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Benchmarks trade almost flat

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Capital Market
Last Updated : May 21 2018 | 9:50 AM IST

Key benchmark indices were trading almost flat in early trade. At 9:28 IST, the barometer index, the S&P BSE Sensex, was down 8.27 points or 0.02% at 34,840.03. The Nifty 50 index was almost flat at 10,596.45.

Among secondary barometers,the BSE Mid-Cap index was down 0.53%. The BSE Small-Cap index was down 0.31%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative. On BSE, 634 shares rose and 815 shares fell. A total of 80 shares were unchanged.

Overseas, most Asian shares were trading higher as weekend developments in the US-China trade relationship were digested by investors.

The US trade war with China is on hold after the world's largest economies agreed to drop their tariff threats while they work on a wider trade agreement, US Treasury Secretary Steven Mnuchin reportedly said on Sunday. Mnuchin and US President Donald Trump's top economic adviser, Larry Kudlow, said the agreement reached by Chinese and American negotiators on Saturday set up a framework for addressing trade imbalances in the future, reports added.

US stocks closed mostly lower on Friday, 18 May 2018, as investors grappled with lingering uncertainty over trade negotiations between the US and China, as well as bond yields that climbed this week to the highest level since 2011.

A focus for global markets this week is Wednesday's release of minutes from the Federal Reserve's latest monetary policy meeting. Investors will be watching the minutes for clues about the pace of the current tightening cycle.

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Back home, Tata Steel was up 0.69%. The company announced that Bamnipal Steel (BNPL), a wholly-owned subsidiary of Tata Steel has successfully completed the acquisition of controlling stake of 72.65% in Bhushan Steel (BSL) in accordance with the approved Resolution Plan under the Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code 2016 (IBC). The announcement was made after market hours on Friday, 18 May 2018.

The admitted CIRP cost and employee dues have been paid, as required under IBC. Further, settlement of the amounts equivalent to Rs 35200 crore towards financial creditors of BSL is being undertaken as per the terms of the resolution plan and corresponding transaction documents Rs 1200 crore will be paid to the operational creditors of BSL over a period of 12 months as per their admitted claims and as per the terms of the approved Resolution Plan.

Indiabulls Real Estate was down 4.23%. The company said that the board of directors of the company has, at its meeting held on 18 May 2018, has approved the proposal of buy-back of up to 2.6 crore fully paid-up equity shares of Rs 2 each of the company, being approx. 5.45% of existing paid-up share capital of the company, at prevailing market price on stock exchanges subject to a price not exceeding Rs 240 per equity share, aggregating up to an amount not exceeding Rs 624 crore, being less than 10% of total paid-up share capital and free reserves of the company from the open market through the stock exchange mechanism. The announcement was made after market hours on Friday, 18 May 2018.

Indoco Remedies was up 1.05%. The company announced the successful completion of USFDA inspection of API manufacturing facilities at Patalganga and Rabale, Navi Mumbai. The routine FDA inspection was conducted at Patalganga facility from 7 to 11 May 2018 and Kilo Lab facility at Rabale from 14 to 17 May 2018. During the audit, the FDA thoroughly inspected Indoco's entire quality management systems to ensure compliance with federal regulations. The announcement was made after market hours on Friday, 18 May 2018.

The inspection included a review of production facility, processes and procedures, training records, quality systems and control procedures. The Kilo Lab facility received zero 483s from the agency, while its API plant at Patalganga cleared the inspection with 3 observations; none of them are critical or pertain to data integrity.

Bajaj Holdings & Investment was down 2.04%. The company's consolidated net profit rose 42.37% to Rs 801.25 crore on 22.72% rise in total income to Rs 222.57 crore in Q4 March 2018 over Q4 March 2017. The announcement was made after market hours on Friday, 18 May 2018.

Sheela Foam was up 3.53%. The company's consolidated net profit rose 92.69% to Rs 32.16 crore on 14.43% rise in total income to Rs 534.56 crore in Q4 March 2018 over Q4 March 2017. The announcement was made after market hours on Friday, 18 May 2018.

On the political front, the much-awaited Karnataka floor test ended in an anti-climax of sorts with BS Yeddyurappa, who took oath as the Chief Minister on Thursday, 17 May 2018, resigned on Saturday, 19 May 2018, after he failed to secure the magic number of 112 required to form the government. Janata Dal (Secular) leader HD Kumaraswamy will now be sworn in as Chief Minister on Wednesday, 23 May 2018.

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First Published: May 21 2018 | 9:28 AM IST

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