Key benchmark indices could fall today, 29 June 2015, on weak Asian cues. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could decline 109.50 points at the opening bell.
Foreign portfolio investors sold shares worth a net Rs 203.74 crore on Friday, 26 June 2015, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 234.21 crore on Friday, 26 June 2015, as per provisional data released by the stock exchanges.
Among corporate announcements, Axis Bank will be in focus after the private sector bank on Friday, 26 June 2015, announced a reduction in its base rate by 10 basis points to 9.85% per annum from 9.95% with effect from 30 June 2015. Accordingly, the effective rate applicable to various fund based credit and credit limits which are linked to the bank's base rate will reduce by 10 basis points, Axis Bank said in a press release.
Shares of FMCG companies will be in focus after the weekly data released by the Ministry of Agriculture after trading hours on Friday, 26 June 2015, showed a pick up in planting of Kharif crops. Increase in agricultural production could boost rural income which in turn could boost demand for consumer goods. FMCG companies derive substantial revenue from rural India.
Dabur India turns ex-dividend today, 29 June 2015, for final dividend of Rs 0.75 per share for the year ended 31 March 2015 (FY 2015).
Havells India turns ex-dividend today, 29 June 2015, for final dividend of Rs 3 per share for the year ended 31 March 2015 (FY 2015).
Meanwhile, the weekly data released by the Ministry of Agriculture after trading hours on Friday, 26 June 2015, showed that the sowing of Kharif crops is gathering pace. The total sown area for Kharif crops as on 26 June 2015 stood at 165.62 lakh hectares compared with 134.18 lakh hectares at this time last year.
The India Meteorological Department (IMD) said in its daily monsoon update issued on Sunday, 28 June 2015, that the Southwest Monsoon has been vigorous over Bihar and active over Andaman & Nicobar Islands, West Bengal & Sikkim, Jharkhand and Kerala during past 24 hours ending at 8:30 IST on 28 June 2015, IMD said.
For the country as a whole, the cumulative rainfall during this year's monsoon season was 23% above the Long Period Average (LPA) until 27 June 2015. Region wise, the southwest monsoon was 39% above the LPA in Central India, 28% above the LPA in South Peninsula, 1% above the LPA in East & Northeast India and 33% above the LPA in Northwest India until 27 June 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.
Index heavyweights HDFC, ITC, L&T and Reliance Industries (RIL) led losses for key benchmark indices on the last trading session of the week on Friday, 26 June 2015. Key indices dropped as uncertainty surrounding a possible default and exit by debt-laden Greece from the eurozone pulled European stocks lower. The S&P BSE Sensex fell 84.13 points or 0.3% to settle at 27,811.84, its lowest closing level since 24 June 2015. The CNX Nifty dropped 16.90 points or 0.2% to settle at 8,381.10, its lowest closing level since 24 June 2015.
Asian shares were trading lower as investors brace for an increasingly likely Greek exit from the eurozone. Key benchmark indices in Hong Kong, Indonesia, Japan, Singapore, South Korea and Taiwan were down by 0.90% to 1.85%.
China's Shanghai Composite was up 0.30% after China's central bank cut interest rates on Saturday and reduced the reserves that certain banks must hold. The People's Bank of China (PBoC) cut the benchmark 1-year lending rate by a quarter percentage point to 4.85%, its four rate cut since November. The PBoC also lowered the reserve requirement ratio for some lenders by half of a percentage point.
Turmoil in Asia had been widely expected after the failure of 11th-hour talks in Europe over the weekend raised the possibility of a Greek exit from the eurozone.
Greece looks set to default on its debt repayment this week, forcing Athens to impose capital controls to halt bank runs. Greeks will today, 29 June 2015, find their savings blocked and their banks closed for a week following a weekend that has shaken Europe's single currency. The Athens Stock Exchange will not open today either.
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) tomorrow, 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.
Meanwhile, it was a mixed day for US stocks on Friday, 26 June 2015, with technology stocks posting a decline and the Dow rising with the help of Nike. The athletic apparel icon posted better-than-expected quarterly earnings, climbing almost 4.3% to close at $109.71. The stock's performance accounted for more than half of the Dow's advance.
US consumer sentiment rose to a final June reading of 96.1, reaching a five-month high after a decline in May, according to reports on the University of Michigan gauge. Market men had expected the final June figure to match a preliminary result of 94.6.
Powered by Capital Market - Live News
