Amid divergent trend among various index constituents, key benchmark indices registered small losses on the last day of the financial year. Indian companies and domestic investors follow the period from 1 April to 31 March as their financial year. The barometer index, the S&P BSE Sensex, fell below the psychological 28,000 level after surpassing that level after a higher opening. Key indices slipped into the red from green after a sudden slide in mid-afternoon trade. High volatility on the domestic bourses during the latter part of the trading session materialized as European stocks reversed intraday gains after eurozone jobs data showed unemployment this year is higher than previously expected. Just a while before a sudden slide materialized in mid-afternoon trade, the key benchmark indices had extended intraday gains.
The market breadth indicating the overall health of the market was positive. The Sensex was provisionally off 57.55 points or 0.21% to 27,918.31. Brent crude oil futures dropped. Fall in crude oil prices augur well for India as the country imports 80% of its crude oil requirements.
Bank stocks edged lower in volatile trade. Shares of public sector oil marketing companies (PSU OMCs) advanced on slide in global crude oil prices. Index heavyweights HDFC and L&T edged higher. Two other index heavyweights viz. ITC and Infosys edged lower.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 240.34 crore yesterday, 30 March 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 651.67 crore yesterday, 30 March 2015, as per provisional data.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude oil futures edged lower, extending previous trading session's small decline. For India, the decline in global crude oil prices along with deregulation of diesel price announced by the Indian government in October 2014 will help reduce the government's fuel subsidy burden and help contain its fiscal deficit. The steep slide in global crude oil prices will also help India in containing its current account deficit and fuel price inflation. India imports 80% of its crude oil requirement.
In overseas markets, European stocks reversed intraday gains after eurozone jobs data showed unemployment this year is higher than previously expected. Asian stocks were mixed. US stocks edged higher yesterday, 30 March 2015, with the main indexes booking solid gains for the second straight session, driven by dovish comments from China's central-bank chief as well as a continued flurry of deal announcements.
As per provisional closing, the Sensex was down 57.55 points or 0.21% to 27,918.31. The index fell 107.65 points at the day's low of 27,868.21 in late trade. The index jumped 204.78 points at the day's high of 28,180.64 in mid-afternoon trade, its highest level since 25 March 2015.
The 50-unit CNX Nifty was down 1.30 points or 0.02% at 8,491, as per provisional closing. The index hit a low of 8,454.15 in intraday trade. The index hit a high of 8,550.45 in intraday trade, its highest level since 25 March 2015.
The BSE Mid-Cap index was up 32.70 points or 0.31% at 10,592.22. The BSE Small-Cap index was up 95.05 points or 0.88% at 10,890.45. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,583 shares gained and 1,136 shares fell. A total of 114 shares were unchanged.
The total turnover on BSE amounted to Rs 2969 crore, higher than turnover of Rs 2552.45 crore registered during the previous trading session.
Bank stocks edged lower in volatile trade. Among public sector banks, Punjab National Bank (down 2.93%), Oriental Bank of Commerce (down 3.07%), Bank of India (down 2.5%), Andhra Bank (down 1.86%), Union Bank of India (down 1.91%), Canara Bank (down 1.93%), Indian Overseas Bank (down 0.82%), IDBI Bank (down 1.67%), Bank of Baroda (down 0.31%), Corporation Bank (down 2.8%), and Syndicate Bank (down 0.83%) edged lower. Bank of Maharashtra (up 2.19%), Central Bank of India (up 1.33%) and Vijaya Bank (up 3.41%) edged higher.
State Bank of India (SBI) declined in volatile trade. The stock fell 0.34% at Rs 267. The stock hit a high of Rs 271.20 and a low of Rs 266. SBI before market hours today, 31 March 2015, said that the Executive Committee of the Central Board (ECCB) of the bank yesterday, 30 March 2015, authorised divestment of SBI's stake in SBI Life Insurance Co. by upto 10%. SBI Life Insurance is a joint venture between SBI and BNP Paribas Cardif. SBI owns 74% of the total capital and BNP Paribas Cardif the remaining 26%.
Among private sector banks, HDFC Bank (down 1.31%), ICICI Bank (down 1.05%), Yes Bank (down 1.12%), IndusInd Bank (down 0.6%), and Kotak Mahindra Bank (down 0.29%) edged lower. South Indian Bank (up 1.81%) and ING Vysya Bank (up 0.63%) edged higher.
The Reserve Bank of India (RBI) has decided to allow commercial banks to utilise upto 50% of countercyclical provisioning buffer/floating provisions held by them as on 31 December 2014 for making specific provisions for non-performing assets, as per the policy approved by a bank's Board of Directors. Earlier, the RBI had in February 2014 allowed banks to utilise upto 33% of countercyclical provisioning buffer/floating provisions held by them as on 31 March 2013 for making specific provisions for non-performing assets. The RBI said in a notification issued yesterday, 30 March 2015, that utilisation of countercyclical provisioning buffer/floating provisions would be over and above the utilisation of countercyclical provisioning buffer/floating provisions as permitted by the RBI on 'Framework for Revitalising Distressed Assets in the Economy - Refinancing of Project Loans, Sale of NPA and Other Regulatory Measures'.
Shares of public sector oil marketing companies (PSU OMCs) surged afterslide in global crude oil prices. BPCL (up 5.02%), HPCL (up 3.66%), Indian Oil Corporation (up 4.01%) edged higher. Lower crude oil prices will reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. The government has already decontrolled pricing of petrol and diesel.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.565, compared with its close of 62.68 during previous trading session.
Brent crude oil futures edged lower, extending previous trading session's small decline. Brent for May settlement was off $1.06 a barrel at $55.23 a barrel. The contract had declined 12 cents or 0.21% to settle at $56.29 a barrel during previous trading session.
In overseas markets, European stocks reversed their initial gains today, 31 March 2015, after eurozone jobs data showed unemployment this year is higher than previously expected. Key benchmark indices in France, Germany, and UK were off 0.24% to 0.86%.
The latest data showed that eurozone unemployment rate for February stood at 11.3%. The joblessness rate for January was also revised up to 11.4%, from 11.2% reported previously.
The eurozone inflation rate improved in March to negative 0.1% from negative 0.3% the previous month, easing fears of deflation in the currency union.
In Germany, the latest data showed that the unemployment rate dropped to a record low of 6.4% in March, from 6.5% in February. German retail sales fell in February on a monthly basis for the first time since September, data from the statistics office showed today, 31 March 2015. Retail sales dropped by 0.5% on the month in real terms in Europe's largest economy. On an annual basis, retail sales expanded by 3.6%, reaching the highest real growth in any February since 2000, the statistics office Destatis said.
Asian stocks were mixed. Key indices in Hong Kong, Taiwan, South Korea, and Indonesia were up 0.18% to 1.47%. Key indices in China, Japan and Singapore were off 0.2% to 1.05%.
Trading in US index futures indicated that the Dow could fall 68.50 points at the opening bell today, 31 March 2015. US stocks edged higher yesterday, 30 March 2015, with the main indexes booking solid gains for the second straight session, driven by dovish comments from China's central-bank chief as well as a continued flurry of deal announcements.
Meanwhile, Fed Vice Chairman Stanley Fischer today, 31 March 2015, said that Fed policy makers should start thinking further ahead.
The influential monthly US nonfarm payroll data is due on Friday, 3 April 2015, when the US stock market is closed on account of Good Friday. The US government will announce the payroll report for March 2015 on 3 April 2015.
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