After a range bound movement in early afternoon trade, key benchmark indices extended losses in afternoon trade. The barometer index, the S&P BSE Sensex, hit its lowest level in almost a week. The market breadth indicating the overall health of the market was negative. The Sensex was currently off 237.26 points or 0.85% at 27,720.24. The BSE Small-Cap index moved into the red from green.
Key benchmark indices edged lower today, 25 May 2015, after comments from Federal Reserve Chairwoman Janet Yellen on Friday, 22 May 2015, indicated that the US central bank is on track to raise interest rates this year. Higher US interest rates will reduce the attraction of riskier emerging-markets assets.
Metal shares edged lower. JSW Steel declined after the company reported muted growth in crude steel production in April 2015. Steel Authority of India advanced after the company signed a Memorandum of Understanding with ArcelorMittal to set up an automotive steel manufacturing facility under a joint venture arrangement in India. Capital goods shares were mixed.
Foreign portfolio investors bought shares worth a net Rs 211.42 crore during the previous trading session on Friday, 22 May 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 237.62 crore on Friday, 22 May 2015, as per provisional data released by the stock exchanges.
Indian stocks may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month May 2015 series to June 2015 series. The near month May 2015 F&O contracts expire on Thursday, 28 May 2015.
In overseas markets, European stocks edged lower, weighed by more concerns about the state of Greece's finances, although trading is set to be limited with stock markets in UK and Germany remaining shut for holidays. Chinese stocks rallied for a fifth straight day today, 25 May 2015, leading Asian markets mostly higher. US stocks ended modestly lower during the previous trading session on Friday, 22 May 2015, after Federal Reserve Chairwoman Janet Yellen said she still expected the central bank to raise interest rates sometime this year.
At 13:18 IST, the S&P BSE Sensex was down 237.26 points or 0.85% at 27,720.24. The index lost 256.96 points at the day's low of 27,700.54 in afternoon trade, its lowest level since 19 May 2015. The index fell 54.21 points at the day's high of 27,903.29 in early trade
The CNX Nifty was down 65.65 points or 0.78% at 8,393.30. The index hit a low of 8,388.15 in intraday trade, its lowest level since 21 May 2015. The index hit a high of 8,441.95 in intraday trade.
The BSE Mid-Cap index was up 13.66 points or 0.13% at 10,633.47, outperforming the Sensex. The BSE Small-Cap index was down 9.62 points or 0.09% at 11,198.04. The decline in this index was lower than the Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was negative. On BSE, 1,366 shares fell and 1,051 shares rose. A total of 111 shares were unchanged.
Metal shares edged lower. Jindal Steel & Power (down 2.03%), Vedanta (down 1.78%), Tata Steel (down 1.62%), Hindalco Industries (down 0.84%), Hindustan Copper (down 0.4%), Bhushan Steel (down 0.34%), National Aluminum Company (down 0.31%) and NMDC (down 0.12%), edged lower. Hindustan Zinc was up 0.59%.
Steel Authority of India (Sail) edged higher after the company signed a Memorandum of Understanding (MoU) with ArcelorMittal to set up an automotive steel manufacturing facility under a joint venture arrangement in India. The stock was up 0.23% at Rs 66.30. The announcement was made after market hours on Friday, 22 May 2015. The MoU is the first step of a process to establish a joint venture (JV) between the two companies. The proposed JV will construct a state-of-the-art cold rolling mill and other downstream finishing facilities in India that will offer technologically advanced steel products to India's rapidly growing automotive sector.
JSW Steel declined after the company reported muted growth in crude steel production in April 2015. The stock was off 1.44% at Rs 907.25. The stock hit a high of Rs 927 and a low of Rs 904 so far during the day. JSW Steel's crude steel production rose 2% to 10.11 lakh tonnes in April 2015 over April 2014. Production of flat rolled products declined 1% to 7.65 lakh tonnes in April 2015 over April 2014. Production of long rolled products fell 19% to 1.33 lakh tonnes in April 2015 over April 2014.
Capital goods shares were mixed. Lakshmi Machine Works (down 2.23%),Siemens (down 1.44%), Larsen & Toubro (down 1.23%), Jindal Saw (down 1.06%), BEML (down 0.72%), Praj Industries (down 0.59%), Suzlon Energy (down 0.4%), Havells India (down 0.15%), Thermax (down 0.15%) and Alstom T&D India (down 0.04%), edged lower. Pipavav Defence and Offshore Engineering Company (up 0.42%), SKF India (up 0.59%), Bharat Electronics (up 0.83%), ABB India (up 0.87%), ALSTOM India (up 0.97%), Punj Lloyd (up 1.53%), Crompton Greaves (up 1.59%) and AIA Engineering (up 1.69%), edged higher.
Bharat Heavy Electricals (Bhel) was off 1.47%. The company during market hours today, 25 May 2015, announced that the company has brought a turnaround in the hydro power sector in India by commissioning 6 hydro sets aggregating to 736 megawatts (MW) during fiscal 2014-15. This is also the highest hydro capacity addition in a single year by Bhel in the last decade. The feat was achieved by successfully commissioning projects of three major central utilities - NTPC, NHPC and SJVNL, Bhel said in a statement. Bhel is presently executing hydro power projects of around 4,600 MW, which are under various stages of implementation.
In overseas markets, European stocks edged lower, weighed by more concerns about the state of Greece's finances, although trading is set to be limited with stock markets in UK and Germany remaining shut for holidays. France's CAC 40 index was off 0.37%.
Over the weekend Greece raised doubts that it would have the money it is due to repay to the International Monetary Fund (IMF) next month. This news comes despite months of negotiations between Greece's leftist-led government and creditorsthe European Union and the IMF. Greece is scheduled to repay euro 1.6 billion ($1.76 billion) to the IMF between June 5-19.
Chinese stocks rallied for a fifth straight day today, 25 May 2015, leading Asian markets mostly higher. Key indices in Japan, Singapore and Taiwan were up 0.07% to 0.74%. In Indonesia, Jakarta Composite index was off 0.5%. Korean and Hong Kong markets were closed for the Buddha's Birthday holiday.
In mainland China, the Shanghai Composite index was up 3.35%. China's Ministry of Finance today, 25 May 2015, announced that it would cut import duties on cosmetics, shoes and clothes by 50% on average, as part of a plan to boost domestic consumption and sustain economic growth.
US stocks ended modestly lower during the previous trading session on Friday, 22 May 2015, after Federal Reserve Chairwoman Janet Yellen said she still expected the central bank to raise interest rates sometime this year. Yellen said in a speech delivered in Providence, R.I., discussing the US economic outlook on Friday, 22 May 2015, that the central bank is on track to raise interest rates this year but will likely proceed cautiously because the job market hasn't fully healed, inflation is low and growth has again disappointed.
The US stock market remains closed today, 25 May 2015, for the Memorial Day Holiday.
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