Amid divergent trend among various index constituents, key benchmark indices edged lower. The barometer index, the S&P BSE Sensex, failed to hold the psychological 27,000 level. Earlier, the Sensex had regained the psychological 27,000 level in early trade. The Sensex had fallen below the psychological 27,000 level yesterday, 6 January 2015, after a steep slide. The Sensex was provisionally off 27.57 points or 0.1% to 26,959.89. The market breadth indicating the overall health of the market was negative. Global crude oil prices hit 5-1/2-year low amid continuing concerns about a global supply glut. Investors fear that the rout in global crude oil prices signals a weak global economy. Asian and European stocks were in green.
Foreign portfolio investors sold shares worth a net Rs 1570.76 crore yesterday, 6 January 2015, as per provisional data.
Shares of public sector oil marketing companies advanced on fall in global crude oil prices. Tata Motors dropped after media reports stated that the company's British luxury car unit Jaguar Land Rover was awaiting word on the fate of 1,200 luxury vehicles aboard a 51,000-tonne car transporter ship that has run aground in the English Channel. Shares of Hindustan Unilever advanced.
Meanwhile, Finance Minister Arun Jaitley yesterday, 6 January 2015, said that ease of doing business is high priority for the government.
Global crude oil prices hit 5-1/2-year low amid continuing concerns about a global supply glut. Deregulation of diesel price announced by the Indian government in October 2014 and a sharp decline in global crude oil prices over the past few months will help reduce the government's fuel subsidy burden and help contain its fiscal deficit. The steep slide in global crude oil prices will also help India in containing its current account deficit and fuel price inflation. India imports 80% of its crude oil requirement.
Earlier, the Sensex and the 50-unit CNX Nifty had, both, hit 3-week low in early afternoon trade.
In overseas markets, European shares edged higher ahead of the release of data on eurozone inflation for December. Asian stocks also nudged higher. The US stock market endured another day of selling yesterday, 6 January 2015, due to slumping oil prices.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude futures hit 5-1/2-year low amid continuing concerns about a global supply glut.
As per provisional closing, the S&P BSE Sensex was off 27.57 points or 0.1% to 26959.89. The index dropped 211.34 points at the day's low of 26,776.12 in early afternoon trade, its lowest level since 17 December 2014. The index rose 64.14 points at the day's high of 27,051.60 in mid-morning trade.
The CNX Nifty was down 25.25 points or 0.31% at 8,102.10, as per provisional closing. The index hit a low of 8,065.45 in intraday trade, its lowest level since 17 December 2014. The index hit a high of 8,151.20 in intraday trade.
The BSE Mid-Cap index was off 1.19 points or 0.01% at 10,234.55. The decline in the index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index was up 2.77 points or 0.03% at 10,988.99, outperforming the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,505 shares declined and 1,342 shares advanced. A total of 105 shares were unchanged.
The total turnover on BSE amounted to Rs 3196 crore, higher than Rs 3139.15 crore on yesterday, 6 January 2015.
Shares of public sector oil marketing companies (PSU OMCs) advanced on fall in global crude oil prices. BPCL (up 1.07%), HPCL (up 2%), and Indian Oil Corporation (up 0.43%) edged higher. Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
Reliance Industries (RIL) rose 2.57% at Rs 857.60. A foreign brokerage has reportedly said in a recent research note on RIL that RIL's $11 billion 4G telecom venture is likely to be launched this year which together with key downstream (oil) expansion projects in the second half of FY 2016 will help RIL near double pre-tax profit.
Tata Motors dropped after media reports stated that the company's British luxury car unit Jaguar Land Rover is awaiting word on the fate of 1,200 luxury vehicles aboard a 51,000-tonne car transporter ship that has run aground in the English Channel. The stock was off 1.13% at Rs 495.45.
Maruti Suzuki India rose 1.9% at Rs 3,460. According to reports, the company will increase car prices by 4% following the government's decision to halt excise duty benefits to automakers beyond 31 December 2014. Meanwhile, Maruti during market hours today, 7 January 2015, said its total production rose 18.21% to 95,400 units in December 2014 over December 2013.
Tech Mahindra fell 0.2% at Rs 2,532.55. The stock hit a high of Rs 2,574 and a low of Rs 2,513.70. Tech Mahindra after market hours yesterday, 6 January 2015, announced that it has teamed-up with global telecom technology firm Avion Systems, to provide Network Design and Engineering Services to major Communications Service Providers. Tech Mahindra has been chosen as a minority investor at Avion Systems and the new joint venture will be called Avion Networks Inc. The joint venture aims to play a significant role as a strategic supplier of choice to the carriers in the final deployment and management of current mobile networks and their planned transformation into the next-generation cloud enabled, virtual and software driven networks.
FMCG major Hindustan Unilever (HUL) surged 3.4% at Rs 801.50. The stock hit a high of Rs 805.90 and low of Rs 777.
Coal India edged lower in volatile trade after the company said due to strike by workers, the coal production and despatch were partially affected yesterday, 6 January 2015. The stock was off 1.23% at Rs 374.15. The stock hit a high of Rs 384.20 and a low of Rs 372.20. The company during market hours today, 7 January 2015, said that four central trade unions of the company observed strike yesterday, 6 January 2015, in Coal lndia and its subsidiaries companies. Due to strike the production and despatch were partially affected.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 63.3450, compared with its close of 63.58 during the previous trading session.
Brent crude futures hit 5-1/2-year low amid continuing concerns about a global supply glut. Brent for February settlement was off 47 cents at $50.63 a barrel. The contract had lost $2.01 a barrel or 3.78% to settle at $51.10 a barrel during the previous trading session, its lowest settlement since April 2009.
Finance Minister Arun Jaitley yesterday, 6 January 2015, said that ease of doing business is high priority for the government. The Finance Minister made these comments during the Pre Budget Consultative Meeting with the representatives of Trade and Industry. Jaitley said that implementation of nationwide goods and services tax (GST) is expected to improve the tax administration regime and would help in bringing more transparency in the system and ensure smooth flow of goods. It will also help in better implementation and collection of taxes, he said. The Finance Minister said that reforms measures undertaken by the government in coal sector, insurance and amendments in Land Acquisition Act etc will make a major difference in improving the Indian economy's performance.
European shares edged higher today, 7 January 2015, ahead of the release of data on eurozone inflation for December. Key indices in Germany, UK, and France were up 0.43% to 0.48%.
The latest data showed that German retail sales in November rose by 1% in calendar- and inflation-adjusted terms compared with October, while in annual terms they fell by 0.8%.
Meanwhile, uncertainties over the status of Greece including its possible exit from the eurozone are likely to persist until the early election in the country later this month. Greece is set to hold snap elections on 25 January 2015 after it failed to elect a new president in a third round of voting late last year. The Greek leftist opposition party Syriza leads opinion polls ahead of national elections on 25 January 2015. Syriza has demanded debt relief from the eurozone and promised to roll back the austerity and reform measures that the country has undertaken in exchange for the international bailout that the government negotiated in 2012.
Asian equity markets edged higher today, 7 January 2015. Key indices in China, Taiwan, Singapore, South Korea, Japan, Hong Kong and Indonesia were up 0.01% to 0.83%.
Trading in US index futures indicated that the Dow could gain 55 points at the opening bell today, 7 January 2015. The US stock market endured another day of selling yesterday, 6 January 2015, due to slumping oil prices. Investors appear to discount positive effect of lower oil prices on broader economy and continue to view the slide in crude as a symptom of slower global growth, which will threaten improving US economy. The US services sector expanded in December at its slowest rate since February as growth in new business and employment declined, an industry report showed yesterday, 6 January 2015.
The Fed will release minutes of the Federal Open Market Committee (FOMC) meeting held on 16 and 17 December 2014 later in the global day today, 7 January 2015. The Fed minutes may shed light on policy makers' views on the appropriate timing of the first interest-rate increase since 2006 and the conditions that would prompt them to tighten policy. At the two-day meeting in December, the FOMC had said it would be patient on the timing of an increase, replacing an earlier pledge to keep borrowing costs low for a "considerable time".
The US Labor Department reports monthly payroll data for December 2014 on Friday, 9 January 2015.
Meanwhile, Vietnam devalued its currency by weakening dong's reference rate for the second time since June, according to a statement on the central bank's website posted late yesterday, 6 January 2015. The currency is allowed to trade as much as 1 percent either side of the rate, which was reduced by 1 percent to 21,458 dong per dollar, effective today, 7 January 2015.
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