Key benchmark indices edged lower in early trade in line with fall in other Asian counterparts weighed by geopolitical tensions. At 9:25 IST, the barometer index, the S&P BSE Sensex fell 156.58 points or 0.49% at 31,594.24. The Nifty 50 shed 44.15 points or 0.45% at 9,868.65.
The S&P BSE Mid-Cap index lost 0.17%. The S&P BSE Small-Cap index fell 0.24%. The decline in both the indices was lower than the Sensex's fall in percentage terms.
The breadth, indicating the overall health of the market, was weak. On the BSE, 725 shares fell and 490 shares rose. A total of 46 shares were unchanged.
NTPC dropped 3.32% to Rs 167.60 after the company said government will sell 5% stake in NTPC at a floor price of Rs 168 per share through a two-day offer-for-sale (OFS) beginning today, 29 August 2017, with an option to issue a similar number of shares in case of over subscription. The sale of 41.23 crore shares, or 5% equity, would fetch about Rs 7000 crore to the exchequer.
The two-day OFS would open for institutional investors today, 29 August 2017, and retail investors would get to bid tomorrow, 30 August 2017. The offer shall take place during trading hours on a separate window of the stock exchanges on T day ie 29 August 2017 commencing at 09:15 IST and shall close on the same date at 15:30 IST. The announcement was made after market hours yesterday, 28 August 2017.
IT major Infosys dropped 0.33%. The company said that some of the company's promoters would participate in the upcoming share buyback of the company. The IT firm had announced a Rs 13000-crore share buyback on 19 August 2017, a day after CEO and MD Vishal Sikka resigned from the company. The company would buy back up to 11.30 crore shares aggregating up to 4.92% of the paid-up equity capital via tender route at a price of Rs 1,150. The announcement was made after market hours yesterday, 28 August 2017.
Bharti Airtel dropped 0.68%. The company announced after market hours yesterday, 28 August 2017, that the proposed acquisition of Tikona Digital Networks has now been completed. With this, Tikona Digital Networks has become a wholly owned subsidiary of Bharti Airtel. The transaction for the trading of the spectrum in Rajasthan circle is still pending for approval from the department of telecom (DoT).
Reliance Industries declined 0.25%. The company proposed to make an offer for issuance of non-convertible debentures (NCDs series A) (1st tranche) on private placement basis on 31 August 2017 aggregating Rs 5000 crore, to be listed on the Stock Exchanges. The net proceeds of the issue will be utilised inter-alia for refinancing of existing borrowings and for any other purpose in the ordinary course of business. The announcement was made after market hours yesterday, 28 August 2017.
Overseas, Asian stocks declined after North Korea fired a missile over northern Japan. North Korea fired a missile early today, 29 August 2017 that flew over Japan and landed in the Pacific waters off the northern region of Hokkaido, South Korea and Japan, in a sharp escalation of tensions on the Korean peninsula.
On Monday, 28 August 2017, US shares were mixed as investors tried to assess the flooding damage caused by Tropical Storm Harvey, powerful hurricane to strike Texas in more than 50 years when it came ashore last week.
An early look at US trade patterns in July points to a wider deficit. The advanced trade gap in goods services are excluded widened by nearly 1.8% to $65.1 billion in July, the Commerce Department said. Both exports and imports declined, but exports dropped at a faster pace.
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