In a largely range bound trading session, key benchmark indices logged small losses. Nevertheless, there were big stock-specific moves for some index constituents. The barometer index, the S&P BSE Sensex, was provisionally down 57.24 points or 0.2% at 28,240.89. The market breadth indicating the overall health of the market was negative.
Oil & gas stocks gained across the board. Capital goods stocks were mixed. Power equipment major Bharat Heavy Electricals (Bhel) tumbled after declaring weak Q1 result.
In overseas markets, European stocks edged lower, as investors tread water ahead of a key US jobs report. Earlier during the global day, Chinese shares rose as speculation grew that the government will take more measures to stem a recent market rout. US markets ended lower yesterday, 6 August 2015, as investors turned cautious ahead of the monthly non-farm payrolls data.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 108.93 crore yesterday, 6 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 111.78 crore yesterday, 6 August 2015, as per provisional data released by the stock exchanges.
As per provisional closing, the S&P BSE Sensex was down 57.24 points or 0.2% at 28,240.89. The index fell 104.20 points at the day's low of 28,193.93 in late trade. The index gained 37.54 points at the day's high of 28,335.67 in early trade.
The Nifty was down 24.05 points or 0.28% at 8,564.60. The index hit a low of 8,552.70 in intraday trade. The index hit a high of 8,595.95 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,547 shares declined and 1,373 shares rose. A total of 116 shares were unchanged.
The BSE Mid-Cap index was off 28.06 points or 0.24% at 11,557.52. The fall in the index was higher than Sensex's decline in percentage terms. The BSE Small-Cap index was off 17.21 points or 0.14% at 12,104.47. The fall in the index was lower than Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 3429 crore, slightly lower than turnover of Rs 3432.46 crore registered during the previous trading session.
PSU OMCs edged higher on renewed buying. HPCL (up 7.48%), BPCL (up 2.17%), and Indian Oil Corporation (up 2.37%) gained.
Shares of oil exploration and production (E&P) companies also edged higher. ONGC (up 4.31%), Reliance Industries (up 0.56%), Cairn India (up 0.63%) and Oil India (up 0.01%) edged higher.
Capital goods stocks were mixed. Crompton Greaves (up 3.85%), ABB India (up 0.49%), L&T (up 0.15%) rose. Thermax (down 0.87%) and Siemens (down 1.26%) fell.
Power equipment major Bharat Heavy Electricals (Bhel) tumbled 5.67% after net profit dropped 82.48% to Rs 33.89 crore on 15.38% rise in total income from operations to Rs 4361.68 crore in Q1 June 2015 over Q1 June 2014. The result was announced during market hours today, 7 August 2015. Bharat Heavy Electricals (Bhel) had an outstanding order book position of about Rs 1.16 lakh crore as on 30 June 2015.
Earlier during the trading session, Bhel announced that the company has added one more coal-based power plant to the grid by successfully commissioning the 500 megawatts (MW) Unit-13 of Vindhyachal Super Thermal Power Station (STPS), Stage-V of NTPC.
Meanwhile, investors continue to watch the progress of the monsoon rains which will have a bearing on food prices and rural income. India's weather office, the India Meteorological Department (IMD), said in a weekly report issued yesterday, 6 August 2015, that the rainfall was 26% below normal for the country as a whole during the period from 30 July to 5 August 2015. Region wise, the rainfall was 51% below the Long Period Average (LPA) in South Peninsula, 30% below LPA in Northwest India, 24% below LPA in Central India and 7% below LPA in East & Northeast India during the period from 30 July to 5 August 2015.
As per IMD's extended range forecast till 24 August 2015, rainfall activity is likely to increase over eastern and central India from 10 August onwards. Western Himalayan region would receive fairly wide spread rainfall during next 5 days and South Peninsula would receive subdued rainfall activity during next 10 days.
In its separate daily monsoon update issued yesterday, 6 August 2015, the IMD said that the Southwest Monsoon was active over Andaman & Nicobar Islands, Sub-Himalayan West Bengal & Sikkim, West Madhya Pradesh, Marathawada and South Interior Karnataka during past 24 hours until 8:30 IST. For the country as a whole, cumulative rainfall during this year's monsoon season was 6% below the Long Period Average (LPA) until 6 August 2015. Region wise, the rainfall was 21% below the LPA in South Peninsula, 9% below the LPA in East & Northeast India, 4% below the LPA in Central India and 4% above the LPA in Northwest India until 6 August 2015.
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.
In overseas markets, European stocks edged lower today, 7 August 2015, as investors tread water ahead of a key US jobs report. Sentiment also weakened after a surprising fall in German industrial output. Key benchmark indices in UK, France and Germany were off 0.05% to 0.19%.
Germany's industrial output and exports both slumped unexpectedly in June, a sign that growth in Europe's largest economy failed to gather much momentum in the second quarter. Industrial production, adjusted for inflation and seasonal swings, declined 1.4% from May, leaving output in the second quarter flat from the previous period, the economics ministry said today. But strong manufacturing orders in June and healthy business sentiment indicate that the modest upward trend in industry should be continued, the ministry said.
In a separate publication, the federal statistics office said today that German exports, adjusted for inflation and seasonal swings, dropped 1% in June 2015 over May 2015. Imports declined 0.5% in June 2015 over May 2015. But Germany's adjusted trade surplus, at 22 billion euros ($24 billion) in June, remained near May's record high of 22.6 billion euros, an indication that foreign demand underpinned economic activity in the second quarter.
France's trade deficit fell by 1.3 billion euros in June to 2.7 billion euros, fueled by surging exports of transport equipment, the French government said today. Exports of Airbus jets, satellites, train equipment and automobiles narrowed the deficit, the government said.
The Bank of England (BOE) yesterday, 6 August 2015, decided to keep the benchmark interest rate unchanged at 0.5% and also the size of its bond buying programme unchanged at 375 billion pounds ($585 billion) after a monetary policy review. The BOE signaled it remains on course to start gently raising interest rates in the UK early next year, damping speculation that it would quickly follow the US Federal Reserve, which appears set for a September liftoff.
Asian stocks were mixed today, 7 August 2015. Key benchmark indices in Taiwan, Indonesia and South Korea fell by 0.09% to 0.75%. In Japan, the Nikkei 225 index rose 0.29%. Markets in Singapore are closed for a holiday.
Chinese shares rose as speculation grew the government will take more measures to stem a market rout. In mainland China, the Shanghai Composite rose 2.26%. In Hong Kong, the Hang Seng index was up 0.73%.
Meanwhile, the Bank of Japan (BOJ) kept its massive monetary stimulus program steady at the end of its monthly two-day policy meeting today, 7 August 2015. The central bank's nine policy board members voted 8-1 to leave unchanged its main policy of buying assets at an annual pace of 80 trillion yen ($640 billion), as had been widely expected. The bank also reiterated in its policy statement that the Japanese economy continues to recover moderately.
US markets ended lower yesterday, 6 August 2015, as investors turned cautious ahead of non-farm payrolls data. In economic news, the Labor Department yesterday, 6 August 2015, said slightly more Americans filed for unemployment benefits last week, but their numbers remain near historic lows in a sign that the job market is healthy.
The influential monthly US nonfarm payroll report for July 2015 is due today, 7 August 2015. The report will be scrutinized for clues to the strength of the labor-market recovery. Investors have been parsing economic data, from inflation to wages, for clues about when the Federal Reserve might raise rates.
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