A bout of volatility was witnessed as key benchmark indices traded off the day's low in early afternoon trade. The barometer index, the S&P BSE Sensex, was currently off 51.52 points or 0.18% at 28,799.45. The broad market depicted weakness. The market breadth indicating the overall health of the market was quite weak, with more than two losers for every gainer on BSE. The BSE Mid-Cap index was off 0.78%. The Small-Cap index was off 1.18%. The decline in both these indices was higher than the Sensex's decline in percentage terms. Brent crude oil futures extended gains after a sharp surge in prices overnight triggered by reports of more unrest in the oil producing country Libya.
Meanwhile, as a measure to incentivise long term investors, the Reserve Bank of India (RBI) yesterday, 5 February 2015, allowed foreign portfolio investors (FPIs) to invest in government securities the coupons received on their existing investments in government securities.
Shares of public sector oil marketing companies (PSU OMCs) declined on rise in global crude oil prices. Capital goods stocks declined. Hindustan Copper declined after poor Q3 results.
Earlier, the Sensex and the 50-unit CNX Nifty had, both, hit their lowest level in more than two weeks in mid-morning trade as these two key benchmark indices lost ground after seeing volatility earlier during the trading session.
Foreign portfolio investors sold shares worth a net Rs 27.43 crore yesterday, 5 February 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 325.61 crore yesterday, 5 February 2015, as per provisional data.
In the overseas markets, Asian stock markets were mixed today, 6 February 2015, as investors awaited the closely-watched US jobs report, which could provide cues on the U.S. economic recovery. US stock markets surged yesterday, 5 February 2015, buoyed by a rebound in oil prices, deal news and upbeat quarterly earnings.
In the foreign exchange market, the rupee was currently almost unchanged against the dollar.
Brent crude oil futures extended gains after a sharp surge in prices overnight triggered by reports of more unrest in the oil producing country Libya. Global crude oil prices have witnessed high volatility recently after a steep slide in prices over the past few months. The recent rebound in global crude oil prices will raise concerns pertaining to India's fiscal deficit, current account deficit and fuel price inflation. India imports about 80% of its crude oil requirements.
At 12:17 IST, the S&P BSE Sensex was down 51.52 points or 0.18% at 28,799.45. The index fell 129.73 points at the day's low of 28,721.24 in mid-morning trade, its lowest level since 20 January 2015. The index rose 71.88 points at the day's high of 28,922.85 in morning trade.
The CNX Nifty was down 22.60 points or 0.26% at 8,689.10. The index hit a low of 8,661.65 in intraday trade, its lowest level since 20 January 2015. The index hit a high of 8,726.20 in intraday trade.
The BSE Mid-Cap index was off 82.20 points or 0.78% at 10,521.37. The BSE Small-Cap index was off 133.38 points or 1.18% at 11,149.76. The decline in both these indices was higher than the Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was quite weak, with more than two losers for every gainer on BSE. 1,762 shares declined and 747 shares advanced. A total of 82 shares were unchanged.
Shares of public sector oil marketing companies (PSU OMCs) declined on rise in crude oil prices. BPCL (down 1.37%), HPCL (down 0.88%), and Indian Oil Corporation (down 0.49%) edged lower. Higher crude oil prices could increase under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. The government has already decontrolled pricing of petrol and diesel.
Capital goods stocks declined. Thermax (down 3.95%), Bharat Heavy Electricals (down 2.38%), L&T (down 0.51%), and Alstom T&D India (down 0.3%), edged lower. Siemens (up 2.38%) and ABB (up 1.41%) edged higher.
Crompton Greaves fell 1.92% at Rs 158.50. With respect to media reports titled "Advent leads race for Crompton arm," Crompton Greaves after market hours yesterday, 5 February 2015, stated that the company has no information regarding the rumoured news.
Hindustan Copper tumbled 3.37% at Rs 68.75. Hindustan Copper reported 84.64% fall in net profit to Rs 10.59 crore on 42.14% fall in total income to Rs 257.17 crore in Q3 December 2014 over Q3 December 2013. The result was announced after market hours yesterday, 5 February 2015.
In the foreign exchange market, the rupee was currently almost unchanged against the dollar. The partially convertible rupee was hovering at 61.7475, compared with its close of 61.74 during the previous trading session.
Brent crude oil futures extended gains after a sharp surge in prices overnight triggered by reports of more unrest in the oil producing country Libya. Brent for March settlement was up $1.46 a barrel at $58.03 a barrel. The contract had advanced $2.41 a barrel or 4.44% to settle at $56.57 a barrel during the previous trading session.
Meanwhile, as a measure to incentivise long term investors, the Reserve Bank of India (RBI) yesterday, 5 February 2015, allowed foreign portfolio investors (FPIs) to invest in government securities the coupons received on their existing investments in government securities. These investments shall be kept outside the applicable limit for investments by FPIs in government securities, currently capped at $30 billion, the RBI said in a notification.
Asian stock markets were mixed today, 6 February 2015, as investors awaited the closely-watched US jobs report, which could provide cues on the U.S. economic recovery. Key indices in Japan, Singapore, South Korea, and Indonesia were up 0.58% to 0.82%. In Taiwan, the Taiwan Weighted was off 0.59%.
Stocks fell in China after a senior official from the People's Bank of China said the latest reserve-ratio cut by the central bank is not the start of strong stimulus, according to state media reports in the previous day. In mainland China, the Shanghai Composite index was off 1.93%. In Hong Kong, the Hang Seng index was off 0.35%.
Trading in US index futures indicated that the Dow could fall 2 points at opening bell today, 6 February 2015. US stock markets advanced yesterday, 5 February 2015, buoyed by a rebound in oil prices, deal news and upbeat quarterly earnings.
The US government is schedule to release nonfarm payroll data for January 2015 later in the global day today, 6 February 2015.
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