A bout of volatility was witnessed in early trade as the key benchmark indices regained positive zone after reversing initial gains. The barometer index, the S&P BSE Sensex, was currently up 14.19 points or 0.05% at 28,237.27. The market breadth indicating the overall health of the market was strong. Asian stocks edged lower today, 6 August 2015.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 447.90 crore yesterday, 5 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 189.11 crore yesterday, 5 August 2015, as per provisional data.
At 9:29 IST, the S&P BSE Sensex was up 14.19 points or 0.05% at 28,237.27. The index gained 91.32 points at the day's high of 28314.40 in early trade. The index fell 11.62 points at the day's low of 28,211.46 at onset of the day's trading session.
The CNX Nifty was up 5.30 points or 0.06% at 8,573.25. The index hit a high of 8,590.50 in intraday trade. The index hit a low of 8,556.80 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 956 shares gained and 611 shares fell. A total of 51 shares were unchanged.
The BSE Mid-Cap index was up 13.49 points or 0.12% at 11,557.95. The BSE Small-Cap index was up 28.84 points or 0.24% at 12,164.85. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 320 crore by 09:25 IST.
ICICI Bank shed 0.58%. ICICI Bank after market hours yesterday, 5 August 2015 said that the bank through its DIFC (Dubai) branch, priced an issuance of 5 year fixed rate notes to an aggregate principal amount of $500 million. The notes were offered only outside the United States to non-US persons under Regulation S of the US Securities Act of 1933, as amended. The notes carry a coupon of 3.125% and were offered at an issue price of 99.574.
Tata Steel dropped 1.7%. Tata Steel after market hours yesterday, 5 August 2015 in its update of recent developments said that while stoppage of despatches from the company's Noamundi iron ore mine in Jharkhand owing to differences with Jharkhand government will financially impact the company till the matter is resolved, the company has taken all measures to ensure that operations of its Jamshedpur steel plant are unaffected by the actions of the State and the company remains committed to its customers and other stakeholders.
Coming to the background of this issue, Tata Steel's captive iron ore mining leases in Odisha have been extended till 2030 in accordance with the provisions of the MMDR Amendment Act, 2015. However, the Government of Jharkhand has not yet allowed the execution of the supplementary lease deed for extension of the Noamundi iron ore mine in spite of several representations made by Tata Steel on the subject to the State, the company said. The MMDR Amendment Act 2015 stipulates the extension of the captive mining leases up to 31 March 2030 from the date of expiry of the period of last renewal, Tata Steel said. Applying its own interpretation of the legislative and judicial pronouncements, Government of Jharkhand has stipulated certain onerous terms and conditions for allowing extension of the mining lease of Noamundi, which are not in conformity with MMDR Amendment Act 2015, Tata Steel said.
As the company did not accept the position taken by the Government of Jharkhand before and after promulgation of the MMDR Amendment Act 2015, the Department of Mines, Government of Jharkhand, has stopped the issuance of challans (forwarding notes) for despatch of iron ore from the company's Noamundi iron mine in Jharkhand to its steel plant at Jamshedpur. This has resulted in stoppage of despatches of iron ore from Noamundi to Jamshedpur steel plant. Tata Steel said it has decided to seek legal recourse to resolve this impasse.
With regard to developments in its European long products business, Tata Steel confirmed the negotiations about the potential sale of its European long products business and associated distribution facilities to Klesch Group have been discontinued. The company had been in talks with Klesch following the signing of a Memorandum of Understanding in October 2014, Tata Steel said. As of 2 August 2015, the long products business, with the associated distribution facilities, became a 100% subsidiary of Tata Steel UK, it added. With the hive down of the long products into a wholly owned subsidiary, the new structure will enable the company to evaluate and execute strategic options in the future, Tata Steel said.
On the issue of pension schemes in Tata Steel Europe, Tata Steel said that following the trade union recommendation to the members for the modification option changes to the British Steel Pension Scheme and the trade union members vote in support of this, Tata Steel UK, a subsidiary of Tata Steel confirms that the formal consulation with employees on the changes has been completed and that the trustee body and the company have made the amendments to the scheme to enable the benefit changes to be adopted.
On the issue of Stichting Pensioenfonds Hoogovens, Netherlands, Tata Steel said that on 7 July 2015, the execution agreement for the company's main pension scheme in the Netherlands, Stichting Pensioenfonds Hoogovens (SPH), was signed by Tata Steel's subsidiary Tata Steel Nederland BV and the SPH Board. The terms of this agreement will allow the scheme to be classified as a defined contribution scheme with effect from 7 July 2015 rather than defined benefit scheme, Tata Steel said.
Siemens gained 3.98%. Siemens' net profit rose 1195.23% to Rs 168.25 crore on 1.29% increase in total income to Rs 2431.51 crore in Q3 June 2015 over Q3 June 2014. Siemens' order intake declined 18.23% to Rs 2234.08 crore in Q3 June 2015 over Q3 June 2014. The result was announced after market hours yesterday, 5 August 2015.
Siemens' Managing Director and Chief Executive Officer Sunil Mathur said that order inflow in the company's energy vertical has not yet picked up. The company's continued focus on operational excellence is reflected in its improved profitability, he added.
Meanwhile, retirement fund manager Employees Provident Fund Organisation (EPFO) will reportedly enter the stock market through exchange-traded funds (ETFs) from today, 6 August 2015. As per the decision by the central board of EPFO, the retirement fund manager will reportedly invest up to 5% of its incremental corpus in ETFs in the current financial year ending 31 March 2016.
Asian stocks edged lower today, 6 August 2015. Key benchmark indices in China, Indonesia, Singapore, Taiwan, Hong Kong and South Korea fell by 0.01% to 1.36%. In Japan, the Nikkei 225 index rose 0.75%.
US markets ended marginally higher yesterday, 5 August 2015 as investors digested conflicting economic data. Activity in the services sector surged to a 10-year high of 60.3 in July, while private payroll growth was softer than expected.
In economic data, a report yesterday, 5 August 2015 showed that private employers added 185,000 jobs in July, down from the 229,000 jobs added in June.
Meanwhile, the pace of growth in the U.S. service sector soared in July, recording its best reading in a decade. The nonmanufacturing purchasing managers index rose to 60.3 in July from 56 in June, its highest reading since August 2005, the Institute for Supply Management said yesterday, 5 August 2015.
The influential monthly US nonfarm payroll report for July 2015 is due tomorrow, 7 August 2015. The report will be scrutinized for clues to the strength of the labor-market recovery. Investors have been parsing economic data, from inflation to wages, for clues about when the Fed might raise rates.
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