Market edges higher in early trade

Key benchmark indices edged higher in early trade tracking firmness in Asian stocks. At 9:30 IST, the barometer index, the S&P BSE Sensex was up 97.75 points or 0.37% at 26,875.20. The Nifty 50 index was currently up 28.55 points or 0.35% at 8,229.60. Realty and bank stocks led gains on the bourses.

In overseas markets, Asian stocks rose today, 7 June 2016 after Federal Reserve Chairwoman Janet Yellen yesterday, 6 June 2016 said US interest rate hikes are likely on the way but held back any reference to the timing. The Fed chief said last month's jobs report was "disappointing" and bears watching, though she gave a largely upbeat assessment of the US economic outlook, warning against attaching too much significance to the payrolls data in isolation. US stocks gained yesterday, 6 June 2016, even as Federal Reserve Chairwoman Janet Yellen said a rate-hike following an ugly jobs report late last week was still a possibility.

Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 856 shares rose and 312 shares declined. A total of 92 shares were unchanged. The BSE Mid-Cap index was currently up 0.26%, underperforming the Sensex. The BSE Small-Cap index was currently up 0.41%, outperforming the Sensex.

Meanwhile, the Reserve Bank of India (RBI) will announce the Second Bi-monthly Monetary Policy Statement, 2016-17 at 11.00 IST today, 7 June 2016. The RBI is likely to hold policy rates unchanged.

Axis Bank gained after the bank raised funds by issuing internationally listed certified green bonds. The stock rose 0.52%. The bank said that it opened trade at London to celebrate the bank's landmark issuance of Asia's first internationally listed certified green bond on London Stock Exchange. The bond certified by the Climate Bonds Standards Board, raised $500 million. It is the first green bond for Axis Bank within its $5 billion Medium Term Note (MTN) programme, which has additionally listed its entire MTN programme in London. The proceeds of the bond will be invested in green energy, transportation and infrastructure projects, reinforcing India's commitment to produce 175,000 megawatts (MW) of renewable power by 2022. The announcement was made after market hours yesterday, 6 June 2016.

Hero MotoCorp (up 1.23%), State Bank of India (SBI) (up 1.13%) and ICICI Bank (up 1.11%) were the major gainers from the Sensex pack.

Wipro rose 0.32% to Rs 537.60 after the company announced that it would commence buyback of shares on 17 June 2016. The buyback closes on 30 June 2016. Wipro's board of directors in April 2016 approved a proposal to buyback up to 4 crore equity shares of the company for an aggregate amount of up to Rs 2500 crore, being 1.62% of the total paid up equity share capital. The buyback will be through the tender offer route at Rs 625 per share. The promoters of the company have indicated their intention to participate in the proposed buyback. The company had fixed 6 May 2016 as the record date for the buyback of shares. The announcement was made after market hours yesterday, 6 June 2016.

Powered by Capital Market - Live News