Market opens higher on positive Asian cues

Key benchmark indices were trading higher in early trade tracking positive cues from Asian markets. At 9:20 IST, the barometer index, the S&P BSE Sensex, was up 111.63 points or 0.32% at 34,557.38. The Nifty 50 index was up 32.20 points or 0.30% at 10,614.80.

Among secondary barometers,the BSE Mid-Cap index was up 0.14%. The BSE Small-Cap index was up 0.41%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than two gainers against every loser on BSE. 893 shares rose and 404 shares fell. A total of 42 shares were unchanged.

Overseas, most Asian shares were trading higher following gains on Wall Street overnight. The US market rose on Monday, 26 February 2018, in a broad-based rally led by technology shares. In the latest economic data, US new home sales fell 7.8% in January 2018 from the previous month, to an annualised pace of 593,000, the Commerce Department said.

Investors are focusing on the US Federal Reserve chairman Jerome Powell's congressional testimony on monetary policy and the economy. Powell will testify on the central bank's semi-annual report on monetary policy and the economy on Tuesday, 27 February 2018, before the US House of Representatives' Financial Services Committee.

Back home, Punjab National Bank (PNB) was down 6.30%. PNB has revealed additional unauthorised transactions related to the scam by billionaire diamantaire Nirav Modi and his uncle and business partner, Mehul Choksi, increasing the estimated size of the fraud by $204.25 million (about Rs 1322 crore). The disclosure was made to stock exchanges late yesterday, 26 February 2018.

ACC (down 1.10%) and Ambuja Cements (down 2.46%). Both the companies announced after market hours yesterday, 26 February 2018, that they are not proceeding with the merger proposed in May last year. There are certain constraints to implementing the merger at present, said the cement majors in separate stock exchange filings. The merger, however, remains the ultimate goal, the companies maintained.

The boards of both companies have approved an arrangement for sale and purchase of materials and services on mutually agreed terms in a bid to maximise synergies and unlock additional value for shareholders, the statements added. ACC and Ambuja Cements will disclose the details of the arrangement to its shareholders when it seeks their nod via postal ballot.

Berger Paints India was up 0.04%. The company said that the company is considering putting up an integrated paint plant at Sandila Industrial Area near Lucknow in UP. The details of the project are being worked out. The announcement was made after market hours yesterday, 26 February 2018.

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