Key benchmark indices extended intraday losses in early afternoon trade. At 12:15 IST, the barometer index, the S&P BSE Sensex, was down 51.48 points or 0.18% at 27,784.43. The Nifty 50 index was currently down 17.45 points or 0.2% at 8,574.75. The Sensex fell 68.85 points or 0.24% at the day's low of 27,767.06 in early afternoon trade, its lowest level since 11 August 2016. The barometer index rose 99.97 points or 0.35% at the day's high of 27,935.88 in early trade. The Nifty fell 19.30 points or 0.22% at the day's low of 8,572.90 in early afternoon trade, its lowest level since 11 August 2016. The index rose 30.75 points or 0.35% at the day's high of 8,622.95 in early trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,319 shares declined and 990 shares rose. A total of 151 shares were unchanged. The BSE Mid-Cap index was currently down 0.12%. The BSE Small-Cap index was currently down 0.09%. The losses for both these indices were lower than the Sensex's decline in percentage terms.
Index heavyweight Reliance Industries was up 1.17% at Rs 1,025. The stock hit a high of Rs 1,028.35 and a low of Rs 1,014.65 so far during the day.
Realty stocks edged lower. Housing Development and Infrastructure (down 2.84%), Indiabulls Real Estate (down 2.88%), D B Realty (down 1.28%), Prestige Estates Projects (down 0.24%), DLF (down 1.05%), Oberoi Realty (down 0.72%) and Unitech (down 0.39%) declined. Sobha (up 1.34%) edged higher.
Godrej Properties gained 0.19% at Rs 364.80 after the company announced that it has launched Godrej Emrald, a premium residential project at Ghodbunder Road, Thane. The project is spread across 6.25 acres and offers a total saleable area of approximately 1.25 lakh square meters or 1.35 million square feet. The first phase of the project will consist of three high rise residential towers. The announcement was made before market hours today, 26 August 2016.
Godrej Emrald is a joint development project, being developed by Godrej Properties in partnership with Vihang Group, a real estate developer in Thane. This is the first project Godrej Properties has launched that is part of the $275 million Godrej Residential Investment Platform 2, which it announced in March 2016.
Pharma stocks declined. Wockhardt (down 1.28%), Cadila Healthcare (down 0.63%), Divi's Laboratories (down 0.76%), Sun Pharmaceutical Industries (down 0.56%), Dr Reddy's Laboratories (down 0.36%), Glenmark Pharmaceuticals (down 0.57%), GlaxoSmithkline Pharmaceuticals (down 0.45%), Strides Shasun (down 0.18%), Aurobindo Pharma (down 0.34%) and Alkem Laboratories (down 0.12%) edged lower. Cipla (up 1.16%), Ipca Laboratories (up 1.01%) and Lupin (up 0.23%) edged higher.
Gammon Infrastructure Projects lost 4.32% at Rs 5.10 after net profit fell 1.84% to Rs 5.88 crore on 15.94% rise in total income to Rs 85.66 crore in Q1 June 2016 over Q1 June 2015. The announcement was made after market hours yesterday, 25 August 2016. Gammon Infrastructure Projects said that no closure of the sale has been finally agreed with BIF India Holdings Pte. (Brookfield) on the pending sale of 3 special purpose vehicles (SPVs) to Brookfield.
Meanwhile, RBI after trading hours yesterday, 25 August 2016, announced a package of measures for the development of fixed income and currency markets. The central said it has been decided to enhance the aggregate limit of partial credit enhancement (PCE) provided by banks, permit brokers in corporate bond repos, authorise the platform for repo in corporate bonds and encourage credit supply for large borrowers through market mechanism. The RBI has allowed banks to issue issue rupee bonds overseas (Masala Bonds) for their capital requirements and for financing infrastructure and affordable housing.
Foreign Portfolio Investors (FPIs) will be given direct access to NDS-OM to ease the process of investment in debt securities. The RBI said it has also been decided to provide FPIs facility to trade directly in corporate bonds.
Meanwhile, the India Meteorological Department (IMD) in its monsoon update issued yesterday, 25 August 2016, said that for the country as a whole, cumulative rainfall during this year's monsoon so far (till 25 August 2016) was 3% below the long period average (LPA).
In overseas stock markets, Asian stocks witnessed a mixed trend ahead of Federal Reserve Chairwoman Janet Yellen's speech today, 26 August 2016, which could provide hints about the timing of the next rate hike from the Fed. US stocks registered small losses yesterday, 25 August 2016, with healthcare stocks extending previous trading session's decline.
Globally, investors are awaiting Yellen's speech today, 26 August 2016, which could provide hints about the timing of the next rate hike from the Fed. High US interest rates would pull money out of emerging markets and redirect it to the US. Yellen is due to speak at the Kansas City Fed's annual Monetary Policy Symposium in Jackson Hole, Wyoming. Minutes from the Federal Open Market Committee's (FOMC) July meeting showed officials were split on whether an increase in interest rate was needed soon.
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