Shares of oil exploration and production companies led losses for key benchmark indices. Benchmark indices registered small losses, as per provisional closing data. A sudden slide in mid-afternoon trade took key benchmark indices into the red from green. Until that time, benchmark indices had moved in a narrow range in positive zone. The market breadth indicating the overall health of the market was positive. The barometer index, the S&P BSE Sensex, was provisionally off 22.17 points or 0.08% at 28,186.59. In overseas stock markets, European stocks edged lower, with investors awaiting the outcome of an impromptu summit of eurozone leaders at which Greece will once again face its European creditors.
Shares of oil exploration and production companies dropped after steep slide in global crude oil prices overnight. Shares of Coal India scaled record high. Index heavyweight and housing finance major HDFC advanced. Power generation stocks were mixed.
Earlier, the Sensex and the 50-unit CNX Nifty, both, hit their highest level in more than eleven weeks amid initial volatility.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 149.37 crore yesterday, 6 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 409.66 crore yesterday, 6 July 2015, as per provisional data released by the stock exchanges.
In overseas markets, European stocks edged lower, with investors awaiting the outcome of an impromptu summit of eurozone leaders at which Greece will once again face its European creditors. Earlier during the global day, Asian stocks edged lower as investors remained on edge amid uncertainty over Greece's position in the euro currency union. US stocks ended a choppy trading session slightly lower yesterday, 6 July 2015, as global equities came under pressure after Greece on Sunday, 5 July 2015, rejected its international lenders' bailout terms and moved closer to a potential exit from the eurozone.
As per provisional closing, the S&P BSE Sensex was down 22.17 points or 0.08% at 28,186.59. The index fell 124.40 points at the day's low of 28,084.36 in mid-afternoon trade. The index jumped 126.47 points at the day's high of 28,335.23 in early trade, its highest level since 20 April 2015.
The CNX Nifty was down 11.35 points or 0.13% at 8,510.80. The index hit a low of 8,483.85 in intraday trade. The index hit a high of 8,561.35 in intraday trade, its highest level since 20 April 2015.
The market breadth indicating the overall health of the market was positive. On BSE, 1,669 shares gained and 1,152 shares fell. A total of 119 shares were unchanged.
The BSE Mid-Cap index was up 57.22 points or 0.52% at 11,019.99. The BSE Small-Cap index was up 71.33 points or 0.62% at 11,498.32. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 3007 crore, higher than turnover of Rs 2769.84 crore registered during the previous trading session.
Coal India gained 2.3% to Rs 429.60. The stock scaled a record high of Rs 430.35 in intraday trade today, 7 July 2015.
Index heavyweight and housing finance major HDFC advanced 1.12% to Rs 1,332.75. The stock hit high of Rs 1,346.70 and low of Rs 1,324.80.
Most power generation stocks rose. Reliance Infrastructure (up 4.73%), Reliance Power (up 0.77%), Adani Power (up 2.34%), JSW Energy (up 1.39%), CESC (up 1.47%) and NHPC (up 0.26%) rose. NTPC (down 2.61%) and Tata Power Company (down 0.87%) edged lower.
The Minister of State (IC) for Coal, Power and New and Renewable Energy Piyush Goyal today, 7 July 2015, said that the target of generating 1,75,000 megawatts (MW) of renewable energy (RE) by 2022 should be taken as a mission for ensuring energy security of the country. While addressing the workshop on Grid Connected Solar Rooftop at Vigyan Bhawan Goyal further said that Government of India is soliciting ideas and constructive criticism on all the renewable power projects and no amount of negative response can deter ministry from its dream of achieving this target. Speaking on the occasion, Cabinet Secretary said that India has great potential for solar rooftop projects which has not been exploited fully at present. Elaborating the several steps being taken by power ministry to promote RE, Sinha stated that amendments in the Electricity Act to introduce Renewable Generation obligation is proposed along with raising of Renewable Power Obligation in the tariff policy. In additions, stringent penalties for violations are being proposed. Highlighting importance of evacuation of RE power, Sinha suggested to the state governments to socialised cost of transmission within state to improve renewable capacity.
Highlighting the need of more capital required in RE sector, Upendra Tripathy, Secretary in the Ministry of New and Renewable Energy (MNRE) said that the ministry has got fund of Rs 5000 crore for rooftop which can be given in the form of interest subvention or 15% interest subsidy. He further stated that the ministry is also trying to get 2 billion dollars from World Bank and ADB towards rooftop projects which can be passed on to the banks to enable them to finance the projects on soft rates of interest to the agencies. Tripathy also stated that the ministry has got commitment of 1 million euros from kfw and further negotiating with different agencies to get more capital for RE sector.
Meanwhile, in the global commodities markets, Brent crude futures edged higher today, 7 July 2015, after a sharp slide overnight. Brent for August settlement was currently up $1.11 a barrel at $57.65 a barrel. The contract had slumped $3.78 a barrel or 6.26% to settle at $56.54 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 its daily monsoon update issued yesterday, 6 July 2015, that the Southwest Monsoon was vigorous over West Uttar Pradesh and active over Jharkhand, Bihar, East Uttar Pradesh, Uttarakhand, Punjab and Himachal Pradesh and normal over Nagaland, Manipur, Mizoram & Tripura, Gangetic West Bengal and Haryana, Chandigarh and Delhi during past 24 hours upto 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was near normal until 6 July 2015. This is a far cry when compared to a reading 24% above the Long Period Average (LPA) for the South West monsoon until 24 June 2015. Region wise, the southwest monsoon was 12% above the LPA in Northwest India, 4% below the LPA in East & Northeast India, 2% below the LPA in Central India and 1% below the LPA in South Peninsula until 6 July 2015.
The quantum of and the spatial distribution of rainfall this month holds key, with July being a crucial month for the sowing of Kharif crops.
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 stocks edged lower today, 7 July 2015, with investors awaiting the outcome of an impromptu summit of eurozone leaders at which Greece will once again face its European creditors. Key indices in UK, Germany and France were down 0.07% to 0.37%. In Spain, the IBEX 35 index was up 0.04%. In Italy, the FTSE MIB index was up 0.4%
France and Germany told Greece yesterday, 6 July 2015, to craft urgent proposals to prevent Greece's exit from the eurozone, a day after Greeks voted overwhelmingly to reject more austerity. German Chancellor Angela Merkel and French President Francois Hollande, the euro zone's most powerful leaders, said Athens must move quickly if it wants to secure a cash-for-reform deal with creditors and avoid crashing out of the single currency. In a referendum held on 5 July 2015, Greek voters overwhelmingly rejected reform measures put forward by the country's international creditors, a result seen as increasing the chances of Greece exiting the shared currency viz. the euro.
French Prime Minister Manuel Valls reportedly said on French radio today, 7 July 2015, that France will do everything to ensure that Greece stays in the eurozone. He said that Greece's exit from the eurozone would threaten global economic growth and represent a significant political risk.
Eurozone leaders are holding an emergency meeting in Brussels today, 7 July 2015, on Greece's debt crisis. Greek Prime Minister Alexis Tsipras is expected to present new proposals at a Eurozone emergency summit on his country's growing debt crisis.
Christine Lagarde, the International Monetary Fund chief, yesterday, 6 July 2015, reportedly said that the agency stands ready to assist Greece. The IMF is one of Greece's three creditors, and the country missed a payment to it at the end of last month.
Greece's banks will reportedly remain closed until tomorrow, 8 July 2015. Meanwhile, the European Central Bank (ECB) yesterday, 6 July 2015, said it would maintain existing levels of emergency cash support for Greek banks, which are running out of funds and on the verge of collapse. However, it told the banks to lodge more collateral with the Bank of Greece, reducing the amount of spare cash the banks have.
Last week, Greece ordered banks to close and capped ATM withdrawals at euro 60 a day after the ECB froze its financial lifeline to Greece following the breakdown of bailout talks in Brussels.
Greece's last bailout expired last Tuesday and Greece missed a euro 1.6 billion payment to the IMF.
Greece is due to pay 3.5 billion euros ($3.9 billion) to the ECB on 20 July 2015. If it misses that payment, the ECB is widely expected to cut off emergency funding to Greek banks, a move that would likely lead to their collapse.
In Germany, the latest data showed that industrial production was flat in May, as a robust rise in manufacturing was offset by a drop in construction output. Industrial production, adjusted for inflation and seasonal swings, was unchanged in May from April.
Asian stocks fell today, 7 July 2015, as investors remained on edge amid uncertainty over Greece's position in the euro currency union. Key benchmark indices in Taiwan, South Korea and Indonesia fell by 0.06% to 0.66%. Key benchmark indices in Japan and Singapore rose by 0.1% to 1.31%.
Chinese stocks declined, resuming their losing streak after the Chinese government's drastic market-stimulus efforts led to gains the previous day. The Shanghai Composite Index lost 1.29%. In Hong Kong, the Hang Seng index lost 1.03%. China has rolled out a steady stream of measures to arrest the selling frenzy that knocked $2.4 trillion in value from China's equities over the past three weeks.
US stocks ended a choppy trading session slightly lower yesterday, 6 July 2015, as global equities came under pressure after Greece on Sunday, 5 July 2015, rejected its international lenders' bailout terms and moved closer to a potential exit from the eurozone.
Powered by Capital Market - Live News
