Market may edge lower at opening bell

Market is seen opening lower tracking mixed cues from the Asian markets. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 15.85 points at the opening bell.

In overseas markets, Asia markets traded mixed today, 22 June 2016, as investors moved to the sidelines ahead of Britain's vote on its membership in the European Union.

US stocks closed slightly higher yesterday, 21 June 2016, after trading within a narrow range after Federal Reserve Chairwoman Janet Yellen cautioned that the UK leaving the European Union (EU) posed a risk while new polls showed support for the "stay camp" growing. In her testimony to the Senate Banking Committee, Yellen said a victory for the "leave camp" in this week's UK referendum on membership in the EU would pose a significant risk to the US economy and global financial market stability, and reiterated the cautious approach to raising interest rates that the Federal Open Market Committee signaled last week when it stood pat on US interest rates.

The key event in the UK and Europe this week is the Brexit referendum tomorrow, 23 June 2016, where British voters will decide whether the country should remain a member of the EU or leave it.

Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 484.66 crore yesterday, 21 June 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 335.53 crore yesterday, 21 June 2016, as per provisional data.

Among corporate news, shares of Hindustan Unilever turn ex-dividend today, 22 June 2016, for final dividend of Rs 9.50 per share for the year ended 31 March 2016.

Jindal Steel & Power (JSPL) announced after market hours yesterday, 21 June 2016, that its board approved issuance of non-convertible debentures (NCDs) upto Rs 5000 crore. It also approved issuance of further securities upto Rs 5000 crore.

Tech Mahindra announced after market hours yesterday, 21 June 2016, that the investment committee of board of directors of the company on 21 June 2016 approved the proposal to acquire Bio Agency, a UK based entity. The BIO Agency specialises in digital transformation and innovation, helping organisations change the way they engage with their customers. The company is acquired at the enterprise value of 40 million pounds plus surplus cash not exceeding 5 million pounds as at the completion date. The payment of 22 million pounds and the surplus cash will be made upfront and the balance is deferred payments based on company performance. The closing of the transaction is expected to take place in the first week of July 2016.

The two key benchmark indices snapped a two-day winning streak in what was a lacklustre trading session yesterday, 21 June 2016. The barometer index, the S&P BSE Sensex, fell 54.14 points or 0.2% to settle at 26,812.78. The Nifty 50 index fell 18.60 points or 0.23% to settle at 8,219.90.

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