Key benchmark indices hovered with small gains in mid-afternoon trade. At 14:15 IST, the barometer index, the S&P BSE Sensex rose 78.71 points or 0.25% at 31,646.72. The Nifty 50 advanced 13.45 points or 0.14% at 9,865.95.
Key indices opened the session with small gains. Later, indices hovered within a narrow range near the flat line amid lack of any positive cues. Market firmed up in afternoon trade following a positive opening in European stock markets. Later, indices hovered in a small range in positive zone near the flat line.
The S&P BSE Mid-Cap index rose 0.61%. The S&P BSE Small-Cap index advanced 0.5%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was positive. On the BSE, 1,381 shares rose and 1,089 shares declined. A total of 134 shares were unchanged.
Aviation stocks declined. InterGlobe Aviation (down 2.19%), Jet Airways (India) (down 0.71%) and SpiceJet (down 0.58%) edged lower.
Capital goods stocks were mixed. Suzlon Energy (down 0.61%), BEML (down 0.51%), ABB India (down 0.81%) and Bharat Heavy Electricals (down 0.31%) declined. Thermax (up 0.01%), Havells India (up 1.42%), Siemens (up 1.04%), Bharat Electronics (up 0.98%) and L&T (up 0.6%) gained.
Shivalik Bimetal Controls jumped 5.41% at Rs 80.90 after the company said its board approved issue of bonus shares in the ratio 1:1. The announcement was made after market hours yesterday, 23 August 2017.
On the macro front, the Union Cabinet chaired by the Prime Minister Narendra Modi yesterday, 23 August 2017, given in-principle approval for the public sector banks (PSBs) to amalgamate through an Alternative Mechanism (AM). The decision would facilitate consolidation among the Nationalised Banks to create strong and competitive banks.
The decision regarding creating strong and competitive banks would be solely based on commercial considerations. The proposal must start from the boards of banks. The proposals received from banks for in-principle approval to formulate schemes of amalgamation shall be placed before the Alternative Mechanism (AM). After in-principle approval, the banks will take steps in accordance with law and Sebi's requirements. The final scheme will be notified by Central Government in consultation with the Reserve Bank of India.
Overseas, European stocks edged higher ahead of the important meeting of central bankers as investors look for clues on the direction of monetary policy. In economic news, French manufacturing confidence strengthened in August to the highest level since late 2007, survey results from the statistical office Insee showed today, 24 August 2017. The manufacturing sentiment index improved to 111 in August from revised 108 in July.
Asian stocks witnessed a mixed trend. US stocks closed lower yesterday, 23 August 2017 after President Donald Trump said he would be willing to let the government shut down if his border wall isn't funded. Delivering a warning to Democratic lawmakers who have objected to his plans to construct a wall along the US-Mexico frontier, Trump called them obstructionists and said that it was time for the US to crack down on illegal immigration.
In economic news, the Commerce Department said yesterday, 23 August 2017 that new home sales in US declined 9.4% to a seasonally adjusted annual rate of 571,000 units last month, the lowest level since December 2016.
Meanwhile, the annual Jackson Hole Economic Policy Symposium is scheduled tomorrow, 25 August 2017 in Wyoming. Representatives from the central banks of more than 40 countries will attend the annual gathering, hosted by the Federal Reserve Bank of Kansas City.
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