A range bound movement was witnessed as key benchmark indices alternately moved between positive and negative zone near the flat line in mid-morning trade. At 11:16 IST, the barometer index, the S&P BSE Sensex, was down 2.59 points, or 0.01% at 28,369.64. The Nifty 50 index was down 2.80 points or 0.03% at 8,723.80. The Sensex fell 61.12 points, or 0.22% at the day's low of 28,311.11 in mid-morning trade. The index rose 60.51 points, or 0.21% at the day's high of 28,432.74 at the onset of trading session, its highest level since 12 September 2016. The Nifty fell 22.25 points, or 0.25% at the day's low of 8,704.35 in mid-morning trade. The index rose 22.60 points, or 0.26% at the day's high of 8,749.20 at the onset of trading session, its highest level since 9 September 2016.
In overseas stock markets, Asian stocks were mixed as investors grappled with the seemingly diminishing ability of major central banks to stimulate growth, while a tumble in crude oil inflamed already heightened risk aversion. In US, the Dow industrials and the S&P 500 closed in negative territory yesterday, 14 September 2016, in the wake of slumping crude-oil prices, erasing earlier gains for the major benchmarks, while the tech-heavy Nasdaq bucked the losing trend.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,293 shares rose and 946 shares fell. A total of 150 shares were unchanged. The BSE Mid-Cap index was currently down 0.26%. The decline in this index was higher than the Sensex's decline in percentage terms. The BSE Small-Cap index was currently up 0.31%, outperforming the Sensex.
Most metal shares edged lower. Vedanta (down 1.87%), Tata Steel (down 1.46%), Hindustan Zinc (down 1.11%), Steel Authority of India (down 0.83%), Hindalco Industries (down 0.66%), JSW Steel (down 0.39%) and Bhushan Steel (down 0.36%), edged lower. National Aluminium Company (up 0.22%), NMDC (up 0.38%), Hindustan Copper (up 1.70%) and Jindal Steel & Power (up 3.49%), edged higher.
Meanwhile, copper price edged higher in the global commodities markets. High Grade Copper for December 2016 delivery was currently up 0.05% at $2.156 per pound on the COMEX.
Most IT shares edged higher. Hexaware Technologies (up 1%), MphasiS (up 0.63%), HCL Technologies (up 0.57%), Persistent Systems (up 0.47%), Tech Mahindra (up 0.34%), MindTree (up 0.30%) and TCS (up 0.06%), edgd higher. Oracle Financial Services Software (down 0.25%), Wipro (down 0.38%) and Infosys (down 0.77%), edged lower.
Monsanto India and Bayer CropScience rose after the global parents of these two firms signed a definitive merger agreement for Bayer's acquisition of Monsanto for $128 per share in an all-cash transaction. Bayer CropScience was up 3.39% at Rs 4,250. Monsanto India was up 2.47% at Rs 2,635.90.
Monsanto's board of directors, Bayer's board of management and Bayer's supervisory board unanimously approved the merger agreement. Bayer intends to finance the transaction with a combination of debt and equity. The equity component of about $19 billion is expected to be raised through an issuance of mandatory convertible bonds and through a rights issue with subscription rights. Bridge financing for $57 billion is committed by BofA Merrill Lynch, Credit Suisse, Goldman Sachs, HSBC and JP Morgan.
Bayer AG is a parent firm of Bayer CropScience. It held 68.57% stake in Bayer CropScience as on 30 June 2016.
Monsanto Company is a parent firm of Monsanto India. It held 72.14% stake in Monsanto India as on 30 June 2016. The acquisition is subject to customary closing conditions, including Monsanto shareholder approval of the merger agreement and receipt of required regulatory approvals. Closing is expected by the end of 2017.
Unitech rose 2.79% to Rs 6.26 after the company posted consolidated net loss of Rs 44.82 crore in Q1 June 2016 much lower than net loss of Rs 279.63 crore in Q1 June 2015. Total income rose 26.94% to Rs 495.93 crore in Q1 June 2016 over Q1 June 2015. The company's consolidated net debt as of 30 June 2016 stood at Rs 5265 crore. Net debt to equity ratio as of 30 June 2016 was 0.58. The company achieved sales bookings of 2 million square feet valued at Rs 362 crore during Q1 June 2016. The company delivered 2.35 million square feet of completed property during Q1 June 2016. The result was announced after market hours yesterday, 14 September 2016.
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