Benchmark indices hover in positive zone

A range bound movement was witnessed as key benchmark indices traded in green in morning trade. At 10:15 IST, the barometer index, the S&P BSE Sensex was up 78.97 points or 0.28% at 28,138.91. The Nifty 50 index was currently up 23.55 points or 0.27% at 8,673.85. The Sensex 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 barometer index rose 37.83 points or 0.13% at the day's low of 28,097.77 at the onset of trading session. The Nifty 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 index rose 13.75 points or 0.15% at the day's low of 8,664.05 at the onset of trading session.

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 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.

Closer home, the broad market depicted strength. There were nearly two gainers against every loser on BSE. 1,237 shares rose and 647 shares declined. A total of 91 shares were unchanged. The BSE Mid-Cap index was currently up 0.48%. The BSE Small-Cap index was currently up 0.51%. Both these indices outperformed the Sensex.

Shares of road construction companies edged higher after the Cabinet Committee on Economic Affairs (CCEA) yesterday, 24 August 2016, gave its approval for development of 1,120 kilometers (KM) of national highways in Karnataka, Odisha, Bihar, Rajasthan and West Bengal with a revised estimated cost of Rs 6461 crore. GVK Power & Infrastructure (up 8.77%), Hindustan Construction Company (up 6.46%), J. Kumar Infraprojects (up 5%), Lanco Infratech (up 2.52%), IVRCL (up 4.41%), IL&FS Transportation Networks (up 2.78%), Gammon India (up 0.65%), GMR Infrastructure (up 0.82%), L&T (up 0.29%), NCC (up 0.12%) and Unity Infraprojects (up 1.06%) gained. IRB Infrastructure Developers (down 0.28%) edged lower.

The revised estimated cost of the projects is Rs 6461 crore including cost of land acquisition, resettlement and rehabilitation and other pre-construction activities. The proposal was initially approved for Rs 5193 crore. However, the cost of the projects had increased due to higher bid prices, and increase in cost of land acquisition, resettlement and rehabilitation and other pre-construction activities.

The projects are already taken up for implementation and 429 KM has been completed. The civil works are expected to be completed by July 2019 and maintenance works are expected to be completed by July 2024, the government said in a statement.

Rail stocks edged higher after CCEA yesterday, 24 August 2016, gave its approval for nine new projects worth Rs 24374.86 crore for expansion of railway network and connectivity across the country. Kernex Microsystems (India) (up 3.16%), Titagarh Wagons (up 5.09%), Hind Rectifiers (up 2.35%), Stone India (up 3.76%), Kalindee Rail Nirman (Engineers) (up 3.41%), Texmaco Rail & Engineering (up 3.8%), BEML (up 0.57%), Nelco (up 0.63%) and Container Corporation of India (up 0.55%) gained.

IDBI Bank was down 0.14% at Rs 71.80. 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.

Yes Bank was up 0.68% at Rs 1,347.70. 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.

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