A sudden slide in mid-afternoon trade took the barometer index, the S&P BSE Sensex, to its lowest level in almost four weeks and the 50-unit CNX Nifty to its lowest level in almost two weeks. The market breadth indicating the overall health of the market turned negative from positive. The Sensex was currently off 157.50 points or 0.55% at 28,687.28. BSE Small-Cap and Mid-Cap indices, both, slipped into the red from green. Asian and European stocks were in red.
Banking and realty stocks edged lower. Index heavyweight and housing finance major HDFC extended intraday losses. Another index heavyweight and cigarette major ITC dropped amid intraday volatility.
Meanwhile, Minister of Parliamentary Affairs M.Venkaiah Naidu said in the Lok Sabha yesterday, 9 March 2015, that the government is willing to consider some further amendments to ensure minimum land acquisition based on the views and suggestion of the opposition parties.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 838.30 crore yesterday, 9 March 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 35.31 crore yesterday, 9 March 2015, as per provisional data.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude oil futures lower in volatile trade as investors awaited this week's energy agency reports for a fresh assessment of global oil supply and demand balances. Global crude oil prices have witnessed high volatility recently after a steep slide in prices during the second half of calendar year 2014. Deregulation of diesel price announced by the Indian government in October 2014 and a decline in global crude oil prices will help reduce the government's fuel subsidy burden and help contain its fiscal deficit. The slide in global crude oil prices will also help India in containing its current account deficit and fuel price inflation. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports. India imports 80% of its crude oil requirement.
In overseas markets, European stocks declined as renewed worries over Greece weighed on the sentiment. Asian stocks declined after the latest data showed China's factory prices extended their prolonged fall amid a slowing economy. US stocks closed higher yesterday, 9 March 2015, recovering from a sharp decline registered during the preceding trading session as investors took a more positive outlook on the strong February job report.
At 14:17 IST, the S&P BSE Sensex was down 157.50 points or 0.55% at 28,687.28. The index fell 190.28 points at the day's low of 28,654.50 in mid-afternoon trade, its lowest level since 12 February 2015. The index jumped 104.33 points at the day's high of 28,949.11 in early trade.
The Nifty was down 45.65 points or 0.52% at 8,711.10. The index hit a low of 8,693.95 in intraday trade, its lowest level since 26 February 2015. The index hit a high of 8,778 in intraday trade.
The BSE Mid-Cap index was down 46.84 points or 0.43% at 10,854.40. The BSE Small-Cap index was down 32.66 points or 0.29% at 11,319.28. The decline in both these indices was lower than the Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was turned negative from positive in mid-afternoon trade. On BSE, 1,504 shares fell and 1,172 shares rose. A total of 138 shares were unchanged.
Realty stocks edged lower. Sobha (down 0.87%), DLF (down 3.25%), Unitech (down 0.53%), Housing Development & Infrastructure (HDIL) (down 0.58%), Omaxe (down 0.12%), Godrej Properties (down 1.77%), Anant Raj (down 0.92%), Indiabulls Real Estate (down 0.47%) and Prestige Estates (down 3.02%), edged lower.
Bank stocks dropped. Among public sector banks, IDBI Bank (down 2.24%), Syndicate Bank (down 1.76%), UCO Bank (down 0.8%), Canara Bank (down 0.17%), United Bank of India (down 0.14%), Bank of India (down 1.66%), Bank of Baroda (down 1.78%), Corporation Bank (down 0.58%), Vijaya Bank (down 0.42%), Central Bank of India (down 0.15%), and State Bank of India (down 0.83%) edged lower. Punjab National Bank rose 0.58%. Union Bank of India rose 0.03%.
Among private sector banks, ING Vysya Bank (down 2.89%), Kotak Mahindra Bank (down 3.14%), Federal Bank (down 3.5%), HDFC Bank (down 0.85%), IndusInd Bank (down 0.54%) and City Union Bank (down 0.05%) edged lower. ICICI Bank (up 0.36%) and Yes Bank (up 0.27%) gained.
Index heavyweight and housing finance major HDFC extended intraday losses. The stock was off 4.03% at Rs 1,310.80. The stock hit high of Rs 1,365.90 and low of Rs 1,308.90 so far during the trading session.
Index heavyweight and cigarette major ITC dropped amid intraday volatility. The stock was off 0.12% at Rs 337.90. The stock hit high of Rs 342.60 and low of Rs 335.40 so far during the trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 62.695, compared with its close of 62.55 during the previous trading session yesterday, 9 March 2015.
Brent crude oil futures lower in volatile trade as investors awaited this week's energy agency reports for a fresh assessment of global oil supply and demand balances. Brent for April settlement was down 40 cents at $58.13 a barrel. The contract had declined $1.20 a barrel or 2% to settle at $58.53 a barrel during the previous trading session.
Meanwhile, Minister of Parliamentary Affairs M.Venkaiah Naidu said in the Lok Sabha yesterday, 9 March 2015, that the government is willing to consider some further amendments to ensure minimum land acquisition based on the views and suggestion of the opposition parties. He said so while intervening in the debate on the proposed Right to Fair Remuneration and Transparency in Rehabilitation and Resettlement (Amendment) Bill, 2015 in the Lok Sabha. Naidu said that the government could consider deleting social infrastructure projects from the exempted categories, states coming out with land banks of vacant lands for acquisition for development projects, hassle free mechanism for redressal of grievances of land losers, mandatory employment for losers of livelihoods on account of land acquisition etc. He said that the Minister of Rural Development Birendra Chowdhary, who is a farmer himself, would come forward with official amendments in this regard.
Naidu asserted that the government's decision to issue an Ordinance on land acquisition was not unilateral one but was based on the suggestions and views of all the states, reflecting their collective yearning for an enabling legislation that will not stifle development. Naidu said that without compromising on the remuneration of four times the market value to be paid to land owners against acquisition of their land, the government has proposed some amendments to the Land Act of 2013 to facilitate development by adding only five more categories like defence and national security, infrastructure including rural infrastructure, housing for the poor and affordable housing, industrial corridors including PPP projects where the land ownership will be with the government to be exempted from the provisions of the Act of 2013. He further said that 13 more categories have been brought under the purview of the new Bill which would immensely benefit the farmers.
Reacting to the suggestion of Mallikharjuna Kharge of the Congress to refer the Bill to the Standing Committee, Naidu said that so much time is not available since the Land Ordinance lapses by 5 April 2015 and the Ordinance is to be replaced by an Act of Parliament by 20 March 2015 when the Parliament will be adjourned for a month.
On the macro front, 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.
In overseas markets, European stocks declined today, 10 March 2015, as renewed worries over Greece weighed on the sentiment. Key indices in France, Germany and UK shed 0.335 to 0.5%.
Euro zone ministers yesterday, 9 March 2015, warned Greece that it had "no time to lose" and agreed technical talks between finance experts from Athens and its international creditors would start on Wednesday, 11 March 2015, with the aim of unlocking further funding.
In France, the latest data showed that the nation's industrial production continued to rise in January. French industrial production rose 0.4% on the month in January after a 1.4% gain in December, national statistics agency Insee said.
Asian stocks declined today, 10 March 2015, after the latest data showed China's factory prices extended their prolonged fall amid a slowing economy. Key indices in China, Hong Kong, Singapore, South Korea, Japan and Taiwan were off 0.08% to 0.94%. Indonesia's Jakarta Composite rose 0.43%.
China's annual consumer inflation recovered in February, exceeding expectations, but producer prices continued to slide, underscoring deepening weakness in the economy and intensifying pressure on policymakers to find new ways to support growth. The consumer price index (CPI) rose 1.4% in February. The producer price index (PPI) declined 4.8% in February, the National Bureau of Statistics said today, 10 March 2015, extending factory deflation to nearly three years.
Trading in US index futures indicated that the Dow could fall 38 points at the opening bell today, 10 March 2015. US stocks closed higher yesterday, 9 March 2015, recovering from Friday's sharp decline as investors took a more positive outlook on the strong February jobs report.
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