Intraday volatility continued in mid-morning trade as the barometer index, the S&P BSE Sensex, once again slipped into to the red from green. The 50-unit CNX was trading a tad higher. The Sensex was currently off 13.67 points or 0.05% at 27,547.71. The Nifty was currently up 1.40 points or 0.02% at 8,362.40. The market breadth indicating the overall health of the market was positive. Meanwhile, in the global commodities markets, Brent crude oil futures edged lower on persistent worries about a global supply glut. The decline in crude oil prices augur well for India. In overseas stock markets, Chinese stocks edged lower in volatile trade.
Realty shares declined. Shares of upstream oil companies declined as crude oil prices declined. Shares of Tata Motors extended losses registered during the previous trading session.
Key benchmark indices have seen high intraday volatility so far during the trading session. Earlier, the Sensex had bounced back after hitting its lowest level in more than four weeks in morning trade. The 50-unit CNX Nifty had bounced back after hitting 2-1/2-week low in morning trade.
Indian stocks may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month July 2015 series to August 2015 series. The near month July 2015 derivatives contracts expire on Thursday, 30 July 2015.
Foreign portfolio investors sold shares worth a net Rs 859.94 crore yesterday, 27 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 238.66 crore yesterday, 27 July 2015, as per provisional data released by the stock exchanges.
Also Read
In overseas markets, Asian stocks were mixed. US stocks fell yesterday, 27 July 2015, after the steepest decline in Chinese stocks in eight years raised concerns that cooling growth in the world's No. 2 economy could hurt China's trading partners.
At 11:16 IST, the S&P BSE Sensex was down 13.67 points or 0.05% at 27,547.71. The index jumped 115.27 points at the day's high of 27,676.65 in morning trade. The index fell 55.63 points at the day's low of 27,505.75 in morning trade, its lowest level since 29 June 2015.
The Nifty was up 1.40 points or 0.02% at 8,362.40. The index hit a high of 8,397.40 in intraday trade. The index hit a low of 8,344.85 in intraday trade, its lowest level since 10 July 2015.
The BSE Mid-Cap index was up 9.36 points or 0.09% at 11,003.38. The BSE Small-Cap index was up 31.08 points or 0.27% at 11,574.19. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,280 shares rose and 941 shares fell. A total of 95 shares were unchanged.
Commercial vehicles major Tata Motors was off 2.67% to Rs 367.50. The stock hit a high of Rs 375.10 and a low of Rs 366.25 so far during the day. The stock had lost 3.46% to settle at Rs 377.60 yesterday, 27 July 2015
Shares of upstream oil companies declined as crude oil prices declined. Oil India (down 2.21%), Cairn India (down 1.24%) and ONGC (down 0.87%) edged lower. Shares of Reliance Industries (RIL) were up 0.29%.
Lower crude oil prices would result in lower realizations from crude sales for oil exploration firms.
Realty shares declined. Prestige Estates Projects (down 4.61%), DLF (down 4.05%), Sunteck Realty (down 3.86%), Housing Development and Infrastructure (HDIL) (down 3.59%), Sobha (down 2.81%), Godrej Properties (down 2.58%), Unitech (down 1.8%), Oberoi Realty (down 1.66%), Anant Raj (down 0.88%), Parsvnath Developers (down 0.77%) and D B Realty (down 0.41%), edged lower. Phoenix Mills (up 0.26%), Peninsula Land (up 1.01%) and Indiabulls Real Estate (up 2.91%) edged higher.
Meanwhile, in the global commodities markets, Brent crude oil futures edged lower on persistent worries about a global supply glut. The decline in crude oil prices augur well for India. Brent for September settlement was currently off 32 cents at $53.15 a barrel. The contract had fallen $1.15 a barrel or 2.11% to settle at $53.47 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.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued yesterday, 27 July 2015, that the Southwest Monsoon was vigorous over Rajasthan and Gujarat state and was active over Gangetic West Bengal, Odisha and West Madhya Pradesh during the past 24 hours until 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was 4% below the Long Period Average (LPA) until 27 July 2015. Region wise, the rainfall was 15% below the LPA in South Peninsula, 7% below the LPA in East & Northeast India, 5% below the LPA in Central India and 11% above the LPA in Northwest India until 27 July 2015.
The quantum of and the spatial distribution of rainfall this month holds key; July accounts for about 33% of precipitation during the June-September monsoon season and is critical for crops. 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.
In overseas markets, Chinese shares edged lower in volatile trade today, 28 July 2015. In mainland China, the Shanghai Composite was currently off 1.83%. In Hong Kong, the Hang Seng index was up 0.79%. China's central bank People's Bank of China today, 28 July 2015, announced that it would inject 50 billion yuan ($8.05 billion) into money markets in its biggest liquidity boost since 7 July 2015. The central bank also said in a statement before the stock market opened that it would use "various monetary tools" to maintain "appropriate levels of liquidity", a signal that the further monetary easing could be in store. The Shanghai Composite Index fell 8.5% yesterday, 27 July 2015, marking its biggest one day drop in more than eight years.
In other Asian markets, key benchmark indices in South Korea, Japan and Taiwan were up 0.07% to 0.52%. key benchmark indices in Singapore and Indonesia and were off 0.59% to 0.82%.
US stocks fell yesterday, 27 July 2015, after the steepest decline in Chinese stocks in eight years raised concerns that cooling growth in the world's No. 2 economy could hurt China's trading partners. Market reaction to better-than-expected durable-goods orders also was negative, as investors continued to view each data-point as a factor in the Federal Reserve's decision about the timing and pace of interest rate hikes.
Meanwhile, a two-day policy meeting of the Federal Reserve Open Market Committee (FOMC) begins today, 28 July 2015. The US central bank is widely expected to keep interest rates at a record low at the meeting, but expectations are rising that a rate hike could come later this year.
Powered by Capital Market - Live News
