Key equity benchmark indices extended intraday losses in afternoon trade, with the barometer index, the S&P BSE Sensex, and 50-unit CNX Nifty, both, hitting their lowest levels in almost two weeks. The market breadth indicating the overall health of the market was negative. The Sensex was currently off 177.87 points or 0.65% at 27,386.79. In overseas markets, stocks in Shanghai fell sharply as stake sales of two state-owned banks by a Chinese sovereign-wealth fund rattled investors. European stocks edged lower as a reported deal between Greece and its creditors failed to materialize yesterday, 27 May 2015.
Index heavyweight and housing finance major HDFC edged lower. Metal shares were in red. Jindal Steel & Power tumbled after the company reported reverse turnaround in Q4 March 2015. IT stocks also edged lower.
Indian stocks may remain volatile during the remaining part of the trading session as traders roll over positions in the futures & options (F&O) segment from the near month May 2015 series to June 2015 series. The near month May 2015 F&O contracts expire today, 28 May 2015.
Foreign portfolio investors sold shares worth a net Rs 934.98 crore yesterday, 27 May 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 594.03 crore yesterday, 27 May 2015, as per provisional data released by the stock exchanges.
In overseas markets, European shares edged lower as a reported deal between Greece and its creditors failed to materialize yesterday, 27 May 2015. Stocks in Shanghai fell sharply as stake sales of two state-owned banks by a Chinese sovereign-wealth fund rattled investors. US stocks edged higher yesterday, 27 May 2015, recovering most of the losses from the previous session on the back of a big rally in tech stocks, which propelled the Nasdaq Composite to a fresh record close.
At 13:15 IST, the S&P BSE Sensex was down 177.87 points or 0.65% at 27,386.79. The index fell 210.31 points at the day's low of 27,354.35 in afternoon trade, its lowest level since 15 May 2015. The index rose 101.71 points at the day's high of 27,666.37 in early trade, its highest level since 26 May 2015.
The Nifty was down 58 points or 0.70% at 8,276.60. The index hit a low of 8,270.15 in intraday trade, its lowest level since 15 May 2015. The index hit a high of 8,364.50 in intraday trade, its highest level since 26 May 2015.
The BSE Mid-Cap index was down 86.70 points or 0.82% at 10,529.77. The decline in this index was higher than the Sensex's decline in percentage terms. The BSE Small-Cap index was down 56.12 points or 0.5% at 11,106.29. The decline in this index was lower than the Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was negative. On BSE, 1,375 shares fell and 1,040 shares rose. A total of 110 shares were unchanged.
Index heavyweight and housing finance major HDFC fell 2.18% to Rs 1,212.25. The stock hit a high of Rs 1,248.10 and a low of Rs 1,209.10 so far during the day.
Shree Cement fell 4.05%. The company announced during trading hours today, 28 May 2015, that that the company has commissioned clinker manufacturing unit of 1.5 million tonnes per annum (MTPA) capacity at Baloda Bazar near Raipur in Chhattisgarh on 20 May 2015. The cement mill section was already commissioned on 24 February 2015.
Metal shares edged lower. Bhushan Steel (down 3.8%), Hindustan Zinc (down 1.13%), National Aluminum Company (down 1.03%), NMDC (down 0.87%), Tata Steel (down 0.85%), JSW Steel (down 0.29%) and Steel Authority of India (down 0.23%), edged lower. Hindustan Copper (up 1.45%) and Vedanta (up 1.64%) edged higher.
Hindalco Industries declined ahead of its Q4 March 2015 results today, 28 May 2015. The stock was off 1.79% at Rs 131.70. The stock hit a high of Rs 133.90 and a low of Rs 131.10 so far during the day.
Jindal Steel & Power tumbled after the company reported reverse turnaround in Q4 March 2015. The stock was off 7% at Rs 120.25. JSPL reported consolidated net loss of Rs 519.30 crore in Q4 March 2015 as against net profit of Rs 402.50 crore in Q4 March 2014. Total income declined 6.74% to Rs 4586.42 crore in Q4 March 2015 over Q4 March 2014. The result was announced after market hours yesterday, 27 May 2015.
JSPL's EBITDA (earnings before interest, taxation, depreciation and amortization) dropped 39.87% to Rs 790 crore in Q4 March 2015 in Q4 March 2014. JSPL said the decline in EBITDA was due to lower NSR and higher material cost. With regard business outlook for FY 2016, JSPL said that the company with its new acquired capacity is targetting to increase its production of steel substantially during FY 2016. This is, however, subject to market demand conditions as well as price levels which remained very low during FY 2015, JSPL said. Subject to favourable economic conditions, JSPL is targetting to produce over 5 million tonne steel during FY 2016, which would be about 50% higher than FY 2015, JSPL said in a statement.
JSPL's board of directors at its meeting held yesterday, 27 May 2015, approved issuance of non-convertible debentures upto Rs 10000 crore. The board also approved issuance of further securities upto Rs 5000 crore.
IT stocks declined. HCL Technologies (down 2.05%), MindTree (down 1.96%), Persistent Systems (down 1.72%), Wipro (down 1.09%), MphasiS (down 1.03%), CMC (down 0.81%), Tech Mahindra (down 0.76%), TCS (down 0.75%), Oracle Financial Services Software (down 0.57%) and Hexaware Technologies (down 0.21%), edged higher. Infosys rose 0.76%.
TCS fell 0.71% at Rs 2,598. TCS during market hours today, 28 May 2015, announced that the company is partnering with The Royal College Art (RCA) to establish a Design Innovation Lab to help foster design and technology innovation in the UK. Under the terms of the partnership agreement, TCS customers will have the opportunity to gain access to the RCA's academic expertise and advice for design projects. A number of joint projects are already being worked on by TCS and the RCA, including development of a contactless payment concept for a TCS customer and studies focusing on the use of design within insurance and retail, TCS said in a statement.
TCS after market hours yesterday, 27 May 2015, announced a global collaboration with Red Hat, the world's leading provider of open source solutions. This collaboration will provide an NFV (Network Function Virtualization) Orchestration and Test Solution based on the Red Hat Enterprise Linux OpenStack Platform and allow customers to quickly enable validation of service design, orchestration, functional testing, and characterization of NFV services.
Meanwhile, private weather forecaster Skymet yesterday, 27 May 2015, said that conditions are favorable for the onset of Southwest Monsoon in India. It expects monsoon to hit Kerala around 30 May 2015. The progress of monsoon over Peninsular India is expected to be delayed by a week, according to Skymet.
The government is scheduled to announce the data on gross domestic product (GDP) growth for Q4 March 2015 tomorrow, 29 May 2015. India's GDP grew 7.5% in Q3 December 2014.
The Reserve Bank of India (RBI) is scheduled to announce the outcome of its second bi-monthly monetary policy review for the year 2015-16 early next week. The announcement is due at 11:00 IST on Tuesday, 2 June 2015.
In overseas markets, European shares edged lower today, 28 May 2015, as a reported deal between Greece and its creditors failed to materialize yesterday, 27 May 2015. Key benchmark indices in UK, France and Germany were down by 0.12% to 0.37%.
Greece is scheduled to repay euro 1.6 billion ($1.76 billion) to the International Monetary Fund (IMF) between June 5-19.
Meanwhile, European Central Bank (ECB) Governing Council member Ewald Nowotny today, 28 May 2015, reportedly warned that the ECB will have to be very careful when it eventually unwinds its quantitative-easing (QE) program. He, however, indicated that the ECB has no plans to end QE prematurely. The ECB launched its 60-billion-euro ($66 billion) a-month QE program in March, and the economic data out of the eurozone have been surprisingly good since. That has fueled speculation the ECB will have to begin the tapering process sooner than the planned September 2016 timetable.
Stocks in Shanghai fell sharply today, 28 May 2015, as stake sales of two state-owned banks by a Chinese sovereign-wealth fund rattled investors. The Shanghai Composite index lost 6.5%. The filings to Hong Kong Exchanges & Clearing showed that China Central Huijin Investment, a unit of China's sovereign wealth fund China Investment Corp. (CIC), reduced its stakes in the country's biggest state-owned banks for the first time. Meanwhile, Chinese securities firms also took a hard hit after several brokers tightened up their margin-financing requirements in recent days, including increasing the amount of cash clients must put down for their deposits.
In Hong Kong, the Hang Seng index was off 2.6%. In other Asian markets, Key indices in Singapore and Indonesia were off 0.29%% to 0.36%. Key indices in Japan, Taiwan and South Korea were up 0.16% to 0.39%.
US stocks edged higher yesterday, 27 May 2015, recovering most of the losses from the previous session on the back of a big rally in tech stocks, which propelled the Nasdaq Composite to a fresh record close.
The President of the San Francisco Fed John Williams today, 28 May 2015, said that it is not clear how the Federal Reserve should respond to the purported effect that low interest rates are causing excessive risk-taking in financial markets. In a speech to the Monetary Authority of Singapore, Williams said it could either argue for a more rapid rate hike to discourage further risk or imply a more gradual course of action to mitigate the risk of a market tantrum. Overall, Williams said he was "convinced" that monetary policy should not be used to address risks to financial stability given the "very real and sizable costs, not to mention that the potential benefits, are anything but certain."
Powered by Capital Market - Live News
