Key benchmark indices traded off the day's low in mid-morning trade. The 50-unit CNX Nifty was currently trading below the psychological 8,000 mark, after falling below that level in early trade. The barometer index, the S&P BSE Sensex, was currently off 78.51 points or 0.3% at 26,508.04. The market breadth indicating the overall health of the market was negative. In overseas markets, Asian stocks edged lower as financial markets braced for the possibility of Greece defaulting on its debt, while a two-day policy meeting of the US Federal Reserve's monetary committee starting later in the global day also prompted caution.
Telecom stocks declined. Reliance Communications (RCom) rose after announcing that the company and AFK Sistema have entered into exclusive discussions on a potential merger between the Indian telecom business of Sistema Shyam TeleServices (SSTL) and RCom through a stock swap. Kotak Mahindra Bank fell on reports that the Foreign Investment Promotion Board has once again deferred the bank's proposal for raising foreign investment limit in the bank to 55%. PSU OMCs rose after announcing fuel price changes after trading hours yesterday, 15 June 2015.
Meanwhile, data released by the Ministry of Commerce & Industry today, 16 June 2015, showed that India's merchandise exports fell 20.19% at $22.35 billion in May 2015 over May 2014.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 604.86 crore yesterday, 15 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 650.47 crore yesterday, 15 June 2015, as per provisional data released by the stock exchanges.
In overseas markets, Asian stocks edged lower as financial markets braced for the possibility of Greece defaulting on its debt, while a two-day policy meeting of the US Federal Reserve's monetary committee starting later in the day also prompted caution. US stocks edged lower yesterday, 15 June 2015, after the collapse of weekend talks over Greece's bailout plan and on disappointing economic data.
At 11:17 IST, the S&P BSE Sensex was down 78.51 points or 0.3% at 26,508.04. The index fell 125.06 points at the day's low of 26,461.49 in morning trade. The index rose 10.73 points at the day's high of 26,597.28 at the onset of the trading session.
The Nifty was down 27.55 points or 0.34% at 7,986.35. The index hit a low of 7,972.75 in intraday trade. The index hit a high of 8,010.50 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,198 shares fell and 873 shares rose. A total of 123 shares were unchanged.
The BSE Mid-Cap index was down 3.49 points or 0.03% at 10,117.31. The BSE Small-Cap index was down 11.81 points or 0.11% at 10,606.59. The decline in both these indices was lower than the Sensex's fall in percentage terms.
Telecom stocks declined. Bharti Airtel (down 0.56%), Tata Teleservices (Maharashtra) (down 0.01%), MTNL (down 0.66%) and Idea Cellular (down 1.88%) declined.
Reliance Communications (RCom) edged higher after announcing that the company and AFK Sistema have entered into exclusive discussions on a potential merger between the Indian telecom business of Sistema Shyam TeleServices (SSTL) and RCom through a stock swap. The stock rose 1.27%. The company announced after market hours yesterday, 15 June 2015, that the discussions are indicative and non-binding in nature and remain subject to due diligence, definitive documentation and approvals, as may be necessary. There is no certainty that any transaction will result, it added.
Kotak Mahindra Bank fell after reports the Foreign Investment Promotion Board once again deferred the bank's proposal for raising foreign investment limit in the bank to 55%. The stock dropped 1.45%. According to reports, the proposal for raising foreign investment limit in Kotak Mahindra Bank (KMBL) was put off by the Foreign Investment Promotion Board (FIPB) as comments from the Department of Financial Services (DFS) about the impact of the proposal on downstream investment by the bank in the insurance venture did not come. The Insurance Regulatory and Development Authority of India (IRDAI) was to give its comments to DFS, reports added.
PSU OMCs rose after announcing fuel price changes after trading hours yesterday, 15 June 2015. BPCL (up 1.65%), HPCL (up 2.09%) and Indian Oil Corporation (IOCL) (up 1.78%) edged higher.
Indian Oil Corporation (IOCL) after trading hours yesterday, 15 June 2015, announced increase in petrol price by 64 paise per litre with effect from the midnight of 15/16 June 2015. With the latest revision, the price of petrol in Delhi has risen to Rs 66.93 per litre. The price of diesel was reduced by Rs 1.35 per litre at Delhi (including state levies) with corresponding price revision in other states. With this change, the price of diesel in Delhi declined to Rs 50.93 per litre.
Meanwhile, data released by the Ministry of Commerce & Industry today, 16 June 2015, showed that India's merchandise exports fell 20.19% at $22.35 billion in May 2015 over May 2014. Merchandise exports registered a fall of 17.21% to $44.40 billion during the two-month period April-May 2015 over the corresponding period in the previous year.
Imports fell 16.52% to $32.75 billion in May 2015 over May 2014. Oil imports fell 40.97% to $8.54 billion in May 2015 over May 2014. Non-oil imports fell 2.24% to $24.21 billion in May 2015 over May 2014. The trade deficit declined to $10.40 billion in May 2015 from $11.23 billion in May 2014.
Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update issued yesterday, 15 June 2015, that the Southwest Monsoon was active over Arunachal Pradesh, Gangetic West Bengal, Odisha, Konkan & Goa, Vidarbha and Telangana during past 24 hours ending at 0830 hrs. The conditions are becoming favourable for further advance of southwest monsoon into some more parts of West Bengal and Odisha, remaining parts of Coastal Andhra Pradesh, Bay of Bengal and some parts of Jharkhand and Bihar during next 3-4 days, the IMD said.
For the country as a whole, the cumulative rainfall during this year's monsoon season was 11% above the Long Period Average (LPA) until 14 June 2015. Region wise, the southwest monsoon was 20% above the LPA in East & Northeast India, 12% above the LPA in Central India, 1% above normal in South Peninsula and 6% below the LPA in Northwest India until 14 June 2015.
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, Asian stocks edged lower today, 16 June 2015, as financial markets braced for the possibility of Greece defaulting on its debt, while a two-day policy meeting of the US Federal Reserve's monetary committee starting later in the day also prompted caution. Key benchmark indices in China, Singapore, Hong Kong, Taiwan, Japan, and South Korea shed by 0.6% to 2%. In Indonesia, the Jakarta Composite was up 0.4%.
US stocks edged lower yesterday, 15 June 2015, after the collapse of weekend talks over Greece's bailout plan and on disappointing economic data. The losses followed a breakdown in talks between Greece and its creditors over the weekend. The lack of progress in negotiations has rattled investors and raised fears of a default on Greece's debt and a possible exit from the currency bloc.
Among US macroeconomic data, US industrial production unexpectedly fell in May as manufacturing and mining activity remained weak, a sign that a strong dollar and spending cuts in the energy sector continued to constrain economic growth. Industrial output slipped 0.2% last month after declining 0.5% in April, In a separate report, the New York Fed said its Empire State general business conditions index dropped to a reading of minus 1.98 in June from 3.09 in May.
A two-day meeting of the Federal Open Market Committee (FOMC) to review US monetary policy begins today, 16 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.
In Europe, European Central Bank President Mario Draghi yesterday, 15 June 2015, raised pressure on the Greek government to come to an agreement with its international creditors to unlock financing. While all actors will now need to go the extra mile, the ball lies squarely in the camp of the Greek government to take the necessary steps, Draghi was quoted as saying.
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