Oil stocks led losses as key benchmark indices edged lower on the first trading session of the week. The barometer index, the S&P BSE Sensex, fell below the psychological 28,000 level. The Sensex lost 189.04 points or 0.67% to settle at 27,878.27. The decline for the Sensex in percentage terms was higher than the decline for the 50-unit CNX Nifty. The Nifty shed 41.25 points or 0.48% to settle at 8,477.30. The market breadth indicating the overall health of the market was negative.
In overseas markets, Asian stocks fell as a string of upbeat US economic reports released on Friday, 14 August 2015, kept expectations of the US Federal Reserve raising short-term interest rates some time this calendar year intact. The prospect of more attractive returns in the US could attract money flows away from riskier assets in emerging markets, including India.
Shares of public sector banks (PSU banks) edged higher after the government after trading hours on Friday, 14 August 2015, announced a revamp plan for PSU banks. Shares of private sector banks edged lower. Tata Motors edged higher amid volatility after the company reported weak global wholesales in July 2015. Shares of upstream oil exploration and production (E&P) firms edged lower as global crude oil prices fell. Shares of public sector oil marketing companies (PSU OMCs) dropped after announcing reduction in petrol and diesel prices.
Key indices snapped two-day winning streak today, 17 August 2015.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 461.46 crore from the secondary equity market during the previous trading session on Friday, 14 August 2015, as per data from National Securities Depository (NSDL). Domestic institutional investors (DIIs) bought shares worth a net Rs 179.20 crore on Friday, 14 August 2015, as per provisional data released by the stock exchanges.
In overseas markets, European stocks edged higher after eurozone finance ministers on Friday, 14 August 2015, approved Greece's bailout deal, marking an end to more than six months of turbulent negotiations. Asian stocks edged lower as a string of upbeat US economic reports released on Friday, 14 August 2015, kept expectations of the US Federal Reserve raising short-term interest rates some time this calendar year intact. US stocks closed higher during the previous trading session on Friday, 14 August 2015, after a string of upbeat economic reports.
The S&P BSE Sensex shed 189.04 points or 0.67% to settle at 27,878.27, its lowest closing level since 13 August 2015. The index fell 328.18 points at the day's low of 27,739.13 in early trade. The index rose 28.66 points at the day's high of 28,095.97 at the onset of the trading session.
The CNX Nifty shed 41.25 points or 0.48% to settle at 8,477.30, its lowest closing level since 13 August 2015. The index hit a low of 8,428.05 in intraday trade. The index hit a high of 8,530.60 in intraday trade, its highest level since 11 August 2015.
The BSE Mid-Cap index rose 34.54 points or 0.3% to settle at 11,488.32. The BSE Small-Cap index gained 24.83 points or 0.21% to settle at 11,791.61. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,439 shares fell and 1,423 shares rose. A total of 115 shares were unchanged. The breadth alternately swung between positive and negative zone in intraday trade.
The total turnover on BSE amounted to Rs 2912 crore, lower than turnover of Rs 3231.37 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Auto index (down 0.64%), the S&P BSE Bankex (up 0.51%). the S&P BSE Healthcare index (down 0.32%), the S&P BSE Consumer Durables index (up 1.09%), the S&P BSE Teck index (down 0.33%), the S&P BSE Power index (down 0.5%), the S&P BSE IT index (down 0.33%), the S&P BSE FMCG index (down 0.35%), and the S&P BSE Metal index (up 1.3%) outperformed the Sensex. The S&P BSE Oil & Gas index (down 0.97%), the S&P BSE Realty index (down 1.28%), and the S&P BSE Capital Goods index (down 0.99%) underperformed the Sensex.
Hindalco Industries dropped 2.63%. With respect to news article titled "Birla invests Rs 7,500 cr in Odisha refinery", Hindalco Industries clarified after market hours today, 17 August 2015, that its owned subsidiary Utkal Alumina International has made a total investment of over Rs 7500 crore in its alumina plant in district Rayagada, Odisha. The unit has an inherent capacity to produce 1.5 million tonnes per annum of alumina.
Shares of public sector banks (PSU banks) edged higher after the government after trading hours on Friday, 14 August 2015, announced a revamp plan for PSU banks. The government announced the appointment of MD and CEOs of five public sector banks (PSU banks) and Non-executive Chairman of five PSU banks. The government also announced capital allocation of Rs 20088 crore to a total of 13 PSU banks as part of Tranche 1 and Tranche 2 of recapitalization of PSU banks for the current financial year. The government also announced the structure of Bank Board Bureau (BBB) which will replace the Appointments Board for appointment of Whole-Time Directors and non-executive Chairman of PSU banks. The government also announced a new framework of Key Performance Indicators (Kpis) to be measured for evaluating the performance of PSU banks. The government further said that it is considering offering ESOPs for top management of PSU banks.
State Bank of India was up 3.71%. The government announced capital infusion of Rs 5531 crore into the bank.
Bank of India was up 8.16%. The government announced capital infusion of Rs 2455 crore into the bank. Meanwhile, M O Rego was appointed as MD & CEO of Bank of India while G Padmananbhan was appointed as Non-Executive Chairman of the bank.
IDBI Bank was up 6.19%. The government announced capital infusion of Rs 2229 crore into the bank. Meanwhile, Kishore Kharat Piraji was appointed as MD & CEO of IDBI Bank.
Bank of Baroda was up 14.8%. The government announced capital infusion of Rs 1786 crore into the bank. Meanwhile, P S Jayakumar was appointed as MD & CEO of Bank of Baroda while Ravi Venkatesan was appointed as Non-Executive Chairman of the bank.
Punjab National Bank was up 3.64%. The government announced capital infusion of Rs 1732 crore into the bank. Meanwhile, Usha Ananthasubramanian was appointed as MD & CEO of PNB.
Canara Bank was up 12.73%. The government announced capital infusion of Rs 947 crore into the bank. Meanwhile, Rakesh Sharma was appointed as MD & CEO of Canara Bank while T N Manoharan was appointed as Non-Executive Chairman of the bank.
Indian Overseas Bank was up 4.26%. The government announced capital infusion of Rs 2009 crore into the bank.
Union Bank of India was up 5.09%. The government announced capital infusion of Rs 1080 crore into the bank.
Corporation Bank was up 4.77%. The government announced capital infusion of Rs 857 crore into the bank.
Andhra Bank was up 4.76%. The government announced capital infusion of Rs 378 crore into the bank.
Bank of Maharashtra was up 3.1%. The government announced capital infusion of Rs 394 crore into the bank.
Allahabad Bank was up 5.11%. The government announced capital infusion of Rs 283 crore into the bank.
Dena Bank was up 3.17%. The government announced capital infusion of Rs 407 crore into the bank.
The remaining eight PSU banks which did not get any capital in first two tranche will get preference in third tranche.
Vijaya Bank was up 5.27%. G Narayanan was appointed as Non-Executive Chairman of the bank.
Indian Bank was up 9.01%. T C V Subramainian was appointed as Non-Executive Chairman of the bank.
United Bank of India jumped 5.46%. The state-run bank at the fag end of the trading session today, 17 August 2015, announced reduction in interest rate ranging from 25 basis points to 50 basis points on domestic term deposits of different maturities and different deposit slabs to be effective from 21 August 2015.
Shares of private sector banks edged lower. Axis Bank (down 1.83%), HDFC Bank (down 1.08%), Yes Bank (down 1.2%), IndusInd Bank (down 1.15%), Kotak Mahindra Bank (down 0.51%) and ICICI Bank (down 0.02%) edged lower.
Tata Motors edged higher amid volatility after the company reported weak global wholesales in July 2015. The stock was up 0.14% at Rs 355.85. The stock hit a high of Rs 362 and a low of Rs 345.75 in intraday trade. Tata Motors' global wholesales including Jaguar Land Rover (JLR), dropped 8% to 73,535 units in July 2015 over July 2014. The announcement was made after market hours on Friday, 14 August 2015. Global wholesales of commercial vehicles fell 3% to 30,278 units in July 2015 over July 2014. Global wholesales of passenger vehicles dropped 12% to 43,257 units in July 2015 over July 2014.
Shares of upstream oil exploration and production (E&P) firms edged lower as global crude oil prices fell. Cairn India (down 0.83%), Reliance Industries (down 1.76%) and ONGC (down 2.37%) edged lower. Oil India rose 1.25%. Lower crude oil prices will result in lower realization from crude sales for oil exploration firms.
In the global commodities markets, Brent for October settlement was currently off 14 cents at $49.05 a barrel. The contract had fallen 44 cents or 0.88% to settle at $49.19 a barrel during the previous trading session.
Shares of public sector oil marketing companies (PSU OMCs) dropped after announcing reduction in petrol and diesel prices. BPCL (down 1.35%), HPCL (down 1.01%) and Indian Oil Corporation (IOCL) (down 1.04%) edged lower.
IOCL after market hours on Friday, 14 August 2015, announced reduction in petrol and diesel prices with effect from 15 August 2015. The retail selling price of petrol was reduced by Rs 1.27 per litre at Delhi (including state levies) with corresponding price revision in other states. With the latest revision, the price of petrol in Delhi has become Rs 63.20 per litre. The retail selling price of diesel was reduced by Rs 1.17 per litre at Delhi (including state levies) with corresponding price revision in other states. With the latest revision, the price of diesel in Delhi has become Rs 44.95 per litre.
PSU OMCs review fuel prices during the middle of the month and on the last day of the month based on the average imported oil price in the preceding fortnight.
Key indices snapped two-day winning streak today, 17 August 2015. From a recent low of 27,512.26 on 12 August 2015, the Sensex had gained 555.05 points or 2.01% in the preceding two sessions to settle at 28,067.31 on Friday, 14 August 2015. The Sensex has declined 236.29 points or 0.84% in this month so far (till 17 August 2015). The Sensex has risen 378.85 points or 1.37% in this calendar year so far (till 17 August 2015). From a 52-week low of 25,910.77 on 17 October 2014, the Sensex has risen 1,967.50 points or 7.59%. The Sensex is off 2,146.47 points or 7.14% from a record high of 30,024.74 hit on 4 March 2015.
Meanwhile, investors continue to watch the progress of the monsoon rains which will have a bearing on food prices and rural income. India's weather office, the India Meteorological Department (IMD), said in a daily report issued yesterday, 16 August 2015, that for the country as a whole, cumulative rainfall during this year's monsoon season was 10% below the Long Period Average (LPA) until 16 August 2015. Region wise, the rainfall was 20% below the LPA in South Peninsula, 13% below the LPA in East & Northeast India, 9% below the LPA in Central India and 1% above the LPA in Northwest India until 16 August 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 stocks edged higher today, 17 August 2015, after eurozone finance ministers on Friday, 14 August 2015, approved Greece's bailout deal, marking an end to more than six months of turbulent negotiations. Key indices in France and Germany were up 0.27% to 0.41%. UK's FTSE 100 fell 0.07%.
In Greece, the Athex Composite Share Price Index was up 0.69%. Eurozone finance ministers on Friday, 14 August 2015, cleared 86 billion euros ($95.22 billion) in new bailout loans for Greece, helping the debt-laden country stave off bankruptcy. The money will come in several installments, with the first tranche of money expected to be made by 20 August 2015, when Athens must repay euro 3.2 billion to the European Central Bank.
Several national parliaments in Europe will now have to vote to back Greece's bailout deal.
Asian stocks edged lower today, 17 August 2015, as a string of upbeat US economic reports released on Friday, 14 August 2015, kept expectations of the US Federal Reserve raising short-term interest rates some time this calendar year intact. Key indices in Hong Kong, Taiwan, Singapore, and South Korea were off 0.74% to 1.51%. Key indices in China and Japan were up 0.49% to 0.71%. Indonesian stock market was shut due to holiday.
Japan's economy contracted in the April-June quarter, but managed to perform slightly better than expected, data released today, 17 August 2015 showed. Gross domestic product (GDP) shrank 1.6% on an annualized basis in the April-June quarter.
US stocks closed higher during the previous trading session on Friday, 14 August 2015, after a string of upbeat economic reports. Investors will look to minutes on Wednesday from the U.S. Federal Reserve's latest meeting.
The Federal Reserve is due to release the minutes of the two-day policy meeting held on 28-29 July 2015 on Wednesday, 19 August 2015. The minutes could offer some clues on the timing of the Fed's plans to raise interest rates for the first time in a decade.
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