Market opens higher

Key benchmark indices were trading higher in early trade. At 9:20 IST, the barometer index, the S&P BSE Sensex, was up 43.25 points or 0.15% at 28,166.69. The Nifty 50 index was up 8.30 points or 0.10% at 8,681.55.

The market breadth indicating the overall health of the market was strong. On BSE, 762 shares rose and 336 shares fell. A total of 44 shares were unchanged. The BSE Mid-Cap index was currently up 0.36%. The BSE Small-Cap index was currently up 0.32%. Both these indices outperformed the Sensex.

In overseas stock markets, Asian stocks were mixed. US stocks eked out gains yesterday, 18 August 2016, following upbeat earnings and forecast from Wal-Mart and as higher oil lifted energy shares.

In the global commodities markets, Brent for October settlement was up 1 cents at $50.90 a barrel. The contract had risen $1.04 a barrel or 2.09% to settle at $50.89 a barrel during the previous trading session.

Back home, State Bank of India (SBI) and its associate banks rose after SBI after trading hours yesterday, 18 August 2016, announced the merger of 5 associate banks viz. State Bank of Bikaner and Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT), State Bank of Hyderabad and State Bank of Patiala with itself. State Bank of Travancore (up 6.74%), State Bank of Bikaner and Jaipur (up 2.48%) and SBI (up 3.14%), edged higher. State Bank of Mysore was down 10.73%.

As per the swap ratio for the merger, 28 equity shares of SBI will be issued for every 10 shares held in SBBJ. For both SBM and SBT, the swap ratio for merger is 22 shares of SBI for every 10 shares held in SBM and SBT. State Bank of Hyderabad and State Bank of Patiala are both not listed on the bourses. SBI also announced the merger of unlisted Bharatiya Mahila Bank (BMBL) with itself. SBI had announced in May 2016 that it was considering the merger of 5 associate banks and BMBL with itself.

Wipro was up 0.97% after the the company said it made minority strategic investment to acquire a minority stake of less than 20% in Intsights Cyber Intelligence for $1.5 million. Intsights offers threat intelligence driven security platform. The announcement was made after market hours yesterday, 18 August 2016.

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