Gains in IT and cement stocks led recovery for key benchmark indices in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was currently off 71.78 points or 0.26% at 27,824.19. The losses for the Sensex were higher in percentage terms than those for the 50-unit CNX Nifty. The Nifty was currently off 10.95 points or 0.13% at 8,387.05. The market breadth indicating the overall health of the market was negative. In overseas markets, stocks tumbled in mainland China amid disappointment the government hasn't taken stronger steps to stimulate a slowing economy and worries that startup stocks are still too expensive. European stocks dropped after days of talks failed to yield a breakthrough in the Greece debt crisis.
Auto stocks edged higher. Shares of upstream oil exploration & production (E&P) firms edged lower. Shares of public sector oil marketing companies (PSU OMCs) edged higher.
Meanwhile, Reserve Bank of India (RBI) Governor Raghuram Rajan has reportedly expressed concern that the world may be slipping into the kind of problems of the depression of the 1930s and an international consensus was needed to be built over time. Speaking at a London Business School (LBS) conference yesterday, 25 June 2015, Rajan reportedly said that the situation is different in India where RBI still needs to bring down lending rates to spur investments.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 280.21 crore yesterday, 25 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 8.45 crore yesterday, 25 June 2015, as per provisional data released by the stock exchanges.
In overseas stock markets, European stocks dropped after days of talks failed to yield a breakthrough in the Greece debt crisis. Chinese stocks led losses for Asian markets. US stocks edged lower yesterday, 25 June 2015, as lack of resolution between Greece and its creditors weighed on investor sentiment.
At 14:15 IST, the S&P BSE Sensex was down 71.78 points or 0.26% at 27,824.19. The index fell 220.81 points at the day's low of 27,675.16 in afternoon trade. The index gained 25.89 points at the day's high of 27,921.86 in early trade.
The CNX Nifty was down 10.95 points or 0.13% at 8,387.05. The index hit a low of 8,339.70 in intraday trade. The index hit a high of 8,408.55 in intraday trade.
The BSE Mid-Cap index was down 15.24 points or 0.14% at 10,674.51. The decline in the index was lower than Sensex's decline in percentage terms. The BSE Small-Cap index was up 15.26 points or 0.14% at 11,124.56, outperforming the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,412 shares fell and 1,090 shares rose. A total of 124 shares were unchanged.
Auto stocks edged higher. Bajaj Auto (up 1.2%), TVS Motor Company (up 0.96%), Mahindra & Mahindra (up 0.71%), Tata Motors (up 0.47%), Maruti Suzuki India (up 0.68%) and Eicher Motors (up 0.33%) edged higher. Hero MotoCorp (down 0.54%) edged lower.
Shares of upstream oil exploration & production (E&P) firms edged lower. Cairn India (down 2.26%), Oil India (down 0.89%) and Reliance Industries (down 0.44%) edged lower. ONGC (up 0.06%) edged higher.
Shares of public sector oil marketing companies (PSU OMCs) edged higher. BPCL (up 0.41%), HPCL (up 0.36%) edged higher. Indian Oil Corporation (down 1.22%) edged lower.
Meanwhile, Reserve Bank of India (RBI) Governor Raghuram Rajan has reportedly expressed concern that the world may be slipping into the kind of problems of the depression of the 1930s and an international consensus was needed to be built over time. Speaking at a London Business School (LBS) conference yesterday, 25 June 2015, Rajan reportedly said that it is time to start debating what should the global rules of the game on what is allowed in terms of central bank action. Rajan said that the situation is different in India where RBI still needs to bring down lending rates to spur investments.
Meanwhile, the Reserve Bank of India (RBI) said in its half yearly Financial Stability Report (FSR) June 2015 published yesterday, 25 June 2015, that India's relatively stronger macroeconomic fundamentals in terms of growth, inflation, current account and fiscal deficits provide a reasonable degree of resilience to Indian financial system in the event of spill-over effects from global factors. However, with the continued uncertainty over global growth and in the absence of effective international monetary policy coordination, there can be no room for complacency, the report stated. The FSR reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability, as also the resilience of the financial system.
The latest Financial Stability Report notes that there has been significant improvement in India's macroeconomic environment and going forward, economic performance is expected to be better. External vulnerability has reduced and progress has been made with regard to fiscal consolidation. While foreign portfolio flows to India have been strong during the past year, unexpected changes in monetary policy in advanced economies (AEs) may lead to slowdown/reversal of foreign portfolio flows, with implications for segments of financial markets, according to the report. According to the FSR, India is better prepared to deal with the volatility, as compared to previous episodes.
According to the FSR report, concerns emanating from rapid rise in algorithm trading in recent years highlight the need for caution for India's securities markets, while measures have been taken to address the same. Significant steps have been taken to tighten the regulations dealing with illegal money-raising activities and insider trading, and also to strengthen the risk management systems at depositories.
Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update issued yesterday, 25 June 2015, that the southwest monsoon has been further advanced into remaining parts of north Arabian Sea, Gujarat state, Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Uttarakhand, Punjab, East Rajasthan, entire Haryana, Chandigarh & Delhi and some parts of West Rajasthan. The southwest monsoon was vigorous over East Rajasthan, Gujarat Region and Saurashtra & Kutch and active over Jharkhand, Uttarakhand, Haryana, Chandigarh & Delhi, Himachal Pradesh, West Madhya Pradesh, Madhya Maharashtra and South interior karnataka during past 24 hours until 8:30 IST, the IMD said.
For the country as a whole, the cumulative rainfall during this year's monsoon season was 24% above the Long Period Average (LPA) until 24 June 2015. Region wise, the southwest monsoon was 52% above the LPA in Central India, 32% above the LPA in South Peninsula, 4% above the LPA in East & Northeast India and 5% below the LPA in Northwest India until 24 June 2015.
The IMD expects considerable decease in rainfall activity over Northwest India, central India and parts of Peninsular India during next 15 days. The IMD expects rainfall activity to increase and expects rains to be above normal over Odisha, Jharkhand, Gangetic West Bengal, Chhattisgarh, north Andhra Pradesh until 30 June 2015. The IMD expects near-normal rainfall over parts of east and northeast India during first ten days of July.
The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.
Meanwhile, the Ministry of Water Resources today, 26 June 2015, announced that the water storage available in 91 important reservoirs of the country as on 25 June 2015 was 43.26 BCM which is 27% of total storage capacity of these reservoirs. This storage is 111% of the storage of corresponding period of last year and 146% of storage of average of last ten years. The present storage position during current year is better than the storage position of last year and is also better than the storage of average of last ten years.
States having better storage than last year for corresponding period are Himachal Pradesh, Punjab, Odisha, Tripura, Uttar Pradesh, Karnataka, Kerala and Tamil Nadu. States having lesser storage than last year for corresponding period are Rajasthan, Jharkhand, West Bengal, Gujarat, Madhya Pradesh, Chhattisgarh, Andhra Pradesh and Telangana. States having equal storage than last year for corresponding period are Maharashtra and Uttarakhand.
In overseas stock markets, European stocks edged lower today, 26 June 2015, after days of talks failed to yield a breakthrough in the Greece debt crisis. Key indices in France, Germany and UK were off 0.56% to 0.98%.
High-level talks between Greek and European officials this week have failed to break a long-standing stalemate over an economic reform plan for Greece. Greece and its international creditors again failed to reach an agreement at a meeting yesterday, 25 June 2015. European Union (EU) leaders have reportedly given Athens last chance to strike a deal on Saturday, 27 June 2015. German Chancellor Angela Merkel, whose country is Greece's biggest creditor, reportedly said yesterday, 25 June 2015, that the next meeting of Eurogroup ministers on Saturday, 27 June 2015, would be of decisive importance for a Greek solution since time was running out.
Greece needs a deal to unlock new financing ahead of a 1.54 billion euro ($1.75 billion) debt payment due to the International Monetary Fund (IMF) on 30 June 2015. On the same day, Greece's international bailout expires. A default on its international creditors-the IMF and other eurozone governments-could force Greece into a messy exit from the euro.
French consumer confidence remained the same in June, according to data today, 26 June 2015, from statistics agency Insee. Consumer confidence in the eurozone's second largest economy was stable at 94 in June compared with 94 in May, after having progressed eight points between October 2014 and April 2015, Insee said.
Asian stocks edged lower today, 26 June 2015, as dwindling hopes of a Greek deal weighed on sentiment. Key indices in Japan, Singapore Indonesia and Taiwan were off 0.15% to 0.71%. South Korea's Kospi rose 0.25%.
Stocks fell sharply in mainland China amid disappointment the government hasn't taken stronger steps to stimulate a slowing economy and worries that startup stocks are still too expensive. The Shanghai Composite lost 7.4%. In Hong Kong, the Hang Seng index lost 1.78%.
China's central bank yesterday, 25 June 2015, injected cash in to the financial system for the first time in 10 weeks. On Wednesday, 24 June 2015, the State Council said it would remove a loan-to-deposit cap for banks, which has long limited the amount banks can lend.
US stocks closed lower yesterday, 25 June 2015, failing to hold initial gains, as lack of resolution between Greece and its creditors weighed on investor sentiment.
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