After hovering in positive zone near the flat line in afternoon trade, key benchmark indices reversed direction in mid-afternoon trade. The market breadth indicating the overall health of the market was weak. The barometer index, the S&P BSE Sensex, was currently down 19.21 points or 0.07% at 26,351.77. In overseas markets, European stocks dropped after the International Monetary Fund walked out on Greece's bailout talks, increasing the risk of a Greek default and exit from the eurozone.
Index heavyweight and cigarette major ITC edged higher in volatile trade. IT stocks declined. TCS and Infosys dropped on reports that the US Department of Labour has opened probe against these two Indian IT companies for H1-B visa violations. Bank stocks were mixed.
Earlier, the Sensex had hit its lowest level in 34 weeks and the 50-unit CNX Nifty had hit its lowest level in more than 33 weeks in early trade.
In overseas markets, European stocks dropped after the International Monetary Fund walked out on Greece's bailout talks, increasing the risk of a Greek default and exit from the eurozone. Asian stocks were mixed. US stocks closed higher yesterday, 11 June 2015, adding to strong gains made a day earlier, as retail sales provided more evidence of a strengthening economy.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 622.89 crore yesterday, 11 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 589.29 crore yesterday, 11 June 2015, as per provisional data.
At 14:15 IST, the S&P BSE Sensex was down 19.21 points or 0.07% at 26,351.77. The index rose 118.60 points at the day's high of 26,489.58 in early afternoon trade. The index fell 63.42 points at the day's low of 26,307.56 in early trade, its lowest level since 17 October 2014.
The CNX Nifty was down 8.60 points or 0.11% at 7,956.75. The index hit a high of 7,995.60 in intraday trade. The index hit a low of 7,940.85 in intraday trade, its lowest level since 21 October 2014.
The market breadth indicating the overall health of the market was weak. On BSE, 1,503 shares declined and 950 shares rose. A total of 93 shares were unchanged.
The BSE Mid-Cap index was off 12.24 points or 0.12% at 10,075.83. The BSE Small-Cap index was off 77.86 points or 0.73% at 10,534.32. The fall in both these indices was higher than the Sensex's decline in percentage terms.
Index heavyweight and cigarette major ITC edged higher in volatile trade. The stock was up 0.57% at Rs 298.50. The stock hit a 52-week low of Rs 295.20 in intraday trade today, 12 June 2015. The stock hit high of Rs 300 so far during the day.
IT stocks declined. HCL Technologies fell 3.38%.
TCS (down 2.39%) and Infosys (down 1.27%) edged lower on reports that the US Department of Labour has opened probe against these two Indian IT companies for H1-B visa violations. The US Department of Labour has opened the investigation against TCS and Infosys for possible violations of rules for visas for foreign technology workers under contracts they held with an electric utility Southern California Edison, report said. Senators Richard Durbin of Illinois, a Democrat, and Jeff Sessions of Alabama, a Republican, announced the investigation after they were notified by the department, according to reports.
Wipro shed 2.96%. Wipro announced after market hours yesterday, 11 June 2015, that it will implement a next generation customer helpdesk management solution, powered by its artificial intelligence (Al) platform - Wipro HOLMES for Nexenta, the global leader in Open Source-driven Software-Defined Storage (OpenSDS). Wipro will also implement a Service Bot Workbench for Nexenta's internal Technical Team.
Tech Mahindra fell 1.05%. Tech Mahindra announced after market hours yesterday, 11 June 2015, the launch of its next generation cloud management platform mPAC (managed platform for adaptive computing) for hybrid IT management. mPAC is the next generation cloud management platform which simplifies IT by transforming legacy datacenters into adaptive infrastructure enabling software defined datacenter. It aims to improve agility by reducing service deployment time from months to minutes, thereby resulting in significant cost savings.
Bank stocks were mixed. Among private bank stocks, HDFC Bank (up 0.12%), Kotak Mahindra Bank (up 0.65%), ICICI Bank (up 1.68%), Axis Bank (up 0.05%) rose. Yes Bank fell 0.75%.
IndusInd Bank rose 0.6%. IndusInd Bank said after market hours yesterday, 11 June 2015, that the board of directors of the bank, at their meeting held yesterday, 11 June 2015, approved preferential allotment of shares to promoters of the bank up to 1.5% of the authorised share capital of the bank of Rs 600 crore (preferential allotment), so that post any other issue of equity shares that the bank may do pursuant to the shareholders approval and the preferential allotment, the aggregate holding of the promoters i.e. IIHL and its subsidiary is retained at 15%.
Among PSU bank stocks, Vijaya Bank (down 4.37%), State Bank of India (SBI) (down 0.06%), Punjab National Bank (down 0.05%), Bank of Baroda (down 0.58%), Bank of India (down 0.38%) dropped. Canara Bank (up 0.9%), Andhra Bank (up 0.59%) and Union Bank of India (up 1.34%) rose.
Finance Minister Arun Jaitley reportedly said at a news conference after holding Quarterly Review Meeting with the CEOs of the public sector banks (PSBs) and Financial Institutions (FIs) for the year ended 31 March 2015 (Financial Year 2014-15) that PSBs have made a strong case for higher capital infusion by the government. Jaitley further said that he sees a merit in the demand. However, he didn't specify how much more the government was ready to inject.
On the macro front, the government is scheduled to unveil industrial production data for April 2015 at 17:30 IST today, 12 June 2015. Industrial output growth touched a five-month low of 2.1% in March from a revised 4.9% in February on the back of an across-the-board slowdown in production.
The government is also scheduled to unveil the consumer price index (CPI) data for the month of May 2015 at 17:30 IST today, 12 June 2015. Consumer price index-based retail inflation eased to a four-month low of 4.87% in April from a revised 5.25% in March.
Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update yesterday, 11 June 2015, that the Southwest Monsoon has been active over Assam & Meghalaya, Nagaland, Manipur, Mizoram & Tripura and Sub-Himalayan West Bengal & Sikkim during past 24 hours. In its weekly report, the IMD said that conditions are becoming favourable for advance of monsoon over remaining parts of south peninsula and some parts of east India during next one week. The rainfall is likely to be above normal over many parts of south Peninsula and adjoining areas of east and central India during next two weeks. As per IMD's Extended Range Forecast (next 20 days), rainfall would be above normal over Indo Gangetic plains during the third week of June 2015. Over north eastern states, the rainfall intensity would be above normal during next 5 days and near normal/below normal thereafter.
For the country as a whole, cumulative rainfall during this year's monsoon season has been 100% of the Long Period Average (LPA) until 10 June 2015. Region wise, the southwest monsoon has been 31% below the LPA in Central India, 13% below the LPA in Northwest India, 2% below the LPA South Peninsula and 24% above the LPA in east & northeast India
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, European shares were trading lower today, 12 June 2015, as tensions surrounding Greece continued to overshadow sentiment. Key benchmark indices in UK, France and Germany were off 0.51% to 0.66%.
The International Monetary Fund yesterday, 11 June 2015, announced that it was halting bailout talks with Greece over a lack of progress toward a deal to avert a Greek default. Greece deferred a payment to the International Monetary Fund last week and needs to crack a deal or get another extension before its euro-area bailout package expires on 30 June 2015.
Asian stocks were mixed today, 12 June 2015. Key benchmark indices in China, Singapore, Japan and Hong Kong were up 0.12% to 1.39%. Key benchmark indices in South Korea, Indonesia and Taiwan were off 0.01% to 0.22%.
US stocks closed higher yesterday, 11 June 2015, adding to strong gains made a day earlier, as retail sales provided more evidence of a strengthening economy. In economic data, sales at US retailers climbed 1.2% in May and rose for the third month in a row, offering more evidence of springtime rebound in consumer spending after a winter lull.
The number of people who applied for US unemployment benefits rose slightly in the first week of June but remained near a 15-year low amid a sharp upsurge in hiring over the past few years. Initial jobless claims edged up by 2,000 to 279,000 in the seven days from May 31 to June 6, the government said yesterday, 11 June 2015.
A two-day meeting of the Federal Open Market Committee (FOMC) to review US monetary policy is scheduled on 16-17 June 2015. The FOMC meeting is being keenly watched for further indication of the timing of an expected rate hike by the US central bank later this calendar year.
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