The key equity indices were trading near flat line in morning trade. The Nifty was trading below the 16,650 mark. Auto shares snapped their two-day losing streak.
At 10:25 IST, the barometer index, the S&P BSE Sensex, was down 26.43 points or 0.05% to 55,922.67. The Nifty 50 index was up 7.75 points or 0.05% to 16,644.65.
In the broader market, the S&P BSE Mid-Cap index rose 0.40% while the S&P BSE Small-Cap index gained 0.55%.
The market breadth was strong. On the BSE, 1688 shares rose and 1093 shares fell. A total of 143 shares were unchanged.
Investors remained cautious ahead of the Federal Reserve's annual Jackson Hole symposium and geopolitical tension in Afghanistan.
US central bankers will meet virtually for an annual gathering traditionally held in Jackson Hole in Wyoming. Jerome H. Powell, the Fed's chair, will speak on Friday and is expected to reveal details about how and when the bank plans to begin winding down its bond-buying program. The Fed has started discussions to pull back its $120 billion a month bond-buying program by the end of this year.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 214,579,799 with 4,474,000 global deaths.
India reported 344,899 active cases of COVID-19 infection and 436,861 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.
Buzzing Index:
The Nifty Auto index rose 0.12% to 9,775.30. The index declined 0.71% in the past two sessions.
Maruti Suzuki (up 0.97%), Ashok Leyland (up 0.77%), Hero MotoCorp (up 0.20%), Bajaj Auto (up 0.16%) and Tata Motors (up 0.14%) advanced.
Meanwhile, Eicher Motors (down 0.96%), Mahindra & Mahindra (down 0.66%), Bharat Forge (down 0.26%) and TVS Motor Company (down 0.14%) declined.
Auto makers are under pressure recently as a global semiconductor shortage has upset production plans.
The media reported that Taiwan Semiconductor Manufacturing Company, the world's largest contract chip manufacturer, is raising prices by as much as 20%. It plans to increase the prices of its most advanced chips by about 10%, while less advanced chips used by customers like auto makers will cost about 20% more, reports added.
The higher prices will generally take effect late this year or next year, a move that is expected to result in consumers paying more for electronics. A global semiconductor chip shortage has caused a major delay in manufacturing activity, with automakers cutting down on production and electronic device makers struggling to keep up with a pandemic-led surge in demand for phones, TVs and gaming consoles.
Stocks in Spotlight:
Bharat Heavy Electricals (BHEL) added 1.63% to Rs 52.85. The company said that it signed a memorandum of understanding (MoU) with JSC Rosoboronexport for joint production of equipment of Russian-origin. JSC Rosoboronexport is the sole state intermediary agency for Russia's exports/imports of defense-related and dual use products, technologies and services.
Procter & Gamble Health rose 1.19% to Rs 5551.35. The company posted a 30.6% fall in net profit to Rs 33.89 crore on 41.9% rise in net sales to Rs 285.39 crore in Q4 June 2021 over Q4 June 2020.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
