In a sudden move, key benchmark indices bounced back from negative terrain to move into positive terrain in early afternoon trade. The market breadth indicating the overall health of the market was strong. The barometer index, the S&P BSE Sensex, was currently up 152.56 points or 0.57% at 26,965.98.
Cement shares declined. FMCG shares were mixed. Nestle India fell after the company decided to withdraw Maggi noodles off the shelves due to recent developments.
Foreign portfolio investors bought shares worth a net Rs 511.90 crore yesterday, 4 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 772.04 crore yesterday, 4 June 2015, as per provisional data released by the stock exchanges.
In overseas markets, Asian stocks edged lower after a steep slide for US stocks overnight. US stocks closed with sizable losses yesterday, 4 June 2015, weighed down in part by fresh Greek drama and US economic reports that helped make an interest-rate hike this year look more likely.
At 12:15 IST, the S&P BSE Sensex was up 152.56 points or 0.57% at 26,965.98. The index jumped 169.42 points at the day's high of 26,982.84 in early afternoon trade. The index fell 94.98 points at the day's low of 26,718.44 in morning trade.
The 50-unit CNX Nifty was up 39.10 points or 0.48% at 8,169.75. The index hit a high of 8,181.95 in intraday trade. The index hit a low of 8,100.15 in intraday trade.
The BSE Mid-Cap index was up 71.92 points or 0.70% at 10,419.37. The BSE Small-Cap index was up 79.32 points or 0.73% at 10,903.05. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,432 shares rose and 884 shares fell. A total of 110 shares were unchanged.
FMCG shares were mixed. Britannia Industries (up 3.85%), Dabur India (up 1.04%), GlaxoSmithKline Consumer Healthcare (up 0.91%), Marico (up 0.81%), Tata Global Beverages (up 0.69%), Hindustan Unilever (up 0.47%) and Procter & Gamble Hygiene & Health Care (up 0.30%), edged higher. Jyothy Laboratories (down 0.11%), Colgate Palmolive (India) (down 0.54%) and Bajaj Corp (down 0.77%), edged lower.
Nestle India fell after the company decided to withdraw Maggi noodles off the shelves due to recent developments. The stock was off 0.2% at Rs 5,999. The stock hit a high of Rs 6,010.20 and a low of Rs 5,718.20 so far during the day. Nestle India before market hours today, 5 June 2015, announced that the company has decided to withdraw Maggi noodles off the shelves due to recent developments and unfounded concerns about the product. Nestle India said that Maggi Noodles are completely safe and have been trusted in India for over 30 years. The trust of consumers and the safety of products is the company's first priority, Nestle India said. The company promises that the trusted Maggi Noodles will be back in the market as soon as the current situation is clarified, Nestle India said.
Shares of Nestle India witnessed a sharp slide recently as concerns over levels of lead found in the product triggered investigations by at least six Indian states and a reported import ban by Nepal.
Cement shares declined. ACC (down 2.10%), Ambuja Cements (down 2.08%), Shree Cement (down 1.15%) and UltraTech Cement (down 0.91%) edged lower.
Grasim Industries was up 0.32%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Meanwhile, the Ministry of Coal after trading hours yesterday, 4 June 2015, announced that the auction of ten coal mines in the third tranche will be held from 11 August 2015 to 17 August, 2015. The coal ministry has issued instructions to the Nominated Authority to conduct the auctions for these ten mines classified for iron & steel, cement and captive power plants. The Notice Inviting Tender (NIT) will be issued on Monday, 8 June 2015.
Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update yesterday, 4 June 2015, that the rainfall activity over Kerala has increased. The conditions continue to be favourable for onset of southwest monsoon over Kerala during next 48 hours, the IMD said. The rainfall will be mainly confined to North-East and southern peninsula for the next 10-15 days, IMD said.
The IMD said that for the country as a whole, cumulative rainfall during this year's monsoon has so far (upto 3 June) been 19% above the Long Period Average (LPA). The cumulative seasonal rainfall was excess in 16, normal in 3 and deficient to scanty in 17 sub-divisions.
In global commodity markets, Brent crude oil futures edged lower on concerns that the oil producing countries' club will fail to cut output targets in an effort to support prices. Brent for July settlement was off 20 cents at $61.83 a barrel. The contract had lost $1.77 a barrel or 2.77% to settle at $62.03 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 today, 5 June 2015. The OPEC meeting is being closely watched for clues about the organization's next moves.
In overseas markets, Asian stocks edged lower today, 5 June 2015, after a steep slide for US stocks overnight. Key benchmark indices in Hong Kong, Indonesia, Japan, Singapore, South Korea and Taiwan were down by 0.09% to 0.82%. China's Shanghai Composite was up 0.73%.
US stocks closed with sizable losses yesterday, 4 June 2015, weighed down in part by fresh Greek drama and US economic reports that helped make an interest-rate hike this year look more likely. Data showed the labour market tightening, with first-time applications for unemployment aid down last week and the number of people on benefit rolls hitting the lowest level since 2000, suggesting the Federal Reserve will remain on track to raise interest rates later this year. The data came ahead of Friday's key US jobs report. The International Monetary Fund has urged the Fed not to raise rates until there are clear signs of a pickup in wages and inflation.
In Europe, Greece delayed a debt payment to the International Monetary Fund (IMF) due today, 5 June 2015, and German Chancellor Angela Merkel said talks on a cash-for-reforms deal were still far from an agreement. Greece was supposed to pay the IMF about 300 million euros today, 5 June 2015, but said yesterday, 4 June 2015, it would bundle all the payments due this month into one. That means Greece now owes the fund 1.54 billion euros ($1.7 billion) by 30 June 2015. IMF rules allow borrowers to combine payments of principal due in a calendar month, but the provision has been used only once before -- by Zambia in the mid-1980s.
Manufacturing orders in Germany picked up in April on the back of foreign demand, data from the country's economy ministry showed Friday. New orders were 1.4% higher on month in adjusted terms. On month, foreign orders grew by a robust 5.5%, with those from the eurozone rising by 6.8%. Non-eurozone foreign orders were up 4.7%, while domestic orders slipped 3.8%. Total data for March were also revised slightly upward, with the ministry now reporting a 1.1% monthly increase, beating the 0.9% rise originally reported.
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