Key benchmark indices extended intraday losses in mid-afternoon trade after India's weather office -- The India Meteorological Department -- predicted below normal rains during the June-September southwest monsoon season this year. The barometer index, the S&P BSE Sensex, and 50-unit CNX Nifty, both, hit their lowest level in almost 4 weeks. The market breadth indicating the overall health of the market turned negative from positive. The Sensex was currently off 196.38 points or 0.71% at 27,479.66.
Cement shares were mixed. Shares of power generation companies declined.
Foreign portfolio investors bought shares worth a net Rs 17488.73 crore yesterday, 21 April 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1364.83 crore on yesterday, 21 April 2015, as per provisional data released by the stock exchanges.
In overseas markets, European stocks reversed initial gains. In Asia, Japan's Nikkei Stock Average closed above 20,000 for the first time in 15 years to after the country registered a trade surplus in March for the first time in nearly three years.
At 14:16 IST, the S&P BSE Sensex was down 196.38 points or 0.71% at 27,479.66. The index fell 290.56 points at the day's low of 27,385.48 in mid-afternoon trade, its lowest level since 27 March 2015. The index jumped 151.62 points at the day's high of 27,827.66 in early trade
The CNX Nifty was down 69 points or 0.82% at 8,308.75. The index hit a low of 8,284.70 in intraday trade, its lowest level since 27 March 2015. The index hit a high of 8,423.20 in intraday trade.
The BSE Mid-Cap index was down 88.63 points or 0.84% at 10,418.08. The BSE Small-Cap index was down 103.91 points or 0.92% at 11,228.98. The decline in both these indices was higher than the Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market turned negative from positive. On BSE, 1649 shares fell and 972 shares rose. A total of 124 shares were unchanged.
Cement shares were mixed. India Cements (down 3.34%), JK Lakshmi Cement (down 2.62%), Kakatiya Cement (down 2.17%), J K Cement (down 2.14%), Prism Cement (down 1.95%), Mangalam Cement (down 1.47%), HeidelbergCement India (down 1.12%), Ambuja Cements (down 1.06%) and The Ramco Cement (down 0.88%), edged lower. Birla Corporation (up 0.60%), UltraTech Cement (up 0.66%), Shree Cement (up 0.96%), ACC (up 1.20%), Saurastra Cement (up 1.53%) and Dalmia Cement (Bharat) (up 3.64%), edged higher.
Grasim Industries up 0.53%. Grasim holds majority stake in UltraTech Cement.
Shares of power generation companies declined. GMR Infrastructure (down 2.48%), CESC (down 1.24%), Adani Power (down 1.11%), NHPC (down 0.74%), NTPC (down 0.59%), Reliance Infrastructure (down 0.53%), Tata Power (down 0.39%), Torrent Power (down 0.31%) and Reliance Power (down 0.26%), edged lower. JSW Energy (up 0.40%) and Jaiprakash Power Ventures (up 0.52%), edged higher.
Reliance Power rose 0.78% to Rs 58. The company announced during trading hours today, 22 April 2015, that Sasan Ultra Mega Power Project (UMPP) achieved power station commercial operation by operating all six units comprising 3960 megawatts continuously for 24 hours. The Sasan UMPP is the largest integrated power plant cum coal mining project at a single location in the world involving investment of over Rs 27000 crore.
Aditya Birla Nuvo was down 0.71% to Rs 1,602. With reference to the news item titled "Century textile & Industries Ltd- textile division to be merged with AB nuvo," Aditya Birla Nuvo clarified during trading hours today that the aforesaid media report is a mere speculation and as per policy, the company does not comment on such market speculations. The news is not true and should be ignored, the company said.
The India Meteorological Department (IMD) today, 22 April 2015, said quantitatively the monsoon seasonal rainfall is likely to be 93% of the Long Period Average (LPA) during the June-September southwest monsoon season this year, with a model error of plus/minus 5%. Monsoon rainfall is considered below normal when the rainfall range is 90% to 96% of LPA. The probability for below normal rainfall is 35%, for deficient 33% and for normal 28%. Currently, weak El Nino conditions are prevailing over the Pacific. The latest forecast from the IMD-IITM coupled model forecast indicates El Nino conditions are likely to persist during the southwest monsoon season, the IMD said in a press release. As the extreme sea surface temperature conditions over Pacific and Indian Oceans particularly ENSO conditions over Pacific (El Nino or La Nina) are known to have strong influence on the Indian summer monsoon, IMD is carefully monitoring the sea surface conditions over Pacific and Indian oceans.
The IMD will issue the update on monsoon forecasts in June 2015 as a part of the second stage forecast.
The southwest monsoon is crucial for the agriculture sector. India gets 70% of its annual rainfall in the southwest monsoon, which irrigates half the country's farmlands.
Meanwhile, Finance minister Arun Jaitley was quoted as saying today, 22 April 2015, that there was a broad consensus that states are in support of a nationwide goods and services tax (GST). He was speaking to reporters after meeting finance ministers from 18 states to discuss the road-map for roll-out of GST. The government, he said, will go ahead with constitutional amendment bill on GST in the current budget session of Parliament. It may be recalled that the government had tabled the Constitution Amendment Bill for GST in the Lok Sabha during the winter session of parliament.
GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. Central taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST. At the state level, taxes like VAT/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. would be subsumed in GST.
In Europe, the Bank of England officials voted unanimously to leave the UK central bank's main interest rate unchanged this month and concluded that the recent pickup in growth in the neighboring eurozone should help power the UK economy this year, according to the minutes of the Monetary Policy Committee's April meeting published today, 22 April 2015.
Meanwhile, global markets are closely monitoring developments with regard to Greece. Greece needs to agree on a range of economic overhauls with the lenders in order to receive the next much-needed tranche of bailout and avoid running out of cash. Eurozone finance ministers are scheduled to hold a meeting on Friday, 24 April 2015, to discuss the state of negotiations between Greece and its international creditors.
Powered by Capital Market - Live News
