kerala has been delayed. The India Meteorological Department (IMD) yesterday, 1 June 2015, said that conditions are becoming favourable for the onset of southwest monsoon over Kerala around 5 June, four days after the scheduled onset date of 1 June.
In overseas markets, Asian stocks edged lower after an encouraging reading on US manufacturing activity in May increased the likelihood that the US Federal Reserve will raise interest rates this year. Key indices in China, Singapore, Japan, Hong Kong and South Korea were off 0.04% to 1.26%. Taiwan's Taiwan Weighted was up 0.08%.
US stocks ended with modest gains yesterday, 1 June 2015, recovering part of last week's losses in a session marked by cautious trading as investors reacted to mixed economic data. Among macro data in US, a report from ISM showed the pace of manufacturing growth rose in May. Other data showed construction spending surged in April but consumer spending was unexpectedly flat in April.
In Europe, Greece is expected this week to once again remain in sharp focus ahead of a key debt repayment due to the International Monetary Fund on Friday, 5 June 2015. Greece is still struggling to agree on a reform program with the creditors, which is a prerequisite for receiving the next tranche of bailout money. In an interview with French daily Le Monde on Sunday, 31 May 2015, Greek Prime Minister Alexis Tsipras blamed the creditor institutions for the lack of progress in reaching a reform deal, calling the demands absurd. He also said the lenders displayed a total indifference to the recent democratic choice of the Greek people.
Greece is scheduled to repay a total of euro 1.6 billion ($1.76 billion) to the International Monetary Fund (IMF) over the period between June 5-19.
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