Key indices end slightly lower amid sharp volatility
A bout of volatility was witnessed in today’s trade as key benchmark indices displayed wild gyrations. The barometer index, the S&P BSE Sensex, and, the 50-unit CNX Nifty, both, hit their lowest level in 4 weeks in mid-afternoon trade, tracking weak European markets. However, bargain hunting emerged at lower levels, which helped key indices sharply pare losses in late trade. The Sensex and the Nifty, both, provisionally ended with miniscule losses. The market breadth indicating the overall health of the market was negative. The Sensex was provisionally off 4.36 points or 0.02% to 26,832.84.
PSU banks edged lower. Private banks edged higher.
Meanwhile, the India Meteorological Department (IMD) yesterday, 3 June 2015 said that conditions are favourable for onset of southwest monsoon over Kerala during next 48 hours.
Foreign portfolio investors sold shares worth a net Rs 727.61 crore yesterday, 3 June 2015, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 412.66 crore yesterday, 3 June 2015, as per provisional data released by the stock exchanges.
In overseas markets, European stocks edged lower today, 4 June 2015. Asian stocks were mixed. Overnight, US stocks rose at the end of trade, following positive US economic data and as negotiations between Greece and its international creditors continued to move forward.
As per provisional closing, the S&P BSE Sensex fell 4.36 points or 0.02% to 26,832.84. The index fell 285.23 points at the day’s low of 26,551.97 in mid afternoon trade, its lowest level since 7 May 2015. The index rose 111.64 points at the day’s high of 26,948.84 at the onset of trading session.
The CNX Nifty fell 4.45 points or 0.05% at 8,130.65, as per provisional closing. The index hit a low of 8,056.75 in intraday trade, its lowest level since 7 May 2015. The index hit a high of 8,160.05 in intraday trade.
The BSE Mid-Cap index rose 17.99 points or 0.17% at 10,347.45, outperforming the Sensex. The BSE Small-Cap index fell 4.45 points or 0.04% at 10,823.73. 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, 1,379 shares fell and 1,279 shares rose. A total of 116 shares were unchanged.
The total turnover on BSE amounted to Rs 4669 crore, higher than turnover of Rs 3501.33 crore registered during the previous trading session.
PSU banks edged lower. Bank of India (down 3.55%), Union Bank of India (down 3.49%), Punjab National Bank (down 3.08%), Corporation Bank (down 2.22%), Dena Bank (down 2.04%), Canara Bank (down 1.42%), IDBI Bank (down 1.39%), Indian Bank (down 1.1%), Punjab and Sind Bank (down 0.9%), Andhra Bank (down 0.84%), United Bank of India (down 0.65%), Syndicate Bank (down 0.5%), Vijaya Bank (down 0.34%), Central Bank of India (down 0.3%), Bank of Maharashtra (down 0.14%) and UCO Bank (down 0.08%), edged lower. Bank of Baroda (up 0.06%), State Bank of India (up 0.08%) and Allahabad Bank (up 1.15%), edged higher.
Private banks edged higher. Kotak Mahindra Bank (up 1.22%), HDFC Bank (up 0.95%), Axis Bank (up 0.91%), City Union Bank (up 0.49%), IndusInd Bank (up 0.43%) and Yes Bank (up 0.09%), edged higher. Federal Bank (down 1.31%) and ICICI Bank (down 1.47%), edged lower.
Bharti Airtel fell 1.19% to Rs 416.25. The company announced during trading hours today that it has successfully priced an issuance of $1000 million 4.375% Senior Notes due 2025. The Notes are expected to carry a final rating of Investment Grade from Moody’s, Standard & Poor and Fitch. With 66% bonds allocated to the US investors, this is the highest ever allocation to US investors in any Indian deal, demonstrating the strong investor base Bharti has created for itself in developed markets allowing it to efficiently raise capital from world’s leading fixed income investors.
With total order book of $2 billion, the issue was subscribed 2 times with participation from 160 quality accounts. As per regional allocation, US received 66%, Europe 18% and Asia got 16%. There was 80% allocation to mutual funds and insurance companies, with balance to banks. The US dollar Notes have been priced at 210 basis points over 10 year US dollar Treasury with a fixed coupon of 4.375% per annum to yield 4.462%, Bharti Airtel said in a statement.
The India Meteorological Department (IMD) yesterday, 3 June 2015 said that conditions are favourable for onset of southwest monsoon over Kerala during next 48 hours.
In global commodity markets, Brent crude oil futures edged lower today, 4 June 2015. Brent for July settlement was off 25 cents at $63.55 a barrel. The contract had fallen $1.69 a barrel or 2.58% to settle at $63.80 a barrel during the previous trading session.
Oil cartel OPEC is expected to keep its production target of 30 million barrels of oil per day unchanged at a meeting scheduled in Vienna tomorrow, 5 June 2015. The OPEC meeting is being closely watched for clues about the organization’s next moves.
The decline in global crude oil prices and deregulation of diesel price announced by the Indian government in October 2014 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.
In overseas markets, European stocks edged lower today, 4 June 2015. Key indices in Germany, UK and France were off 1.41% to 1.94%.
France’s unemployment rate fell to 10.3% in the first quarter from 10.4% in the previous three months, national statistics office Insee said today, 4 June 2015.
European Central Bank (ECB) left its main interest rates unchanged at record-low levels. Upbeat news around Greece’s ability to pay its international creditors later this week also lingered in the market.
Asian stocks were mixed. Key benchmark indices in Hong Kong, Taiwan, Singapore and Indonesia were down by 0.14% to 2.18%. Key benchmark indices in China, Japan and South Korea were up by 0.07% to 0.76%.
China revised down its estimate of consumption’s contribution to economic growth last year, trimming the figure to 50.2% from 51.2% previously. Investment and exports contributed 48.5% and 1.3%, respectively to gross domestic product in 2014, the National Bureau of Statistics said Wednesday. Consumption contributed an average 52.9% annually to the country’s GDP over the past five years, official data showed. Investment averaged 51.2% while exports averaged a negative 4.1%.
Overnight, US stocks rose at the end of trade, following positive US economic data and as negotiations between Greece and its international creditors continued to move forward.
In economic readings ahead of the latest session, the Commerce Department said the US trade deficit contracted by 19.2% in April, the sharpest drop in more than six years. The West Coast port strike, which was resolved in February, caused big swings in the trade gap the first several months of the year. In March, the deficit increased to its highest level in more than six years.
Separately, an employment report showed private payrolls in the US increased at a modest clip in May, but at a pace that was below expectations.