After languishing in negative zone, key benchmark indices extended losses in morning trade. The market breadth indicating the overall health of the market was strong. The barometer index, the S&P BSE Sensex was currently down 136.36 points or 0.48% at 28,050.70. Meanwhile, India's weather office, the India Meteorological Department (IMD), after trading hours yesterday, 3 August 2015, announced that the rainfall over the country as a whole during second half of southwest monsoon season (August to September) is likely to be below normal with a probability of 86%. In the global commodities market, Brent crude oil futures edged higher after a sharp slide overnight. Decline in global crude oil prices augur well for India.
Bank stocks were mixed ahead of the Reserve Bank of India's (RBI)'s third bi-monthly monetary policy statement which is due at 11:00 IST today, 4 August 2015. Interest rate sensitive realty stocks were mixed ahead of the Reserve Bank of India's (RBI)'s third bi-monthly monetary policy statement.
Earlier, the Sensex and the 50-unit CNX Nifty, both, reversed direction after hitting 1-1/2-week high at the onset of the trading session.
In overseas markets, Asian stocks edged lower after an overnight decline in US stocks triggered by downbeat economic data. US stocks edged lower yesterday, 3 August 2015, after weak economic data and a further slump in crude-oil prices.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 350.41 crore yesterday, 3 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 33.36 crore yesterday, 3 August 2015, as per provisional data released by the stock exchanges.
At 10:21 IST, the S&P BSE Sensex was down 136.36 points or 0.48% at 28,050.70. The index fell 138.56 points at the day's low of 28,048.50 in morning trade, its lowest level since 31 July 2015. The index gained 77.66 points at the day's high of 28,264.72 at the onset of the trading session, its highest level since 24 July 2015.
The CNX Nifty was down 34.35 points or 0.4% at 8,508.70. The index hit a low of 8,502.25 in intraday trade, its lowest level since 31 July 2015. The index hit a high of 8,565.15 in intraday trade, its highest level since 24 July 2015.
The market breadth indicating the overall health of the market was stronbg. On BSE, 1,805 shares gained and 1,117 shares fell. A total of 111 shares were unchanged.
The BSE Mid-Cap index was up 41.89 points or 0.37% at 11,372.80. The BSE Small-Cap index was up 28.74 points or 0.24% at 11,969.94. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1009 crore by 10:15 IST compared with Rs 381 crore by 09:30 IST.
Bank stocks were mixed ahead of the Reserve Bank of India's (RBI)'s third bi-monthly monetary policy statement which is due at 11:00 IST today, 4 August 2015.
Among private bank stocks, Kotak Mahindra Bank (down 0.2%), ICICI Bank (down 0.45%), Axis Bank (down 0.06%) and IndusInd Bank (down 1.17%) declined. Yes Bank (up 0.69%), HDFC Bank (up 0.35%) and Federal bank (up 0.59%) rose.
Among PSU bank stocks, Bank of India (up 1.38%) and Union Bank of India (up 3.33%), Punjab National Bank (up 0.72%), Bank of Baroda (up 1.09%) and Canara Bank (up 2.02%) rose. State Bank of India (SBI) (down 0.06%) and IDBI Bank (down 1.02%) fell.
Interest rate sensitive realty stocks were mixed ahead of the Reserve Bank of India's (RBI)'s third bi-monthly monetary policy statement which is due at 11:00 IST today, 4 August 2015. Purchases of both residential and commercial property are largely driven by finance. DLF (down 0.96%), Housing Development and Infrastructure (down 0.23%), Unitech (down 0.79%), Sobha (down 1.11%) fell. Indiabulls Real Estate (up 5.02%), D B Realty (up 1.46%), Godrej Properties (up 1.92%), Oberoi Realty (up 0.15%) and Parsvnath Developers (up 0.22%) rose.
The Reserve Bank of India's (RBI)'s third bi-monthly monetary policy statement is due at 11:00 IST today, 4 August 2015. The RBI had cut its benchmark lending rate viz. the repo rate by 25 basis points to 7.25% after a monetary policy review on 2 June 2015.
India's weather office, the India Meteorological Department (IMD), after trading hours yesterday, 3 August 2015, announced that the rainfall over the country as a whole during second half of southwest monsoon season (August to September) is likely to be below normal with a probability of 86%. Quantitatively, the rainfall over the country as a whole during the second half of the season (August to September) is likely to be 84% of long period average (LPA), with a model error of plus/minus 8%. From April to July 2015, El Nino conditions have strengthened from weak to moderate level. Latest forecast from ESSO-IMD-IITM coupled model indicates 72% probability of El Nino conditions to become strong during remaining part of the monsoon season. Over the Indian Ocean, there is 86% probability of current neutral Indian Ocean Dipole conditions to continue during the monsoon season.
The rainfall during August 2015 is likely to be 90% of LPA, with a model error of plus/minus 9% as was forecasted in June. The season rainfall (June to September) over the country as a whole is likely to be deficient. The season rainfall (June to September) over the country as a whole is likely to be 88% of LPA with a model error of plus/minus 4% as was forecasted in June, the IMD said.
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.
The India Meteorological Department said in a daily report issued yesterday, 3 August 2015, that the Southwest Monsoon was active over Arunachal Pradesh, Odisha, Jharkhand and Chhattisgarh during past 24 hours until 8:30 IST. For the country as a whole, cumulative rainfall during this year's monsoon season was 6% below the Long Period Average (LPA) until 3 August 2015. Region wise, the rainfall was 22% below the LPA in South Peninsula, 8% below the LPA in East & Northeast India, 7% below the LPA in Central India and 8% above the LPA in Northwest India until 3 August 2015.
Meanwhile, in the global commodities markets, Brent crude oil futures edged higher edged higher after a sharp slide overnight. Brent for September settlement was currently up 16 cents at $49.68 a barrel. The contract had dropped $2.69 a barrel or 5.15% to settle at $49.52 a barrel during the previous trading session.
India imports about 80% of its crude requirements and a decline in crude eases concerns on fiscal deficit, inflation and gives more room for the government to boost growth through spending on infrastructure
Asian stocks edged lower today, 4 August 2015, after downbeat economic data pressured Wall Street ahead of key US jobs data later this week that could provide a key clue to the timing of the US Federal Reserve's interest rate increase. Key benchmark indices in Hong Kong, Japan, Singapore, Indonesia and South Korea fell by 0.13% to 0.6%. Key benchmark indices in China and Taiwan were up 0.41% to 1.34%.
US markets dropped yesterday, 3 August 2015 following weak economic data and a further slump in crude-oil prices. In US economic news, the Commerce Department yesterday, 3 August 2015 said personal spending by US consumers rose 0.2% in June, while personal income grew by 0.4%. Another data showed that the Institute for Supply Management's index of national factory activity slipped to 52.7 in July, falling short of reading of 53.5 in June.
The influential monthly US nonfarm payroll report for July 2015 is due on Friday, 7 August 2015.
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