Volatile BSE Sensex falls 45 pts in late sell-off

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Mumbai | Updated: June 05, 2015 4:56 PM

BSE Sensex today frittered away midsession gains and closed 45 points down as cautious investors preferred to reduce their position.

indian stock marketBSE Sensex today fell 84.16 points, or 0.31 per cent, to 26,729.26 in early trade due to sluggish global cues. (Reuters)

Logging second straight weekly fall, the benchmark BSE Sensex today frittered away midsession gains and closed 45 points down as cautious investors preferred to reduce their position at improved levels in blue-chip stocks.

In volatile movements, Sensex after falling to day’s low of 26,718.44 points in early trade, staged a strong comeback to regain the 27,000-mark on value-buying in badly hit blue-chip stocks as the much awaited monsoon finally arrived in Kerala.

Weekly perspective on Markets from Dipen Shah, Head- Private Client Group Research, Kotak Securities
Markets ended the week with a near-4% loss. Sentiments were weak due to the concerns over monsoons and Greece. Quarterly results have also not provided any cheer. Markets also awaited the non-farm payroll data in US, due later in the day.
Going ahead, the progress of monsoons will be closely watched, in addition to the reforms initiatives of the Government. Passage of important bills like GST are a pre-requisite for the markets to sustain and rise from current levels.

However, on across-the-board selling towards the fag-end, the Sensex again slipped into negative zone and closed the session 44.93 points or 0.17 per cent down at 26,768.49.

The gauge has lost 1,080.50 points in last four days after RBI took a cautious stance on economic recovery and IMD forecast monsoon to be “deficient” this year.

Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
Global market is cautious regarding Greek issue. Global bond yields are inching up while oil and commodity prices are consolidating. In such environment Indian market is volatile led with disappointment from post RBI meet and outperformance in China.

The 50-issue NSE Nifty also fell by 15.95 points or 0.20 per cent to 8,114.70. It shuttled between 8,191.00 and 8,100.15 during the session.

Both the indices, Sensex and Nifty, ended in the negative zone for second straight week.

Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
Market witnessed sharp volatile movements, during the day it made a high at 8191 on arrival of south west monsoon in Kerala, but higher level selling wiped out all its gains on concerns of Greece decision to defer its payment to IMF.
Nifty today opened at 8119, made an intraday high and low of 8191 and 8100 respectively and finally closed 8114 down around 15 points.  But the market breadth turned to positive from negative as there were seen 1375 stocks advancing against 1295 stocks declining. The Nifty volatility index, India VIX stood at 18.0875 down around 0.19%.
The mid-cap index and small cap index closed up around 0.01% and 0.17% respectively.
The sectorial gainers for the day were Metal and FMCG which ended up around 1.78% and 1.05% respectively whereas the major losers were the Realty and Banking which ended down around 1.44% and 0.93% respectively.
In the stocks’ front, the major gainers were Coal India and ZEEL which closed up around 4.27% and 3.03% respectively whereas the selling was seen in Ambuja cements and ACC closed down around 3.06% and 2.11% respectively.
The FIIs were sellers in the cash market segment on 03 June 2015, Tuesday, sold shares worth Rs 727.61 crore. The DIIs on the other hand were buyers on 03 June, bought shares worth Rs 412.66 crore in the capital markets segment.
The European markets were seen trading lower as the Greece deferred its payment to the IMF, becoming the first country to postpone the payment to the IMF since 1980s. The US index futures were also trading lower.

ICICI Bank fell the most among Sensex stocks by dropping 2.18 per cent, followed by Tata Motors 2.11 per cent.

Other major losers on the index included HDFC, Axis Bank, TCS, Cipla, Hindalco, Infosys, BHEL, RIL, Vedanta, Bajaj Auto, Maruti Suzuki, Bharti Airtel, HDFC Bank and Dr Reddy’s.

Market View by Anand James, Co Head Technical Research Desk, Geojit BNP Paribas
Greece debt payment schedule having been deferred, Indian markets has got some release, with stocks bouncing back, but the relief rally failed to convince buyers to chase prices higher, as it is obvious that the Greece worries would continue to boil in the back ground. Agriculture minister’s offer subsidy on diesel, power and seeds to farmers also failed to cheer market, which is weighing in the possible impact of an El Nino led drought.  The focus would now also be on US jobs data for signs of an early kick off of US rate hikes.

Meanwhile, Nestle continued its slide and shed 0.23 per cent to Rs 5,997.10 after the company decided to take Maggi off the shelves following a controversy over its contents, prompting several states to ban the ‘two-minute’ noodles.

Bucking the bearish trend, shares of Coal India rose 4.44 per cent after Morgan Stanley upgraded it to “overweight” from “equal weight”.

Market View by Gaurav Jain, Director, Hem Securities
Markets even after hard struggle cannot manage to come out of bear grip and continues to languish. Investors continue to be worried about Greek woes, monsoon worries, sell-off by foreign portfolio investors and weak global cues. Few macro-economic data, progress of monsoon, rupee-dollar movement and interests of foreign portfolio investors will shape the trend for the coming week.

Overall, 16 Sensex shares ended lower, while 14 finished in the positive zone.

Sectorally, the BSE realty fell the most by plunging 1.44 per cent, followed by bankex (0.93 per cent), IT (0.80 per cent), auto (0.60 per cent) and teck (0.46 per cent).

Globally, other Asian bourses closed weak and European markets were lower in their opening trade as Greece deferred a debt repayment and German bonds extended declines in their worst week since 1998.

China shares top 5,000 point level, bonds try to steady

Reuters – Asian shares fell on Friday and bonds tried to stabilise after a vicious losing streak, while the euro consolidated the week’s hefty gains as investors braced for U.S. jobs data and another day of drama over Greece.

The main exception was China, where stocks advanced after a week of roller-coaster action. Shanghai added 0.7 percent and cleared the 5,000-point barrier for the first time since early 2008, while the CSI300 gained 0.3 percent.

Elsewhere, the mood was very subdued with MSCI’s broadest index of Asia-Pacific shares outside Japan down a slim 0.3 percent. Japan’s Nikkei 225 and shares in South Korea lost 0.1 percent.

In the latest Greek twist, Prime Minister Alexis Tsipras will put creditors’ proposals to parliament from 1500 GMT on Friday, but he has already dubbed the plan “extreme”.

Before that likely contentious meeting gets underway, markets are bracing for the latest reading on U.S. jobs. Median forecasts in a Reuters poll are for payrolls to rise 225,000 with the jobless rate steady at 5.4 percent.

Yet markets only imply a one-in-three chance of a lift off in Fed funds by September, and are not fully priced for a move until December.

“That September is seen as the first possible tightening by the Fed and there are two meetings before then, detracts significantly from the sensitivity to the data,” says Alan Ruskin, head of forex at Deutsche.

“It would probably need a payroll number either side of 150,000 or 250,000 to get the market really excited whereby Fed expectations/probabilities start to change materially.”

Caution ahead of the report kept Wall Street on the defensive. The Dow ended Thursday down 0.94 percent, while the S&P 500 lost 0.86 percent and the Nasdaq 0.79 percent.

Declining oil and gold prices also weighed on energy and materials shares, which led declines in the S&P 500.

Global bonds steadied somewhat after a torrid week. Yields on 10-year Treasury paper were hovering around 2.32 percent having been as high as 2.425 percent on Thursday.

All eyes were on German 10-year Bunds after they rallied to 0.83 percent on Thursday and away from a giddy peak of 0.996 percent.

Treasuries had got a boost when the IMF downgraded its outlook for the U.S. economy and took the unusual step of cautioning the Fed to wait until the first half of 2016 to start raising interest rates.

Currencies have been equally whipsawed. The euro was resting at $1.1217 in Asian trading, having been as high as $1.1380 on Thursday. It was still up two cents on the week.

The single currency also steadied at 139.56 yen, not far from a five-month peak of 141.06.

The dollar held at 124.46 yen having bounced between 123.76 and 124.68 in the past couple of sessions. The dollar index, which measures it against a basket of six major currencies, was up 0.2 percent at 95.616.

In commodity markets, oil was on the defensive ahead of an OPEC meeting that is expected to affirm an output target of 30 million barrels per day, ignoring calls from some producers to cut supply and support prices.

Brent crude edged up 3 cents to $62.06 a barrel, while U.S. crude futures eased 2 cents to $57.98.

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