A bout of volatility was witnessed in early afternoon trade as key benchmark indices slipped into the red once again after regaining positive terrain. The losses were small. At 12:25 IST, the barometer index, the S&P BSE Sensex was down 4.63 points or 0.02% at 27,777.62. The Nifty 50 index was currently down 2.80 points or 0.03% at 8,569.75. Weakness in most of the Asian stocks weighed on sentiment.
Key indices alternately hovered between positive and negative terrain within a narrow range so far during the session. The Sensex fell 83.54 points or 0.3% at the day's low of 27,698.71 in morning trade. The barometer index rose 45.01 points or 0.16% at the day's high of 27,827.26 in opening trade. The Nifty fell 28.80 points or 0.33% at the day's low of 8,543.75 in morning trade, its lowest level since 11 August 2016. The index rose 11.20 points or 0.13% at the day's high of 8,583.75 in opening trade.
In overseas stock markets, Asian stocks edged lower after Federal Reserve Chairwoman Janet Yellen on Friday, 26 August 2016 signaled the possibility of an interest-rate increase later this year. Investors tend to pull money out of assets in emerging markets and redirect it to the assets in US if there is a hike in US interest rates in their search for higher yields in the US. But, Japanese shares bucked a weak trend in Asian stocks, boosted by a relatively weaker yen. Japan's Nikkei Average settled 2.3% higher.
US stocks closed mixed on Friday, 26 August 2016 after Federal Reserve Chairwoman Janet Yellen signaled the possibility of an interest-rate increase later this year. On Friday, 26 August 2016, Yellen in her highly-anticipated speech at an economic symposium at Jackson Hole, Wyoming said she was optimistic about the US economy, fueling expectations that interest rate hikes were ahead. She said the Federal Open Market Committee continued to anticipate gradual increases in the federal funds rate over time to achieve and sustain employment and inflation in line with the Fed's objectives. She added that the solid performance in the US labor market and outlook for economic activity and inflation had strengthened the case in recent months for an increase in the federal funds rate.
Closer home, the market breadth indicating the overall health of the market was negative. On BSE, 1,265 shares fell and 1,051 shares rose. A total of 158 shares were unchanged. The BSE Mid-Cap index was currently up 0.07%. The BSE Small-Cap index was currently up 0.16%. Both these indices outperformed the Sensex.
Dr Reddy's Laboratories declined 0.06%. The company announced that it has launched Nitroglycerin sublingual tablets USP, 03 mg, 0.4 mg and 0.6 mg, a therapeutic equivalent generic version of Nitrostat (Nitroglycerin) sublingual tablets in the US market on 26 August 2016. The drug was already approved by the United States Food & Drug Administration (USFDA). The announcement was made during market hours today, 29 August 2016. The Nitrostat (Nitroglycerin) sublingual tablet brand had US sales of around $108 million for the most recent twelve months ending in March 2016, according to IMS Health.
Shares of power generation and power distribution companies edged lower. Torrent Power (down 0.59%), GVK Power & Infrastructure (down 3.66%), NHPC (down 0.37%), Tata Power Company (down 0.4%), NTPC (down 0.22%), Adani Power (down 0.18%), Power Grid Corporation of India (down 1.46%), Reliance Infrastructure (down 0.92%) and Reliance Power (down 0.1%) declined.
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Shares of state run coal miner Coal India declined 0.4% to Rs 332.10. The stock hit high of Rs 333.15 and low of Rs 330.35 so far during the day.
The BSE Power index had outperformed the market over the past one month till 26 August 2016, gaining 0.89% compared with 0.69% slide in the Sensex. The index had also outperformed the market in past one quarter, rising 11.11% as against Sensex's 5.37% rise.
Cement stocks dropped. ACC (down 0.63%), Shree Cement (down 0.56%), Ambuja Cements (down 0.7%), and UltraTech Cement (down 0.49%) declined.
Grasim Industries declined 0.17%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Shares of index heavyweight and cigarette maker ITC fell 0.69% to Rs 252 after a bulk deal of 8 lakh shares was executed on the scrip at Rs 252.10 per share in early trade on BSE.
Gujarat Industries Power Company fell 1.32% after net profit rose 1.74% to Rs 54.97 crore on 4.56% rise in total income to Rs 358.30 crore in Q1 June 2016 over Q1 June 2015. The company announced its Q1 result during market hours today, 29 August 2016.
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