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Market ekes out small gains in early trade

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Capital Market
Last Updated : Feb 12 2019 | 9:50 AM IST

Domestic stocks eked out small gains in early trade ahead of release of key domestic macro economic data. At 9:27 IST, the barometer index, the S&P BSE Sensex, was up 9.28 points or 0.03% at 36,404.31. The Nifty 50 index was up 3.60 points or 0.03% at 10,892.40.

On the macro front, data of Consumer Price Index (CPI) for January and Index of Industrial Production (IIP) for December 2018 is slated to be released later in the day.

The S&P BSE Mid-Cap index was up 0.26%. The S&P BSE Small-Cap index was down 0.02%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 628 shares rose and 595 shares fell. A total of 62 shares were unchanged.

Overseas, most Asian stocks rose with investors looking to a new round of Sino-US trade talks as the world's two largest economies try to resolve a tariff dispute that has put a dent on global growth and corporate earnings.

US stocks closed mostly higher Monday after a choppy session as a round of US-China tariff negotiations in Beijing commenced and as the threat of another partial government shutdown loomed.

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The latest round of trade negotiations between the US and China began Monday with working-level talks in Beijing, while Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer are reportedly due to arrive Thursday for more high-level discussions.

In Europe, the UK, meanwhile, is bracing to exit the European Union on March 29 with or without a trade agreement in hand.

Back home, Axis Bank fell 0.93% to Rs 703.75. The Specified Undertaking of the United Trust of India (SUUTI) proposes to sell up to 5.07 crore (1.98%) equity shares of face value of Rs 2 each of Axis Bank on 12 February 2019 ("T day"), (for non-retail investors only) and on 13 February 2019 ("T+1 day") (for retail investors and non-retail investors who choose to carry forward their un-allotted bids) with an option to additionally sell 2.63 crore (1.02%) equity shares of the company (the "oversubscription option").

The offer shall take place on a separate window of the stock exchanges on 12 February 2019 ("T" day) and 13 February 2019 ("T+1"day) from 9:15 a.m. to 3:30 p.m. (Indian Standard Time) on both days, as per details given below. The floor price for the offer shall be Rs 689.52 per equity share. As on 31 December 2018, SUUTI held 9.289% stake in Axis Bank. The announcement was made after market hours yesterday, 11 February 2019.

Indian Overseas Bank shed 0.08%. Indian Overseas Bank announced that the Reserve Bank of India (RBI) has levied a penalty of Rs 1.5 crore on the bank for non-monitoring of end use of funds and delay in reporting of fraud in respect of one of its borrowers. The bank has taken necessary measures to strengthen internal controls to avoid such recurrence. The announcement was made after market hours yesterday, 11 February 2019.

Alembic Pharmaceuticals lost 2.3%. Alembic Pharmaceuticals announced that Aleor Dermaceuticals (Aleor), a 60:40 joint venture between Alembic Pharmaceuticals (Alembic) and Orbicular Pharmaceutical Technologies (Orbicular), has completed United States Food and Drug Administration (USFDA) inspection at its formulation manufacturing facility located at Karakhadi, Gujarat, India; with two observations. The inspection was carried out from 4 February 2019 to 8 February 2019. The announcement was made after market hours yesterday, 11 February 2019.

Gulf Oil Lubricants India rose 0.14%. Gulf Oil Lubricants India announced its association with Mahindra Logistics (MLL), one of India's largest 3PL solution providers, to strengthen its supply chain and to implement its post GST supply chain consolidation strategy which is focused on achieving efficiencies in total cost. As part of this association, a Central Distribution Center (CDC) has been set up in Chennai with state-of-art Warehouse Management Systems (WMS) to serve the entire product portfolio of Gulf Oil. MLL is the first 3PL company to work with Gulf Oil and will handle this fully compliant warehouse, the first CDC of its kind for them. Gulf Oil has plans to open similar large format warehouses, across the country soon. The announcement was made after market hours yesterday, 11 February 2019.

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First Published: Feb 12 2019 | 9:27 AM IST

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