Key benchmark indices hovered near the flat line in afternoon trade. At 13:15 IST, the barometer index, the S&P BSE Sensex was up 30.43 points or 0.11% at 28,453.91. The Nifty 50 index was currently up 2.30 points or 0.03% at 8,776.95.
The Sensex rose 4.15 points or 0.01% at the day's low of 28,427.63 in afternoon trade. The barometer index rose 102.39 points or 0.36% at the day's high of 28,525.87 in early trade. The Nifty shed 6.45 points or 0.07% at the day's low of 8,768.20 in afternoon trade. The index rose 23.80 points or 0.27% at the day's high of 8,798.45 in early trade.
In overseas stock markets, European stocks edged higher with banks and industrial stocks leading the gains. Asian stocks were mixed ahead of the influential US non-farm payrolls data, which will be released later in the global day today, 2 September 2016. US stocks finished mostly higher yesterday, 1 September 2016, recovering from earlier losses, as investors braced for the much-anticipated August jobs, which could set the stage for a near-term interest-rate increase by the Federal Reserve. A report from the Institute of Supply Management (ISM) yesterday, 1 September 2016 showed US factory activity contracted for the first time in six months in August as new orders and production tumbled.
Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,384 shares rose and 1,086 shares declined. A total of 156 shares were unchanged. The BSE Mid-Cap index was currently up 0.28%. The BSE Small-Cap index was currently up 0.32%. Both these indices outperformed the Sensex.
Bank stocks gained. Among public sector banks, Bank of Baroda (up 1.43%), Bank of India (up 1.09%), IDBI Bank (up 0.91%), Union Bank of India (up 0.15%) and State Bank of India (up 0.34%) edged higher. Indian Bank (down 1.41%) and Punjab National Bank (down 0.44%) edged lower.
Among private sector banks, Yes Bank (up 0.32%), Axis Bank (up 0.12%), IndusInd Bank (up 0.03%) and Kotak Mahindra Bank (up 0.06%) edged higher. ICICI Bank (down 0.1%) edged lower.
Index heavyweight HDFC Bank was up 0.29% at Rs 1,284. The stock hit a high of Rs 1,288.50 and a low of Rs 1,281.50 so far during the day.
Cement stocks declined. ACC (down 1.11%), Ambuja Cements (down 1.12%), Shree Cement (down 0.22%) and UltraTech Cement (down 0.31%) edged lower.
Grasim Industries was off 0.84%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Reliance Industries (RIL) fell 1.86% at Rs 1,010, with the stock sliding for the second day in a row on concerns that aggressive pricing by the company's digital venture may adversely affect its profitability in the near term. Shares of RIL fell 2.73% to settle at Rs 1,029.15 yesterday, 1 September 2016, after Chairman Mukesh Ambani at the company's Annual General Meeting yesterday, 1 September 2016, announced the launch of digital services by Reliance Jio Infocomm (RJIL), a subsidiary of RIL. RJIL will launch of its digital services with Jio Welcome Offer which will be effective from 5 September 2016. As part of the Jio Welcome Offer, users will have access to unlimited 4G LTE data and national voice, video and messaging services along with the full bouquet of Jio applications and content, free of cost up to 31 December 2016. Domestic voice calls to any network across the country would be free for Jio subscribers even beyond the Jio Welcome Offer. Domestic roaming services would also not be charged separately. Average data prices would be around Rs 50 per gigabyte (GB), which would be amongst the lowest in the world.
In addition to fixed and wireless broadband connectivity offering superior voice and data services on an all-IP network, Jio will also offer end-to-end solutions that address the entire value chain across various digital services in key domains such as education, healthcare, security, communication, financial services, government-citizen interfaces and entertainment.
Media reports suggested that the plans offered by Reliance Jio are highly competitive in nature, but at the same time they would not become meaningful revenue creator. Hence, it would be a drag on profitability, reports said. Reports added that investors will closely monitor the roll out and effectiveness of Reliance Jio, in conjunction with plans by competitors to tackle new scenario.
In 2015, RJIL successfully acquired the right to use 4G spectrum in 13 key circles across India.
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