A divergent trend was witnessed in early afternoon trade as the barometer index, the S&P BSE Sensex, regained positive zone and was trading slightly higher while 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 7.79 points or 0.03% at 26,530.88. The Nifty was off 15.80 points or 0.2% at 8,028.35. 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, Bank of Baroda, Bosch, NMDC, Asian Paints and Zee Entertainment Enterprises dropped.
Vedanta gained while Cairn India dropped on reports the metal and mining giant Vedanta is in the final stage to announce a merger of its subsidiary Cairn India with itself. Capital goods stocks declined.
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, 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 12:15 IST, the S&P BSE Sensex was up 7.79 points or 0.03% at 26,530.88. 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 62.81 points at the day's high of 26,585.90 in morning trade.
The CNX Nifty was down 15.80 points or 0.2% at 8,028.35. 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 market breadth indicating the overall health of the market was weak. On BSE, 1,367 shares declined and 861 shares rose. A total of 93 shares were unchanged.
The BSE Mid-Cap index was off 40.55 points or 0.4% at 10,153.45. The BSE Small-Cap index was off 42.04 points or 0.39% at 10,655.52. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 963 crore by 12:15 IST, compared with turnover of Rs 749 crore by 11:15 IST.
Metal and mining stocks rose on hopes of more economic stimulus in China after disappointing consumer inflation data in May from the world's No.2 economy. China is the world's largest consumer of steel, copper and aluminum. JSW Steel (up 0.65%), Steel Authority of India (Sail) (up 0.56%), Hindustan Zinc (up 0.3%), Bhushan Steel (up 0.21%) and Hindalco Industries (up 2.12%) edged higher.
NMDC (down 1.6%), Hindustan Copper (down 1.92%), National Aluminium Company (down 2.04%) and Jindal Steel & Power (down 1.73%) declined.
Tata Steel rose 0.33% to Rs 303.85. The stock was volatile. The stock hit high of Rs 304.10 and low of Rs 293.30 so far during the day. With respect to media report titled Tata Steel, Swansea varsity tie up, Tata Steel after market hours yesterday, 8 June 2015, clarified that the media report is based on a release issued by the company's subsidiary in Europe. It is research related project and has no impact and is not material to the company's operations, Tata Steel said.
Vedanta gained 3.98%. Cairn India lost 4.59%. 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.
Capital goods stocks declined. Crompton Greaves (down 2.8%), L&T (down 0.56%), ABB India (down 0.8%), Bharat Heavy Electricals (Bhel) (down 0.09%), Bharat Electronics (down 0.99%) and Punj Lloyd (down 3.26%) declined. Siemens (up 0.78%) and Thermax (up 0.96%) rose.
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, 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 3.12%.
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.
Meanwhile, 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.
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