Key benchmark indices languished in the negative terrain in mid-morning trade. At 11:25 IST, the barometer index, the S&P BSE Sensex, was down 101.01 points or 0.39% at 25,950.80. The losses of the Nifty 50 index were higher in percentage terms than those of the Sensex. The Nifty was currently down 38.35 points or 0.48% at 7,994.95. The Sensex continued to trade below the psychological 26,000 mark after falling below that mark in early trade. The Nifty remained below the psychological 8,000 level after slipping below that mark in early trade. Weakness in Asian stocks weighed on sentiment.
The market breadth indicating the overall health of the market turned positive from negative in mid-morning trade. On BSE, 1,180 shares rose and 967 shares fell. A total of 116 shares were unchanged. The BSE Mid-Cap index was currently down 0.29%. The decline in this index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index was currently up 0.13%, outperforming the Sensex.
In overseas stock markets, most Asian stocks dropped as upbeat economic data strengthened the prospect for higher US interest rate. Investors fear that higher interest rates in the US will spark capital outflows from the emerging equity markets. US stocks closed mixed yesterday, 23 November 2016, as investors digested a number of economic data, including minutes from the Federal Reserve's November meeting. The Dow Jones Industrial Average and S&P 500 indices hit record closing high. The minutes released yesterday, 23 November 2016, back the consensus view on Wall Street that the Fed is poised to raise rates in December. Policymakers left borrowing costs unchanged earlier this month, just days before Republican Donald Trump triumphed in the November 8 presidential contest. Voting members of the Fed's rate-setting committee saw equal risks the economy would overshoot or undershoot their forecasts for continued growth and a tightening labor market. Almost all of them continued to judge that near-term risks to the economic outlook were roughly balanced, according to the minutes. The US stock market will remain closed today, 24 November 2016, because of the Thanksgiving holiday.
US weekly jobless claims increased 18,000 to a seasonally adjusted 251,000 for the week ended 19 November 2016, the Labor Department said. The claims have now been below 300,000, a threshold associated with a healthy labor market, for 90 straight weeks. Meanwhile, the Commerce Department said US durable goods increased 4.8% in October, well above a consensus estimate. Other data released included the IHS Markit manufacturing index for November, which showed a slight increase to 53.9 from 53.4 in October. A reading above 50 signals expansion within the sector. New home sales for October fell 1.9%, while consumer sentiment came in at 93.8, above estimate.
Realty stocks were mixed. Indiabulls Real Estate (down 1.01%), Oberoi Realty (down 0.49%), and DLF (down 2.74%) edged lower. Sobha (up 0.36%), Unitech (up 2.27%), and Omaxe (up 1.02%) edged higher.
NBCC (India) rose 0.9% after the company executed memorandum of understanding with Rosinformexport, Department for International Development of India and ITI. The announcement was made after market hours yesterday, 23 November 2016. The company entered into memorandum of understanding (MoU) with Rosinformexport LLC, a subsidiary of RT-Business Development, an investment company of Rostec State Corporation, a 100% state owned company of Russia, having expertise in ICT/Digital Products. NBCC & Rosinformexport shall collaborate to jointly participate in the smart city projects in India. This s strategic cooperation MoU and does not involve any joint venture (JV)/fancial implication.
Further, NBCC (India) entered into MoU with Department for International Development (DFID India) a ministerial department of UK, responsible for administering overseas aid with the goal to promote sustainable development and eliminate world poverty. NBCC & DFID shall collaborate with the endeavour to strengthen, promote and develop sustainable smart cities, integrated smart railway stations with green building technologies in India. This is strategic cooperation MoU and does not involve any JV/financial implication.
NBCC (India) also entered into MoU with Indian Telephone Industries, (ITI), a state owned manufacturer of telecommunications equipment in India and a central PSU under Department of Telecommunications, Ministry of Communication & IT, Government of India. NBCC and ITI agreed to jointly carry out feasibility study/preparation of DPR for developing ITT land parcel of 30 acres at Electronic City Bangalore. The development of project through joint venture shall be undertaken on project specific agreement.
IT stocks advanced on weak rupee. Tech Mahindra (up 1.13%), TCS (up 0.45%), and Wipro (up 0.47%) edged higher. HCL Technologies declined 0.92%. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
Software major Infosys rose 0.68% after the company announced that it has signed a definitive agreement to a Limited Partner investment of Rs 31.6 crore from its Innovation Fund in Stellaris Venture Partners, an India-based early stage venture fund. This investment is towards the first close of Stellaris' fund. The investment is expected to complete by 15 December 2016. The announcement was made after market hours yesterday, 23 November 2016.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 68.73, compared with its close of 68.56 during the previous trading session.
Rallis India advanced 3.02% after the company signed an agreement for increasing its stake in its subsidiary Zero Waste Agro - Organics from 73.63% to 100%. The announcement was made after market hours yesterday, 23 November 2016. Consequently, Zero Waste Agro - Organics (ZWAOL) will become a wholly owned subsidiary of the company, on completion of the acquisition of the balance shares in ZWAOL. ZWAOL is into manufacture of organic compost. The cost of acquisition is Rs 19.49 crore, Rallis India said.
Transformers and Rectifiers (India) rose 1% after the company said that it has been awarded the order for 232 units of inverter duty transformers and 19 units of power transformers upto 110 kV class amounting to Rs 96 Crores from Adani Group for solar power project. With this order, the company's order book as on date stands at around Rs 980 crore. The announcement was made after market hours yesterday, 23 November 2016.
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