Key indices snap eight-day winning streak

Don't want to miss the best from Business Standard?

Key benchmark indices edged lower after a sudden slide in late trade. The sudden slide in late trade materialized after benchmark indices extended intraday gains in mid-afternoon trade. The trigger for the sudden slide in late trade was media reports that Greece's creditors have rejected the European nation's latest reform proposals. European stocks dropped after media reports suggested that Greece's creditors have not accepted the European nation's latest reform proposals. The market breadth indicating the overall health of the market turned negative from positive in late trade. The barometer index, the S&P BSE Sensex, shed 74.70 points or 0.27% to settle at 27,729.67. The BSE Small-Cap and Mid-Cap indices, both, slipped into the red from green in late trade.

Key benchmark indices snapped eight-day winning streak today, 24 June 2015.

PSU bank stocks, steel shares and cement stocks dropped. Index heavyweight and cigarette major ITC edged lower amid volatility after a bulk deal of 7.39 lakh shares was executed on the counter at Rs 316.50 per share at 09:33 IST on BSE. Tech Mahindra dropped on reports that a foreign brokerage has maintained its 'underweight' stance on the stock.

Earlier, the Sensex and the 50-unit CNX Nifty, both, hit their highest level in more than three weeks in the mid-afternoon trade as these two key benchmark indices extended intraday gains.

Meanwhile, the summary of the electronic consultation with of the members of the Technical Advisory Committee on Monetary Policy released by Reserve Bank of India (RBI) yesterday, 23 June 2014, showed that all the seven members of the committee recommended a reduction in policy repo rate by the RBI at the Second Bi-monthly Monetary Policy Review, 2015-16 on 2 June 2015.

Indian stocks may remain volatile tomorrow, 25 June 2015, as traders roll over positions in the futures & options (F&O) segment from the near month June 2015 series to July 2015 series. The near month June 2015 derivatives contracts expire tomorrow, 25 June 2015.

Foreign portfolio investors (FPIs) sold shares worth a net Rs 313.22 crore into the secondary equity markets yesterday, 23 June 2015, as per data from National Securities Depository. Domestic institutional investors (DIIs) bought shares worth a net Rs 404.20 crore yesterday, 23 June 2015, as per provisional data released by the stock exchanges.

In overseas stock markets, European stocks edged lower after media reports suggested that Greece's creditors have not accepted the European nation's latest reform proposals. Earlier during the global day, Asian stocks closed higher, with Japan's Nikkei 225 index ending at a more than 18-year high. US stocks ended a choppy trading session slightly higher yesterday, 23 June 2015, though modest gains were enough to push the Nasdaq Composite and Russell 2000 to record closing levels.

The S&P BSE Sensex shed 74.70 points or 0.27% to settle at 27,729.67, its lowest closing level since 19 June 2015. The index fell 157.08 points at the day's low of 27,647.29 in late trade. The index jumped 143.87 points at the day's high of 27,948.24 in mid-afternoon trade, its highest level since 1 June 2015.

The CNX Nifty declined 20.70 points or 0.25% to settle at 8,360.85, its lowest closing level since 22 June 2015. The index hit a low of 8,338.90 in intraday trade. The index hit a high of 8,421.35 in intraday trade, its highest level since 2 June 2015.

The BSE Mid-Cap index dropped 34.54 points or 0.32% to settle at 10,617.38. The BSE Small-Cap index lost 61.32 points or 0.55% to settle at 11,083.65. The decline in both the indices was higher than the Sensex's decline in percentage terms.

Among sectoral indices on BSE, the S&P BSE Realty index (down 0.93%), the S&P BSE Oil & Gas index (down 0.9%), the S&P BSE Metal index (down 1.57%), the S&P BSE Capital Goods index (down 0.57%), the S&P BSE Consumer Durables index (down 0.55%), the S&P BSE IT index (down 0.32%), the S&P BSE Power index (down 0.37%), the S&P BSE Auto index (down 0.8%), and the S&P BSE Teck index (down 0.53%) underperformed the Sensex. The S&P BSE FMCG index (up 0.35%), the S&P BSE Healthcare index (up 0.71%) and the S&P BSE Bankex (down 0.21%) outperformed the Sensex.

The market breadth indicating the overall health of the market turned negative from positive in late trade. On BSE, 1,496 shares declined and 1,222 shares rose. A total of 134 shares were unchanged.

The total turnover on BSE amounted to Rs 2566 crore, higher than turnover of Rs 2485.27 crore registered during the previous trading session.

Cement stocks edged lower. ACC (down 2.45%), Ambuja Cements (down 1.15%), UltraTech Cement (down 1.42%) and Shree Cement (down 0.11%) edged lower.

Grasim Industries was off 1.26% at Rs 3,395.95. Grasim has exposure to cement sector through its holding in UltraTech Cement.

Coal India reversed direction after hitting 52-week high in intraday trade. The stock lost 1.12% to Rs 410.50. The stock hit a high of Rs 421.35 in intraday trade, which is a 52-week high for the counter. The stock hit a low of Rs 408.50 in intraday trade.

Index heavyweight and cigarette major ITC edged lower amid volatility after a bulk deal of 7.39 lakh shares was executed on the counter at Rs 316.50 per share at 09:33 IST on BSE. The stock was off 0.7% at Rs 312.35. The stock hit a high of Rs 318 and a low of Rs 311.15 in intraday trade.

Tech Mahindra dropped on reports that a foreign brokerage has maintained its 'underweight' stance on the stock. The stock was off 1.72% at Rs 544.10. The stock hit a high of Rs 552 and a low of Rs 542 in intraday trade. The foreign brokerage reportedly said that growth challenges in Tech Mahindra's telecom industry vertical and its weak enterprise business will lead to lower earnings. The company's margins will surprise the consensus negatively going ahead, the brokerage added.

Steel stocks dropped. Bhushan Steel (down 1.34%), Jindal Steel & Power (down 3.67%), Tata Steel (down 2.98%), JSW Steel (down 1.74%), and Steel Authority of India (down 1.67%) edged lower.

Shares of other metal and mining stocks also declined. National Aluminium Company (down 1.3%), Vedanta (down 0.31%), Hindalco Industries (down 3.7%) and Hindustan Zinc (down 2.09%), declined.

NMDC dropped 1.01%. MMTC rose 2.34%. The Union Cabinet today, 24 June 2015, gave its approval to renew long term agreement with Japanese and South Korean steel mills for supply of high grade Indian iron ore during the three year period from April 2015 to March 2018. The quantities covered under the agreement will be in the range of 3.8 million tonnes to 5.5 million tonnes per year and will be supplied primarily from the mines of NMDC. The contract will be executed by MMTC.

Iron ore of higher grade have been supplied by India to Japan and South Korea under long term agreements during the last four to five decades. The renewal of long term agreement with Japanese and South Korean steel mills for supply of high grade Indian iron ore will help utilize surplus production of iron ore currently available in India. It will also strengthen Indo-Japanese collaboration in several areas of mutual interest, including technology transfer, joint venture, investment, etc, according to a government statement issued after trading hours today, 24 June 2015.

Bank stocks edged lower. Among shares of state-run banks, Union Bank of India (down 4.49%), Bank of India (down 2.58%), Punjab National Bank (down 3.11%), Bank of Baroda (down 2.6%), Syndicate Bank (down 2.41%), IDBI Bank (down 1.87%), United Bank of India (down 2.61%) and State Bank of India (down 1.92%) edged lower. Central Bank of India rose 1.81%.

Among shares of private sector banks, Axis Bank (down 0.17%), HDFC Bank (down 0.5%), Yes Bank (down 0.88%) and Kotak Mahindra Bank (down 0.12%) edged lower. IndusInd Bank (up 0.97%), ICICI Bank (up 1.13%) and edged higher.

Key benchmark indices snapped eight-day winning streak today, 24 June 2015. The Sensex had risen 1,433.39 points or 5.43% in the preceding eight trading sessions to settle at 27,804.37 yesterday, 23 June 2015, from a recent low of 26,370.98 on 11 June 2015. The Sensex has lost 98.77 points or 0.35% in this month so far (till 24 June 2015). The Sensex has risen 230.25 points or 0.83% in this calendar year so far (till 24 June 2015). From a 52-week low of 24,878.66 on 23 June 2014, the Sensex has risen 2,851.01 points or 11.45%. The Sensex is off 2,295.07 points or 7.64% from a record high of 30,024.74 hit on 4 March 2015.

Meanwhile, concerns of a likely spike in food prices have receded due to above-average rains during the initial part of the June-September southwest monsoon season. For the country as a whole, the cumulative rainfall during this year's monsoon season was 21% above the Long Period Average (LPA) until 22 June 2015. Region wise, the southwest monsoon was 45% above the LPA in Central India, 35% above the LPA in South Peninsula, 3% above the LPA in East & Northeast India and 7% below the LPA in Northwest India until 22 June 2015.

The India Meteorological Department (IMD) said in its daily monsoon update issued yesterday, 23 June 2015, that the southwest monsoon has further advanced into some more parts of north Arabian Sea, Gujarat state, Madhya Pradesh and Bihar and remaining parts of Chhattisgarh and Jharkhand and some parts of East Uttar Pradesh. Conditions are favourable for further advance of southwest monsoon into remaining parts of north Arabian sea, Gujarat state, Madhya Pradesh and Bihar, entire Uttarakhand, Himachal Pradesh, Jammu & Kashmir, some more parts of Uttar Pradesh and some parts of Punjab, Haryana, Chandigarh & Delhi and Rajasthan during next 2-3 days, the IMD said. The Southwest monsoon was vigorous over West Madhya Pradesh and active over Nagaland, Manipur, Mizoram & Tripura, Odisha, Jharkhand, East Madhya Pradesh, Madhya Maharashtra, Vidarbha and Chhattisgarh during past 24 hours until 8:30 IST, the IMD said.

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.

Meanwhile, the summary of the electronic consultation with of the members of the Technical Advisory Committee on Monetary Policy released by Reserve Bank of India (RBI) yesterday, 23 June 2014, showed that all the seven members of the committee recommended a reduction in policy repo rate by the RBI at the Second Bi-monthly Monetary Policy Review, 2015-16 on 2 June 2015. Four members advocated a cut in repo rate by 25 basis points; two members suggested a 50 basis points reduction and one member proposed a reduction by 75 basis points. One of these members also recommended that the SLR should also be reduced by 50 basis points. It may be recalled that the RBI cut its benchmark lending rate viz. the repo rate by 25 basis points after the 2 June 2015 policy review.

In overseas markets, European stocks edged lower today, 24 June 2015, after media reports suggested that Greece's creditors have not accepted the European nation's latest reform proposals. Key benchmark indices in France and Germany were off 0.47% to 0.95%. In UK, the FTSE index was up 0.28%.

Greek Prime Minister Alexis Tsipras told his government today, 24 June 2015, that the country's international creditors have rejected Athens's latest reform proposal, according to media reports, citing a Greek government officials. Greece submitted the proposals early this week in the latest bid to unlock much needed financial aid. Tsipras's comments came before he headed to Brussels for an emergency meeting to discuss the reform measures with the heads of lender institutions.

Greece needs a deal to unlock new financing ahead of a 1.54 billion euro ($1.75 billion) debt payment due to the International Monetary Fund at the end of June.

In Germany, the widely watched Ifo Business Climate Index fell to a four-month low in June, dampening optimism over the health of the euro zone's largest economy, industry data showed today, 24 June 2015. In a report, the German research institute Ifo said its Business Climate Index fell to a seasonally adjusted 107.4 in June, down from a reading of 108.5 in May.

Earlier during the global day, Asian stocks closed higher, with Japan's Nikkei 225 index ending at a more than 18-year high. The Nikkei rose 0.28% to settle at 20,868.03. In other Asian markets, key benchmark indices in China, Hong Kong, Japan, Taiwan, Singapore, South Korea and Indonesia rose 0.07% to 2.48%.

Members of the Bank of Japan's monetary policy board are satisfied with the rate of the country's economic recovery and the recovery is expected to continue, minutes from the board's meeting on May 21 and 22 showed yesterday, 23 June 2015.

US stocks closed mildly higher yesterday, 23 June 2015, as investors remained optimistic on the Greece debt talks and eyed continued signs of moderate economic growth. Data on sales of new single-family homes showed that new homes in May were sold at an annual rate of 546,000, hitting the fastest pace since February 2008. The figures showed growth in two out of four regions, while April numbers were also raised. The home-sales data came after a report showed that orders for durable US goods fell a seasonally adjusted 1.8% in May, mostly due to weaker demand for commercial aircraft.

Meanwhile, the Markit US manufacturing PMI fell to 53.4 in June from 54 in May, data released yesterday, 23 June 2015 showed.

Federal Reserve Governor Jerome Powell was quoted as saying yesterday, 23 June 2015, that there could be two interest-rate hikes this year. He also said that the US stock market isn't showing signs of being in a bubble.

Powered by Capital Market - Live News