Key benchmark indices languished in negative terrain in mid-morning trade. Amid weak cues from global stocks, the barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, were both trading with losses of more than 1% each currently. Asian stocks fell as strong US jobs data fanned expectations that the US Federal Reserve may raise interest rates sooner than previously thought. The market breadth indicating the overall health of the market was weak. The Sensex was currently off 397.05 points or 1.35% at 29,051.90.
HCL Technologies dropped after the company said that Shiv Nadar Foundation sold 56 lakh shares of HCL Technologies in the open market today, 9 March 2015.
There is a concern that a tighter monetary policy in the US may slow foreign portfolio flows into emerging markets. Higher interest rates will boost returns on US debt and bank deposits, drawing money back from riskier emerging markets.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 79.84 crore on Thursday, 5 March 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 193.54 crore on Thursday, 5 March 2015, as per provisional data. The stock market was closed on Friday, 6 March 2015, on account of Holi.
Earlier, the Sensex and the 50-unit CNX Nifty, both, hit their lowest level in more than a week as these two benchmark indices extended initial losses.
In the foreign exchange market, the rupee edged lower against the dollar on global risk-off sentiment.
Brent crude oil futures edged lower as upbeat US jobs data pushed the dollar higher, outweighing geopolitical tensions and the threat of output cuts in Libya and Iraq. Global crude oil prices have witnessed high volatility recently after a steep slide in prices during the second half of calendar year 2014. Deregulation of diesel price announced by the Indian government in October 2014 and a decline in global crude oil prices will help reduce the government's fuel subsidy burden and help contain its fiscal deficit. The slide in global crude oil prices will also help India in containing its current account deficit and fuel price inflation. 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. India imports 80% of its crude oil requirement.
In overseas markets, Asian stocks dropped after strong US jobs data fanned expectations that the US Federal Reserve may raise interest rates sooner than previously thought. US stocks fell sharply on Friday, 6 March2015, after stronger than expected data from the monthly jobs report heightened concerns that the Federal Reserve could raise interest rates by June 2015.
At 11:35 IST, the S&P BSE Sensex was down 397.05 points or 1.35% at 29,051.90. The index slumped 431.94 points at the day's low of 29,017.01 in mid-morning trade, its lowest level since 28 February 2015. The index fell 127.89 points at the day's high of 29,321.06 in early trade.
The CNX Nifty was down 122.90 points or 1.38% at 8,814.85. The index hit a low of 8,800.90 in intraday trade, its lowest level since 28 February 2015. The index hit a high of 8,891.30 in intraday trade.
The BSE Mid-Cap index was down 51.23 points or 0.46% at 10,993.85. The BSE Small-Cap index was down 34.64 points or 0.3% at 11,422.21. The declines in both these indices were lower than fall in the Sensex in percentage terms.
The market breadth indicating the overall health of the market was weak. On BSE, 1,462 shares declined and 931 shares rose. A total of 103 shares were unchanged.
GMR Infrastructure dropped 0.85%. GMR Chhattisgarh Energy, a subsidiary of GMR Infrastructure, won the Ganeshpur coal block in Jharkhand at Rs 704 per tonne on the fourth day of coal auctions for schedule III category mines held on Sunday, 8 March 2015. Ganeshpur coal block has a total extractable reserve of 91.80 million tonnes. Ganeshpur coal block was reserved for the power sector.
Ambuja Cements declined 2.15%. Ambuja Cements won the Gare Palma IV/8 coal block in Chattisgarh at Rs 2,291 per tonne on the fourth day of coal auctions for schedule III category mines held on Sunday, 8 March 2015. Gare Palma IV/8 coal block has a total extractable reserve of 11.75 million tonnes. Gare Palma IV/8 coal block was reserved for the iron & steel, cement & CPP.
HCL Technologies dropped 1.22%. On BSE, so far 58.33 lakh shares were traded in the counter, compared with an average volume of 66,239 shares in the past one quarter. The company said during market hours that Shiv Nadar Foundation sold 56 lakh shares of HCL Technologies in the open market today, 9 March 2015. The Foundation supported by donation of HCL Corporation and Associates, held 56 lakh shares of HCL Tech through such donations. Governance, tax and legal regulations require the Foundation to sell these shares by 31 March 2015. Sale took place to fulfill these conditions. Proceeds of this sale will be used to realise various objectives and initiatives of the Foundation. This transaction has been concluded at one go at a discount to the last closing price to avoid any overhang in the market for shareholders of HCL Technologies.
Container Corporation of India jumped 8.18% after the Reserve Bank of India after market hours on Thursday, 5 March 2015 withdrew restrictions placed on the purchase of shares of the company by the foreign investors with immediate effect. RBI has notified that foreign institutional investors (FIIs)/registered foreign portfolios Investors (RFPIs) can now invest up to 34% of the paid up capital of Container Corporation of India under the portfolio investment scheme (PIS). RBI advised that the foreign shareholding of FIIs/RFPIs in Container Corporation of India has gone below the revised threshold limit.
In the foreign exchange market, the rupee edged lower against the dollar on global risk-off sentiment. The partially convertible rupee was hovering at 62.675, compared with its close of 62.17 during the previous trading session on Thursday, 5 March 2015. India's financial markets were closed on Friday, 6 March 2015, on account of Holi.
Brent crude oil futures edged lower as upbeat US jobs data pushed the dollar higher, outweighing geopolitical tensions and the threat of output cuts in Libya and Iraq. Brent for April settlement was off 43 cents at $59.30 a barrel. The contract had declined 75 cents or 1.24% to settle at $59.73 a barrel during the previous trading session.
Minister for Commerce & Industry Nirmala Sitharaman on Saturday, 7 March 2015, said that exports play a key role in ensuring success of the Make in India initiative. Speaking at the ECGC Dun & Bradstreet Export Performance Award ceremony in Mumbai, Sitharaman reiterated government's commitment to 'ease of doing business' and assured the gathering that similar measures will be extended to the export sector as well. For this purpose, the Minister said, she is planning to constitute of a committee, that can suggest thrust areas and key measures which can yield quick results as well as help formulate a long term export strategy.
Meanwhile, proceedings in parliament during the ongoing Budget session of Parliament are being closely watched. The government seeks to have the Bills replacing the six Ordinances passed by both the Houses of Parliament before 20 March 2015 when the first part of the Budget session of parliament concludes. The Lok Sabha has already passed five Bills seeking to replace five Ordinances relating to Amending the Citizenship Act, introduction of e-rikshaws, allocation of coal mines through open bidding, increase in foreign investment ceiling in the insurance sector to 49% from 26% and allocation of non-coal mineral resources through auction. The Parliament is scheduled to be reconvened on 20 April 2015 for the second part of the Budget session while the six Ordinances will lapse on 5 April 2015 as per the provisions of the Constitution.
Government business in the Lok Sabha for the current week includes consideration and passing of the Right to Fair Compensation and Transparency in Land Acquisition. Eight hours have been allocated for discussion on the LARR (Amendment) Bill, 2015 in the Lok Sabha.
In the Rajya Sabha, two Bills to replace Ordinances viz., The Mines and Minerals (Development & Regulation) Amendment Bill, 2015 and Motor Vehicles (Amendment) Bill, 2015, both as passed by Lok Sabha have been listed for consideration and passing on Monday, 9 March 2015. Statutory Resolutions seeking disapproval of the two related Ordinances will also be taken up along with the Bills, according to a government statement on Saturday, 7 March 2015. Motor Vehicles (Amendment) Bill, 2014 is one of the three Bills already pending in the Rajya Sabha, for the withdrawal of which the government has earlier moved Motions and the same were deferred following some issues raised by the opposition. The other two pending Bills relate to hiking foreign investment ceiling in the insurance sector and allocation of coal blocks through open bidding.
The government will unveil industrial production data for January 2015 on Thursday, 12 March 2015. The government will release the combined consumer price index (CPI) data (rural/urban) for February 2015 on the same day.
Asian stocks dropped today, 9 March 2015, after strong US jobs data fanned expectations that the US Federal Reserve may raise interest rates sooner than previously thought. Key indices in Japan, South Korea, Indonesia, China, Hong Kong, Taiwan and Singapore were off 0.03% to 1.25%.
In Japan, the latest revised data showed that the nation's gross domestic product rose an annualised 1.5% in the October-December quarter, less than the preliminary reading of a 2.2% increase as capital expenditure weakened. On a quarter-on-quarter basis, the economy grew 0.4% in the fourth quarter, the Cabinet Office data showed.
In China, the latest data showed China's exports picked up in the first two months of 2015, propelled by February's exceptionally strong performance that was inflated by the timing of Lunar New Year, while a slide in imports pointed to persistent weakness in the economy. Data released by the General Administration of Customs on Sunday, 8 March 2015, showed that China posted a record trade surplus of $60.6 billion last month. February exports jumped 48.3% from a year earlier, the strongest rise since May 2010 and comfortably beat market expectations, but customs office cautioned about reading too much into the figure given seasonal distortions. A 20.5% slide in February imports was the sharpest since the global financial crisis.
Trading in US index futures indicated that the Dow could fall 20 points at the opening bell today, 9 March 2015. US stocks fell sharply on Friday, 6 March 2015, after stronger than expected data from the monthly jobs report heightened concerns that the Federal Reserve could raise interest rates by June 2015.
The US Labor Department said employers added 295,000 workers in February, beating forecasts. It was the longest run of 200,000-plus increases since 1994. The jobless rate dropped to 5.5% from 5.7% in January.
In Europe, the European Central Bank (ECB) is set to begin its long-awaited 1.1 trillion euro ($1.2 trillion) quantitative easing programme to stimulate growth and ward off deflation across the eurozone. The programme calls for the eurozone central bank to buy around 60 billion euros of public and private bonds each month -- a policy it will apply until at least September 2016.
The ECB on Thursday, 5 March 2015, left its main rate, the one that it charges on its regular bank loans, at a record low of 0.05%. It also kept its deposit rate at minus-0.2%, meaning that banks pay to park excess cash at the central bank. The Bank of England also on Thursday, 5 March 2015, kept interest rates on hold, marking the sixth anniversary of ultra-loose monetary policy.
Powered by Capital Market - Live News
