A bout of volatility was witnessed as key benchmark indices trimmed losses after extending intraday losses in morning trade. The market breadth indicating the overall health of the market was negative. The barometer index, the S&P BSE Sensex, was currently off 80.30 points or 0.29% at 27,756.91. In overseas markets, Asian stocks edged lower after a flash manufacturing sector survey showed that Chinese factory activity contracted for a third month in a row in May 2015.
Cement shares were trading higher. Capital goods shares were mixed.
Foreign portfolio investors bought shares worth a net Rs 123.49 crore yesterday, 20 May 2015, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 103.58 crore yesterday, 20 May 2015, as per provisional data released by the stock exchanges.
Meanwhile, the finance ministry yesterday, 20 May 2015, constituted a three-member committee headed Justice A.P. Shah to look into the issue of Minimum Alternate Tax (MAT) on foreign institutional investors (FIIs).
Earlier, the Sensex and the 50-unit CNX Nifty had, both, hit four-week high amid initial volatility.
In the overseas market, Asian stocks edged lower after a flash manufacturing sector survey showed that Chinese factory activity contracted for a third month in a row in May 2015. US stocks ended a choppy trading session slightly lower yesterday, 20 May 2015, as modest post-Fed-minutes gains evaporated by the close of the trading day.
At 11:16 IST, the S&P BSE Sensex was down 80.30 points or 0.29% at 27,756.91. The index fell 117.67 points at the day's low of 27,719.54 in morning trade, its lowest level since 19 May 2015. The index rose 74.23 points at the day's high of 27,911.44 in early trade, its highest level since 23 April 2015.
The CNX Nifty was down 23.10 points or 0.27% at 8,400.15. The index hit a low of 8,382.50 in intraday trade, its lowest level since 19 May 2015. The index hit a high of 8,446.35 in intraday trade, its highest level since 23 April 2015.
The BSE Mid-Cap index was down 62.50 points or 0.59% at 10,588.28. The BSE Small-Cap index was down 37.03 points or 0.33% at 11,169.82. 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 was negative. On BSE, 1,238 shares fell and 886 shares rose. A total of 106 shares were unchanged.
Cement shares were trading higher. UltraTech Cement (up 1.82%), ACC (up 0.79%) and Shree Cement (up 0.48%), edged higher. Ambuja Cements was down 0.36%
Grasim Industries was up 0.76%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Capital goods shares were mixed. AIA Engineering (down 3.57%), Thermax (down 2.85%), BEML (down 1.7%), Jindal Saw (down 1.43%), Suzlon Energy (down 1.17%), Alstom T&D India (down 0.95%), Bharat Heavy Electricals (down 0.73%), Praj Industries (down 0.5%), ALSTOM India (down 0.19%) and Pipavav Defence and Offshore Engineering Company (down 0.17%) edged lower. ABB India (up 0.22%), Larsen & Toubro (up 0.65%), Havells India (up 0.74%), SKF India (up 0.80%), Lakshmi Machine Works (up 1.03%), Siemens (up 1.11%), Bharat Electronics (up 1.47%) and Punj Lloyd (up 3.94%) edged higher.
Crompton Greaves was down 1.15% at Rs 168. Crompton Greaves announced after trading hours yesterday, 20 May 2015, that the production at the Nasik factory of the company has been disrupted by a faction of employees of the unrecognised union by company, opposing the wage settlement reached by the management with the recognised union earlier this year in accordance with law and in terms of the specific order of the industrial court in Nasik which had directed the management not to negotiate with any trade union on any issue other than a recognised union. Crompton Greaves said that the action of the unrecognised union is in violation of the order of the industrial court in Nasik.
Crompton Greaves further said that all the necessary measures have been undertaken to guarantee the safety of employees, who have chosen not to take part in the action against the company's assets and assets of third parties in the company's premises. The company has always acted in the interest of the workmen and within the framework of the law and has urged the disruptive workmen to return to work. The management continues to work with the appropriate authorities for ending the stalemate and normalise production, the company said. In the meanwhile the company has activated its contingency plans in line with business continuity management processes intended to ensure that there is minimum disruption of orders from customers, Crompton Greaves said.
Meanwhile, the finance ministry yesterday, 20 May 2015, constituted a three-member committee headed Justice A.P. Shah to look into the issue of Minimum Alternate Tax (MAT) on foreign institutional investors (FIIs). It may be recalled that Finance minister Arun Jaitley had on 7 May 2015 announced the constitution of a committee headed by Chairman of Law Commission of India Justice A.P. Shah to look into the issue of the levy of MAT on FIIs as well as other issues which are referred to it.
To begin with, the committee will examine the matter relating to levy of MAT on FIIs for the period prior to 1 April 2015. The committee will also examine all the related legal provisions, judicial/quasi judicial pronouncements and such other relevant aspects as it may consider appropriate, the finance ministry said in a statement. The committee has been requested to give its recommendations on the issue of levy of MAT on FIIs expeditiously. Since initially the committee would focus on the issue of MAT on FIIs for giving its report expeditiously, other issues to be referred to the committee will be notified in due course, the finance ministry said. The term of the committee will be for one year or such period as may be notified by the government from time to time.
In overseas markets, Asian stocks edged lower today, 21 May 2015, after a flash manufacturing sector survey showed that Chinese factory activity contracted for a third month in a row in May 2015. Key benchmark indices in Hong Kong, Indonesia, Singapore, South Korea and Taiwan were off 0.12% to 1.15%. Key benchmark indices in China and Japan were up 0.1% to 1.36%.
The preliminary HSBC China Manufacturing Purchasing Managers Index, a gauge of nationwide manufacturing activity, edged up to 49.1 in May, compared with a final reading of 48.9 in April, HSBC Holdings PLC said today, 21 May 2015. The reading was still below the key 50 mark, which separates expansion from contraction when compared with the previous month, said Markit, which releases the index with HSBC.
The preliminary PMI figure, also called the HSBC Flash China PMI, is based on 85% to 90% of total responses to HSBC's survey each month, and is issued about one week before the final PMI reading.
Meanwhile, China's State Council has unveiled a 10-year plan for upgrading the nation's manufacturing capacity so it can catch up with production powerhouses like Germany and fend off competition from other developing countries. The Ministry of Industry and Telecommunication Technology (MIIT), which led the creation of the Made in China 2025 plan, said the strategy is intended to give China an edge in innovation, green development and quality goods. The MIIT put the focus on 10 sectors, including high-end computerized machinery and robotics, aerospace equipment, renewable-energy cars and biological medicine.
US stocks ended a choppy trading session slightly lower yesterday, 20 May 2015, as modest post-Fed-minutes gains evaporated by the close of the trading day. Officials at the Fed's April policy meeting believed it would be premature to raise interest rates in June and that a bump in inflation was being offset by a weaker labour market and softer data, according to the minutes.
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