Key benchmark indices closed the session near the flat line in a lackluster trading. The barometer index, the S&P BSE Sensex rose 53.75 points or 0.17% at 31,621.76, as per the provisional closing data. The Nifty 50 advanced 6.30 points or 0.06% at 9,858.80, as per the provisional closing data.
Pharma stocks surged. Software major Infosys extended previous trading session's gains on buzz the company's co-founder Nandan Nilekani is likely to return as the head of the IT bellwether.
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 provisionally rose 0.8%. The S&P BSE Small-Cap index provisionally advanced 0.37%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was positive. On the BSE, 1,432 shares rose and 1,126 shares declined. A total of 149 shares were unchanged.
The total turnover on BSE amounted to Rs 2996.99 crore, lower than turnover of Rs 3105.53 crore registered during the previous trading session.
Pharma stocks surged. Wockhardt (up 8.73%), Aurobindo Pharma (up 4.94%), Lupin (up 4.11%), Sun Pharmaceutical Industries (up 3.04%), Dr Reddy's Laboratories (up 2.71%), Cipla (up 2.52%) and Glenmark Pharmaceuticals (up 2.42%) gained. Alkem Laboratories (down 1.24%) declined.
Cadila Healthcare jumped 6.37% to Rs 491.95 after the company announced that it has received final approval from US drug regulator to market Candesartan Cilexetil Tablets USP 4 mg, 8 mg, 16 mg and 32 mg. The announcement was made during market hours today, 24 August 2017.
Cadila Healthcare said that the company has received final approval from the United States Food and Drug Administration (USFDA) to market Candesartan Cilexetil tablets USP 4 mg, 8 mg, 16 mg and 32 mg. The drug is used to treat high blood pressure (hypertension) in adults and will be manufactured at the group's formulations manufacturing facility at Moraiya, Ahmedabad.
Software major Infosys advanced 2.07% at Rs 913.05, extending previous trading session's 1.98% gains on buzz the company's co-founder Nandan Nilekani is likely to return as the head of the IT bellwether. Nilekani was Infosys' CEO for five years till 2007. He left the software major in 2009 to become Chairman of the Unique Identification Authority of India (UIDAI).
Vishal Sikka, the first non-co-founder CEO of Infosys, stepped down last Friday (18 August 2017) citing continuous distractions and increasingly personal attacks on him. The Infosys Board blamed Murthy's continuous assault as the primary reason for Sikka putting down his papers. Shares of Infosys had tumbled 14.45% in two trading sessions to settle at Rs 873.50 on 21 August 2017, from its closing of Rs 1,021.15 on 17 August 2017.
Infosys' board at its meeting held on Saturday, 19 August 2017, approved a proposal to buyback upto 11.30 crore shares, aggregating up to 4.92% of the paid-up equity capital, at Rs 1,150 per share. The maximum buyback size is Rs 13000 crore.
Meanwhile, in a fresh twist to the ongoing Infosys saga, reports suggested that the IT bellwether's board offered to resign today, 24 August 2017, paving way for Nandan Nilekani to step in as a crisis manager for the firm. The entire board of the firm, barring Punita Sinha and Roopa Kudwa has offered to resign, reports suggested. Nilekani wanted to make a comeback on a clean slate, reports added.
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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