Key benchmark indices trimmed gains in early afternoon trade. At 12:16 IST, the barometer index, the S&P BSE Sensex was up 43.48 points or 0.15% at 28,103.42. The Nifty 50 index was currently up 18.15 points or 0.21% at 8,668.45. Caution prevailed on the bourses ahead of the expiry of the near month August 2016 contracts in the futures & options (F&O) segment. The August 2016 F&O contracts are set to expire today, 25 August 2016.
The Sensex rose 37.74 points or 0.13% at the day's low of 28,097.68 in early afternoon trade. The barometer index rose 94.27 points or 0.33% at the day's high of 28,154.21 in early trade, its highest level since 19 August 2016. The Nifty rose 13.75 points or 0.15% at the day's low of 8,664.05 at the onset of trading session. The index rose 32.75 points or 0.37% at the day's high of 8,683.05 in early trade, its highest level since 22 August 2016.
The market breadth indicating the overall health of the market was positive. On BSE, 1,420 shares rose and 972 shares declined. A total of 164 shares were unchanged. The BSE Mid-Cap index was currently up 0.37%. The BSE Small-Cap index was currently up 0.51%. Both these indices outperformed the Sensex.
In overseas stock markets, Asian stocks witnessed a mixed trend ahead of Federal Reserve Chairwoman Janet Yellen's speech tomorrow, 26 August 2016, which could provide hints about the timing of the next rate hike from the Fed. US stocks closed lower yesterday, 24 August 2016, with healthcare stocks leading the decline triggered by intensifying outrage over the pricing of a lifesaving drug by Mylan Inc. Meanwhile, Yellen is due to speak tomorrow, 26 August 2016, 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.
Bank stocks edged higher. Among public sector banks, Indian Bank (up 0.42%), Canara Bank (up 0.63%), Bank of Baroda (up 0.49%), Union Bank of India (up 0.26%), Bank of India (up 0.52%) and Punjab National Bank (up 0.24%) rose. State Bank of India (down 0.02%), Andhra Bank (down 0.25%) and Corporation Bank (down 0.12%) edged lower.
IDBI Bank was off 0.76% at Rs 71.35. The bank proposes to raise Rs 1500 crore from the issue of Additional Tier 1 bonds. The announcement was made after market hours yesterday, 24 August 2016.
Among private sector banks, Axis Bank (up 1.09%), IndusInd Bank (up 0.86%) and ICICI Bank (up 0.24%) rose. Kotak Mahindra Bank (down 0.17%) edged lower.
Index heavyweight HDFC Bank was off 0.13% at Rs 1,260.60. The stock hit a high of Rs 1,267.50 and a low of Rs 1,258.10 so far during the day.
Yes Bank was up 0.53% at Rs 1,345.70. The bank announced the appointment of Amit Sanan as Group President & Country Head for Mid-Corporate Banking. Sanan will be responsible for further developing and deepening key corporate relationships in the mid-corporate space covering more than 30 locations nationally, with a clear mandate to grow and scape up the Life-Cycle Banking Business significantly vide granular revenue, assets and liabilities, Yes Bank said in a statement. The announcement was made during market hours today, 25 August 2016.
Realty stocks edged higher. Unitech (up 3.13%), Indiabulls Real Estate (up 1.11%), Housing Development & Infrastructure (up 0.62%), Godrej Properties (up 0.78%), Prestige Estates Projects (up 0.35%), DLF (up 0.34%), Sobha (up 0.33%), Oberoi Realty (up 0.88%) and D B Realty (up 0.1%) gained.
Shares of index heavyweight and cigarette major ITC were up 1.52% at Rs 254. Shares of Britannia Industries rose 0.69% at Rs 3,460. With respect to news report stating that ITC has moved court over Britannia copying Sunfeast biscuit packaging, Britannia Industries clarified that ITC has filed a suit against Britannia Industries at Delhi High Court alleging that Britannia is copying the color combination of ITC's "Sun Feast Farmlite Digestive- All Good" Biscuit Packs for its "Nutri Choice Digestive Zero" biscuit packs. The matter came up for hearing before Delhi High Court on 22 August 2016 and 24 August 2016. The next date of hearing is 31 August 2016. No injunction (stay) has been granted as of now. As the matter is sub-judice, the company cannot comment further on this matter, Britannia Industries said. The clarification was issued after market hours yesterday, 24 August 2016.
Meanwhile, a foreign brokerage has reportedly maintained its outperform rating on the ITC stock. The brokerage has reportedly stated in a research note that lower price hike will support cigarette volume growth. ITC's earnings are likely to grow at a compound annual growth rate (CAGR) of 14% over FY 2016 to FY 2019, the brokerage reportedly said.
Tata Power Company was up 0.2% at Rs 76.60 after the company said that it has crossed the 2 million consumer base milestone across the country. Tata Power said it is making investments in developing its network and increase generation capacity with the objective of providing its customers with the best experience. The announcement was made during market hours today, 25 August 2016.
Ramco Systems rose 4.57% at Rs 537 after the company said that its subsidiary, Ramco Systems Pte., Singapore, has secured an order from one of the top 5 most valuable global brands for Ramco HCM & Payroll in Asia-Pacific region (APAC). The announcement was made after trading hours yesterday, 24 August 2016.
Meanwhile, the Union Cabinet yesterday, 24 August 2016, approved amendments to the Double Taxation Avoidance Agreement (DTAA) with Cyprus, which could impact foreign portfolio investment and foreign direct investment into India from Cyprus. With the revision of the treaty, India will have the right to tax capital gains arising in India for entities resident in Cyprus. All existing investments from Cyprus and additional investments made up to 31 March 2017 will be grandfathered like the Mauritius Treaty and therefore capital gains tax will not be applicable on shares acquired prior to 1 April 2017. According to a government statement, the proposed DTAA with Cyprus also expands the scope of the Permanent Establishments (PE) that enables source based taxation of business income.
As per media reports, foreign direct investment into India from Cyprus totaled $3.3 billion in 2015-16. Companies based in Europe and the US use Cyprus to route investments in India to take advance of the tax treaty, reports suggest. The Indian government is also in discussion with Singapore for amending tax treaty with Singapore.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
