Key benchmark indices drifted lower after alternately swinging between positive and negative zone in a small range in mid-morning trade. The barometer index, the S&P BSE Sensex, was currently off 30.55 points or 0.11% at 28,267.58. The market breadth indicating the overall health of the market was positive.
Oil & gas stocks gained across the board. Auto stocks were mixed. Tata Motors rose ahead of Q1 June 2015 earnings today, 7 August 2015. Mahindra & Mahindra (M&M) also gained ahead of Q1 June 2015 earnings today, 7 August 2015.
In overseas markets, Asian stocks were mixed. Chinese shares rose as speculation grew that the government will take more measures to stem a recent market rout. US markets ended lower yesterday, 6 August 2015, as investors turned cautious ahead of the monthly non-farm payrolls data.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 108.93 crore yesterday, 6 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 111.78 crore yesterday, 6 August 2015, as per provisional data released by the stock exchanges.
At 11:15 IST, the S&P BSE Sensex was down 30.55 points or 0.11% at 28,267.58. The index fell 57.80 points at the day's low of 28,240.33 at onset of the day's trading session. The index gained 37.54 points at the day's high of 28,335.67 in early trade.
The Nifty was down 7.40 points or 0.09% at 8,581.25. The index hit a low of 8,568.90 in intraday trade so far. The index hit a high of 8,595.95 in intraday trade so far.
The market breadth indicating the overall health of the market was positive. On BSE, 1,397 shares gained and 946 shares fell. A total of 103 shares were unchanged.
The BSE Mid-Cap index was up 13.41 points or 0.12% at 11,598.99. The BSE Small-Cap index was up 51.87 points or 0.43% at 12,173.55. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1346 crore by 11:15 IST compared with turnover of Rs 913 crore by 10:15 IST.
PSU OMCs edged higher on renewed buying. HPCL (up 3.38%), BPCL (up 0.79%), and Indian Oil Corporation (up 2.14%) gained.
Shares of oil exploration and production (E&P) companies also edged higher. Reliance Industries (up 1.23%), Cairn India (up 0.97%) and Oil India (up 0.32%) edged higher.
Auto stocks were mixed. Eicher Motors (up 0.27%), Hero MotoCorp (up 0.11%) and TVS Motor Company (up 0.76%) rose. Maruti Suzuki India (down 0.29%), Ashok Leyland (down 0.11%) and Bajaj Auto (down 1.07%) declined.
Tata Motors rose 1.38% ahead of Q1 June 2015 earnings today, 7 August 2015.
Mahindra & Mahindra (M&M) rose 1.5% ahead of Q1 June 2015 earnings today, 7 August 2015.
Bharat Heavy Electricals (Bhel) shed 0.16%. Bhel announced during market hours today, 7 August 2015, that the company has added one more coal-based power plant to the grid by successfully commissioning the 500 megawatts (MW) Unit-13 of Vindhyachal Super Thermal Power Station (STPS), Stage-V of NTPC. The project is located in Vindhyanagar in Singrauli district of Madhya Pradesh. With the commissioning of this unit, Bhel has now commissioned 7 sets of 500 MW aggregating to 3,500 MW, the highest by Bhel for a power project. Bhel's scope of work in the contract envisaged design, engineering, manufacture, supply and erection and commissioning of Steam Generator and Steam Turbine Generator along with associated Auxiliaries and state-of-the-art Controls & Instrumentation.
Meanwhile, Bhel announces its Q1 June 2015 earnings today, 7 August 2015.
Investors continue to watch the progress of the monsoon rains which will have a bearing on food prices and rural income. India's weather office, the India Meteorological Department (IMD), said in a weekly report issued yesterday, 6 August 2015, that the rainfall was 26% below normal for the country as a whole during the period from 30 July to 5 August 2015. Region wise, the rainfall was 51% below the Long Period Average (LPA) in South Peninsula, 30% below LPA in Northwest India, 24% below LPA in Central India and 7% below LPA in East & Northeast India during the period from 30 July to 5 August 2015.
As per IMD's extended range forecast till 24 August 2015, rainfall activity is likely to increase over eastern and central India from 10 August onwards. Western Himalayan region would receive fairly wide spread rainfall during next 5 days and South Peninsula would receive subdued rainfall activity during next 10 days.
In its separate daily monsoon update issued yesterday, 6 August 2015, the IMD said that the Southwest Monsoon was active over Andaman & Nicobar Islands, Sub-Himalayan West Bengal & Sikkim, West Madhya Pradesh, Marathawada and South Interior Karnataka during past 24 hours until 8:30 IST. For the country as a whole, cumulative rainfall during this year's monsoon season was 6% below the Long Period Average (LPA) until 6 August 2015. Region wise, the rainfall was 21% below the LPA in South Peninsula, 9% below the LPA in East & Northeast India, 4% below the LPA in Central India and 4% above the LPA in Northwest India until 6 August 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, Asian stocks were mixed today, 7 August 2015. Key benchmark indices in Taiwan, Indonesia and South Korea fell by 0.16% to 0.62%. In Japan, the Nikkei 2225 index rose 0.21%. Markets in Singapore are closed for a holiday.
Chinese shares rose as speculation grew the government will take more measures to stem a market rout. In mainland China, the Shanghai Composite was up 2.32%. In Hong Kong, the Hang Seng index was up 0.92%.
In Japan, investors are awaiting the outcome of the Bank of Japan's (BoJ) two-day policy meeting which concludes today, 7 August 2015. The BoJ is widely expected to maintain its stimulus programme intact.
US markets ended lower yesterday, 6 August 2015, as investors turned cautious ahead of non-farm payrolls data. In economic news, the Labor Department yesterday, 6 August 2015, said slightly more Americans filed for unemployment benefits last week, but their numbers remain near historic lows in a sign that the job market is healthy.
The influential monthly US nonfarm payroll report for July 2015 is due today, 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 Federal Reserve might raise rates.
In Europe, the Bank of England (BOE) yesterday, 6 August 2015, decided to keep the benchmark interest rate unchanged at 0.5% and also the size of its bond buying programme unchanged at GBP375 billion ($585 billion) after a monetary policy review. The BOE signaled it remains on course to start gently raising interest rates in the UK early next year, damping speculation that it would quickly follow the US Federal Reserve, which appears set for a September liftoff.
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