A bout of volatility was witnessed in early trade as key benchmark indices declined after a firm start. The market breadth indicating the overall health of the market was strong. The barometer index, the S&P BSE Sensex, was currently down 6.24 points or 0.02% at 26,830.96.
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 higher. 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 9:17 IST, the S&P BSE Sensex was down 6.24 points or 0.02% at 26,830.96. The index rose 111.64 points at the day's high of 26,948.84 at the onset of trading session. The index fell 51.47 points at the day's low of 26,785.73 at the onset of trading session.
The CNX Nifty was down 8.50 points or 0.10% at 8,126.60. The index hit a high of 8,160.05 in intraday trade. The index hit a low of 8,119.20 in intraday trade.
The BSE Mid-Cap index was up 9.39 points or 0.09% at 10,338.85. The BSE Small-Cap index was up 28.01 points or 0.26% at 10,856.19. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 501 shares rose and 291 shares fell. A total of 32 shares were unchanged.
ICICI Bank was down 1.76% on turning ex-dividend today, 4 June 2015, for dividend of Rs 5 per share for the year ended 31 March 2015.
Axis Bank was up 0.86% after the Reserve Bank of India (RBI) after trading hours yesterday, 3 June 2015, announced that the restrictions placed on the purchase of shares of Axis Bank by foreign institutional investors (FIIs)/Registered Foreign Portfolio Investors (RFPIs) have been withdrawn with immediate effect as the total shareholding of FIIs/RFPIs in the private sector bank has gone below the threshold limit.
Indian Oil Corporation (IOCL) was up 0.92%. With regard to news item titled "IOC, HPCL in talks with Iraq's SOMO to buy 4m bbls oil for strategic reserves", IOCL after market hours yesterday, 3 June 2015, said that the Government of India has directed IOCL and HPCL to procure crude oil from Iraq for "Indian Strategic Petroleum Reserves", a wholly owned Government company under the Ministry of Petroleum & Natural Gas set up for storage of strategic reserves. IOCL has only acted as a facilitator for import, the company said.
Cipla was up 1.01%. The company after market hours yesterday, 3 June 2015, said that the company has received approval from United States Food & Drug Administration (USFDA) for an innovative formulation Lopinavir/ritonavir (LPV/r) 40mg/10 mg oral pellets for pediatric specific treatment for infants.
In global commodity markets, Brent crude oil futures edged lower today, 4 June 2015. Brent for July settlement was off 13 cents at $63.67 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 higher. Key benchmark indices in China, Hong Kong, Japan, Singapore and South Korea were up by 0.07% to 0.89%. Key benchmark indices in Taiwan and Indonesia were down by 0.29% to 0.31%.
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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