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Lackluster trading on the bourses

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Last Updated : Aug 25 2017 | 12:01 AM IST

Market continued with its lackluster trading in early afternoon trade. At 12:15 IST, the barometer index, the S&P BSE Sensex rose 12.46 points or 0.04% at 31,580.47. The Nifty 50 advanced 0.55 point or 0.01% at 9,853.05. Market sentiment was lackluster amid pale trading in Asian bourses and lower closing on the Wall Street.

Key indices opened the session with small gains. Later, indices hovered within a narrow range near the flat line amid lack of any positive cues.

The S&P BSE Mid-Cap index rose 0.41%. The S&P BSE Small-Cap index advanced 0.35%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was positive. On the BSE, 1,285 shares rose and 1,016 shares declined. A total of 123 shares were unchanged.

Auto stocks edged higher. Tata Motors (up 0.83%), Eicher Motors (up 0.65%), Hero MotoCorp (up 0.25%) and Mahindra & Mahindra (up 0.16%) gained. Bajaj Auto (down 1.58%) and Maruti Suzuki India (down 0.81%) declined.

Realty stocks declined. Sobha (down 1.45%), Indiabulls Real Estate (down 1.09%), Unitech (down 0.95%), DLF (down 0.24%), HDIL (down 0.08%) and Oberoi Realty (down 0.08%) edged lower. D B Realty (up 1.95%) and Godrej Properties (up 0.52%) gained.

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On the macro front, the Union Cabinet chaired by the Prime Minister Narendra Modi yesterday, 23 August 2017, given in-principle approval for PSBs to amalgamate through an Alternative Mechanism (AM). The decision would facilitate consolidation among the Nationalised Banks to create strong and competitive banks.

The decision regarding creating strong and competitive banks would be solely based on commercial considerations. The proposal must start from the boards of banks. The proposals received from banks for in-principle approval to formulate schemes of amalgamation shall be placed before the Alternative Mechanism (AM). After in-principle approval, the banks will take steps in accordance with law and Sebi's requirements. The final scheme will be notified by Central Government in consultation with the Reserve Bank of India.

Overseas, Asian stocks witnessed a mixed trend. US stocks closed lower yesterday, 23 August 2017 after President Donald Trump said he would be willing to let the government shut down if his border wall isn't funded. Delivering a warning to Democratic lawmakers who have objected to his plans to construct a wall along the US-Mexico frontier, Trump called them obstructionists and said that it was time for the US to crack down on illegal immigration.

In economic news, the Commerce Department said yesterday, 23 August 2017 that new home sales in US declined 9.4% to a seasonally adjusted annual rate of 571,000 units last month, the lowest level since December 2016.

Meanwhile, the annual Jackson Hole Economic Policy Symposium is scheduled tomorrow, 25 August 2017 in Wyoming. Representatives from the central banks of more than 40 countries will attend the annual gathering, hosted by the Federal Reserve Bank of Kansas City.

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First Published: Aug 24 2017 | 12:14 PM IST

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