Key benchmark indices hit fresh intraday low in afternoon trade as European stocks saw a subdued opening. At 13:16 IST, the barometer index, the S&P BSE Sensex, was down 72.81 points or 0.26% at 27,763.10. The Nifty 50 index was currently down 23.05 points or 0.27% at 8,569.15.
The Sensex fell 90.41 points or 0.32% at the day's low of 27,745.50 in afternoon trade, its lowest level since 11 August 2016. The barometer index rose 99.97 points or 0.35% at the day's high of 27,935.88 in early trade. The Nifty fell 27.30 points or 0.32% at the day's low of 8,564.90 in afternoon trade, its lowest level since 11 August 2016. The index rose 30.75 points or 0.35% at the day's high of 8,622.95 in early trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,423 shares declined and 1,008 shares rose. A total of 177 shares were unchanged. The BSE Mid-Cap index was currently up 0.04%. The BSE Small-Cap index was currently up 0.01%. Both these indices outperformed the Sensex.
In overseas stock markets, European equities were trading lower in early trading, with investors focusing on a speech by Federal Reserve Chairwoman Janet Yellen for hints about the timing of next rate hike from the Fed. Asian stocks witnessed a mixed trend. US stocks registered small losses yesterday, 25 August 2016, with healthcare stocks extending previous trading session's decline.
Investors are awaiting Yellen's speech today, 26 August 2016, which could provide hints about the timing of the next rate hike from the Fed. High US interest rates would pull money out of emerging markets and redirect it to the US. Yellen is due to speak at the Kansas City Fed's annual Monetary Policy Symposium in Jackson Hole, Wyoming. Minutes from the Federal Open Market Committee's (FOMC) July meeting showed officials were split on whether an increase in interest rate was needed soon.
Pharma Major Lupin was up 0.22% to Rs 1,526 after the company announced during trading hours today, 26 August 2016, that it has received tentative approval from the United States Food and Drug Administration (USFDA) to market a generic version of Apotex Technologies, Inc.'s Paxil CR Tablets, 12.5 mg, 25 mg and 37.5 mg. Lupin's generic drug Paroxetine Extended-Release Tablets USP, 12.5 mg, 25 mg and 37.5 mg are indicated for the treatment of major depressive disorder, panic disorder, social anxiety disorder and premenstrual dysphoric disorder. Apotex Technologies' Paxil CR had annual US sales of $127.4 million (IMS MAT June 2016).
Most metal shares edged lower. Hindustan Copper (down 2.01%), Jindal Steel & Power (down 1.78%), NMDC (down 1.72%), Steel Authority of India (down 0.82%), Tata Steel (down 0.7%), Vedanta (down 0.56%) and JSW Steel (down 0.09%), edged lower. Hindustan Zinc (up 0.27%), Bhushan Steel (up 0.84%) and Hindalco Industries (up 0.94%), edged higher.
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National Aluminium Company (Nalco) was flat at Rs 47.15 after the manager to the company's buyback offer made public announcement for the buyback of equity shares. Nalco proposes to buyback upto 64.43 crore equity shares at Rs 44 per share on proportionate basis through the tender offer route. The buyback offer aggregates to Rs 2834.96 crore. The buyback offer size represents 22.15% of the aggregate of the fully paid-up share capital and free reserves, as per the audited accounts of the company for the financial year ended 31 March 2015. The buyback offer opens on 30 August 2016 and closes on 14 September 2016. The promoter of the company viz. the Government of India (GoI) intends to participate in the buyback offer. As on 30 June 2016, GoI held 80.93% stake in Nalco. The company's board of directors had approved buyback on 25 May 2016.
Most FMCG shares declined. Dabur India (down 1.3%), Britannia Industries (down 1.25%), Jyothy Laboratories (down 0.77%), Godrej Consumer Products (down 0.63%), Marico (down 0.56%), Tata Global Beverages (down 0.53%), GlaxoSmithKline Consumer Healthcare (down 0.45%) and Hindustan Unilever (down 0.25%), edged lower. Nestle India (up 0.21%), Colgate Palmolive (India) (up 0.41%), Procter & Gamble Hygiene & Health Care (up 0.53%) and Bajaj Corp (up 1.28%), edged higher.
Meanwhile, RBI after trading hours yesterday, 25 August 2016, announced a package of measures for the development of fixed income and currency markets. The central said it has been decided to enhance the aggregate limit of partial credit enhancement (PCE) provided by banks, permit brokers in corporate bond repos, authorise the platform for repo in corporate bonds and encourage credit supply for large borrowers through market mechanism. The RBI has allowed banks to issue issue rupee bonds overseas (Masala Bonds) for their capital requirements and for financing infrastructure and affordable housing.
Foreign Portfolio Investors (FPIs) will be given direct access to NDS-OM to ease the process of investment in debt securities. The RBI said it has also been decided to provide FPIs facility to trade directly in corporate bonds.
Meanwhile, the India Meteorological Department (IMD) in its monsoon update issued yesterday, 25 August 2016, said that for the country as a whole, cumulative rainfall during this year's monsoon so far (till 25 August 2016) was 3% below the long period average (LPA).
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