Key benchmark indices hovered in the positive terrain in mid-morning trade. At 11:20 IST, the barometer index, the S&P BSE Sensex rose 142.30 points or 0.45% at 31,738.36. The Nifty 50 advanced 50.35 points or 0.51% at 9,907.40. Most of the gains on indices were contributed by jump in IT index heavyweight Infosys following announcement of an overhaul of its board of directors.
After opening with modest gains, key indices extended gains in morning trade. Stocks hovered in the positive terrain in mid-morning trade.
The S&P BSE Mid-Cap index rose 0.88%. The S&P BSE Small-Cap index advanced 0.83%. Both these indices outperformed the Sensex.
The broad market depicted strength. There were almost two gainers against every loser on BSE. 1,473 shares rose and 740 shares fell. A total of 120 shares were unchanged
Capital goods stocks gained. Bharat Heavy Electricals (Bhel) (up 0.83%), Havells India (up 1.5%), ABB India (up 0.58%), Bharat Electronics (up 0.54%), Thermax (up 0.26%), and Siemens (up 0.92%) gained.
L&T rose 1.83% after the company said that its construction division won orders valued at Rs 1975 crore across various business segments. The announcement was made during market hours today, 28 August 2017.
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Telecom stocks rose across the board. Bharti Airtel (up 0.61%), Tata Teleservices (Maharashtra) (up 0.74%) Reliance Communications (up 1.97%) and Idea Cellular (up 0.67%) gained.
Shares of Bharti Infratel gained 0.89%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Dr Reddy's Laboratories lost 2.21% after the company said a law firm representing a purported investor in the company filed a purported class action lawsuit against the company. The announcement was made during market hours today, 28 August 2017.
Dr Reddy's Laboratories said that on 25 August 2017, a law firm representing a purported investor in the company, filed a purported class action lawsuit against the company, its CEO, and CFO, in the United States District Court for the District of New Jersey alleging violations of the US federal securities laws. The plaintiff in the lawsuit purports to represent a class of investors who purchased or otherwise acquired the company's publicly traded shares on the New York Stock Exchange between 17 June 2015 through 10 August 2017.
The lawsuit alleged that the company made materially false and/or misleading statements or omissions in connection with its corporate quality system, and specifically in connection with a warning letter from the US Food and Drug Administration dated 6 November 2015, and a letter from the Regierung von Oberbayem in Germany dated 10 August 2017. The lawsuit sought damages to compensate the purported class of investors for a purported decline in the company's share price allegedly caused by the alleged misstatements or omissions.
Dr Reddy's said it has not yet been served with the lawsuit. Dr Reddy's added that it cannot comment on the specific allegations in the pending litigation other than to state that the company believes the asserted claims to be without merit. The company will respond to the allegations after it has been served with the lawsuit and as and when it may be required to do so by the Court, Dr Reddy's said in a statement.
Meanwhile, NITI Aayog's 3-year Action Agenda was reportedly unveiled by the Union Finance Minister Arun Jaitley, along with Minister of State for Petroleum and Natural Gas Dharmendra Pradhan and NITI Aayog Vice Chairman Arvind Panagariya. The Action Agenda is an integral part of the 15-year Vision Document of India being drafted by the NITI Aayog. Think-tank NITI Aayog's three-year action plan (2017-2020) has suggested shifting the composition of expenditures by allocating a larger proportion of additional revenues that become available over time to high-priority sectors. It has replaced the 5-year plan of the erstwhile Planning Commission and would be soon followed by a 15-year vision document and a 7-year strategy document.
Overseas, Asian stocks were mixed after US and European central bankers didn't provide fresh policy guidance. US stock benchmarks finished with slight gains on Friday, 25 August 2017, halting weekly skids as European Central Bank President Mario Draghi and Federal Reserve Chairwoman Janet Yellen delivered speeches at Jackson Hole, Wyo.
Yellen said the economy was stabilizing but made no specific remarks about monetary policy during her speech at the gathering of central bankers in Wyoming. Later Friday, Draghi said recoveries taking place in global economies are firming, though he said it was "at an earlier stage" in Europe and Japan.
Also at the Jackson Hole symposium, Bank of Japan Governor Haruhiko Kuroda said the recent pace of growth in the world's third-largest economy is probably unsustainable and pledged to continue with very accommodative monetary policy for some time because the BOJ is far from its inflation target.
The consumer price index for Japan in July 2017 was at 100.1, up 0.4% over the past year and the same level as the previous month on a seasonally adjusted basis.
New orders for manufactured durable goods in July decreased by $16.7 billion or 6.8% to $229.2 billion, the US Census Bureau announced.
On the geopolitical front, North Korea fired three ballistic missiles over the weekend and Secretary of State Rex Tillerson said on Sunday, 27 August 2017 that the US will continue to push for negotiations to deescalate nuclear tensions on the Korean peninsula despite the provocative acts.
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