Key benchmark indices recovered after trimming gains in early afternoon trade. At 12:16 IST, the barometer index, the S&P BSE Sensex, was up 55.94 points or 0.2% at 28,120.55. The Nifty 50 index was currently up 8.25 points or 0.1% at 8,650.80. The Sensex rose 71.49 points, or 0.25% at the day's high of 28,136.10 in early trade. The index fell 40.25 points, or 0.14% at the day's low of 28,024.36 at the onset of trading session. The Nifty rose 15.05 points, or 0.17% at the day's high of 8,657.60 in early trade. The index fell 16 points, or 0.19% at the day's low of 8,626.55 at the onset of trading session.
The market breadth indicating the overall health of the market was positive. On BSE, 1,387 shares rose and 973 shares fell. A total of 154 shares were unchanged. The BSE Mid-Cap index was currently up 0.69%. The BSE Small-Cap index was currently up 0.72%. Both these indices outperformed the Sensex.
In overseas stock markets, Asian shares witnessed a mixed trend after New York Fed President William Dudley said the Federal Reserve could raise interest rates as soon as September, prompting investors to pause after rallies in recent weeks. Chinese shares witnessed a mixed trend after leaders approved a plan to give foreign investors more access to Chinese equities through Hong Kong. In mainland China, the Shanghai Composite index was currently off 0.12%. In Hong Kong, the Hang Seng index was currently up 0.27%. China's Cabinet announced approval of an initiative that would give foreign investors more access to Chinese stocks by linking exchanges in Hong Kong and the mainland city of Shenzhen.
US stocks eased from record highs yesterday, 16 August 2016, with the S&P 500 losing 0.55% as investors weighed hawkish comments by Federal Reserve officials against sharp gains for oil futures, a weakening dollar and fresh consumer-price data that showed US inflation remains tepid. Dudley said a rate hike in September was possible, while Atlanta Fed President Dennis Lockhart said the US economy is likely strong enough for at least one rate increase before the end of 2016, with two a possibility. Dudley cited evidence of wage gains and a tighter labor market that could boost inflation. Their comments came ahead of an annual meeting of central bankers from around the world in Jackson Hole, Wyoming, next week.
Most cement shares edged lower. Ambuja Cements (down 1.47%), UltraTech Cement (down 1.32%) and ACC (down 1.02%), edged lower.
Grasim Industries was up 0.95%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Most capital goods shares edged higher. Jindal Saw (up 2.87%), Suzlon Energy (up 2.13%), AIA Engineering (up 1.55%), Crompton Greaves (up 1.34%), Havells India (up 1.12%), Reliance Defence and Engineering (up 0.82%), Punj Lloyd (up 0.79%), BEML (up 0.78%), Praj Industries (up 0.52 %), ALSTOM India (up 0.45%), Thermax (up 0.36%), Bharat Electronics (up 0.33%), Bharat Heavy Electricals (up 0.29%) and SKF India (up 0.15%), edged higher. Lakshmi Machine Works (down 0.32%), Alstom T&D India (down 0.33%), Larsen & Toubro (down 0.61%) and Siemens (down 0.61%), edged lower.
InterGlobe Aviation was up 3.67% to Rs 859.30 on reports a foreign brokerage has upgraded its rating on the stock to buy from neutral. The foreign brokerage has reportedly said that given the asset-light structure and order book/delivery flexibility, InterGlobe Aviation will have 145 net aircraft by end of FY 2018. The brokerage said that A320neo planes delivery concerns are unwarranted. It may be recalled that InterGlobe Aviation had stated at the time of announcing its Q1 June 2016 earnings that the operation of A320neo planes in its fleet continues to be a challenge. The company was looking at slowing down taking deliveries of A320neo planes to allow the manufacturer of the engines for the A320neo planes to catch up on the production of upgraded engines, InterGlobe Aviation said at that time.
Zee Learn and Tree House Education & Accessories jumped by 14.4% and 15.66% respectively after the board of directors of both the companies approved revised scheme of merger. The board of directors of Zee Learn (ZLL) and Tree House Education & Accessories (THEAL) approved revised share swap ratio of 1:1 for the merger of THEAL with ZLL. The revised scheme of amalgamation will put to rest uncertainty and anxiety within different stakeholders and help mitigating the recent developments in operational performance of THEAL over the past few quarters, ZLL said in a statement. It will further strengthen ZLL's position in the educational landscape, it said. Both ZLL and THEAL are in similar line of business activities and with a view to consolidate the business operations, the board of directors of both the companies have decided to amalgamate the companies. Both ZLL and THEAL are primarily engaged into the business of pre-school activities.
The board of directors of both the companies on 23 December 2015 had approved a scheme of amalgamation of THEAL with ZLL subject to requisite statutory and regulatory approvals. On 1 June 2016, ZLL decided to keep on hold the scheme as part of evaluation of the results of THEAL for the quarter and year ended 31 March 2016. Following this, the board of directors of ZLL had authorised the Amalgamation Committee to suggest the way forward to salvage the deal of amalgamation to ensure consolidation of business in the best interest of the shareholders. Accordingly, the board of directors of both the companies accorded approval to the revised scheme including appointed date and share exchange ratio suggested by the Amalgamation Committee for the proposed amalgamation of the companies.
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