A bout of volatility was witnessed as key benchmark indices recovered after extending intraday slide in afternoon trade. At 14:17 IST, the barometer index, the S&P BSE Sensex, was off 75.49 points or 0.27% at 27,989.12. The losses for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty was currently off 30.35 points or 0.35% at 8,612.20. The Sensex was currently trading below the psychologically important 28,000 mark. The index fluctuated alternately above and below that level in intraday trade after falling below that mark in afternoon trade. Losses for Asian and European stocks weighed on the domestic bourses.
The Sensex fell 104.47 points, or 0.37% at the day's low of 27,960.14 in mid-afternoon session. The index rose 109.69 points, or 0.39% at the day's high of 28,174.30 in early afternoon trade. The Nifty fell 38.95 points, or 0.45% at the day's low of 8,603.60 in mid-afternoon trade. The index rose 24.55 points, or 0.28% at the day's high of 8,667.10 in early afternoon trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,361 shares rose and 1,218 shares fell. A total of 184 shares were unchanged. The BSE Mid-Cap index was currently up 0.37%. The BSE Small-Cap index was currently up 0.51%. Both these indices outperformed the Sensex.
In overseas stock markets, European stocks edged lower ahead of the closely-watched release of the US Federal Reserve's latest minutes. Most Asian stocks fell after New York Fed President William Dudley said the Federal Reserve could raise interest rates as soon as September, prompting investors to pause after rallies in recent weeks. Chinese shares slipped after leaders approved a plan to give foreign investors more access to Chinese equities through Hong Kong. In mainland China, the Shanghai Composite index closed 0.02% lower. In Hong Kong, the Hang Seng index ended 0.48% lower. China's Cabinet announced approval of an initiative that would give foreign investors more access to Chinese stocks by linking exchanges in Hong Kong and the mainland city of Shenzhen.
US stocks eased from record highs yesterday, 16 August 2016, with the S&P 500 losing 0.55% as investors weighed hawkish comments by Federal Reserve officials against sharp gains for oil futures, a weakening dollar and fresh consumer-price data that showed US inflation remains tepid. Dudley said a rate hike in September was possible, while Atlanta Fed President Dennis Lockhart said the US economy is likely strong enough for at least one rate increase before the end of 2016, with two a possibility. Dudley cited evidence of wage gains and a tighter labor market that could boost inflation. Their comments came ahead of an annual meeting of central bankers from around the world in Jackson Hole, Wyoming, next week.
Most pharmaceutical shares edged higher. GlaxoSmithKline Pharmaceuticals (up 2.34%), Aurobindo Pharma (up 1.67%), Cadila Healthcare (up 1.62%), Wockhardt (up 1.27%), IPCA Laboratories (up 1.23%), Divi's Laboratories (up 0.80%), Biocon (up 0.30%), Lupin (up 0.19%), Sun Pharmaceutical Industries (up 0.19%) and Glenmark Pharmaceuticals (up 0.15%), edged higher. Dr Reddy's Laboratories (down 0.21%), Alkem Laboratories (down 0.68%), Cipla (down 0.92%) and Strides Shasun (down 1.39%), edged lower.
More From This Section
Piramal Enterprises (PEL) rose 1.92% to Rs 1,814.25 after the company's announcement that its wholly owned US subsidiary has entered into an agreement to acquire 100% stake in Ash Stevens Inc, a US-based contract development and manufacturing organisation (CDMO), in an all cash deal. PEL will pay $42.95 million for the acquisition. There will be additional earn-out consideration capped at $10 million, subject to achievement of certain EBITDA targets, payable over the next six months. The transaction is expected to be completed by end of August, PEL said. This acquisition adds niche potent molecule manufacturing capabilities to the portfolio of services offered by PEL's pharma solutions business, the company said. Ash Stevens reported revenue of about $18.3 million in FY 2015 (twelve months ended 30 September 2015). The announcement was made after market hours yesterday, 16 August 2016.
State-run banks were in demand. Indian Bank (up 5.55%), Central Bank of India (up 4.82%), Corporation Bank (up 1.84%), Canara Bank (up 1.62%), Punjab National Bank (up 1.59%), Allahabad Bank (up 1.56%), Union Bank of India (up 1.54%), Bank of Baroda (up 0.97%), Syndicate Bank (up 0.90%), Dena Bank (up 0.82%), Vijaya Bank (up 0.79%), Bank of India (up 0.67%), UCO Bank (up 0.50%), IDBI Bank (up 0.37%), Andhra Bank (up 0.36%) and United Bank of India (up 0.23%), edged higher. Bank of Maharashtra (down 0.16%) and State Bank of India (down 0.39%), edged lower.
Stocks of private sector banks witnessed a mixed trend. Federal Bank (down 1.77%), Kotak Mahindra Bank (down 0.97%), IndusInd Bank (down 0.8%), ICICI Bank (down 0.32%), City Union Bank (down 0.19%), edged lower. HDFC Bank (up 0.33%), Yes Bank (up 0.38%) and Axis Bank (up 1.09%), edged higher.
Infosys lost 1.39% to Rs 1,036.35, with the stock extending previous trading session's decline triggered by the company's announcement that it had lost a contract from Royal Bank of Scotland. The stock had fallen 1.16% to settle at Rs 1,050.95 yesterday, 16 August 2016. The company announced before market hours yesterday, 16 August 2016, about losing a 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). Subsequent to this decision by RBS, Infosys will carry out an orderly ramp-down of about 3,000 employees, primarily in India, over the next few months. Infosys was a W&G program technology partner for consulting, application delivery and testing services. As per reports, the decision of RBS will impact revenues of Infosys for the year ending 31 March 2017 (FY 2017) by about $40 million.
KNR Constructions surged 6.61% to Rs 683.05, with the stock extending previous session's gains triggered by the company posting robust Q1 results. Shares of KNR Constructions rose 2.97% to Rs 640.70 yesterday, 16 August 2016 after the company announced strong Q1 results. The company's net profit jumped 86.6% to Rs 30.21 crore on 73.9% growth in net sales to Rs 303.64 crore in Q1 June 2016 over Q1 June 2015. The result was announced on Sunday, 14 August 2016. The stock market remained closed on 15 August 2016 for a holiday.
Powered by Capital Market - Live News