A range bound movement was witnessed as key benchmark indices hovered in green in morning trade. At 10:17 IST, the barometer index, the S&P BSE Sensex, was up 33.59 points or 0.12% at 28,185.99. The Nifty 50 index was up 7.25 points or 0.08% at 8,679.40. The Sensex rose 46.70 points, or 0.17% at the day's high of 28,199.10 in morning trade. The index fell 61.55 points, or 0.22% at the day's low of 28,090.85 at the onset of trading session. The Nifty rose 10.20 points, or 0.12% at the day's high of 8,682.35 in morning trade. The index fell 25.05 points, or 0.29% at the day's low of 8,647.10 at the onset of trading session.
The market breadth indicating the overall health of the market turned negative from positive in morning trade. On BSE, 1,029 shares fell and 1,022 shares rose. A total of 113 shares were unchanged. The BSE Mid-Cap index was currently up 0.72%. The BSE Small-Cap index was currently up 0.21%. Both these indices outperformed the Sensex.
In overseas markets, most Asian stocks edged lower as fresh record closing highs in the US overnight failed to boost sentiment. All three main indices in the US closed at record high yesterday, 15 August 2016, thanks in part to a sharp uptick in oil prices, which boosted energy and materials shares.
InterGlobe Aviation (up 2.21%) and Piramal Enterprises (up 1.81%) edged higher while Reliance Communications (down 0.41%) and Rural Electrification Corporation (down 0.44%) edged lower after the National Stock Exchange of India (NSE) announced changes in the Nifty Next 50 index with effect from 30 September 2016. NSE in a circular dated Friday, 12 August 2016, decided to include InterGlobe Aviation and Piramal Enterprises in the Nifty Next 50 index with effect from 30 September 2016. Reliance Communications and Rural Electrification Corporation will be excluded from Nifty Next 50 index effective 30 September 2016.
Shares of most public sector oil marketing companies (PSU OMCs) rose. BPCL (up 1.39%) and HPCL (up 0.07%), edged higher. Indian Oil Corporation (IOCL) was down 0.04%. IOCL announced reduction in prices of petrol and diesel with effect from midnight of 15 August 2016/16 August 2016. Petrol prices were reduced by Re 1 a litre at Delhi (including state levies) with corresponding price revision in other states. With this change, the price of petrol in Delhi becomes Rs 60.09 a litre. Diesel prices were decreased by Rs 2 a litre at Delhi (including state levies) with corresponding price revision in other states. With this change, the price of Diesel in Delhi becomes Rs 50.27 a litre.
Shares of oil exploration and production companies rose as crude oil prices rose overnight. ONGC (up 0.94%), Cairn India (up 0.41%), Oil India (up 0.37%) and Reliance Industries (up 0.17%) edged higher. Higher crude oil prices will result in higher realization for these firms from crude sales if the higher price levels are sustained.
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In the global commodities markets, Brent crude oil futures edged lower. Brent for October settlement was currently down 31 cents at $48.04 a barrel. The contract had risen $1.38 a barrel or 2.94% to settle at $48.35 a barrel during the previous trading session.
Most IT shares declined. MindTree (down 1.54%), Oracle Financial Services Software (down 1.35%), Tech Mahindra (down 0.84%), Wipro (down 0.47%), Hexaware Technologies (down 0.35%) and TCS (down 0.31%), edgd lower. Persistent Systems (up 0.73%), MphasiS (up 1.08%) and HCL Technologies (up 1.16%), edged higher.
Infosys edged lower after the company lost contract from Royal Bank of Scotland (RBS) as RBS decided not to pursue its plan to separate and list a new UK standalone bank, Williams & Glyn (W&G). The stock was down 1.7%. Subsequent to this decision by RBS, Infosys will carry out an orderly ramp-down of about 3,000 persons, primarily in India, over the next few months. Infosys was a W&G program technology partner for consulting, application delivery and testing services. Infosys said in a statement that RBS is a key relationship for Infosys and that the company looks forward to further strengthening its strategic partnership and working with RBS across other strategic and transformation programs.
On the macro front, the all-India general Consumer Price Index-based (CPI) inflation increased to 6.07% in July 2016, compared with 5.77% in June 2016. The corresponding provisional inflation rate for rural area was 6.66% and urban area 5.39% in July 2016 as against 6.29% and 5.26% in June 2016. The data was released after market hours on Friday, 12 August 2016.
India's industrial production (IIP) expanded 2.1% in June 2016 from a year earlier. The rise was primarily led by expansion in electricity and mining production. The data was released after market hours on Friday, 12 August 2016.
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