Pharma and IT stocks led losses for key benchmark indices. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty provisionally registered small losses. The Sensex alternately swung between positive and negative zone throughout the trading session. The Nifty languished in negative zone for most part of the trading session as Cairn India, Bosch, Punjab National Bank, Kotak Mahindra Bank, Tech Mahindra, Asian Paints, Zee Entertainment Enterprises, Bank of Baroda and HCL Technologies edged lower. All these stocks are Nifty constituents but are not a part of the Sensex. The Sensex and the Nifty, both, hit their lowest level in almost 5 weeks in late trade. Weakness in Asian and European stocks weighed on sentiment on the domestic bourses. The market breadth indicating the overall health of the market was weak. The Sensex was provisionally off 61.24 points or 0.23% at 26,461.85.
Cipla dropped on reports a foreign brokerage has said that the launch of asthma drug by Mylan in the UK is negative for Cipla because Cipla was earlier expected to be the first company to launch this drug. Realty stocks also edged lower.
In overseas markets, European shares edged lower, tracking losses in Asia and the US triggered by bond market volatility, uncertainty over the future of Greece and concerns surrounding the impact of an interest rate rise in the US.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 749.12 crore yesterday, 8 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 529.82 crore yesterday, 8 June 2015, as per provisional data released by the stock exchanges.
As per provisional closing, the S&P BSE Sensex was down 61.24 points or 0.23% at 26,461.85. The index lost 84.77 points at the day's low of 26,438.32 in late trade, its lowest level since 7 May 2015. The index rose 81.56 points at the day's high of 26,604.65 in mid-afternoon trade.
The CNX Nifty was down 21.75 points or 0.27% at 8,022.40. The index hit a low of 8,005.15 in intraday trade, its lowest level since 7 May 2015. The index hit a high of 8,057.15 in intraday trade.
The BSE Mid-Cap index was off 32.75 points or 0.32% at 10,161.25. The BSE Small-Cap index was off 35.71 points or 0.33% at 10,661.85. The fall 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 weak. On BSE, 1,569 shares declined and 1,043 shares rose. A total of 121 shares were unchanged.
The total turnover on BSE amounted to Rs 2218 crore, higher than turnover of Rs 1873.55 crore registered during the previous trading session.
Pharma shares declined. Dr Reddy's Laboratories (down 2.31%), Glenmark Pharmaceuticals (down 0.98%), Lupin (down 0.42%), Sun Pharmaceutical Industries (down 2.17%), Cadila Healthcare (down 0.64%), Aurobindo Pharma (down 0.61%) edged lower. GlaxoSmithKline Pharmaceuticals (up 1.02%) and Wockhardt (up 0.02%) rose.
Cipla fell 3.59% on reports a foreign brokerage has said that the launch of asthma drug by Mylan in the UK is negative for Cipla because Cipla was earlier expected to be the first company to launch this drug. Mylan had recently announced the launch of the first generic version of GlaxoSmithKline's Seretide Evohaler (salmeterol xinafoate/fluticasone propionate) under the brand name Sirdupla (pMDI), 125/25 mcg and 250/25 mcg with 120 doses strengths, in the UK. Sirdupla is indicated in the treatment of asthma in adults aged 18 years and over. The brokerage sees this as negative for Cipla, as earlier it had estimated Cipla was the first player to launch generic Seretide pMDI in the UK.
Realty stocks declined. Unitech (down 8.17%), Indiabulls Real Estate (down 3.62%), Housing Development and Infrastructure (down 4.13%), Hubtown (down 5.06%), Oberoi Realty (down 3.53%), Godrej Properties (down 0.28%) and Sobha (down 1.9%) declined.
Realty major DLF rose 0.41% to Rs 110.20. The stock hit high of Rs 111.70 and low of Rs 107.70.
In the global commodities market, Brent crude oil prices edged higher. Brent for July settlement was up 98 cents at $63.67 a barrel. The contract had lost 62 cents or 0.97% to settle at $62.69 a barrel during the previous trading session.
Higher crude oil prices could increase fiscal deficit and current account deficit and stoke fuel price inflation. However, the recovery in rupee against the dollar will mitigate the negative impact of higher crude oil price. Gains in local currency will reduce the cost of imports. India imports about 80% of its crude oil requirements.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was currently hovering at 63.935, compared with close of 64.09 during the previous trading session.
Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update yesterday, 8 June 2015, that the southwest monsoon has further advanced into some more parts of central Arabian sea, entire Goa, some parts of south Konkan, remaining parts of coastal Karnataka and some more parts of south interior Karnataka. The Southwest Monsoon was active over Arunachal Pradesh and Assam & Meghalaya during past 24 hours, the IMD said yesterday, 8 June 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, European shares edged lower today, 9 June 2015, tracking losses in Asia and the US triggered by bond market volatility, uncertainty over the future of Greece and concerns surrounding the impact of an interest rate rise in the US. Key benchmark indices in UK, France and Germany were off 0.73% to 1.75%.
According to media reports, Greece and its creditors are discussing an extension of Greece's bailout program through March 2016. 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.
A revival in government spending, and a pickup in investment, was offset by a rise in imports to leave the eurozone's growth rate unchanged in the first three months of the year, according to revised figures released today, 9 June 2015. The European Union's statistics agency confirmed that the combined gross domestic product of the 19 countries that use the euro rose by 0.4% from the final three months of 2014, but raised its estimate of growth in that final quarter to 0.4% from 0.3%.
Asian stocks edged lower today, 9 June 2015, on worries about Greece and on expectations that the US Federal Reserve will start raising interest rates in September. Key benchmark indices in Singapore, South Korea, Taiwan, Japan and Indonesia were off 0.06% to 2.3%.
Chinese shares slipped after weak inflation data. In mainland China, the Shanghai Composite index was off 0.36%. In Hong Kong, the Hang Seng index was off 1.2%. China's consumer inflation in May was at its weakest level in four months, official data showed today, 9 June 2015. China's consumer price index rose 1.2% in May from a year earlier, slower than a 1.5% year-over-year rise in April, data from the National Bureau of Statistics showed. The producer-price index, which measures prices of goods at the factory gate, dropped 4.6% in May from a year earlier, matching a 4.6% year-over-year fall in April. Factory-level prices have now been declining for 39 consecutive months since March 2012 as weak demand leaves excess capacity in key industries like steel and cement and drives prices lower.
Investors in China await MSCI Inc.'s decision in New York later in the global day today, 9 June 2015, on whether to include Chinese domestic stocks in its indexes, which are tracked by billions of dollars of global funds and could draw millions of new investors into Chinese shares.
US stocks declined yesterday, 8 June 2015, with the tech stocks leading the market lower. The slump in the main stock-market indexes marked the third consecutive session, with the Dow industrials erasing year-to-date gains.
A two-day meeting of the Federal Open Market Committee (FOMC) to review US monetary policy is scheduled on 16-17 June 2015.
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