There is a chance that the indices may bounce back a bit
We had mentioned in Tuesday’s closing report that NSE’s CNX Nifty is set to fall further. On Wednesday, the 50-stock index opened lower and continued to fall gradually until the beginning of the noon session. At 12.09pm, the benchmark hit its intra-day low and then moved in a range.
The S&P BSE Sensex opened at 27,231 and after hitting a high at 27,276, moved lower to hit a day’s low of 26,698. Nifty opened at 8,232 and moved from a high of 8,237 to the low of 8,094. Sensex closed at 26,837 (down 351 points or 1.29%) while Nifty closed at 8,135 (down 101 points or 1.23%). Bank Nifty opened at 17,978 and moved in the range of 17,978 and 17,567 before closing at 17,721 (down 256 points or 1.42%). NSE recorded a huge volume of 172.33 crore shares. India VIX rose 4.07% to close at 17.5050.
India's services sector fell back into contraction in May 2015 after experiencing growth for six successive months, the outcome of a survey from Markit Economics showed. The seasonally adjusted HSBC India Services Business Activity Index declined to 49.6 in May 2015, from 52.4 in April 2015.
Coming back to the stock market, Nestle fell 9.05% and it closed at Rs6,191.10 on the BSE. The company’s product, Maggi noodles, was put to test for containing lead levels exceeding the prescribed limit and use of the taste-enhancer monosodium glutamate (MSG) without proper declaration. The Delhi government has decided to initiate a case against the company for selling an unsafe product and impose a financial penalty for misbranding.
ITC fell 4.59% to close at Rs304.25 on the BSE. The Maharashtra government's has decided to ban the sale of loose cigarettes. The state government has also banned chewing tobacco in public places, say reports.
NIIT Technologies rose 3.85% to close at Rs397.45 on the BSE. The stock was the top gainer in ‘A’ group on the BSE.
Unitech fell 35.27% to close at Rs8.70 on the BSE. It hit its 52-week low today. It denied on Wednesday what it called "false and misleading" market rumours of the company defaulting on repayments to lenders. It was the top loser in ‘A’ group on the BSE.
Coal India rose 0.81% to close at Rs386.70 on the BSE. It was the top gainer in the Sensex 30 pack. Tata Power fell 6.13% to close at Rs70.40 on the BSE. It was the top loser in the pack.
On Tuesday, US indices closed marginally lower.
Except for Hang Seng (0.69%), KLSE Composite (0.45%), SET Composite index of Thailand (0.35%) and Straits Times (0.27%) all the other Asian indices closed in the red. Jakarta Composite (1.60%) was the top loser.
The HSBC China Services Purchasing Managers' Index rose to an eight-month high of 53.5 in May, HSBC Holdings said with both new orders and employment in the sector rising to multi-year highs. Activity outside the nation's factories during the month also came in above April's 52.9 reading.
European indices were trading in the green.
US Futures too were trading higher.
Greece's creditors reportedly reached a consensus on the terms of a proposed deal to put to the Greek government, however, Athens has yet to agree on the terms. Greece faces a €300 million ($327 million) payment to the IMF on Friday.
The European Central Bank is widely expected to reaffirm its commitment to its quantitative easing scheme after a monetary policy meeting later in the day.