Breadth turns positive

High volatility was witnesses as key benchmark indices declined once again after hitting fresh intraday high in morning trade. The market breadth indicating the overall health of the market turned positive from negative. The barometer index, the S&P BSE Sensex, was currently down 41.04 points or 0.15% at 26,772.38.

Metal shares edged lower. Pharmaceutical shares edged higher.

Foreign portfolio investors bought shares worth a net Rs 511.90 crore yesterday, 4 June 2015, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 772.04 crore yesterday, 4 June 2015, as per provisional data released by the stock exchanges.

In overseas markets, Asian stocks were trading lower. US stocks fell overnight, with the Dow and S&P ending at their lowest levels in nearly a month, ahead of Friday's jobs report and lingering uncertainty over a Greece aid deal with creditors.

At 10:16 IST, the S&P BSE Sensex was down 41.04 points or 0.15% at 26,772.38. The index rose 20.77 points at the day's high of 26,834.19 in early trade. The index fell 84.16 points at the day's low of 26,729.26 at the onset of trading session.

The CNX Nifty was down 7.25 points or 0.09% at 8,123.40. The index hit a high of 8,137.60 in intraday trade. The index hit a low of 8,101.70 in intraday trade.

The BSE Mid-Cap index was up 21.01 points or 0.20% at 10,368.46. The BSE Small-Cap index was up 32.65 points or 0.30% at 10,856.38. Both these indices outperformed the Sensex.

The market breadth indicating the overall health of the market turned positive from negative. On BSE, 1,004 shares rose and 809 shares fell. A total of 85 shares were unchanged.

Metal shares edged lower. Jindal Steel & Power (down 1.79%), Tata Steel (down 1.67%), Bhushan Steel (down 1.39%), Hindalco Industries (down 1.2%), JSW Steel (down 1.1%), Steel Authority of India (down 0.96%), National Aluminum Company (down 0.57%), Vedanta (down 0.57%) and Hindustan Copper (down 0.53%), edged lower.

Hindustan Zinc was up 0.12%.

NMDC was up 0.85% at Rs 118.25. The company after market hours yesterday, 4 June 2015 said that its production of iron ore (provisional) upto the month of May 2015 stood at 4.14 million tonnes compared with the production of 4.94 million tonnes upto the month of May 2014. Sales of iron ore upto the month of May 2015 stood at 4.54 million tonnes compared with sales of 5.74 million tonnes upto the month of May 2014.

Pharmaceutical shares edged higher. Sun Pharmaceutical Industries (up 2.39%), Glenmark Pharmaceuticals (up 1.21%), Lupin (up 0.81%), Piramal Enterprises (up 0.56%), Cadila Healthcare (up 0.55%), Dr. Reddy's Laboratories (up 0.49%), Aurobindo Pharma (up 0.44%), GlaxoSmithKline Pharmaceuticals (up 0.41%), Cipla (up 0.35%), Strides Arcolab (up 0.34%) and Wockhardt (up 0.18%), edged higher. IPCA Laboratories (down 0.03%) and Divi's Laboratories (down 0.36%), edged lower.

In global commodity markets, Brent crude oil futures edged higher today, 5 June 2015. Brent for July settlement was up 15 cents at $62.18 a barrel. The contract had fallen $1.77 a barrel or 2.77% to settle at $62.03 a barrel during the previous trading session.

Oil cartel OPEC is expected to keep its production target of 30 million barrels of oil per day unchanged at a meeting scheduled in Vienna today, 5 June 2015. The OPEC meeting is being closely watched for clues about the organization's next moves.

Asian stocks were trading lower. Key benchmark indices in China, Hong Kong, Indonesia, Japan, Singapore, South Korea and Taiwan were down by 0.06% to 0.88%.

US stocks fell overnight, with the Dow and S&P ending at their lowest levels in nearly a month, ahead of Friday's jobs report and lingering uncertainty over a Greece aid deal with creditors.

Data showed the labour market tightening, with first-time applications for unemployment aid down last week and the number of people on benefit rolls hitting the lowest level since 2000, suggesting the Federal Reserve will remain on track to raise interest rates later this year. The data came ahead of Friday's key US jobs report. The International Monetary Fund has urged the Fed not to raise rates until there are clear signs of a pickup in wages and inflation.

Adding to investor concerns, Greece delayed a debt payment to the International Monetary Fund (IMF) due today, 5 June 2015, and German Chancellor Angela Merkel said talks on a cash-for-reforms deal were still far from an agreement.

Greece was supposed to pay the IMF about 300 million euros today, 5 June 2015, but said yesterday, 4 June 2015, it would bundle all the payments due this month into one. That means Greece now owes the fund 1.54 billion euros ($1.7 billion) by 30 June 2015. IMF rules allow borrowers to combine payments of principal due in a calendar month, but the provision has been used only once before -- by Zambia in the mid-1980s.

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