A range bound was witnessed as key benchmark indices languished in negative zone in mid-afternoon trade. The market breadth indicating the overall health of the market was positive. The barometer index, the S&P BSE Sensex, was currently trading above the psychological 28,000 mark, having alternately moved above and below that level in intraday trade so far. Earlier, the Sensex had fallen below psychological 28,000 mark as key equity benchmark indices in India opened with a downward gap after people of Greece yesterday, 5 July 2015, voted against accepting further austerity in exchange for a new European bailout, increasing the chances of the country having to abandon the euro. The Sensex was currently off 70.48 points or 0.25% at 28,022.31. The BSE Small-Cap and Mid-Cap indices were both in green.
Meanwhile, in global commodities markets, Brent crude oil futures edged lower after Greece rejected austerity measures demanded in return for bailout money, increasing the chances of the country having to abandon the euro. The decline in crude oil prices augur well for India.
Cement stocks edged higher on renewed buying. Realty stocks were mixed.
Meanwhile, the monsoon has entered a weak phase if the data released by the India Meteorological Department (IMD) is any indication. July is the crucial month for the sowing of Kharif crops.
Earlier, the key benchmark indices in India made a strong intraday rebound in afternoon trade. Before that, the Sensex hit its lowest level in almost a week amid initial volatility.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 356.29 crore during the previous trading session on Friday, 3 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 220.61 crore on Friday, 3 July 2015, as per provisional data released by the stock exchanges.
In overseas markets, European stocks edged lower after Greek voters overwhelmingly rejected reform measures put forward by the country's international creditors in a referendum held yesterday, 5 July 2015, a result seen as increasing the chances Greece will exit the shared currency. Asian stocks edged lower as people of Greece voted against accepting further austerity in a referendum held yesterday, 5 July 2015, increasing the risk of the country's exit from the euro zone.
At 14:15 IST, the S&P BSE Sensex was down 70.48 points or 0.25% at 28,022.31. The index lost 317.99 points at the day's low of 27,774.80 in early trade, its lowest level since 30 June 2015. The index fell 58.90 points at the day's high of 28,033.89 in mid-afternoon trade.
The CNX Nifty was down 18.05 points or 0.21% at 8,466.85. The index hit a low of 8,386.15 in intraday trade, its lowest level since 1 July 2015. The index hit a high of 8,472.85 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,615 shares rose and 1,083 shares fell. A total of 134 shares were unchanged.
The BSE Mid-Cap index was up 50.74 points or 0.47% at 10,920.74. The BSE Small-Cap index was up 86.98 points or 0.77% to 11,390.56. Both theses indices outperformed the Sensex.
Cement stocks edged higher on renewed buying. Ambuja Cements (up 1.16%), UltraTech Cement (up 0.45%) and Shree Cement (up 0.73%) gained.
ACC rose 1.13%. ACC said after market hours on Friday, 3 July 2015, that the limestone mining operations at company's Chaibasa cement works have been suspended on account of requirement of further clearances from the state government of Jharkhand. The company is in discussion with the concerned authorities in this regard and expects that limestone mining operations would resume shortly, ACC said. Cement grinding continues with transfer of clinker from sister works/purchase of clinker, it added. The impact of the closure of the mining operations at Chaibasa is not expected to be material, ACC said.
Grasim Industries was up 1.24% at Rs 3,547.60. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Realty stocks were mixed. DLF (up 1.12%), Indiabulls Real Estate (up 0.71%), Housing Development and Infrastructure (up 1.56%), Sobha (up 1.33%), Godrej Properties (up 0.02%) and Oberoi Realty (up 1.39%) rose.
D B Realty (down 1.07%), Unitech (down 1.26%), Hubtown (down 0.09%) and Parsvnath Developers (down 0.45%) fell.
Petronet LNG dropped 0.76% after the Reserve Bank of India imposed restrictions on further purchases of the company's shares by foreign institutional investors/Registered Foreign Portfolio Investors. The RBI said that the trigger limit of 22% holding of foreign institutional investors (FIIs) has already reached in Petronet LNG and therefore further purchases of the equity shares of the company by FIIs/Registered Foreign Portfolio Investors (RFPIs) will be allowed only after obtaining prior approval of the RBI. The Reserve Bank of India (RBI) made announcement on Friday, 3 July 2015.
In global commodities markets, Brent crude oil futures edged lower after Greece rejected austerity measures demanded in return for bailout money, increasing the chances of the country having to abandon the euro. Brent for August settlement was currently off 92 cents at $59.40 a barrel. The contract lost 4.7% last week
The decline in global crude oil prices and 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 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.
Meanwhile, the monsoon has entered a weak phase if the data released by the India Meteorological Department (IMD) is any indication. For the country as a whole, cumulative rainfall during this year's monsoon season was near normal until 5 July 2015. This is a far cry when compared to a reading 24% above the Long Period Average (LPA) until 24 June 2015. Region wise, the southwest monsoon was 5% above the Long Period Average (LPA) in Northwest India, 2% above the LPA in Central India, 2% above the LPA in South Peninsula and 4% below the LPA in East & Northeast India until 5 July 2015.
The IMD said in its daily monsoon update issued yesterday, 5 July 2015, that the Southwest Monsoon was active over Arunachal Pradesh and Sub-Himalayan West Bengal & Sikkim and Normal over Assam & Meghalaya, Gangetic West Bengal, Jharkhand, Bihar and Coastal Karnataka during past 24 hours until 8:30 IST.
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.
Meanwhile, the weekly data released by the Ministry of Agriculture after trading hours on Friday, 3 July 2015, showed that the sowing of Kharif crops is gathering pace. The total sown area for Kharif crops as on 3 July 2015 stood at 306.06 lakh hectares compared with 194.25 lakh hectares at this time last year. July is the crucial month for the sowing of Kharif crops.
In overseas markets, European stocks edged lower in early trade today, 6 July 2015, after Greek voters overwhelmingly rejected reform measures put forward by the country's international creditors in a referendum held yesterday, 5 July 2015, a result seen as increasing the chances Greece will exit the shared currency. Key indices in Germany, UK and France were off 0.63% to 1.6%. In Spain, the IBEX 35 index was currently off 1.97%. In Italy, the FTSE MIB index was currently off 2.86%.
In Sunday's referendum, more than 61% of Greeks voted "no" to austerity measures and other overhauls that European and International Monetary Fund officials had wanted in recent talks on further bailout aid. Greece has now entered unknown economic and financial territory, with no clear path to continued European aid. Eurozone leaders will reportedly holding an emergency meeting in Brussels tomorrow, 7 July 2015, to work out their response to the Greek vote and the next steps in any negotiations, which have been stalled since the referendum was announced. Meanwhile, Yanis Varoufakis resigned as Greece's finance minister today, 6 July 2015, a day after Greeks voted resoundingly to reject the austerity terms of a bailout.
Meanwhile, the European Central Bank's (ECB) Governing Council will reportedly hold a conference call today, 6 July 2015, to discuss Greece's monetary lifeline, the Emergency Liquidity Assistance program, which provides vital funds to the country's financial system.
The Greece government will now try to renegotiate a new bailout package with the lenders. Greece had been locked in negotiations with its creditors for months when the Greek government unexpectedly called a referendum on the terms it was being offered. Banks have been shut and capital controls in place since last Monday, after the ECB declined to give Greece more emergency funding. Withdrawals at cash machines have been limited to euro 60 per day.
On 20 July 2015, Greece has debt repayment of euro 3.5 billion ($3.9 billion) due to the ECB.
Asian stocks edged lower today, 6 July 2015, as Greece voted against accepting further austerity, increasing the risk of the country's exit from the euro zone. Key benchmark indices in Singapore, Taiwan, Hong Kong, Japan, Indonesia and South Korea were off 0.42% to 3.18%.
Stocks in mainland China witnessed immense volatility. The Shanghai Composite index rose 2.41% to settle at 3,775.91. China unleashed an unprecedented series of support measures over the weekend to stave off the prospect of a full-blown crash that was threatening to destabilise the world's second-biggest economy. The Shanghai Composite index had slumped more than 12% last week. In an extraordinary weekend of policy moves, brokerages and fund managers vowed to buy massive amounts of stocks, helped by China's state-backed margin finance company, which in turn would be aided by a direct line of liquidity from the central bank. In a series of initial announcements on Saturday, 4 July 2015, China's top brokerages pledged to collectively buy at least 120 billion yuan ($19.3 billion) of shares to help steady the market, and said they would not sell while the Shanghai Composite Index remained below 4,500, a level last seen on 25 June 2015.
Separately, a total of 94 mutual fund companies pledged to buy shares. Meanwhile, 28 companies that had been approved to launch IPOs announced they had suspended their plans.
Trading in US index futures indicated that the Dow could slide 124 points at the opening bell today, 6 July 2015.
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