Key benchmark indices declined for the second trading session in a row led by losses in IT stocks and index heavyweight Reliance Industries (RIL). The barometer index, the S&P BSE Sensex, fell 67.98 points or 0.24% at 27,996.63, as per the provisional closing data. The Nifty 50 index fell 18.50 points or 0.21% to 8,624.05, as per the provisional closing data. The Sensex provisionally settled 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, 1,456 shares rose and 1,256 shares fell. A total of 172 shares were unchanged. The BSE Mid-Cap index provisionally rose 0.69%. The BSE Small-Cap index provisionally rose 0.55%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2839 crore, lower than turnover of Rs 3314.56 crore registered during the previous trading session.
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.
Hero MotoCorp rose 1.98% after Sunil Kant Munjal resigned from the board of directors of the company as part of a realignment of business interest amongst the promoter Munjal family. Sunil Kant Munjal's resignation from the company's board of directors comes as his tenure as the Joint Managing Director of the company ended yesterday, 16 August 2016. Hero MotoCorp (HMCL) announced on 28 July 2016 that Sunil Kant Munjal decided to step down as Joint Managing Director of the company as part of a realignment of business interest amongst the promoter Munjal family. Sunil Kant Munjal will focus on his independent and core businesses, and will pursue new business interests. This realignment will not impact the overall promoter shareholding, strategic direction or operational management of the company, HMCL had said at that time. Sunil Kant Munjal will henceforth not be classified as a promoter of the company. However, he will continue to hold 32,500 equity shares of the company representing 0.02% of the issued and paid up share capital of the company in his individual capacity.
On 9 August 2016, the board of directors of the company reappointed Pawan Munjal as the Chairman, Managing Director & Chief Executive Officer of the company for a period of five years with effect from 1 October 2016. His current tenure comes to an end on 30 September 2016. The total holding of promoters in HMCL stood at 34.64% as on 30 June 2016.
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Infosys lost 1.52%, 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.
Most metal shares rose. Steel Authority of India (up 4.45%), NMDC (up 3.45%), Tata Steel (up 3.19%), JSW Steel (up 1.25%), Jindal Steel & Power (up 1.11%), Hindalco Industries (up 1.10%), Vedanta (up 0.71%) and Bhushan Steel (up 0.62%), edged higher. Hindustan Copper (down 0.16%), National Aluminium Company (down 0.32%) and Hindustan Zinc (down 1.74%), edged lower.
Meanwhile, copper price edged lower in the global commodities markets. High Grade Copper for September 2016 delivery was currently down 1.04% at $2.1495 per pound on the COMEX.
Reliance Industries lost 1.09%, with the stock extending losses registered during the previous trading session triggered by media reports that the petroleum ministry has slapped a penalty of nearly $250 million on the company to make good the government's loss of "profit petroleum" owing to the firm's inability to meet the natural gas production targets from the Krishna-Godavari (KG) D6 block. The stock had fallen 1.04% to settle at Rs 1,024.20 yesterday, 16 August 2016. The KG-D6 fields started production in April 2009. The current production of around 8 million metric standard cubic metres per day (mmscmd) is a far cry from the peak of over 69 mmscmd achieved in early 2010, reports suggested. The block was envisaged to produce more than 80 mmscmd of the fuel, reports indicated. Profit petroleum is the main source of revenue for the government from a hydrocarbon block.
Lupin rose 0.16%. The company announced during trading hours today, 17 August 2016, that its US subsidiary, Gavis Pharmaceuticals LLC., U.S.A. has received final approval from the United States Food and Drug Administration (USFDA) to market a generic equivalent of Actavis Labs FL, Inc's potassium chloride extended release capsules USP, 8 mEq and 10 mEq. The drug is indicated for the treatment of patients with hypokalemia, with or without metabolic alkalosis, in digitalis intoxications and in patients with hypokalemic familial periodic paralysis. It is also indicated for the prevention of hypokalemia in patients who would be at a particular risk if hypokalemia were to develop, e.g., digitalized patients or patients with significant cardiac arrhythmias. The drug had annual US sales of $75.4 million, as per IMS MAT June 2016 data.
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