Market opens on a flat note

Key benchmark indices were trading on a flat note in early trade. At 9:21 IST, the Sensex was off 6.84 points or 0.02% at 28,919.52. The Nifty 50 index was currently off 9.80 points or 0.11% at 8,908.15.

In overseas stock markets, most Asian stocks were trading lower following the mixed lead overnight from Wall Street and as investors stayed cautious ahead of the European Central Bank (ECB)'s monetary policy decision later in the global day. The ECB is reportedly expected to leave interest rates unchanged, but may announce an extension of its quantitative easing program. US stocks ended on a mixed note yesterday, 7 September 2016 as investors digested the release of the Federal Reserve's Beige Book, a key indicator of the US economic health, which said economic activity continued to expand at a modest pace from July through late August.

Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 807 shares rose and 391 shares declined. A total of 53 shares were unchanged. The BSE Mid-Cap index was currently off 0.13%. The BSE Small-Cap index was currently up 0.23%. Both these indices outperformed the Sensex.

ONGC rose 1.84%. The company's net profit dropped 21.15% to Rs 4232.54 crore on 20.23% decline in total income to Rs 18737.18 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 7 September 2016.

GAIL (India) advanced 1.64% after the company's net profit jumped 244.03% to Rs 1335.18 crore on 9.98% decline in total income to Rs 11457.20 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 7 September 2016. GAIL (India) attributed the sharp surge in its bottom line in Q1 June 2016 to turnaround in its petrochemical business and partial sale of stake in Mahanagar Gas. The company's profit after tax (PAT) excluding gain from stake sale in Mahanagar Gas rose 118% to Rs 846 crore in Q1 June 2016 over Q1 June 2015. The company's bottom line growth during the quarter was also supported by increase in natural gas sales and transmission volumes.

Meanwhile, shares of GAIL (India) turned ex-dividend today, 8 September 2016, for final dividend of Rs 3 per share for the year ended 31 March 2016 (FY 2016). Before turning ex-dividend, the stock offered a dividend yield of 0.75% based on the closing price of Rs 396.50 on BSE yesterday, 7 September 2016.

NTPC shed 0.65% as the stock turned ex-dividend today, 8 September 2016, for final dividend of Rs 1.75 per share for the year ended 31 March 2016 (FY 2016).

HDFC rose 0.61% after the company announced that it intends to raise Rs 1000 crore from issue of non-convertible debentures on private placement basis. The debentures will carry a coupon rate of 7.7% per annum and will have a tenor of 1 year 5 months. The issue opens and closes for subscription on the same day tomorrow, 9 September 2016. The announcement was made after market hours yesterday, 7 September 2016.

Wipro fell 1.28%. The company after market hours yesterday, 7 September 2016 regarding updates of the company's engagement with Employees' State Insurance Corporation (ESIC). In March 2009, Wipro had entered into a seven-year agreement with ESIC as a systems integrator for Project Panchdeep to set up a healthcare administration program under the build, own, operate and transfer model. Wipro said it had completed its obligations under the contract. However, ESIC has withheld certain amounts due to the company in an ad-hoc and arbitrary manner, which has resulted in a significant delay in collections for the company, Wipro said. The company has disputed this non-payment and is engaged with ESIC to recover the amounts due. If the company is not able to resolve this amicably in a reasonable time, it will take all necessary legal steps available to it, Wipro said. The agreement with ESIC expired on 8 June 2016 post which Wipro had no obligation to provide any services to ESIC, the company said. In spite of ESIC's failure to make timely payments, Wipro at the request of ESIC and given the critical nature of the services for the citizens, agreed to provide support services for an additional period of three months, it said. As contractually agreed, Wipro will handover this project close of business hours on 8 September 2016, the company said.

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