Market edges higher in early trade

Key benchmark indices edged higher in early trade on positive global cues. At 9:20 IST, the barometer index, the S&P BSE Sensex was up 141.16 points or 0.46% at 30,975.48. The Nifty 50 index rose 50.25 points or 0.53% at 9,541.50.

The S&P BSE Mid-Cap index rose 0.62%. The S&P BSE Small-Cap index advanced 0.78%. Both these indices outperformed the Sensex.

Overseas, Asian stocks edged higher, taking cues from a stronger finish in US markets. US equities registered strong gains yesterday, 28 June 2017 as bank stocks led the charge. The S&P 500 index notched its biggest one-day gain since late April.

Closer home, the breadth, indicating the overall health of the market, was strong. On the BSE, 973 shares rose and 201 shares declined. A total of 36 shares were unchanged.

Axis Bank rose 1.72% after the bank said its board of directors yesterday, 28 June 2017, approved the allotment of non-convertible debentures (NCDs) of face value of Rs 10 lakh each for cash at par aggregating to Rs 3500 crore, on a private placement basis. The perpetual debentures with a 5 year call are priced at a fine coupon rate of 8.75%. The announcement was made after market hours yesterday, 28 June 2017.

Separately, Axis Bank after market hours yesterday, 28 June 2017 said that it has fully redeemed all the outstanding notes in an aggregate principal amount of $60 million and an aggregate accrued amount of interest of $2.137 million, for a total sum of $62.137 million.

Separately, Axis Bank announced before market hours today, 29 June 2017 that the Reserve Bank of India (RBI) issued directions its communication dated 15 June 2017 advising banks to initiate insolvency resolution process in select accounts under the provisions of the Insolvency and Bankruptcy Code, 2015 (IBC). Axis Bank had exposure on 8 of these accounts. Total fund based outstanding of the bank on these accounts was Rs 5071 crore. Non-fund based outstanding was Rs 212 crore as on 31 March 2017. Around 80% of the outstanding was secured. Against this outstanding, the provision held was Rs 2497 crore.

HDFC Bank was up 0.06%. The stock turned ex-dividend today, 29 June 2017, for dividend of Rs 11 per share for the year ended 31 March 2017 (FY 2017).

Wipro fell 0.54%. The company announced that locals now form over 50% of its US workforce. Over the past six months, the company hired over 1,600 employees by attracting and nurturing local talent to drive innovation and help transform clients' businesses into digital enterprises. The announcement was made after market hours yesterday, 28 June 2017.

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