Auto stocks see mixed trend

Key benchmark indices continued to see divergent trend in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was trading with small gains. The 50-unit CNX Nifty languished in negative zone. The market breadth indicating the overall health of the market was weak. The Sensex was currently up 11.40 points or 0.04% at 26,534.49. The Nifty was currently off 22.45 points or 0.28% at 8,021.70. The losses for Nifty versus gains for the Sensex were because Nifty constituents which are not a part of the Sensex viz. Cairn India, Tech Mahindra, Bosch, Bank of Baroda, Punjab National Bank, Kotak Mahindra Bank, Zee Entertainment Enterprises, HCL Technologies and Asian Paints edged lower.

Auto stocks were mixed. IT stocks fell as the rupee edged higher against the dollar.

Earlier during the trading session, the Sensex and the 50-unit CNX Nifty, both, hit their lowest level in almost 5 weeks.

In overseas markets, European shares edged lower, tracking losses in Asia and the US triggered by bond market volatility, uncertainty over the future of Greece and concerns surrounding the impact of an interest rate rise in the US.

Foreign portfolio investors (FPIs) sold shares worth a net Rs 749.12 crore yesterday, 8 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 529.82 crore yesterday, 8 June 2015, as per provisional data released by the stock exchanges.

At 14:15 IST, the S&P BSE Sensex was up 11.40 points or 0.04% at 26,534.49. The index lost 76.59 points at the day's low of 26,446.50 at onset of the day's trading session, its lowest level since 7 May 2015. The index rose 81.56 points at the day's high of 26,604.65 in mid-afternoon trade.

The CNX Nifty was down 22.45 points or 0.28% at 8,021.70. The index hit a low of 8,007.55 in intraday trade, its lowest level since 7 May 2015. The index hit a high of 8,057.15 in intraday trade.

The BSE Mid-Cap index was off 17.05 points or 0.17% at 10,176.95. The BSE Small-Cap index was off 9.93 points or 0.09% at 10,687.63. Both these indices underperformed the Sensex.

The market breadth indicating the overall health of the market was weak. On BSE, 1,510 shares declined and 981 shares rose. A total of 116 shares were unchanged.

Auto stocks were mixed. Maruti Suzuki India (down 0.54%), Eicher Motors (down 0.76%), Bajaj Auto (down 0.37%), Hero MotoCorp (down 0.73%) and TVS Motor Company (down 0.14%) fell. Tata Motors (up 1.48%), Mahindra & Mahindra (M&M) (up 0.78%) and Ashok Leyland (up 0.45%) gained.

IT stocks fell as the rupee edged higher against the dollar. A firm rupee adversely affects operating profit margins of IT firms as the sector derives a lion's share of revenue from exports. Tech Mahindra (down 2.54%), TCS (down 0.16%), Infosys (down 0.46%), Wipro (down 0.71%) and HCL Technologies (down 0.78%) declined. Oracle Financial Services Software rose 1.43%.

The partially convertible rupee was currently hovering at 63.87, compared with close of 64.09 during the previous trading session.

Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update yesterday, 8 June 2015, that the southwest monsoon has further advanced into some more parts of central Arabian sea, entire Goa, some parts of south Konkan, remaining parts of coastal Karnataka and some more parts of south interior Karnataka. The Southwest Monsoon was active over Arunachal Pradesh and Assam & Meghalaya during past 24 hours, the IMD said yesterday, 8 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, European shares edged lower today, 9 June 2015, tracking losses in Asia and the US triggered by bond market volatility, uncertainty over the future of Greece and concerns surrounding the impact of an interest rate rise in the US. Key benchmark indices in UK, France and Germany were off 0.08% to 0.77%.

According to media reports, Greece and its creditors are discussing an extension of Greece's bailout program through March 2016. 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 edged lower today, 9 June 2015, on worries about Greece and on expectations that the US Federal Reserve will start raising interest rates in September. Key benchmark indices in Singapore, South Korea, Taiwan, Japan and Indonesia were off 0.06% to 2.31%.

Chinese shares slipped after weak inflation data. In mainland China, the Shanghai Composite index was off 0.36%. In Hong Kong, the Hang Seng index was off 1.2%. China's consumer inflation in May was at its weakest level in four months, official data showed today, 9 June 2015. China's consumer price index rose 1.2% in May from a year earlier, slower than a 1.5% year-over-year rise in April, data from the National Bureau of Statistics showed. The producer-price index, which measures prices of goods at the factory gate, dropped 4.6% in May from a year earlier, matching a 4.6% year-over-year fall in April. Factory-level prices have now been declining for 39 consecutive months since March 2012 as weak demand leaves excess capacity in key industries like steel and cement and drives prices lower.

Investors in China await MSCI Inc.'s decision in New York later in the global day today, 9 June 2015, on whether to include Chinese domestic stocks in its indexes, which are tracked by billions of dollars of global funds and could draw millions of new investors into Chinese shares.

US stocks declined yesterday, 8 June 2015, with the tech stocks leading the market lower. The slump in the main stock-market indexes marked the third consecutive session, with the Dow industrials erasing year-to-date gains.

A two-day meeting of the Federal Open Market Committee (FOMC) to review US monetary policy is scheduled on 16-17 June 2015.

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