A bout of volatility was witnessed as key benchmark indices trimmed losses after extending intraday slide in afternoon trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty trimmed losses after both these key benchmark indices hit their lowest level in more than 10 weeks. The market breadth indicating the overall health of the market was quite weak, with more than two losers against every gainer on BSE. The Sensex was currently off 141.05 points or 0.51% at 27,316.53. The BSE Mid-Cap index was off 1.07%. The BSE Small-Cap index was off 1.05%. The fall in both these indices was higher than the Sensex's decline in percentage terms.
Index heavyweights Reliance Industries and ITC edged lower. Shares of power generation companies declined. Shares of automobile companies also edged lower.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 521.23 crore yesterday, 26 March 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 687.09 crore yesterday, 26 March 2015, as per provisional data.
In overseas markets, Asian stocks were mixed. US stocks edged lower yesterday, 26 March 2015, as a better-than-expected report on weekly jobless claims did little to alleviate concerns of a marked slowdown in the US economy during the first quarter.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude oil futures declined after sharp gains in the previous session as worries of a disruption to crude supplies due to Saudi Arabia-led air strikes in Yemen eased.
At 13:16 IST, the S&P BSE Sensex was down 141.05 points or 0.51% at 27,316.53. The index fell 209.13 points at the day's low of 27,248.45 in afternoon trade, its lowest level since 14 January 2015. The index jumped 236.83 points at the day's high of 27,694.41 at the onset of the trading session.
The 50-unit CNX Nifty was down 46.45 points or 0.56% at 8,295.70. The index hit a low of 8,269.15 in intraday trade, its lowest level since 14 January 2015. The index hit a high of 8,413.20 in intraday trade.
The market breadth indicating the overall health of the market was quite weak, with more than two losers against every gainer on BSE. 1,862 shares declined and 758 shares rose. A total of 114 shares were unchanged.
The BSE Mid-Cap index was off 111.23 points or 1.07% at 10,243.80. The BSE Small-Cap index was off 110.42 points or 1.05% at 10,364.14. The fall in both these indices was higher than the Sensex's decline in percentage terms.
Index heavyweight Reliance Industries (RIL) was down 2.70% at Rs 808.20. The stock hit a high of Rs 835.15 and a low of Rs 801.50 so far during the day. Reliance Jio Infocomm (RJIL), a subsidiary of RIL, announced before market hours today, 27 March 2015, that it has successfully acquired the right to use spectrum in 13 key circles across India in the recently concluded spectrum auction conducted by DoT, Government of India. RJIL plans to provide seamless 4G services using LTE in 800MHz, 1800MHz and 2300MHz bands through an integrated ecosystem.
With this investment, in addition to the pan-India 2300MHz spectrum, RJIL has spectrum in either 800MHz or 1800MHz or both in 20 out of total 22 circles in the country. The payment to be made for the right to use this technology agnostic spectrum for a period of 20 years is Rs 10077.53 crore, RJIL said.
Index heavyweight and cigarette major ITC was down 1.72% at Rs 317.10. The stock hit a high of Rs 325 and a low of Rs 315.25 so far during the day.
Shares of power generation companies declined. Torrent Power (down 3.85%), Jaiprakash Power Ventures (down 2.64%), Tata Power (down 2.23%), JSW Energy (down 2.2%), Reliance Infrastructure (down 1.89%), Reliance Power (down 1.19%), Adani Power (down 1.08%), CESC (down 0.6%) and GMR Infrastructure (down 0.33%), edged lower.
Shares of state-run power generation major NTPC were up 1.15%. The finance ministry yesterday, 26 March 2015, said that there was a need for capital optimization which is the reason why NTPC recently issued bonus debentures to the shareholders of the company. Since NTPC is in the regulated power generation business, there is little room for improvement of profitability the company. NTPC's high net worth of around Rs 85000 crore depresses the Return on Equity (ROE) which works out to only around 12.78% on reported basis, the finance ministry said citing the reason for the NTPC's decision to reward shareholders with bonus issue of debentures.
With a 74.96% shareholding in NTPC, the Government of India is the biggest beneficiary of the bonus debentures issue.
Shares of automobile companies edged lower. Eicher Motors (down 2.58%), Escorts (down 2.54%), Ashok Leyland (down 1.83%), Mahindra & Mahindra (down 1.61%), Hero MotoCorp (down 1.5%), Bajaj Auto (down 0.19%) and Tata Motors (down 0.05%), edged lower. TVS Motor Company (up 0.47%) and Maruti Suzuki (India) (up 0.5%) edged higher.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.61, compared with its close of 62.68 during the previous trading session.
Brent crude oil futures declined after sharp gains in the previous session as worries of a disruption to crude supplies due to Saudi Arabia-led air strikes in Yemen eased. Brent for May settlement was off 93 cents at $58.26 a barrel. The contract had gained $2.71 a barrel or 4.79% to settle at $59.19 a barrel yesterday, 26 March 2015. Global oil prices had surged yesterday, 26 March 2015, as air strikes in Yemen by Saudi Arabia and its Gulf Arab allies sparked fears that escalation of the Middle East battle could disrupt world crude supplies.
Asian stocks were mixed today, 27 March 2015. Key benchmark indices in Japan, Hong Kong, Taiwan and South Korea fell by 0.14% to 1.20%. Key benchmark indices in China, Indonesia and Singapore rose by 0.24% to 0.52%.
Trading in US index futures indicated that the Dow could rise 10 points at the opening bell today, 27 March 2015. US stocks edged lower yesterday, 26 March 2015, as a better-than-expected report on weekly jobless claims did little to alleviate concerns of a marked slowdown in the US economy during the first quarter.
In economic data, the number of people who applied for US unemployment benefits fell by 9,000 to 282,000 in the seven days from March 15 to March 21. The average of new claims over the past month, meanwhile, dipped below the key 300,000 threshold for the first time since late February. The four-week average dropped by 7,750 to 297,000, the Labor Department said yesterday, 26 March 2015.
In Europe, Greece is locked in talks with the IMF and European creditors on a deal on economic reforms that would unlock 7.2 billion euros in aid. Greece needs the funding as it faces several major debt repayments in early April.
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