Sensex, Nifty hit almost one-week closing low

Key benchmark indices dropped sharply on first trading day of the week. A bout of volatility was witnessed in late trade as key benchmark indices tumbled into the red and hit fresh intraday low after remaining in positive terrain for the most part of the trading session. The barometer index, the S&P BSE Sensex and the 50-unit CNX Nifty, both, settled at their lowest closing levels in almost one week. The Sensex lost 134.67 points or 0.48% to settle at 28,101.72. The market breadth indicating the overall health of the market was turned negative from positive in late trade. Reports suggesting Land Bill has been deferred till next Parliament session as no consensus has been reached on controversial clauses impacted market sentiment.

Metal & mining stocks declined on weak economic data in China. Tata Motors declined after announcing weak Q1 results. Telecom stocks declined. Realty stocks gained

According to reports, Land Bill has been deferred till next Parliament session as no consensus has been reached on controversial clauses. According to reports, the contentious Land Acquisition Bill will not come to Parliament before the winter session, with the Joint Committee of Parliament (JPC) examining the measure today, 10 August 2015, deciding to seek more time to finalise its report after Congress and Trinamool Congress (TMC) sought more time to study certain clauses. The ongoing monsoon session of Parliament is in its final week of proceedings and most part of it has been washed out due to standoff between the NDA government and opposition led by the Congress.

Foreign portfolio investors (FPIs) sold shares worth a net Rs 7.22 crore from the secondary equity market on Friday, 7 August 2015, as per data from National Securities Depository (NSDL). Domestic institutional investors (DIIs) bought shares worth a net Rs 34.08 crore on Friday, 7 August 2015, as per provisional data.

In overseas markets, European stocks edged higher today, 10 August 2015. Asian stocks were mixed. US stocks edged lower on Friday, 7 August 2015, as a solid US jobs report for July raised chances for an increase in interest rates by the Federal Reserve as soon as September.

The S&P BSE Sensex lost 134.67 points or 0.48% to settle at 28,101.72, its lowest closing level since 4 August 2015. The index tumbled 218.54 points at the day's low of 28,017.85 in late trade. The index gained 181.20 points at the day's high of 28,417.59 in morning trade, its highest level since 23 July 2015.

The CNX Nifty fell 39 points or 0.46% to settle at 8,525.60, its lowest closing level since 4 August 2015. The index hit a low of 8,497.80 in intraday trade. The index hit a high of 8,621.55 in intraday trade, its highest level since 23 July 2015.

The market breadth indicating the overall health of the market turned negative from positive in late trade. On BSE, 1,529 shares declined and 1,424 shares rose. A total of 115 shares were unchanged.

The BSE Mid-Cap index fell 2.12 points or 0.02% to settle at 11,555.40. The BSE Small-Cap index fell 49.48 points or 0.41% to settle at 12,054.99. The decline in both these indices was lower than Sensex's decline in percentage terms.

The total turnover on BSE amounted to Rs 3087 crore, lower than turnover of Rs 3444.32 crore registered during the previous trading session.

Among the sectoral indices on BSE, the S&P BSE Metal index (down 1.04%), the S&P BSE Oil & Gas index (down 0.94%), the S&P BSE Consumer Durables index (down 0.92%), the S&P BSE FMCG index (down 0.66%), the S&P BSE Capital Goods index (down 0.65%) and the S&P BSE Power index (down 0.63%), underperformed the Sensex. The S&P BSE Auto index (down 0.44%), the S&P BSE IT index (down 0.41%), the S&P BSE Teck index (down 0.4%), the S&P BSE Healthcare index (down 0.12%), the S&P BSE Bankex (down 0.07%) and the S&P BSE Realty index (up 0.83%), outperformed the Sensex.

Metal & mining stocks declined on weak economic data in China. JSW Steel (down 0.76%), Hindustan Copper (down 0.78%), Hindalco Industries (down 1.92%), National Aluminum Company (down 0.78%), Hindustan Zinc (down 1.16%), Tata Steel (down 0.34%), Steel Authority of India (Sail) (down 2.04%), and NMDC (down 0.05%) declined. Jindal Steel & Power rose 4.39%. China is the world's largest consumer of steel, copper and aluminum.

Vedanta declined in volatile trade. The stock fell 1.31% to Rs 127.75. The stock hit high of Rs 131 and low of Rs 126.25. The company said that it has received the relevant consent, license and approvals in place to commence the iron-ore mining operations in the State of Goa for some of its leases. The company made announcement during market hours. The company is likely to recommence operations from today, 10 August 2015 at its biggest mine at Codli in Sanguem taluka in Goa. Further the company has been granted approval for total extraction of 5.5 million metric tons of which Codli is 3.1 million metric tons. Till date, five mining plans and schemes for company's mines have been cleared by Indian Bureau of Mines and the company is awaiting clearance of further 15 plans. Over the balance monsoon period the company anticipate receiving these approvals and expect a full scale resumption post monsoon. Even as India and in particular miners from Goa look to regain lost markets, Iron ore markets/prices are weak and the international trade environment remains challenging. The company continues to work with central and state government to improve competitiveness of Indian exports. Prior to the suspension of mining in 2012, India was the third largest exporter of iron ore and Vedanta o was the largest Indian exporter of low grade ores.

As informed earlier, the mining of operations in Karnataka resumed operations in February 2015, Vedanta said.

Tata Motors declined after announcing weak Q1 results. The stock fell 1.71% to Rs 385.85. The stock hit high of Rs 395.60 and low of Rs 382.20. On a consolidated basis, Tata Motors reported 48.7% fall in net profit to Rs 2768.91 crore on 5.5% fall in total income to Rs 61326.75 crore in Q1 June 2015 over Q1 June 2014. The company announced the result after market hours on Friday, 7 August 2015.

Tata Motors said that its consolidated revenue (net of excise) fell 5.66% to Rs 61020 crore in Q1 June 2015 over Q1 June 2014. Tata Motors attributed the decline in revenue to lower sales and weaker geographic mix at its British luxury car unit Jaguar Land Rover (JLR). As per International Financial Reporting Standards (IFRS), JLR's net profit dropped 29% to GBP 492 million on 6.55% decline in revenue to GBP 5,002 million in Q1 June 2015 over Q1 June 2014. JLR's earnings before interest, taxation, depreciation and amortization (EBITDA) fell 24.47% to GBP 821 million in Q1 June 2015 over Q1 June 2014.

Tata Motors' revenue (net of excise) on standalone basis jumped 20.66% to Rs 9297 crore in Q1 June 2015 over Q1 June 2014. Tata Motors' standalone business mainly comprises of its commercial vehicles and passenger vehicles business in India.

Telecom stocks declined. Reliance Communications (down 2.05%), Idea Cellular (down 2.13%), Bharti Airtel (down 0.84%), MTNL (down 1.99%) and Tata Teleservices (Maharashtra) (down 8.15%) fell.

Telecom regulator Telecom Regulatory Authority of India (TRAI) on Friday, 7 August 2015, made it mandatory for telecom operators to provide information to mobile data users regarding data used after every 10 MB of data usage to all mobile data users except users of special data packs. TRAI has also directed telecom operators to give information to users of various special data packs whenever the limit of data usage reaches 50%, 90% and 100% of data available in the account of the subscriber or when the data balance available in the account of the subscriber reaches 500 MB, 100 MB and 10 MB. Further, telecom operators will have to inform mobile data users about the details of tariff applicable after exhausting the data limit when the data limit reaches 90% or the data balance available in the account reaches 10 MB. For an international roaming customer, telecom operators will be required to send alerts, cautioning him to deactivate data service if he does not intend to use data services. All these requirements will have to be implemented by 1 November 2015.

TRAI also said that service providers should activate mobile data service only with the explicit consent of the subscriber through a toll free short code 1925. The data services could also be deactivated through the toll free short code 1925. Data services through Special Tariff Voucher or Combo Voucher or add-on pack will be deemed to have been activated with consent till the expiry of the validity period of the voucher/pack or on the consumption of entire data, whichever is earlier. All these requirements will have to be implemented by 1 September 2015.

Bank stocks declined. Among public sector banks, Punjab National Bank (down 0.63%), Bank of Baroda (down 1.94%), Canara Bank (down 0.19%), Bank of India (down 1.9%) and IDBI Bank (down 1.42%) edged lower.

State Bank of India (SBI) (up 0.57%) and Union Bank of India (up 0.02%) rose.

Among private sector banks, Axis Bank (down 1.28%), HDFC Bank (down 0.26%), ICICI Bank (down 0.63%), Kotak Mahindra Bank (down 0.49%), Yes Bank (down 1.09%) and IndusInd Bank (down 0.18%) edged lower.

Realty stocks rose. Indiabulls Real Estate (up 2.87%), Unitech (up 1.67%), Omaxe (up 0.7%), D B Realty (up 1.54%), Godrej Properties (up 6.56%), and DLF (up 1.43%) edged higher.

Housing Development & Infrastructure (HDIL) (down 1.18%) and Oberoi Realty (down 2.25%) fell.

The Sensex has declined 12.84 points or 0.04% in this month so far (till 10 August 2015). The Sensex has risen 602.30 points or 2.19% in this calendar year so far (till 10 August 2015). From a 52-week low of 25,232.82 on 8 August 2014, the Sensex has risen 2,868.90 points or 11.36%. The Sensex is off 1,923.02 points or 6.4% from a record high of 30,024.74 hit on 4 March 2015.

In the global commodities markets, Brent crude oil futures recovered after touching fresh multi-month lows triggered by disappointing data from China over the weekend showing exports tumbled in the world's second-largest economy. Brent for September settlement was currently up 28 cents at $48.89 a barrel. The contract had declined 91 cents or 1.84% to settle at $48.61 a barrel during the previous trading session.

India imports about 80% of its crude requirements and a decline in crude eases concerns on fiscal deficit, inflation and gives more room for the government to boost growth through spending on infrastructure.

Meanwhile, India's weather office, the India Meteorological Department (IMD), said in a daily report issued on 9 August 2015 that for the country as a whole, cumulative rainfall during this year's monsoon season was 9% below the Long Period Average (LPA) until 9 August 2015. Region wise, the rainfall was 22% below the LPA in South Peninsula, 11% below the LPA in East & Northeast India, 8% below the LPA in Central India and 3% above the LPA in Northwest India until 9 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.

The weekly data released by the Ministry of Agriculture after trading hours on Friday, 7 August 2015, showed a pick up in the sowing of Kharif crops. The total sown area for Kharif crops as on 7 August 2015 stood at 847.40 lakh hectares compared with 808.40 lakh hectares at this time last year.

Meanwhile, the Ministry of Water Resources announced in its weekly report issued after trading hours on Friday, 7 August 2015, that the Water storage available in 91 important reservoirs of the country as on 6 August 2015 was 78.366 BCM which is 50% of total storage capacity of these reservoirs. This storage is 93% of the storage of corresponding period of last year and 99% of storage of average of last ten years. The present storage position during current year is better than the storage position of last year and is also better than the storage of average of last ten years. tates having better storage than last year for corresponding period are Himachal Pradesh, Punjab, Rajasthan, Jharkhand, West Bengal, Tripura, Uttar Pradesh, Uttarakhand, Madhya Pradesh, and Tamil Nadu. States having lesser storage than last year for corresponding period are Odisha, Gujarat, Maharashtra, Chhattisgarh, (Two combined project in both states), Andhra Pradesh, Telangana, Karnataka, Kerala.

Among key macro economic announcements, the government is scheduled to unveil the consumer price index (CPI) data for the month of July 2015 and industrial production data for June 2015 at 17:30 IST on Wednesday, 12 July 2015. The CPI inflation accelerated to 5.4% in June 2015 from 5.01% in May 2015. Industrial production rose 2.7% in May 2015, compared with a revised growth of 3.4% in April 2015.

The government will release data on inflation based on the wholesale price index (WPI) for July 2015 at around 12:00 noon on Friday, 14 August 2015. The WPI inflation continued to be in negative zone for the eighth straight month in June 2015. The WPI inflation stood at negative 2.4% in June 2015, unchanged from the level in May 2015.

European stocks edged higher today, 10 August 2015. Key benchmark indices in France and Germany were up by 0.37% to 0.42%. In UK, the FTSE 100 shed 0.69%.

Negotiations to secure a third bailout deal in time to prevent Greece from defaulting this month on bonds owned by the European Central Bank appeared to advance after weekend-long meetings between officials from Athens and the country's creditors. Greek officials reportedly said they discussed the economic overhauls and budget cuts the government needs to complete to clinch a third loan package of up to 86 billion ($94 billion), and secure the first tranche of aid from the bailout.

Asian stocks were mixed today, 10 August 2015. Key benchmark indices in Taiwan and Japan rose by 0.29% to 0.41%. Key indices in Indonesia, South Korea and Hong Kong fell by 0.13% to 0.45%. Markets in Singapore are closed for a holiday.

China's Shanghai Composite jumped 4.92%. China's exports in July slid 8.3% from a year earlier, reversing a gain of 2.8% in June, customs data released Saturday, 8 August 2015 showed. Imports fell for the ninth month in a row, dropping 8.1%, after a decline of 6.1% in June. And on Sunday, 9 August 2015, the government announced factory prices in July extended more than three years of declines, with the producer-price index taking its biggest year-over-year tumble in nearly six years. China's producer price deflation deepened to 5.4% in July, sending wholesale prices to their lowest since late 2009.

Japan posted 12 straight monthly balance of payments gains in June, taking the half-year surplus to its highest in five years as overseas income and tourism receipts prospered. June's current account surplus was 558.6 billion yen ($4.5 billion) Ministry of Finance data showed today, 10 August 2015.

US stocks edged lower on Friday, 7 August 2015, as a solid US jobs report for July raised chances for an increase in interest rates by the Federal Reserve as soon as September.

The US Department of Labor said on Friday, 7 August 2015, employers added 215,000 jobs in July, slightly above market expectations. The unemployment rate held at a seven-year low of 5.3% and there were signs that wages were beginning to pick up.

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