Volatility continued as key benchmark indices gave away almost entire intraday gains after extending intraday gains in early afternoon trade. Volatility for key benchmark indices in afternoon trade materialized as European stocks dropped in early trade there as tensions surrounding Greece continued to overshadow sentiment. The barometer index, the S&P BSE Sensex, was currently up 7.27 points or 0.03% at 26,378.25. The market breadth indicating the overall health of the market was weak.
Index heavyweight Reliance Industries (RIL) edged higher after the company's chairman Mukesh Ambani said at the company's annual general meeting (AGM) that RIL will start commercial 4G telecommunication services around December 2015. Other telecom shares witnessed selling pressure after RIL's announcement that its telecom unit will start commercial 4G telecommunication services around December 2015. Capital goods shares were mixed.
Earlier, the Sensex had hit its lowest level in 34 weeks and the 50-unit CNX Nifty had hit its lowest level in more than 33 weeks in early trade.
In overseas markets, European stocks dropped in early trade there as tensions surrounding Greece continued to overshadow sentiment. Asian stocks were mixed. US stocks closed higher yesterday, 11 June 2015, adding to strong gains made a day earlier, as retail sales provided more evidence of a strengthening economy.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 622.89 crore yesterday, 11 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 589.29 crore yesterday, 11 June 2015, as per provisional data.
At 13:17 IST, the S&P BSE Sensex was up 7.27 points or 0.03% at 26,378.25. The index rose 118.60 points at the day's high of 26,489.58 in early afternoon trade. The index fell 63.42 points at the day's low of 26,307.56 in early trade, its lowest level since 17 October 2014.
The CNX Nifty was up 1.20 points or 0.02% at 7,966.55. The index hit a high of 7,995.60 in intraday trade. The index hit a low of 7,940.85 in intraday trade, its lowest level since 21 October 2014.
The market breadth indicating the overall health of the market was weak. On BSE, 1,421 shares declined and 944 shares rose. A total of 97 shares were unchanged.
The BSE Mid-Cap index was up 3.63 points or 0.04% at 10,091.70, outperforming the Sensex. The BSE Small-Cap index was off 45.05 points or 0.42% at 10,567.13, underperforming the Sensex.
Capital goods shares were mixed. BEML (down 2.7%), Jindal Saw (down 2.18%), Punj Lloyd (down 1.17%), AIA Engineering (down 0.88%), SKF India (down 0.87%), Larsen & Toubro (down 0.82%), Havells India (down 0.4%), Alstom T&D India (down 0.36%), ABB India (down 0.32%), Crompton Greaves (down 0.28%), Pipavav Defence and Offshore Engineering Company (down 0.25%) and ALSTOM India (down 0.05%), edged lower. Siemens (up 0.03%), Bharat Electronics (up 0.13%), Lakshmi Machine Works (up 0.22%), Thermax (up 0.72%), Bharat Heavy Electricals (up 0.92%), Suzlon Energy (up 2.12%) and Praj Industries (up 2.43%), edged higher.
Index heavyweight Reliance Industries (RIL) edged higher after the company's chairman Mukesh Ambani said at the company's annual general meeting (AGM) that Reliance Jio Infocomm will start commercial 4G telecommunication services around December 2015. The stock was up 1.56% at Rs 890.85. The stock hit high of Rs 892.10 and low of Rs 878.85 so far during the day. The financial year 2016-17 will be the first full year of commercial operations for Reliance Jio Infocomm, Ambani said.
Ambani said at the company's 41st annual general meeting (AGM) today, 12 June 2015, that Reliance Industries has embarked on a journey of investing over Rs 2 lakh crore in building new facilities and creating new businesses that will come to fruition in the next 12 to 18 months. These investments will build new capacities, strengthen the company's global positions, improve the return on capital and make the company's existing refinery and petrochemical businesses among the most competitive in the world.
RIL plans to re-commission the entire network of petroleum retail outlets by the end of the current financial year. Currently, close to 400 outlets are operational, Ambani said.
With regard to its organized retail business, Reliance Retail will be embarking on its next phase of building a high growth trajectory supported with e-commerce and larger geographic coverage, Ambani said.
Telecom shares witnessed selling pressure after RIL's announcement that its telecom unit will start commercial 4G telecommunication services around December 2015. Tata Teleservices (Maharashtra) (down 0.78%), MTNL (down 0.66%), Reliance Communications (down 0.61%) and Idea Cellular (down 0.06%), edged lower. Telecom major Bharti Airtel was up 0.16% at Rs 410.60.
On the macro front, the government is scheduled to unveil industrial production data for April 2015 at 17:30 IST today, 12 June 2015. Industrial output growth touched a five-month low of 2.1% in March from a revised 4.9% in February on the back of an across-the-board slowdown in production.
The government is also scheduled to unveil the consumer price index (CPI) data for the month of May 2015 at 17:30 IST today, 12 June 2015. Consumer price index-based retail inflation eased to a four-month low of 4.87% in April from a revised 5.25% in March.
Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update yesterday, 11 June 2015, that the Southwest Monsoon has been active over Assam & Meghalaya, Nagaland, Manipur, Mizoram & Tripura and Sub-Himalayan West Bengal & Sikkim during past 24 hours. In its weekly report, the IMD said that conditions are becoming favourable for advance of monsoon over remaining parts of south peninsula and some parts of east India during next one week. The rainfall is likely to be above normal over many parts of south Peninsula and adjoining areas of east and central India during next two weeks. As per IMD's Extended Range Forecast (next 20 days), rainfall would be above normal over Indo Gangetic plains during the third week of June 2015. Over north eastern states, the rainfall intensity would be above normal during next 5 days and near normal/below normal thereafter.
For the country as a whole, cumulative rainfall during this year's monsoon season has been 100% of the Long Period Average (LPA) until 10 June 2015. Region wise, the southwest monsoon has been 31% below the LPA in Central India, 13% below the LPA in Northwest India, 2% below the LPA South Peninsula and 24% above the LPA in east & northeast India
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, European shares were trading lower today, 12 June 2015, as tensions surrounding Greece continued to overshadow sentiment. Key benchmark indices in UK, France and Germany were off 0.41% to 0.73%.
The International Monetary Fund yesterday, 11 June 2015, announced that it was halting bailout talks with Greece over a lack of progress toward a deal to avert a Greek default. Greece deferred a payment to the International Monetary Fund last week and needs to crack a deal or get another extension before its euro-area bailout package expires on 30 June 2015.
Asian stocks were mixed today, 12 June 2015. Key benchmark indices in China, Singapore, Japan and Hong Kong were up 0.1% to 0.5%. Key benchmark indices in South Korea, Indonesia and Taiwan were off 0.01% to 0.22%.
US stocks closed higher yesterday, 11 June 2015, adding to strong gains made a day earlier, as retail sales provided more evidence of a strengthening economy. In economic data, sales at US retailers climbed 1.2% in May and rose for the third month in a row, offering more evidence of springtime rebound in consumer spending after a winter lull.
The number of people who applied for US unemployment benefits rose slightly in the first week of June but remained near a 15-year low amid a sharp upsurge in hiring over the past few years. Initial jobless claims edged up by 2,000 to 279,000 in the seven days from May 31 to June 6, the government said yesterday, 11 June 2015.
A two-day meeting of the Federal Open Market Committee (FOMC) to review US monetary policy is scheduled on 16-17 June 2015. The FOMC meeting is being keenly watched for further indication of the timing of an expected rate hike by the US central bank later this calendar year.
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