Key benchmark indices hovered in negative zone in morning trade. At 10:15 IST, the barometer index, the S&P BSE Sensex, was down 91.31 points or 0.36% at 25,194.06. The 50-unit Nifty 50 index was currently down 29.10 points or 0.38% at 7,675.15. The Sensex reversed direction after hitting its highest level in almost 11 weeks in opening trade. The barometer index rose 45.64 points or 0.18% at the day's high of 25,331.01 in opening trade, its highest level since 6 January 2016. The Sensex fell 107.56 points or 0.42% at the day's low of 25,177.81 in morning trade. The Nifty rose 6.85 points or 0.08% at the day's high of 7,711.10 at the onset of trading session. The index fell 35.10 points or 0.45% at the day's low of 7,669.15 in morning trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,049 shares rose and 669 shares fell. A total of 115 shares were unchanged. The BSE Mid-Cap index was currently up 0.6%. The BSE Small-Cap index was currently up 0.41%. Both these indices outperformed the Sensex.
In overseas stock markets, Asian stocks edged lower as investors refrained from taking bets ahead of the Good Friday holiday. US stocks closed slightly higher yesterday, 21 March 2016, steadying after five straight weeks of gains, led by telecommunications and health care stocks.
Capital goods stocks gained. Bharat Heavy Electricals (Bhel) (up 3.06%), BEML (up 3.44%), Bharat Electronics (up 1.76%), L&T (up 1.16%), Punj lloyd (up 1.54%) and Siemens (up 1.09%) gained. Crompton Greaves (down 0.63%), ABB India (down 0.06%) and Thermax (down 0.48%) declined.
Telecom stocks rose. Idea Cellular (up 0.2%), MTNL (up 0.09%), Tata Teleservices (Maharashtra) (up 2.68%) and Reliance Communications (up 0.48%) rose.
Bharti Airtel declined 1.34%. Bharti Airtel after market hours yesterday, 21 March 2016, announced that it has entered into a definitive agreement with American Tower Corporation through its subsidiary company, Airtel Tanzania, for the sale of approximately 1,350 of its communications towers in Tanzania. Under the agreement, American Tower may acquire up to approximately 100 additional sites currently in development for an additional consideration. Airtel will be the anchor tenant on the portfolio under a lease with a ten-year initial term. The tower sale agreements allow Airtel to focus on its core business and customers, besides helping deleverage through debt reduction, and significantly reducing the on-going capital expenditure on passive infrastructure. The transaction is expected to close during the first half of 2016, subject to customary closing conditions and regulatory approval.
Persistent Systems fell 4.4% to Rs 707.65, with the stock sliding on profit booking after the company announced plans to organize its business around four key growth strategies viz. digital, IBM alliance, services and Accelerite. The announcement was made after market hours yesterday, 21 March 2016. Shares of Persistent Systems witnessed a sharp rally over the past two trading sessions. The stock surged 13.31% in the preceding two trading sessions to settle at Rs 740.20 yesterday, 21 March 2016, from its close of Rs 653.20 on 17 March 2016.
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The digital domain combines a technology partner ecosystem, solutions and a unique architecture for enterprise digital transformation or the transformation to become software-driven in business. The IBM alliance focuses on the long-standing multi-dimensional relationship between Persistent Systems and IBM. The services segment focuses on services for software and product development. The Accelerite division focuses on products that include business-critical infrastructure software for enterprises, telecom operators, and the public sector.
On the macro front, data released by the Reserve Bank of India (RBI) after market hours yesterday, 21 March 2016, showed that India's current account deficit (CAD) narrowed to $7.1 billion or 1.3% of GDP in Q3 December 2015 from $8.7 billion or 1.7% of GDP in Q2 September 2015 and $7.7 billion or 1.5% of GDP in Q3 December 2014. The contraction in CAD was primarily on account of a lower trade deficit.
After moderating in Q2 September 2015, net foreign direct investment (FDI) again picked up and stood at $10.8 billion in Q3 December 2015. Net FDI inflows during April-December 2015 jumped 24.8% over the level during the corresponding period of the previous year.
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