A range bound movement was witnessed as key benchmark indices languished in negative zone in early afternoon trade. The barometer index, the S&P BSE Sensex, was currently off 135.71 points or 0.51% at 26,632.78. The market breadth indicating the overall health of the market was quite weak, with almost two losers against every gainer on BSE. The BSE Mid-Cap index was off 1.15%. The decline in this index was higher than the Sensex's decline in percentage terms.
Index heavyweight and housing finance major HDFC edged lower. Software stocks edged lower. Pharma shares were mostly lower. Sun TV Network dropped sharply on reports that the Ministry of Home Affairs has struck down the proposal by the Information and Broadcasting Ministry for giving security clearance to company's 33 television channels.
Earlier, the 50-unit CNX Nifty hit 4-1/2-week low amid initial volatility.
In overseas markets, Asian stocks were mixed. The US stock market finished mostly lower during the previous trading session on Friday, 5 June 2015, as an upbeat jobs report raised expectations of early rate increase by the Federal Reserve.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 550.29 crore during the previous trading session on Friday, 5 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 879.50 crore on Friday, 5 June 2015, as per provisional data released by the stock exchange.
At 12:18 IST, the S&P BSE Sensex was down 135.71 points or 0.51% at 26,632.78. The index lost 179.79 points at the day's low of 26,588.70 in morning trade, its lowest level since 4 June 2015. The index rose 58.57 points at the day's high of 26,827.06 at onset of the day's trading session.
The CNX Nifty was down 49.40 points or 0.61% at 8,065.30. The index hit a low of 8,053.80 in intraday trade, its lowest level since 7 May 2015. The index hit a high of 8,131 in intraday trade.
The market breadth indicating the overall health of the market was quite weak, with almost two losers against every gainer on BSE. On BSE, 1,510 shares declined and 782 shares rose. A total of 100 shares were unchanged.
The BSE Mid-Cap index was off 119.36 points or 1.15% at 10,234.57. The BSE Small-Cap index was off 101.31 points or 0.93% at 10,750.19. The fall in both these indices was higher than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 799 crore by 12:15 IST compared with turnover of Rs 599 crore by 11:15 IST.
Index heavyweight and housing finance major HDFC fell 1.67% to Rs 1,181.05. The stock hit high of Rs 1,202 and low of Rs 1,177.10 so far during the day.
Software stocks edged lower. HCL Technologies (down 1.22%), Oracle Financial Services Software (down 0.37%), Wipro (down 0.41%), Tech Mahindra (down 0.62%) and Infosys (down 0.73%) declined. TCS (up 0.13%) and Hexaware Technologies (up 0.71%) rose.
In the foreign exchange market, the rupee weakened past 64 against the dollar. The partially convertible rupee was currently hovering at 64.0925, compared with close of 63.755 during the previous trading session on Friday, 5 June 2015.
A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
Pharma shares were mostly lower. Cipla (down 1.87%), Cadila Healthcare (down 0.01%), Sun Pharmaceutical Industries (down 1.56%), Aurobindo Pharma (down 2.12%) and Wockhardt (down 3.76%) declined. Dr Reddy's Laboratories (up 0.28%), Glenmark Pharmaceuticals (up 0.77%) and Lupin (up 0.3%) rose.
Shares of GlaxoSmithkline Pharmaceuticals (down 1.22%) and Sanofi India (down 1.46%) declined on reports the Competition Commission of India (CCI) imposed a fine on these companies for collusive bidding in supply of a meningitis vaccine to the government for Haj pilgrims. A fine of Rs 60.45 crore has been slapped on GlaxoSmithKline Pharma and Rs 3.04 crore on Sanofi, reports added.
Sun TV Network lost 25.21% on reports the Ministry of Home Affairs has struck down the proposal by the Information and Broadcasting Ministry for giving security clearance to company's 33 television channels. According to reports, Sun TV Network had applied to Information and Broadcasting Ministry (I&B) Ministry for renewing its broadcasting licence for 10 years, which required security clearance from the Home Ministry.
According to reports, the home ministry rejected clearance on the ground that the continued airing of the Sun TV channels would have an adverse impact on economic security of the country. According to reports, the home ministry's rejection of the security clearance to Sun TV channels has been influenced by pending criminal cases against Kalanithi Maran and his brother and former Union minister Dayanidhi Maran. Kalanithi Maran is the promoter of Sun TV Network. The rejection of the security clearance may lead to cancellation of the channels' broadcasting licence.
On the macro front, the Reserve Bank of India (RBI) is scheduled to announce current account deficit (CAD) data for Q4 March 2015 today, 8 June 2015. India's CAD narrowed to $8.2 billion or 1.6% GDP in Q3 December 2014 from $10.1 billion or 2% of GDP in Q2 September 2014.
Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update yesterday, 7 June 2015, that conditions are favourable for further advance of southwest monsoon into some more parts of central Arabian Sea & Karnataka, remaining parts of Tamilnadu, some parts of Rayalaseema and Coastal Andhra Pradesh and some more parts of central Bay of Bengal during next two days. The Southwest Monsoon has been active over Arunachal Pradesh, Assam & Meghalaya, Sub-Himalayan West Bengal & Sikkim and Lakshadweep during past 24 hours, the IMD said.
On Friday, 5 June 2015, the IMD had announced the onset of the southwest monsoon at the Kerala coast. The annual 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, 8 June 2015. Key benchmark indices in China, Hong Kong and Taiwan rose by 0.3% to 1.89%. Key benchmark indices in Japan, Singapore, Indonesia and South Korea fell by 0.14% to 1.09%.
China's exports fell 2.5% in May from a year earlier in dollar terms, after a drop of 6.4% in April, data from the General Administration of Customs showed today, 8 June 2015. Imports in May fell 17.6% from a year earlier, compared with a 16.2% drop in April. China's trade surplus widened in May to $59.49 billion from $34.1 billion in April.
Japan's economy grew faster than initially estimated in the first quarter, as the world's third largest economy continued its gradual recovery from last year's recession on the back of robust exports to the US and China. Gross domestic product, the broadest measure of the nation's economic activity, expanded at an annualized pace of 3.9% in January-March, according to data released today, 8 June 2015 by the Cabinet Office. The revised figure compares with a preliminary reading of 2.4% growth.
US stocks finished mostly lower on Friday, 5 June 2015 as an upbeat jobs report raised expectations for an interest-rate hike this fall.
In economic data, the Labor Department said the US economy generated 280,000 new jobs in May. The Labor Department also revised the jobs figures from March and April. March was revised up to 119,000 from 85,000, while April was revised a touch lower to 221,000 from 223,000. The unemployment rate edged up to 5.5%, but mainly because more Americans entered the labor force in search of work.
In Europe, Germany's industrial production data for the month of April 2015 is due today, 8 June 2015.
Meanwhile, the head of the European Union reportedly rebuked Greek Prime Minister Alexis Tsipras in unusually sharp terms on Sunday, 7 June 2015, and warned that time was running out for Athens to reach a debt deal with its lenders to avert default. Greece had opted to bundle its June loan payments to the International Monetary Fund and make them at the end of the month.
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