Key benchmark indices could decline today, 3 July 2015. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 11 points at the opening bell.
Foreign portfolio investors bought shares worth a net Rs 575.32 crore yesterday, 2 July 2015, as per provisional data. Domestic institutional investors (DIIs) sold shares worth a net Rs 219.02 crore yesterday, 2 July 2015, as per provisional data released by the stock exchanges.
Among corporate announcements, Lupin after market hours yesterday, 2 July 2015, announced the acquisition of 100% equity stake in ZAO Biocom in Russia subject to certain closing conditions. The acquisition marks Lupin's foray into the Russian pharmaceutical market which recorded RUB 765 billion in sales, placing it as one of the top 10 pharmaceutical markets in the world in 2014 (IMS Health).
Commenting on the acquisition, Ms. Vinita Gupta, Chief Executive Officer of Lupin said that Russia is an attractive market and this acquisition will also enable the company's expansion into neighboring markets as well as other Eastern European markets in the future.
Shares of Pfizer turn ex-dividend today, 3 July 2015, for dividend of Rs 12.50 per share for the year ended 31 March 2015.
ABB India said that the board of directors of the company at its meeting held on 2 July 2015, has approved the proposal to raise money to the extent of Rs 600 crore by way of issuance of unsecured listed redeemable non-convertible debentures on private placement basis to investors on such terms and conditions as may be decided by the board. The issuance would be subject to the approval of the shareholders by way of a special resolution through postal ballot. The announcement was made after market hours yesterday, 2 July 2015.
The Reserve Bank of India (RBI) Governor Dr. Raghuram G. Rajan yesterday, 2 July 2015, said that the Indian economy was recovering and there were signs of capital investments picking up. Rajan said that the government was trying to put stalled projects back on track. He said that the monsoon, thus far, was above normal. Exports were relatively weak and the weakness was on account of global factors. The RBI governor said that the RBI will continue to do spade work for sustainable growth in the coming year. The RBI governor was speaking to the media after the conclusion of a meeting of the Central Board of Reserve Bank of India in Chennai.
Rajan said in response to a query from the media that Greece was an evolving situation. Direct exposure to Greece for India was limited as indicated by a few reports done by the Reserve Bank of India, he said. There might be initial burst of volatility in financial markets if there are untoward developments in Greece, after which discerning investors will be able to distinguish the India's story which is of growth and stability, the RBI governor said. Rajan also said that India's macro policies were good and that India had enough buffers, including foreign exchange reserves to protect against any possible eventuality.
Key benchmark indices edged lower yesterday, 2 July 2015, amid a divergent trend among various index constituents. The S&P BSE Sensex fell 75.07 points or 0.27% to settle at 27,945.80, its lowest level since 30 June 2015.
Meanwhile, the India Meteorological Department (IMD) said in its weekly monsoon report issued yesterday, 2 July 2015, that the rainfall was below normal by 14% over the country as a whole during the period from 25 June 2015 to 1 July 2015. Region wise, the rainfall was 45% below the Long Period Average (LPA) in Central India, 27% below the LPA in South Peninsula, 17% below the LPA in East & Northeast India and 79% above the LPA in Northwest India during that period.
The IMD expects rainfall to be above normal over northwest, central and over some parts of east India during the period from 6 to 10 July 2015. Rainfall activity may remain above normal over west India during 11-15 July 2015 and over northern plains during 16-20 July 2015, as per IMD's Extended Range Forecast. The IMD has forecast below normal rainfall activity over interior Peninsular India.
Separately, the IMD said in its daily monsoon update issued yesterday, 2 July 2015, that the Southwest Monsoon was normal over Andaman & Nicobar Islands, Arunachal Pradesh, Jharkhand, Bihar, Uttarakhand, Rajasthan, East Madhya Pradesh, Marathawada, Vidarbha, Chhattisgarh, Telangana and North Interior Karnataka during past 24 hours until 8:30 IST.
For the country as a whole, the cumulative rainfall during this year's monsoon season was 10% above the Long Period Average (LPA) until 2 July 2015. Region wise, the southwest monsoon was 23% above the LPA in Northwest India, 15% above the LPA in Central India, 12% above the LPA in South Peninsula and 3% below the LPA in East & Northeast India until 2 July 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.
Asian shares declined. Key benchmark indices in Hong Kong, Indonesia, Japan, South Korea and Taiwan were down by 0.11% to 0.99%. Singapore's Straits Times was up 0.31%.
China's Shanghai Composite slumped 6.27%, extending recent losses amid a fresh wave of panic selling, as a flurry of recently released measures by the Chinese government and the central bank failed to bolster investor confidence.
Overnight, US stocks ended a volatile holiday-shortened week with losses, as investors grappled with heightened uncertainty tied to Greece ahead of a Sunday (5 July 2015) referendum to vote on the country's status as a eurozone member. Financial markets will be closed on Friday (3 July 2015) to observe US's Independence Day.
On Thursday, 2 July 2015, investors digested reports on the health of the labor market with monthly jobs report and weekly unemployment claims coming in softer than expected.
Government data for June showed the economy added 223,000 new jobs. However, May and April numbers were cut. The unemployment rated ticked down to 5.3%, but mostly due to more people leaving the labor force. Separately, weekly jobless claims climbed 10,000 to 281,000.
Greece and its lenders failed to reach an agreement over bailout funds, resulting in a missed payment to the IMF on Tuesday, 30 June 2015.
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