Weakness continued on the bourses in early afternoon trade. Amid weak cues from global stocks, the barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, were both trading with losses of more than 1% each currently. Asian stocks fell as strong US jobs data fanned expectations that the US Federal Reserve may raise interest rates sooner than previously thought. The market breadth indicating the overall health of the market was weak. The Sensex was currently off 381.07 points or 1.29% at 29,067.88.
Capital goods stocks declined. Telecom stocks fell as bidding continued for auction of telecom spectrum.
Strong US jobs data for February 2015 has spurred speculation that the US Federal Reserve will bring forward the timing of interest-rate increases. There is a concern that a tighter monetary policy in the US may slow foreign portfolio flows into emerging markets. Higher interest rates will boost returns on US debt and bank deposits, drawing money back from riskier emerging markets.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 79.84 crore on Thursday, 5 March 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 193.54 crore on Thursday, 5 March 2015, as per provisional data. The stock market was closed on Friday, 6 March 2015, on account of Holi.
Earlier, the Sensex and the 50-unit CNX Nifty, both, hit their lowest level in more than a week in early trade as these two benchmark indices extended initial losses.
In the foreign exchange market, the rupee edged lower against the dollar on global risk-off sentiment.
Brent crude oil futures edged lower as upbeat US jobs data pushed the dollar higher, outweighing geopolitical tensions and the threat of output cuts in Libya and Iraq. Global crude oil prices have witnessed high volatility recently after a steep slide in prices during the second half of calendar year 2014. Deregulation of diesel price announced by the Indian government in October 2014 and a decline in global crude oil prices 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. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports. India imports 80% of its crude oil requirement.
In overseas markets, Asian stocks dropped after strong US jobs data fanned expectations that the US Federal Reserve may raise interest rates sooner than previously thought. US stocks fell sharply on Friday, 6 March 2015, after stronger than expected data from the monthly jobs report heightened concerns that the Federal Reserve could raise interest rates by June 2015.
At 12:16 IST, the S&P BSE Sensex was down 381.07 points or 1.29% at 29,067.88. The index slumped 431.94 points at the day's low of 29,017.01 in morning trade, its lowest level since 28 February 2015. The index fell 127.89 points at the day's high of 29,321.06 in early trade.
The CNX Nifty was down 119.80 points or 1.34% at 8,817.95. The index hit a low of 8,800.90 in intraday trade, its lowest level since 28 February 2015. The index hit a high of 8,891.30 in intraday trade.
The BSE Mid-Cap index was down 57.83 points or 0.52% at 10,987.25. The BSE Small-Cap index was down 34.57 points or 0.3% at 11,422.28. The decline in both these indices was lower than the Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was weak. On BSE, 1,540 shares declined and 979 shares rose. A total of 105 shares were unchanged.
Capital goods stocks declined. ABB (India) (down 1.98%), L&T (down 1.66%), BEML (down 2.2%), Crompton Greaves (down 1.46%) and Bharat Electronics (down 1.29%) declined.
Bharat Heavy Electricals (Bhel) declined 1.82%. The company during market hours today, 9 March 2015, announced the commissioning of second 660 megawatts (MW) supercritical unit at the Barh supercritical thermal power project (TPP) Stage II of NTPC in Bihar. Bhel is presently executing orders for 36 sets of supercritical boilers and 31 sets of supercritical turbine generators, which are in various stages of execution. These orders include orders from central and state sectors as well as private sectors. Super critical units are more efficient, consume lesser coal and are eco-friendly, Bhel said in a statement.
Telecom stocks fell as bidding continued for auction of telecom spectrum. Bharti Airtel (down 1.32%), Idea Cellular (down 1.47%), and Reliance Communications (down 2.17%) declined. By the end of day four of telecom spectrum auction, a value of approximately Rs 86000 crore was committed by bidders in respect of provisionally won spectrum, according to a statement from the Ministry of Communications & Information Technology issued late on Saturday, 7 March 2015. There is still spectrum, which is yet to be sold, the ministry said. The bidding will recommence on Monday 9 March 2015, the ministry said.
In the foreign exchange market, the rupee edged lower against the dollar on global risk-off sentiment. The partially convertible rupee was hovering at 62.6325, compared with its close of 62.17 during the previous trading session on Thursday, 5 March 2015. India's financial markets were closed on Friday, 6 March 2015, on account of Holi.
Brent crude oil futures edged lower as upbeat US jobs data pushed the dollar higher, outweighing geopolitical tensions and the threat of output cuts in Libya and Iraq. Brent for April settlement was off 34 cents at $59.39 a barrel. The contract had declined 75 cents or 1.24% to settle at $59.73 a barrel during the previous trading session.
Minister for Commerce & Industry Nirmala Sitharaman on Saturday, 7 March 2015, said that exports play a key role in ensuring success of the Make in India initiative. Speaking at the ECGC Dun & Bradstreet Export Performance Award ceremony in Mumbai, Sitharaman reiterated government's commitment to 'ease of doing business' and assured the gathering that similar measures will be extended to the export sector as well. For this purpose, the Minister said, she is planning to constitute of a committee, that can suggest thrust areas and key measures which can yield quick results as well as help formulate a long term export strategy.
Meanwhile, proceedings in parliament during the ongoing Budget session of Parliament are being closely watched. The government seeks to have the Bills replacing the six Ordinances passed by both the Houses of Parliament before 20 March 2015 when the first part of the Budget session of parliament concludes. The Lok Sabha has already passed five Bills seeking to replace five Ordinances relating to Amending the Citizenship Act, introduction of e-rikshaws, allocation of coal mines through open bidding, increase in foreign investment ceiling in the insurance sector to 49% from 26% and allocation of non-coal mineral resources through auction. The Parliament is scheduled to be reconvened on 20 April 2015 for the second part of the Budget session while the six Ordinances will lapse on 5 April 2015 as per the provisions of the Constitution.
Two key pending Bills yet to be passed in Rajya Sabha relate to hiking foreign investment ceiling in the insurance sector and allocation of coal blocks through open bidding.
Government business in the Lok Sabha for the current week includes consideration and passing of the Right to Fair Compensation and Transparency in Land Acquisition. Eight hours have been allocated for discussion on the LARR (Amendment) Bill, 2015 in the Lok Sabha.
On the macro front, the government will unveil industrial production data for January 2015 on Thursday, 12 March 2015. The government will release the combined consumer price index (CPI) data (rural/urban) for February 2015 on the same day.
Asian stocks dropped today, 9 March 2015, after strong US jobs data fanned expectations that the US Federal Reserve may raise interest rates sooner than previously thought. Key indices in Japan, South Korea, Indonesia, Taiwan and Singapore were off 0.34% to 1.28%.
Chinese stocks reversed initial losses as data out over the weekend showed a sharp rebound for Chinese exports last month. China's Shanghai Composite rose 1.98%. Hong Kong's Hang Seng rose 0.03%. China's exports picked up in the first two months of 2015, propelled by February's exceptionally strong performance that was inflated by the timing of Lunar New Year, while a slide in imports pointed to persistent weakness in the economy. Data released by the General Administration of Customs on Sunday, 8 March 2015, showed that China posted a record trade surplus of $60.6 billion last month. February exports jumped 48.3% from a year earlier, the strongest rise since May 2010 and comfortably beat market expectations, but customs office cautioned about reading too much into the figure given seasonal distortions. A 20.5% slide in February imports was the sharpest since the global financial crisis.
Meanwhile, the China Securities Regulatory Commission is reportedly studying the issue of letting banks apply for brokerage licenses
In Japan, the latest revised data showed that the nation's gross domestic product rose an annualised 1.5% in the October-December quarter, less than the preliminary reading of a 2.2% increase as capital expenditure weakened. On a quarter-on-quarter basis, the economy grew 0.4% in the fourth quarter, the Cabinet Office data showed.
Trading in US index futures indicated that the Dow could fall 13 points at the opening bell today, 9 March 2015. US stocks fell sharply on Friday, 6 March 2015, after stronger than expected data from the monthly jobs report heightened concerns that the Federal Reserve could raise interest rates by June 2015.
The US Labor Department said employers added 295,000 workers in February, beating forecasts. It was the longest run of 200,000-plus increases since 1994. The jobless rate dropped to 5.5% from 5.7% in January.
In Europe, the European Central Bank (ECB) is set to begin its long-awaited 1.1 trillion euro ($1.2 trillion) quantitative easing programme to stimulate growth and ward off deflation across the eurozone. The programme calls for the eurozone central bank to buy around 60 billion euros of public and private bonds each month -- a policy it will apply until at least September 2016.
The ECB on Thursday, 5 March 2015, left its main rate, the one that it charges on its regular bank loans, at a record low of 0.05%. It also kept its deposit rate at minus-0.2%, meaning that banks pay to park excess cash at the central bank. The Bank of England also on Thursday, 5 March 2015, kept interest rates on hold, marking the sixth anniversary of ultra-loose monetary policy.
Meanwhile, Greece may reportedly hold a referendum on whether to accept terms from the European Union over further aid to the country. The Eurogroup -- a forum of finance ministers from nations using the euro currency -- is scheduled to hold a meeting today, 9 March 2015, to discuss the Greek rescue package.
Powered by Capital Market - Live News
