Key benchmark indices slumped in early trade tracking slide in Asian stocks as strong US jobs data fanned expectations that the US Federal Reserve may raise interest rates sooner than previously thought. The market breadth indicating the overall health of the market was weak. The barometer index, the S&P BSE Sensex, was down 324.45 points or 1.1% at 29,124.50. There is a concern that a tighter monetary policy in the US may slow foreign portfolio flows into emerging markets. Higher interest rates will boost returns on US debt and bank deposits, drawing money back from riskier emerging markets.
TCS dropped after the company said that the revenue in Q4 March 2015 is expected to be in-line with last year trend. Jindal Steel & Power jumped after its power generation unit, Jindal Power won the Tara coal block in Chattisgarh for a closing bid of Rs 126 per tonne on the third day of coal auctions for schedule III category mines held on Saturday, 7 March 2015.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 79.84 crore on Thursday, 5 March 2015, as per provisional data. Domestic institutional investors (DIIs) sold shares worth a net Rs 193.54 crore on Thursday, 5 March 2015, as per provisional data.
In overseas markets, Asian stocks dropped after strong US jobs data fanned expectations that the US Federal Reserve may raise interest rates sooner than previously thought. US stocks fell sharply on Friday, 6 March 2015, after stronger than expected data from the monthly jobs report heightened concerns that the Federal Reserve could raise interest rates by June 2015.
At 9:20 IST, the S&P BSE Sensex was down 324.45 points or 1.1% at 29,124.50. The index slumped 371.45 points at the day's low of 29,077.50 in early trade. The index fell 127.89 points at the day's high of 29,321.06 in early trade.
The CNX Nifty was down 94.30 points or 1.06% at 8,843.45. The index hit a low of 8,822.50 in intraday trade. The index hit a high of 8,891.30 in intraday trade.
The BSE Mid-Cap index was down 87.65 points or 0.79% at 10,957.43. The BSE Small-Cap index was down 61.63 points or 0.54% at 11,395.22. The declines in these indices were lower than fall in the Sensex in percentage terms.
The market breadth indicating the overall health of the market was weak. On BSE, 844 shares declined and 416 shares rose. A total of 57 shares were unchanged.
Hindalco Industries shed 0.71%. The company won the Dumri coal block in Jharkhand at Rs 2,127 per tonne on the third day of coal auctions for schedule III category mines held on Saturday, 7 March 2015. The Dumri coal block has a total extractable reserve of 40.854 million tonnes.
Jindal Steel & Power jumped 6.04% after its power generation unit Jindal Power won the Tara coal block in Chattisgarh for a closing bid of Rs 126 per tonne on the third day of coal auctions for schedule III category mines held on Saturday, 7 March 2015. The Tara coal block was reserved for the power sector. The Tara coal block has a total extractable reserve of 166.92 million tonnes and was earlier allotted to Chattisgarh Mineral Development Corporation.
Axis Bank declined 2.01%. The bank market hours on Thursday, 5 March 2015 said that the bank has raised $250 million under the Euro 3 billion Medium Term Note Programme through its DIFC branch. The pricing finalization took place on 4 March 2015 and the settlement is scheduled on 11 March 2015. The Notes will be consolidated to form a single series with the $500 million, 3.25% Notes due in 21 May 2020 issued on 21 November 2014. The issuance will take the outstanding issue size to a total of $750 million.
Power Grid Corporation of India fell 1.1%. The company after market hours on Thursday, 5 March 2015 said that the board of directors of the company at its meeting held on 4 March 2015 has accorded investment approvals for 'Installation of STATCOM in Western Region' at an estimated cost of Rs 1071.24 crore, with commissioning schedule of 30 months progressively from the date of investment approval; 'Spare 765/400KV transformers for Northern Region' at an estimated cost of Rs 63.56 crore, with commissioning schedule of 24 months from the date of investment approval; 'Establishment of Fiber Optic Communication System in Northern Region under Fiber Optic Expansion Project (Additional Requirement)' at an estimated cost of Rs 197.40 crore, with commissioning schedule of 36 months from the date of investment approval; and 'Northern Region System Strengthening Scheme-XXXIV (NRSS-XXXIV)' at an estimated cost of Rs 148.76 crore, with commissioning schedule of 28 months from the date of investment approval.
TCS dropped 3.02% after the company after market hours on Thursday, 5 March 2015 said that the revenue in Q4 March 2015 is expected to be in-line with last year trend. Retail, manufacturing and Hi-Tech segments are recovering from muted Q3 December 2014, TCS said. TCS said there will be continued weakness in Diligenta, insurance, and energy businesses. The company expects European business to grow better than average. Strength in ITIS will continue in Q4 March 2015, TCS said. The company said it is likely to see a currency impact of almost negative 275 basis points, (constant currency to rupee revenue) and negative 200 bps (constant currency to dollar revenues). TCS has kept its target EBIT margin band unchanged.
Meanwhile, proceedings in parliament during the ongoing Budget session of Parliament are being closely watched. The government seeks to have the Bills replacing the six Ordinances passed by both the Houses of Parliament before 20 March 2015 when the first part of the Budget session of parliament concludes. The Lok Sabha has already passed five Bills seeking to replace five Ordinances relating to Amending the Citizenship Act, introduction of e-rikshaws, allocation of coal mines through open bidding, increase in foreign investment ceiling in the insurance sector to 49% from 26% and allocation of non-coal mineral resources through auction. The Parliament is scheduled to be reconvened on 20 April 2015 for the second part of the Budget session while the six Ordinances will lapse on 5 April 2015 as per the provisions of the Constitution.
Government business in the Lok Sabha for the current week includes consideration and passing of the Right to Fair Compensation and Transparency in Land Acquisition. Eight hours have been allocated for discussion on the LARR (Amendment) Bill, 2015 in the Lok Sabha.
In the Rajya Sabha, two Bills to replace Ordinances viz., The Mines and Minerals (Development & Regulation) Amendment Bill, 2015 and Motor Vehicles (Amendment) Bill, 2015, both as passed by Lok Sabha have been listed for consideration and passing on Monday, 9 March 2015. Statutory Resolutions seeking disapproval of the two related Ordinances will also be taken up along with the Bills, according to a government statement on Saturday, 7 March 2015. Motor Vehicles (Amendment) Bill, 2014 is one of the three Bills already pending in the Rajya Sabha, for the withdrawal of which the government has earlier moved Motions and the same were deferred following some issues raised by the opposition. The other two pending Bills relate to hiking foreign investment ceiling in the insurance sector and allocation of coal blocks through open bidding.
The government will unveil industrial production data for January 2015 on Thursday, 12 March 2015. The government will release the combined consumer price index (CPI) data (rural/urban) for February 2015 on the same day.
Asian stocks dropped today, 9 March 2015, after strong US jobs data fanned expectations that the US Federal Reserve may raise interest rates sooner than previously thought. Key indices in Japan, South Korea, Indonesia, China, Hong Kong, Taiwan and Singapore were off 0.63% to 1.05%.
China's exports picked up in the first two months of 2015, propelled by February's exceptionally strong performance that was inflated by the timing of Lunar New Year, while a slide in imports pointed to persistent weakness in the economy. Data released by the General Administration of Customs on Sunday, 8 March 2015, showed that China posted a record trade surplus of $60.6 billion last month. February exports jumped 48.3% from a year earlier, the strongest rise since May 2010 and comfortably beat market expectations, but customs office cautioned about reading too much into the figure given seasonal distortions. A 20.5% slide in February imports was the sharpest since the global financial crisis.
US stocks fell sharply on Friday, 6 March2015, after stronger than expected data from the monthly jobs report heightened concerns that the Federal Reserve could raise interest rates by June 2015.
The US Labor Department said employers added 295,000 workers in February, beating forecasts. It was the longest run of 200,000-plus increases since 1994. The jobless rate dropped to 5.5% from 5.7% in January.
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