A divergent trend was witnessed between the two key benchmark indices in early afternoon trade, with the barometer index, the S&P BSE Sensex, trading with minuscule losses and the Nifty 50 index trading with minuscule gains. At 12:17 IST, the Sensex was down 13.75 points or 0.05% at 27,976.46. The Nifty was currently up 2.25 points or 0.03% at 8,634.85. The Sensex was currently trading below the psychologically important 28,000 level after reclaiming that level at the onset of trading session. It had settled a tad below that level during the previous trading session.
The Sensex lost 14.53 points or 0.05% at the day's low of 27,975.68 in early afternoon trade. The barometer index rose 118.18 points or 0.42% at the day's high of 28,108.39 at the onset of trading session, its highest level since 22 August 2016. The Nifty rose 1.05 points or 0.01% at the day's low of 8,633.65 in early afternoon trade. The index rose 28.45 points or 0.32% at the day's high of 8,661.05 at the onset of trading session, its highest level since 22 August 2016.
In overseas stock markets, Asian stocks witnessed a mixed trend ahead of Federal Reserve Chairwoman Janet Yellen's speech later this week, which could provide hints about the timing of the next rate hike from the Fed. US stocks registered small gains yesterday, 23 August 2016, after upbeat data on US new-home sales. Yellen is due to speak on Friday 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.
In Europe, the latest data showed that Germany's economy slowed in the second quarter, as investment dropped after a strong start to the year. Germany's gross domestic product grew at a quarterly rate of 0.4%, or an annualized rate of 1.7%, according to the Federal Statistical Office, Destatis. The economy expanded at a quarterly clip of 0.7% in the first quarter.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,457 shares rose and 914 shares declined. A total of 176 shares were unchanged. The BSE Mid-Cap index was currently up 0.44%. The BSE Small-Cap index was currently up 0.49%. Both these indices outperformed the Sensex.
FMCG stocks edged higher. Britannia Industries (up 3.41%), Godrej Consumer Products (up 1.95%), Tata Global Beverages (up 1.76%), Colgate-Palmolive (India) (up 1.33%), Emami (up 0.43%), Jyothy Laboratories (up 1.23%), Marico (up 0.54%), Procter & Gamble Hygiene and Health Care (up 0.9%), Nestle India (up 0.72%), Dabur India (up 0.36%), and Bajaj Corp (up 0.78%) gained. Hindustan Unilever (down 1.23%) and GlaxoSmithkline Consumer Healthcare (down 0.68%) edged lower.
Realty stocks also rose. D B Realty (up 1.08%), Indiabulls Real Estate (up 1.02%), Unitech (up 0.78%), Godrej Properties (up 0.85%), DLF (up 0.98%) and Housing Development & Infrastructure (up 0.21%) edged higher. Oberoi Realty (down 1.05%), Sobha (down 0.6%) and Prestige Estates Projects (down 0.27%) edged lower.
State Bank of India (SBI) was up 0.06% at Rs 254.75 after a committee of directors of the bank approved an enabling resolution to raise upto Rs 11100 crore additional Tier 1 capital by way of issue of Basel III compliant perpetual debt instrument in dollar or rupee terms, at par, through private placement to overseas and/or Indian investors in tranches.
Indian Oil Corporation surged 3.89% to Rs 564.15 after the company said that its board of directors will consider issue of bonus shares along with Q1 June 2016 results on 29 August 2016. The announcement was made during market hours today, 24 August 2016.
Welspun India was locked at 10% lower circuit at Rs 59.30 on reports that Wal-Mart Stores Inc. is reviewing the company's cotton certification records following Target Corp.'s decision to snap ties with the Indian textile maker over a cotton supply dispute. Walmart is Welspun's third-largest customer, behind Target. Target Corporation, one of Welspun's biggest clients, severed business ties with it earlier this week on charges that Welspun used cheaper quality cotton while supplying bed sheets between August 2014 and July 2016 without Target having any knowledge of this substitution. Target had pulled sheets and pillowcases off its shelves after discovering they were mislabeled as Egyptian cotton after a probe was initiated by it. Shares of Welspun India had hit 20% lower circuit in last two sessions following Target's announcement on Friday, 19 August 2016 of snapping ties with the company after violation of Target's code of conduct and standards of vendor engagement.
Reports also suggest that US apparel and home furnishings retailer J. C. Penney Company, Inc. is investigating Welspun's products in the wake of the issue.
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