Firmness prevailed on the bourses in mid-morning trade. At 11:27 IST, the barometer index, the S&P BSE Sensex, was up 195.94 points or 0.51% at 38,429.35. The Nifty 50 index was up 50.90 points or 0.44% at 11,534.15.
Local indices drifted higher in early trade on buying demand in index pivotals. Key benchmark indices hovered near day's high in morning trade.
The S&P BSE Mid-Cap index was up 1.14%. The S&P BSE Small-Cap index was up 0.68%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1314 shares rose and 954 shares fell. A total of 147 shares were unchanged.
IndusInd Bank (up 3.94%), Yes Bank (up 3.82%), Bajaj Finance (up 1.86%), Vedanta (up 1.53%) and State Bank of India (up 1.43%) edged higher from the Sensex pack.
GMR Infrastructure rose 2.31% after the company announced proposed investment of Rs 8,000 crore by Tata Group, GIC and SSG Capital Management in its airports business. The announcement was made before trading hours today, 27 March 2019.
Mindtree fell 0.97% to Rs 941.35 after the company said its board has decided not to proceed with a buyback of equity shares of the company. The announcement was made after market hours yesterday, 26 March 2019.
Mindtree said its board invited views from the directors on the unsolicited offer made by Larsen & Toubro (L&T) for the equity shares of the company. After detailed deliberation and discussion, the board decided to immediately constitute the committee of independent directors (IDC) in the interest of all stakeholders to provide their reasoned recommendation in respect of the unsolicited offer by L&T for the consideration of the shareholders. All the independent directors will be members of the IDC, and the IDC has elected Apurva Purohit, lead independent director, as the chairperson of the IDC and spokesperson.
The IDC will consider and evaluate all aspects of the unsolicited offer, taking into account all relevant facts, circumstances, data related to the company and industry and the interests of all stakeholders involved. This committee will discharge the legal obligations placed on the independent directors under the prevailing regulations with respect to providing reasoned recommendations on the unsolicited offer by L&T. This committee will be supported by independent legal and financial advisors to help it with its deliberations.
Meanwhile, L&T made an open offer yesterday, 26 March 2019, to acquire a 31% stake in Mindtree for Rs 5030 crore. L&T has offered to buy 5.13 crore Mindtree shares at Rs 980 each.
Overseas, Asian stocks were trading mixed after US stocks finished broadly higher on Wall Street. U.S. stocks closed higher Tuesday as the energy and financial sectors buoyed the market, but main indexes came off their intraday highs on tepid housing and consumer-confidence data as well as lingering uncertainties over global growth and Brexit.
U.S.-China trade negotiations resumed, reigniting some optimism that the high-stakes dispute was coming to a close. Cabinet-level trade negotiations between Beijing and Washington were scheduled to kick off, with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin due in China later this week to help conclude long-running discussions between the world's two largest economies.
Investors were also monitoring Brexit, after U.K. lawmakers decided late Monday to wrest control of the process of leaving the European Union away from Prime Minister Theresa May in a move that will prompt a series of votes this week aimed at easing legislative gridlock. A disorderly exit from the EU by Britain could unsettle global benchmarks.
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