Volatility ruled the roost on the bourses as key benchmark indices bounced back from the day's low in morning trade. The market breadth indicating the overall health of the market was strong. The barometer index, the S&P BSE Sensex, was currently down 0.09 points at 26,837.11.
Realty shares witnessed selling pressure. FMCG stocks extended yesterday's losses triggered by the India Meteorological Department (IMD) in its second stage Long Range Forecast (LRF) for Southwest Monsoon 2015 issued after trading hours on Tuesday, 2 June 2015, saying that the rainfall over the country as a whole for the 2015 southwest monsoon season is likely to be deficient.
Foreign portfolio investors sold shares worth a net Rs 727.61 crore yesterday, 3 June 2015, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 412.66 crore yesterday, 3 June 2015, as per provisional data released by the stock exchanges.
In overseas markets, Asian stocks were mostly lower. Overnight, US stocks rose at the end of trade, following positive US economic data and as negotiations between Greece and its international creditors continued to move forward.
At 10:15 IST, the S&P BSE Sensex was down 0.09 points at 26,837.11. The index rose 111.64 points at the day's high of 26,948.84 at the onset of trading session. The index fell 95.05 points at the day's low of 26,742.15 in morning trade.
The CNX Nifty was up 1.80 points or 0.02% at 8,136.90. The index hit a high of 8,160.05 in intraday trade. The index hit a low of 8,104.90 in intraday trade.
The BSE Mid-Cap index was up 7.89 points or 0.08% at 10,337.35. The BSE Small-Cap index was up 13.12 points or 0.12% at 10,841.30. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 928 shares rose and 895 shares fell. A total of 84 shares were unchanged.
FMCG stocks extended yesterday's losses triggered by the India Meteorological Department (IMD) in its second stage Long Range Forecast (LRF) for Southwest Monsoon 2015 issued after trading hours on Tuesday, 2 June 2015, saying that the rainfall over the country as a whole for the 2015 southwest monsoon season is likely to be deficient. The S&P BSE FMCG index fell 3.45% to Rs 7,439.20 yesterday, 3 June 2015.
Colgate Palmolive (India) (down 1.38%), Dabur India (down 1.28%), Hindustan Unilever (down 1.14%), Procter & Gamble Hygiene & Health Care (down 1.04%), Tata Global Beverages (down 0.47%), Godrej Consumer Products (down 0.31%), Bajaj Corp (down 0.28%) and GlaxoSmithKline Consumer Healthcare (down 0.19%), edged lower. Marico (up 0.43%), Britannia Industries (up 0.48%) and Jyothy Laboratories (up 0.80%), edged higher.
A deficient monsoon could adversely impact rural incomes. FMCG companies derive substantial revenue from rural India.
Shares of Nestle India extended yesterday's losses triggered by news reports that the Delhi city government conducted tests on 13 samples of Maggi noodles and 10 were found to be unsafe with lead exceeding the allowable level. The stock plunged 4.86% to Rs 5,890. The Delhi government has reportedly decided to file a case against Nestle India which makes Maggi noodles. Shares of Nestle India fell 9.05% to Rs 6,191.10 yesterday, 3 June 2015.
Nestle India said in a clarification issued to the stock exchanges said that the company has not received any official communication from the authorities so far. The company has till now not received any orders from any State/Centre FDA authorities to recall Maggi noodles in the market, except an order from the Uttar Pradesh FDA dated 30 April 2015 asking the company to recall a batch of Maggi noodles manufactured in February 2014 which had already reached the 'Best Before date' in November 2014. The company said it is co-operating with the authorities who are conducting tests on Maggi noodles and awaiting their results.
Realty shares witnessed selling pressure. Oberoi Realty (down 3.33%), Housing Development and Infrastructure (HDIL) (down 3.18%), Indiabulls Real Estate (down 1.97%), Sobha (down 1.64%), DLF (down 1.63%), Godrej Properties (down 1.45%), Peninsula Land (down 1.38%), Prestige Estates Projects (down 0.72%), D B Realty (down 0.64%) and Sunteck Realty (down 0.35%), edged higher. Parsvnath Developers (up 0.50%), Anant Raj (up 2.11%) and Unitech (up 3.56%), edged higher.
In global commodity markets, Brent crude oil futures edged lower today, 4 June 2015. Brent for July settlement was off 7 cents at $63.73 a barrel. The contract had fallen $1.69 a barrel or 2.58% to settle at $63.80 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.
The decline in global crude oil prices and deregulation of diesel price announced by the Indian government in October 2014 will help reduce the government's fuel subsidy burden and help contain its fiscal deficit. The slide in global crude oil prices will also help India in containing its current account deficit and fuel price inflation.
Asian stocks were mostly lower. Key benchmark indices in China, Hong Kong, Taiwan and Indonesia were down by 0.10% to 1.78%. Key benchmark indices in Japan, Singapore and South Korea were up by 0.11% to 0.24%.
Overnight, US stocks rose at the end of trade, following positive US economic data and as negotiations between Greece and its international creditors continued to move forward.
In economic readings ahead of the latest session, the Commerce Department said the US trade deficit contracted by 19.2% in April, the sharpest drop in more than six years. The West Coast port strike, which was resolved in February, caused big swings in the trade gap the first several months of the year. In March, the deficit increased to its highest level in more than six years.
Separately, an employment report showed private payrolls in the US increased at a modest clip in May, but at a pace that was below expectations.
In Europe, the European Central Bank left its main interest rates unchanged at record-low levels. Upbeat news around Greece's ability to pay its international creditors later this week also lingered in the market.
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