Trading for the week after an extended weekend due to a holiday started on a firm note as key benchmark indices settled with modest gains. The barometer index, the S&P BSE Sensex rose 154.76 points or 0.49% at 31,750.82, as per the provisional closing data. The Nifty 50 advanced 55.75 points or 0.57% at 9,912.80, as per the provisional closing data. Most of the gains on indices were contributed by jump in IT index heavyweight Infosys following announcement of an overhaul of its board of directors. Meanwhile, geopolitical tensions eased after the government reportedly said India and China agreed to disengagement at Doklam area. Indices gained for the fourth straight session.
After opening with modest gains, key indices held firm throughout the session. The Sensex rose 213.64 points or 0.67% at the day's high of 31,809.70 in early afternoon trade, its highest level since 17 August 2017. It gained 105.61 points or 0.33% at the day's low of 31,701.67 in early trade. The Nifty rose 68.70 points or 0.69% at the day's high of 9,925.75 in early afternoon trade, its highest level since 17 August 2017. It gained 24.95 points or 0.25% at the day's low of 9,882 in early trade.
The S&P BSE Mid-Cap index provisionally rose 1.02%. The S&P BSE Small-Cap index provisionally advanced 1.07%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was strong. On the BSE, 1,602 shares rose and 956 shares declined. A total of 176 shares were unchanged.
NTPC (up 2.1%) and Hero MotoCorp (up 1.93%) gained from the Sensex pack.
IT major Infosys rose 2.96% after the company in its press release issued after market hours on Thursday, 24 August 2017, announced an overhaul of its board of directors (board). The board appointed Nandan Nilekani as a non-executive, non-independent director and as the Chairman of the board with immediate effect. It has accepted the resignation of R Seshasayee as the Chairman of the board and as a director on the board with immediate effect.
The board has accepted the resignation of Dr Vishal Sikka as the Executive Vice-Chairman of the board and as a director on the board with immediate effect. It has accepted the resignation of Professor Jeffrey S Lehman as a director on the board with immediate effect. It has accepted the resignation of Professor John Etchemendy as a director on the board with immediate effect. It has accepted the resignation of Ravi Venkatesan as the Co-Chairman of the board with immediate effect. However, he continues as an independent director.
Infosys' board held its first meeting on Friday, 25 August 2017 chaired by its newly elected Chairman Nandan Nilekani. Nilekani stated that the board is focused on bringing complete stability to the company. It has also tasked its Committee of Directors to work with the CEO (U B Pravin Rao) and management to review and refresh the company's strategy by October.
In recent days there has been considerable discussion of the relationship between the board of directors of Infosys and N. R. Narayana Murthy who established the culture and ethos of Infosys, especially its culture of adhering to high corporate governance standards. The board believes it to be unfortunate that various differences of opinion have arisen between Murthy and the board in the recent past. The board wished to express that it was not its intention to cause Murthy or any other affected person any personal distress or anguish while stating its point of view, the company said in a statement.
Infosys said it has previously authorized investigations into allegations made by anonymous persons regarding the conduct of prior management, and each of these investigations concluded that there was no wrongdoing. While the board and the company are focused on the future, consistent with the company's commitment to good governance, the new Chairman will get a full briefing on these investigations and the appropriate course of action will be decided, the company said.
As the board has stated on numerous occasions, it takes the company's reputation for high corporate governance standards with the utmost seriousness, Infosys said. Hence, it has, as previously disclosed, decided that it will engage in further broad-based shareholder consultations to determine what further, if any, the company can take to ensure that it continues to adhere to high governance standards, Infosys said.
The board has also approved the appointment of the executive recruitment firm Egon Zehnder to work with its Nominations and Remunerations Committee to review and identify the right candidate to be the company's next CEO and MD. Additionally, the Nominations and Remunerations Committee will deliberate on the long term governance structure of the board and present its recommendations at the meeting of the board in October. The board announced that D N Prahlad is appointed as the Chairman of Edgeverve with immediate effect.
Finally, the board would like to state that it is firmly focused on ensuring that the affairs of the company and the interests of all its stakeholders - its customers, employees, shareholders, officers and directors - are harmoniously aligned and enhanced, Infosys said.
Shares of other IT companies also gained. Mphasis (up 2.44%), Tech Mahindra (up 0.01s%), HCL Technologies (up 0.01%), and Wipro (up 0.45%) edged higher. TCS fell 0.39%.
Future Enterprises rose 6.39% after the company announced that its subsidiary Future Supply Chain Solutions (FSCSL) has filed the Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for a public offer of up to 97.84 lakh equity shares, representing 25% of the existing issued and paid-up equity share capital of FSCSL for cash. The announcement was made after market hours on Thursday, 24 August 2017.
Meanwhile, India and China have reportedly agreed to an expeditious disengagement of troops at a disputed border area where their soldiers have been locked in stand-off for more than two months. The decision comes ahead of a summit of the BRICS nations - a grouping that also includes Brazil, Russia and South Africa - in China early next month, which Indian Prime Minister Narendra Modi is expected to attend.
Meanwhile, NITI Aayog's 3-year Action Agenda was reportedly unveiled by the Union Finance Minister Arun Jaitley, along with Minister of State for Petroleum and Natural Gas Dharmendra Pradhan and NITI Aayog Vice Chairman Arvind Panagariya. The Action Agenda is an integral part of the 15-year Vision Document of India being drafted by the NITI Aayog. Think-tank NITI Aayog's three-year action plan (2017-2020) has suggested shifting the composition of expenditures by allocating a larger proportion of additional revenues that become available over time to high-priority sectors. It has replaced the 5-year plan of the erstwhile Planning Commission and would be soon followed by a 15-year vision document and a 7-year strategy document.
Overseas, European stocks edged lower as investors gear up for the next round of Brexit talks in Europe, while keeping a close eye on the moves in oil. Asian stocks were mixed after US and European central bankers didn't provide fresh policy guidance. US stock benchmarks finished with slight gains on Friday, 25 August 2017, halting weekly skids as European Central Bank President Mario Draghi and Federal Reserve Chairwoman Janet Yellen delivered speeches at Jackson Hole, Wyo.
Yellen said the economy was stabilizing but made no specific remarks about monetary policy during her speech at the gathering of central bankers in Wyoming. Later Friday, Draghi said recoveries taking place in global economies are firming, though he said it was "at an earlier stage" in Europe and Japan.
Also at the Jackson Hole symposium, Bank of Japan Governor Haruhiko Kuroda said the recent pace of growth in the world's third-largest economy is probably unsustainable and pledged to continue with very accommodative monetary policy for some time because the BOJ is far from its inflation target.
The consumer price index for Japan in July 2017 was at 100.1, up 0.4% over the past year and the same level as the previous month on a seasonally adjusted basis.
New orders for manufactured durable goods in July decreased by $16.7 billion or 6.8% to $229.2 billion, the US Census Bureau announced.
On the geopolitical front, North Korea fired three ballistic missiles over the weekend and Secretary of State Rex Tillerson said on Sunday, 27 August 2017 that the US will continue to push for negotiations to deescalate nuclear tensions on the Korean peninsula despite the provocative acts.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
