Market drifts lower in early trade

Key benchmark indices drifted lower in early trade. At 9:28 IST, the barometer index, the S&P BSE Sensex was off 46.29 points or 0.16% at 28,136.28. The Nifty 50 index was currently off 16.55 points or 0.19% at 8,694.80.

In overseas stock markets, most Asian shares rose as US crude oil traded near its highest price in two weeks. US stocks closed lower yesterday, 8 August 2016 after touching record highs as Wall Street caught its breath in the wake of last week's upbeat jobs data.

Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 728 shares rose and 718 shares fell. A total of 59 shares were unchanged. The BSE Mid-Cap index was currently off 0.12%. The BSE Small-Cap index was currently off 0.15%. The fall in both these indices was lower than the Sensex's decline in percentage terms.

The Reserve Bank of India's (RBI) monetary policy meeting is scheduled at about 11:00 IST today, 9 August 2016. The central bank had left its benchmark repo rate unchanged at 6.5% in its last meeting.

Adani Ports and Special Economic Zone rose 0.75% ahead of its Q1 June 2016 earnings today, 9 August 2016.

Lupin gained 1.63% ahead of its Q1 June 2016 earnings today, 9 August 2016.

Idea Cellular lost 4.17% after consolidated net profit slumped 74.21% to Rs 220.41 crore on 7.22% rise in total income to Rs 9552.44 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 8 August 2016.

HDFC shed 0.53%. Max Financial Services declined 0.8%. HDFC after market hours yesterday, 8 August 2016 announced that a committee of the board of directors of the company at its meeting held yesterday, 8 August 2016, approved the entering into definitive agreements for amalgamation of business between HDFC Standard Life Inusrance Company (HDFC Life), Max Life Insurance Company (Max Life) and Max Financial Services (Max Financial) through a composite scheme of arrangement. As a part of the proposed transaction, the life insurance business of Max Financial, currently held through Max Life, would be finally amalgamated with HDFC Life and all other business of Max Financial would be finally amalgamated into Max India. The shares of HDFC Life are proposed to be listed on BSE and the National Stock Exchange of India (NSE) as a consequence of the scheme. Pursuant to the scheme and subject to receipt of the requisite approvals, the shareholding of HDFC in HDFC Life post completion of the proposed transaction would be 42.5% and consequently HDFC Life would cease to be a subsidiary of HDFC.

For the merger of Max Life into Max Financial, shareholders of Max Life will get one share of Max Financial for approximately five shares of Max Life. For the demerger of the life insurance undertaking from Max Financial into HDFC Life, shareholders of Max Financial (post the amalgamation with Max Life), will get 2.33 shares of HDFC Life for each share of Max Financial.

Tata Motors rose 1.05% after the company announced that its group global wholesales rose 20% to 88,159 units in July 2016 over July 2015. The announcement was made after market hours yesterday, 8 August 2016.

Sun Pharmaceutical Industries (Sun Pharma) fell 0.83%. The company announced the extension of its Imatinib Mesylate Savings Card Program beyond 31 July 2016. Sun Pharma launched this program as part of the Imatinib Mesylate launch in February 2016. The program is aimed at delivering greater access to the drug by patients who have commercial insurance, but whose out-of-pocket cost may exceed an affordable amount. The announcement was made after market hours yesterday, 8 August 2016.

Rural Electrification Corporation gained 2.93% after the company scheduled a board meeting on 11 August 2016, to consider issue of bonus shares. The announcement was made after market hours yesterday, 8 August 2016.

Bharti Infratel rose 0.18%. The stock turned ex-dividend today, 9 August 2016 for final dividend of Rs 3 per share for the year ended 31 March 2016 (FY 2016).

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