Volatility continued in morning trade as key benchmark indices trimmed losses after extending initial losses to hit fresh intraday low. At 10:20 IST, the barometer index, the S&P BSE Sensex was down 93.56 points or 0.34% at 27,101.42. The Nifty 50 index was currently down 29.25 points or 0.35% at 8,308.65. The Sensex and the Nifty, both, hit their lowest level in more than a week. Weakness in Asian stocks weighed on sentiment.
The Sensex lost 167.35 points or 0.61% at the day's low of 27,034.14 in morning trade, its lowest level since 30 June 2016. The barometer index rose 93.33 points or 0.34% at the day's high of 27,294.82 in early trade, its highest level since 5 July 2016. The Nifty lost 50.35 points or 0.6% at the day's low of 8,287.55 in morning trade, its lowest level since 30 June 2016. The index rose 15.40 points or 0.18% at the day's high of 8,353.30 in early trade.
In overseas stock markets, Asian stocks edged lower as investors awaited US jobs data to get a clearer picture of the health of the world's biggest economy. US stocks closed mostly lower yesterday, 7 July 2016, tracking sinking oil prices, but the market pared losses late in the session as investors sought bargains ahead of the closely watched jobs report. Private-sector employment picked up a bit in June, suggesting the weak May nonfarm-payroll report may be an anomaly, Automatic Data Processing Inc. reported yesterday, 7 July 2016 and initial jobless claims fell last week to a nearly three-month low, showing no evidence of rising layoffs. The US government will announce nonfarm payroll report for June 2016 today, 8 July 2016
Closer home, the market breadth indicating the overall health of the market was weak. On BSE, 1,175 shares fell and 748 shares rose. A total of 79 shares were unchanged. The BSE Mid-Cap index was currently up 0.18%, outperforming the Sensex. The BSE Small-Cap index was currently down 0.24%. The fall in this index was lower than the Sensex's decline in percentage terms.
Capital goods stocks dropped. ABB (India) (down 0.68%), BEML (down 1.05%), Bharat Heavy Electricals (Bhel) (down 1.11%), Havells India (down 0.72%), L&T (down 1.04%), Thermax (down 1.89%), Crompton Greaves (down 2.18%) and Bharat Electronics (down 1%) declined. Siemens rose 0.07%.
The BSE Capital Goods index had outperformed the market over the past one month till 7 July 2016, rising 4.81% compared with 0.71% rise in the Sensex. The index had also outperformed the market in past one quarter, gaining 20.81% as against Sensex's 10.19% rise.
Shares of print media companies on reports that the government is planning to raise the foreign direct investment limit in newspapers and periodicals to 49% from 26% at present. H T Media (up 3.63%), Jagran Prakashan (up 1.59%) and D B Corp (up 1.53%) edged higher. Currently, the foreign direct investment (FDI) policy permits 26% FDI in the publishing of newspapers and periodicals dealing with news and current affairs through government approval route.
Dewan Housing Finance Corporation fell 1.44% to Rs 209.40 after the stock turned ex-dividend today, 8 July 2016, for final dividend of Rs 2 per share for the year ended 31 March 2016. Before turning ex-dividend, the Dewan Housing Finance Corporation (DHFL) stock offered a dividend yield of 0.94% based on its closing price of Rs 212.45 on the BSE yesterday, 7 July 2016.
Indo Count Industries rose 2% after the company announced that Indo Count Global, Inc, US announced a new licensing partnership with Walker Greenback PLC UK for three of its lifestyle brands viz. Sanderson, Harlequin and Scion. All three brands have a particularly strong presence in UK and Australia. Indo Count said it recognized a gap in the North American market for this type of aesthetic. Indo Count said it will be launching new ranges for all three lifestyle brands this September during New York Home Textile Market Week. Indo Count added that it is targeting major retailers in the US market for all the three brands. The announcement was made after market hours yesterday, 7 July 2016.
Meanwhile, India Meteorological Department said in its latest update yesterday, 7 July 2016 that in the week from 30 June to 6 July 2016, rainfall was above long period average (LPA) by 35% over the country as a whole. For the country as a whole, cumulative rainfall during this year's monsoon has so far upto 6 July been 1% above LPA, thus making a further recovery of 13% from the last week ending on 29 June, it added. IMD had predicted above normal rains this monsoon season. The monsoon rains is important for the farm sector, as around 70% of the country's farmlands are rain-fed. The rains have an impact on the whole economy, as rural spending on consumer goods depends on the rainfall.
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