A range bound movement was witnessed as key benchmark indices languished in red in early afternoon trade. The barometer index, the S&P BSE Sensex, was currently trading below the psychological 28,000 mark. Earlier, the Sensex fell below the psychological 28,000 mark at the onset of the trading session as key equity benchmark indices in India opened with a downward gap after people of Greece yesterday, 5 July 2015, voted against accepting further austerity in exchange for a new European bailout, increasing the chances of the country having to abandon the euro. The Sensex was currently off 193.51 points or 0.69% at 27,899.28. The market breadth indicating the overall health of the market was negative.
Shares of oil exploration & production (E&P) companies declined as crude oil price fell. Pharma stocks were mixed.
Meanwhile, the monsoon has entered a weak phase if the data released by the India Meteorological Department (IMD) is any indication. July is the crucial month for the sowing of Kharif crops.
Earlier, the Sensex hit its lowest level in almost a week amid initial volatility.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 356.29 crore during the previous trading session on Friday, 3 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 220.61 crore on Friday, 3 July 2015, as per provisional data released by the stock exchanges.
In overseas markets, Asian stocks edged lower as people of Greece voted against accepting further austerity in a referendum held yesterday, 5 July 2015, increasing the risk of the country's exit from the euro zone.
At 12:20 IST, the S&P BSE Sensex was down 193.51 points or 0.69% at 27,899.28. The index lost 317.99 points at the day's low of 27,774.80 in early trade, its lowest level since 30 June 2015. The index fell 146.11 points at the day's high of 27,946.68 in early trade.
The CNX Nifty was down 51.25 points or 0.6% at 8,433.65. The index hit a low of 8,386.15 in intraday trade, its lowest level since 1 July 2015. The index hit a high of 8,443.80 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,217 shares declined and 1,149 shares rose. A total of 87 shares were unchanged.
The BSE Mid-Cap index was off 7.60 points or 0.07% at 10,862.40. The decline in the index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index was up 24.82 points or 0.22% to 11,328.40, outperforming the Sensex.
The total turnover on BSE amounted to Rs 1321 crore by 12:15 IST, compared with turnover of Rs 944 crore by 11:15 IST.
Shares of oil exploration & production (E&P) companies declined as crude oil price fell. Cairn India (down 1.99%), Oil India (down 0.82%), ONGC (down 1.24%) and Reliance Industries (down 0.41%) edged lower. Lower crude oil prices will result in lower realization from crude sales for oil exploration firms.
Shares of state-run coal miner Coal India edged higher after the Minister of State for Power, Coal and New & Renewable Energy Piyush Goyal on Friday, 3 July 2015, said that coal production by Coal India (CIL) has increased by 12% by February 2015 since the new government came to power and the target is to increase it by 29 million tonnes in the next 10 months. The stock was up 0.44%. The stock was volatile. The scrip hit high of Rs 422.55 and low of Rs 413.80 so far during the trading session. Goyal made these comments at an interactive session organized by Coal Consumers' Association of India (CCAI) in Kolkata on Friday, 3 July 2015. He said that the government is adopting a policy of clear transparency and giving priority to accountability, responsibility and integrity in the coal sector. Goyal hoped that the coal sector will have 11 to 12% growth with an additional production of 550 million tonnes in the current financial year.
Pharma stocks were mixed. Cipla (up 2.39%), Dr Reddy's Laboratories (up 3.17%) Sun Pharmaceutical Industries (up 0.16%), Aurobindo Pharma (up 1.25%) and Divi's Laboratories (up 1.51%) gained. GlaxoSmithKline Pharmaceuticals (down 0.77%), Wockhardt (down 0.4%) Cadila Healthcare (down 0.86%), Glenmark Pharmaceuticals (down 0.97%), Lupin (down 0.05%) declined.
Maruti Suzuki India shed 0.57%. The company during market hours today, 6 July 2015, announced that the company's total production rose 18.24% to 94,538 units in June 2015 over June 2014.
Meanwhile, the monsoon has entered a weak phase if the data released by the India Meteorological Department (IMD) is any indication. For the country as a whole, cumulative rainfall during this year's monsoon season was near normal until 5 July 2015. This is a far cry when compared to a reading 24% above the Long Period Average (LPA) until 24 June 2015. Region wise, the southwest monsoon was 5% above the Long Period Average (LPA) in Northwest India, 2% above the LPA in Central India, 2% above the LPA in South Peninsula and 4% below the LPA in East & Northeast India until 5 July 2015.
The IMD said in its daily monsoon update issued yesterday, 5 July 2015, that the Southwest Monsoon was active over Arunachal Pradesh and Sub-Himalayan West Bengal & Sikkim and Normal over Assam & Meghalaya, Gangetic West Bengal, Jharkhand, Bihar and Coastal Karnataka during past 24 hours until 8:30 IST.
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.
Meanwhile, the weekly data released by the Ministry of Agriculture after trading hours on Friday, 3 July 2015, showed that the sowing of Kharif crops is gathering pace. The total sown area for Kharif crops as on 3 July 2015 stood at 306.06 lakh hectares compared with 194.25 lakh hectares at this time last year. July is the crucial month for the sowing of Kharif crops.
Asian stocks edged lower today, 6 July 2015, as Greece voted against accepting further austerity, increasing the risk of the country's exit from the euro zone. Key benchmark indices in Singapore, Taiwan, Hong Kong, Japan, Indonesia and South Korea were off 0.98% to 3.53%.
Stocks in mainland China witnessed immense volatility. The Shanghai Composite index was currently up 2.41% at 3,775.91. China unleashed an unprecedented series of support measures over the weekend to stave off the prospect of a full-blown crash that was threatening to destabilise the world's second-biggest economy. The Shanghai Composite index had slumped more than 12% last week. In an extraordinary weekend of policy moves, brokerages and fund managers vowed to buy massive amounts of stocks, helped by China's state-backed margin finance company, which in turn would be aided by a direct line of liquidity from the central bank. In a series of initial announcements on Saturday, 4 July 2015, China's top brokerages pledged to collectively buy at least 120 billion yuan ($19.3 billion) of shares to help steady the market, and said they would not sell while the Shanghai Composite Index remained below 4,500, a level last seen on 25 June 2015.
Separately, a total of 94 mutual fund companies pledged to buy shares. Meanwhile, 28 companies that had been approved to launch IPOs announced they had suspended their plans.
Trading in US index futures indicated that the Dow could slide 117 points at the opening bell today, 6 July 2015.
In Europe, Greeks yesterday, 5 July 2015, overwhelmingly voted against their international creditors' conditions for further bailout aid, in a result that could deepen the rift between Greece and the rest of Europe and push the country closer to bankruptcy and an exit from the euro. More than 61% of Greeks voted "no" in Sunday's referendum on austerity measures and other overhauls that European and International Monetary Fund officials had demanded in recent talks. Greece has now entered unknown economic and financial territory, with no clear path to continued European aid.
Meanwhile, the European Central Bank's Governing Council is reportedly due to meet in Paris today, 6 July 2015, to discuss on whether to keep supporting Greece's lenders. Separately, European Union leaders have also reportedly called an emergency euro-area summit tomorrow, 7 July 2015, to discuss their next move as investors fear "Grexit" could encourage anti-euro sentiment in other countries.
Meanwhile, Yanis Varoufakis reportedly resigned as Greece's finance minister today, 6 July 2015, saying the move is related to "creditors' loathing". His resignation came after Greek voters yesterday, 5 July 2015, rejected the terms put forward by the country's international lenders to unlock further bailout aid.
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