A bout of volatility was witnessed as key benchmark indices drifted lower once again after erasing almost entire intraday losses in afternoon trade. The barometer index, the S&P BSE Sensex, continued to hover below the psychological 28,000 level. Earlier, the Sensex had moved past the psychological 28,000 level earlier during the trading session. The Sensex fell below the psychological 28,000 level yesterday, 17 August 2015, after registering modest losses. The Sensex was currently off 38.55 points or 0.16% at 27,833.54. The market breadth indicating the overall health of the market was positive.
Realty stocks declined. Shares of power generation and power distribution companies also edged lower.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 142.34 crore yesterday, 17 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 183.72 crore yesterday, 17 August 2015, as per provisional data released by the stock exchanges.
In overseas markets, European stocks edged higher in early trade. Chinese stocks led decline in Asian stocks after China's central bank took fresh steps to offset capital outflows in the wake of a weaker currency. US stocks edged higher yesterday, 17 August 2015, as investors put more weight on strong housing data than a dismal manufacturing report for the New York region.
At 13:17 IST, the S&P BSE Sensex was down 38.55 points or 0.16% at 27,833.54. The index fell 130.87 points at the day's low of 27,747.40 in early afternoon trade. The index jumped 162.46 points at the day's high of 28,040.73 in early trade.
The CNX Nifty was down 15.55 points or 0.18% at 8,458.60. The index hit a low of 8,433.60 in intraday trade. The index hit a high of 8,525.75 in intraday trade.
The BSE Mid-Cap index was up 32.05 points or 0.28% at 11,520.37. The BSE Small-Cap index was up 54.37 points or 0.46% at 11,845.98. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,416 shares gained and 1,181 shares fell. A total of 130 shares were unchanged.
Realty stocks declined. Sobha (down 0.11%), Indiabulls Real Estate (down 0.55%), Unitech (down 2%), Oberoi Realty (down 0.04%), DLF (down 2.28%), Phoenix Mills (down 0.49%) and Omaxe (down 0.26%) edged lower.
Shares of power generation and power distribution companies edged lower. Tata Power Company (down 1.24%), NTPC (down 0.78%), Adani Power (down 0.38%), Power Grid Corporation of India (down 0.69%), Reliance Infrastructure (down 1.51%) and Reliance Power (down 2.01%) declined. Torrent Power (up 2.99%), Suzlon Energy (up 1.69%) and NHPC (up 0.55%) gained.
Nestle India rose 0.85%. As per recent media reports, the National Consumer Disputes Redressal Commission, New Delhi (NCRDC) has admitted class action suit filed by the Ministry of Consumer Affairs, Food and Public Distribution, Government of India, against Nestle India seeking about Rs 640 crore in damages for alleged unfair trade practices and sale of defective goods. However, Nestle India clarified during market hours today, 18 August 2015, that the company has not received any official notice of the complaint so far.
Meanwhile, India and the United Arab Emirates (UAE) yesterday, 17 August 2015, agreed that the investment institutions of UAE will be strive to raise their investments in India by setting up UAE-India Infrastructure Investment Fund. The infrastructure fund aims to finance infrastructure development in India. The infrastructure fund will target a corpus of $75 billion, according to a joint statement issued by India and UAE. Prime Minister Narendra Modi concluded hit two day visit to UAE yesterday, 17 August 2015.
Meanwhile, global credit rating agency Moody's Investors Service has reportedly trimmed its forecast for India's economic expansion for the current fiscal year to 7% from its previous forecast of 7.5% due to drier-than-usual weather conditions. The below-average rainfall has clouded prospects for farm production, which could hurt rural incomes and weigh on consumer demand, Moody's has reportedly said in a report released today, 18 August 2015. Moody's has predicted 7.5% growth in India GDP for the fiscal year staring from 1 April 2016.
India's weather office, the India Meteorological Department (IMD), said in a daily report issued yesterday, 17 August 2015, that for the country as a whole, cumulative rainfall during this year's monsoon season was 10% below the Long Period Average (LPA) until 17 August 2015. Region wise, the rainfall was 20% below the LPA in South Peninsula, 12% below the LPA in East & Northeast India, 9% below the LPA in Central India while rainfall was normal in Northwest India until 17 August 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.
In overseas markets, European stocks edged higher in early trade today, 18 August 2015. Key indices in France, Germany and UK rose 0.17% to 0.19%.
Chinese stocks led decline in Asian stocks after China's central bank took fresh steps to offset capital outflows in the wake of a weaker currency. In mainland China, the Shanghai Composite was off 6.15%. In Hong Kong, the Hang Seng index was off 0.15%. In a routine money-market operation, China's central bank injected the large amount of cash into the financial system today, 18 August 2015, signaling Beijing's growing concerns about capital outflows after the yuan's recent weakening. In a routine money-market operation, the People's Bank of China offered 120 billion yuan ($18.77 billion) worth of seven-day reverse repurchase agreements, or reverse repos, which are a short-term loans to commercial lenders in the money market.
Meanwhile, the latest data showed that home prices in China climbed for a third straight month in July. Nationwide new home prices rose 0.3% in July 2015 on a monthly basis, as against 0.4% gain in June and May's 0.2% rise.
In other Asian markets, key benchmark indices in Japan, South Korea, Indonesia, and Taiwan were off 0.32% to 1.04%.
US stocks edged higher yesterday, 17 August 2015, as investors put more weight on strong housing data than a dismal manufacturing report for the New York region. US homebuilder sentiment rose in August to its highest level since a matching reading almost a decade ago, the National Association of Home Builders said yesterday, 17 August 2015. The NAHB/Wells Fargo Housing Market index rose to 61 from 60 in July, the group said in a statement. Readings above 50 indicate more builders view market conditions as favorable than poor.
Another report showed a dismal performance of the manufacturing sector in New York. The Empire State general business conditions index nose-dived to a reading of negative 14.9 in August 2015, from positive 3.9 in July 2015.
The Federal Reserve is due to release the minutes of the two-day policy meeting held on 28-29 July 2015 tomorrow, 19 August 2015. The minutes could offer some clues on the timing of the Fed's plans to raise interest rates for the first time in a decade.
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