A divergent trend was witnessed between the two key benchmark indices. The barometer index, the S&P BSE Sensex, was trading with small gains whereas the 50-unit CNX Nifty was trading with small losses. The market breadth indicating the overall health of the market was weak. The Sensex was currently up 34.57 points or 0.13% at 26,557.66. The Nifty was currently off 3.85 points or 0.05% at 8,040.30. The losses for Nifty versus gains for the Sensex were because Nifty constituents which are not a part of the Sensex viz. Cairn India, Tech Mahindra, Punjab National Bank, Lupin, Kotak Mahindra Bank, Bank of Baroda, Bosch, Asian Paints and Zee Entertainment Enterprises dropped.
Shares of select FMCG firms were mixed. Power generation stocks also witnessed a mixed trend.
Earlier during the trading session, the Sensex and the 50-unit CNX Nifty, both, hit their lowest level in almost 5 weeks.
In overseas markets, European shares dropped in early trade there. Asian stocks edged lower on worries about Greece and on expectations that the US Federal Reserve will start raising interest rates in September. US stocks declined yesterday, 8 June 2015, with the tech stocks leading the market lower.
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.
At 13:17 IST, the S&P BSE Sensex was up 34.57 points or 0.13% at 26,557.66. The index lost 76.59 points at the day's low of 26,446.50 at onset of the day's trading session, its lowest level since 7 May 2015. The index rose 67.05 points at the day's high of 26,590.14 in afternoon trade.
The CNX Nifty was down 3.85 points or 0.05% at 8,040.30. The index hit a low of 8,007.55 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 16.22 points or 0.16% at 10,177.78. The BSE Small-Cap index was off 14.66 points or 0.14% at 10,682.90. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was weak. On BSE, 1,438 shares declined and 937 shares rose. A total of 117 shares were unchanged.
FMCG stocks were mixed. Tata Global Beverages (up 2.12%), Hindustan Unilever (up 1.47%), Colgate Palmolive (India) (up 0.78%), Dabur India (up 0.40%), Jyothy Laboratories (up 0.30%) and Procter & Gamble Hygiene & Health Care (up 0.25%), edged higher. Godrej Consumer Products (down 1%), Britannia Industries (down 1.37%), Marico (down 1.55%) and Bajaj Corp (down 1.99%), edged lower.
Glaxosmithkline Consumer Healthcare and Nestle India rose whereas ITC fell after the Food Safety and Standards Authority of India (FSSAI) yesterday, 8 June 2015, ordered testing of instant noodles, pasta and macaroni brands of seven companies including ITC, Nestle India and Glaxosmithkline Consumer Healthcare. Glaxosmithkline Consumer Healthcare (up 2.25%). Shares of Nestle India were up 2.49%. ITC was off 0.87% at Rs 300.85. The FSSAI through a circular issued yesterday, 8 June 2015, asked all state food regulators to undertake testing of instant noodles, pasta and macaroni brands of seven companies. The products that will be tested include ITC's three variants of Sunfeast Yippee instant noodles, 10 food products of Glaxosmithekline Consumer which are sold under the Foodles brand and 4 variants of Nestle India's Maggi Nuti-licious Pazzta with Taste Maker.
The FSSAI said that various test results on Maggi and some other similar products have raised serious health concerns. It may be recalled that the FSSAI had last week ordered Nestle India to withdraw and recall all the nine approved variants of its Maggi Instant Noodles from the market, having been found unsafe and hazardous for human consumption.
Tata Steel was up 0.20%. With reference to the news captioned "Four UK Unions Plan Strike at Tata Steel on June 22," Tata Steel clarified during trading hours today that Tata Steel UK ("TSUK" - indirect subsidiary of Tata Steel) has learnt of the strike from the press statement issued by the Unions. TSUK has not received any formal notice from the Unions with respect to the said strike. TSUK will issue appropriate statements upon receiving formal notice. Accordingly, Tata Steel will make necessary disclosures to the exchanges and investors at the appropriate time.
Power generation stocks were mixed. Adani Power (up 2.62%), CESC (up 2.08%), Reliance Infrastructure (up 1.64%), NHPC (up 1.06%), Reliance Power (up 0.88%), Tata Power (up 0.77%) and NTPC (up 0.51%), edged higher. GMR Infrastructure (down 0.86%), JSW Energy (down 1.3%), Torrent Power (down 1.49%) and Jaiprakash Power Ventures (down 1.64%), edged lower.
Vedanta was up 3.36%. Cairn India was down 4.21%. As per reports, metal and mining giant Vedanta is in the final stages to announce a merger of its subsidiary Cairn India with itself. The merger of Vedanta with Cairn India will give the parent access to Cairn's cash and help reduce debt, as per reports. The two are shortly expected to inform shareholders about the proposed transaction, report said. Based on weighted average stock prices of the two companies for the past six months, Cairn India shareholders should receive about 11 shares of Vedanta for every 10 Cairn shares, report added.
Vedanta announced during trading hours today that it noted media speculation regarding a potential merger of Cairn India and the company. The company said its stated strategy is to simplify and consolidate its corporate structure. The management reviews options to deliver this strategy on an on-going basis. The company said it is aware of its disclosure obligations under Clause 36 of the Listing Agreement. The company will abide by its obligations to make appropriate disclosures as and when such disclosures are necessitated by decisions taken by the company, it added.
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. Key benchmark indices in France and Germany were off 0.28% to 0.41%. In UK, the FTSE 100 index was up 0.04%.
The Group of Seven leaders (G-7) called for action on Greece as talks between the nation and its creditors continued yesterday, 8 June 2015. Greece deferred a payment to the IMF last week and needs to crack a deal or get another extension before its euro-area bailout package expires on 30 June 2015.
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 2.63%.
Chinese shares slipped after weak inflation data. In mainland China, the Shanghai Composite index was off 0.64%. In Hong Kong, the Hang Seng index was off 0.91%. 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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