Key benchmark indices languished in negative zone in morning trade. The barometer index, the S&P BSE Sensex hit its lowest level in more than nine weeks. The 50-unit CNX Nifty hit its lowest level in 7-1/2 weeks. The Sensex was currently off 342.78 points or 1.24% at 27,265.04. The market breadth indicating the overall health of the market was quite weak. There were more than three losers for every gainer on BSE.
Auto stocks edged lower. Bank stocks also dropped.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 1007.26 crore yesterday, 20 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 567.87 crore yesterday, 20 August 2015, as per provisional data.
In overseas markets, Asian stocks edged lower today, 21 August 2015. US stocks closed sharply lower yesterday, 20 August 2015, as investors weighed continued uncertainty about the timing of a rate hike and concerns about global growth headed by slowing in China.
At 10:18 IST, the S&P BSE Sensex was down 342.78 points or 1.24% at 27,265.04. The index fell 476.38 points at the day's low of 27,131.44 in early trade, its lowest level since 18 June 2015. The index fell 165 points at the day's high of 27,442.82 in early trade.
The CNX Nifty was down 111.25 points or 1.33% at 8,261.50. The index hit a low of 8,225.05 in intraday trade, its lowest level since 29 June 2015. The index hit a high of 8,305.40 in intraday trade.
The BSE Mid-Cap index was down 139.12 points or 1.23% at 11,178.76. The decline in the index was lower than Sensex's decline in percentage terms. The BSE Small-Cap index was down 156.65 points or 1.34% at 11,524.16. The decline in the index was higher than Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was quite weak. There were more than three losers for every gainer on BSE, 1,612 shares declined and 435 shares rose. A total of 67 shares were unchanged.
Auto stocks edged lower. Tata Motors (down 3.45%), Hero MotoCorp (down 2.81%), Mahindra & Mahindra (down 2.28%), TVS Motor Company (down 1.94%), Ashok Leyland (down 1.2%), Bajaj Auto (down 1.21%), Eicher Motors (down 1.08%) and Maruti Suzuki India (down 1.08%) edged lower.
Shares of public sector banks (PSU banks) edged lower. Canara Bank (down 3.19%), Bank of India (down 3.63%), State Bank of India (down 2.98%), Union Bank of India (down 2.58%), Punjab National Bank (down 2.14%), Bank of Baroda (down 2.46%), Syndicate Bank (down 2.25%), Indian Overseas Bank (down 2.23%), Corporation Bank (down 2.14%), IDBI Bank (down 1.8%) and United Bank of India (down 0.43%) edged lower.
The finance ministry yesterday, 20 August 2015, announced that Executive Directors of Nationalised Banks, DMDs of IDBI Bank and MDs of Associate Banks of State Bank of India (SBI) who have risen from the Associate Bank services, with one year of service as ED/DMD/MD and who have two years remaining service are eligible for selection as MD & CEO of PSU banks other than the five large PSU banks. Meanwhile, as per the guidelines approved by the Appointments Committee of Cabinet (ACC), General Managers of nationalized Banks and CGMs of Associate Banks of SBI who have risen from the Associate Banks service, and who have completed two years of service are eligible for consideration for the post of Executive Director of nationalized banks.
Shares of private sector banks dropped. Yes Bank (down 4.46%), ICICI Bank (down 1.98%), Axis Bank (down 2.62%), IndusInd Bank (down 1.82%), Kotak Mahindra Bank (down1.23%) and HDFC Bank (down 0.61%) edged lower.
In the global commodities markets, Brent crude oil futures edged lower. Brent for October settlement was currently off 55 cents at $46.07 a barrel. The contract had declined 54 cents or 1.14% to settle at $46.62 a barrel during the previous trading session.
India imports about 80% of its crude requirements and a decline in crude prices eases concerns on fiscal deficit, inflation and gives more room for the government to boost growth through spending on infrastructure. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports. State-run oil marketing companies have been cutting petrol and diesel prices on the back of falling international prices. Lower diesel prices will reduce transportation costs which in turn will reduce fuel price inflation. Diesel is a key transportation fuel.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was currently hovering at 65.7375, compared with close of 65.55 during the previous trading session.
India's weather office, the India Meteorological Department (IMD), said in a daily report issued yesterday, 20 August 2015, that for the country as a whole, cumulative rainfall during this year's monsoon season was 9% below the Long Period Average (LPA) until 20 August 2015. Region wise, the rainfall was 20% below the LPA in South Peninsula, 10% below the LPA in Central India, 7% below the LPA in East & Northeast India and 1% below the LPA in Northwest India until 20 August 2015.
Separately, the IMD released a weekly monsoon report yesterday, 20 August 2015. The IMD in its extended range forecast till 8 September 2015 said that above normal rainfall activity is likely over northeast and adjoining east India on many days till beginning of September. Normal rainfall activity likely over south peninsula during 20 to 24 August and 4 to 8 September 2015, the IMD said. Below normal rainfall activity likely over plains of northwest and central India on many days, the IMD said.
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, Asian stocks edged lower today, 21 August 2015. Key indices in Japan, China, Hong Kong, Taiwan, South Korea, Singapore and Indonesia were off 1.91% to 3.04%.
US stocks closed sharply lower yesterday, 20 August 2015, as investors weighed continued uncertainty about the timing of a rate hike and concerns about global growth headed by slowing in China.
The number of Americans filing new applications for unemployment benefits unexpectedly rose last week. Initial claims for state unemployment benefits increased 4,000 to a seasonally adjusted 277,000 for the week ended Aug. 15, the Labor Department said yesterday, 20 August 2015.
US existing home sales climbed in July to their prerecession pace. Existing-home sales rose 2% last month from June to a seasonally adjusted rate of 5.59 million, the National Association of Realtors said yesterday, 20 August 2015.
In Europe, Greece's Prime Minister Alexis Tsipras has announced he is resigning and has called an early election. Tsipras, who was only elected in January, said he had a moral duty to go to the polls now a third bailout had been secured with European creditors, as per reports.
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