Market opens slightly higher

Key benchmark indices were trading a tad higher in early trade, tracking positive cues from Asian market. At 9:22 IST, the barometer index, the S&P BSE Sensex, was up 28.97 points or 0.11% at 26,841.75. The gains for the Sensex were higher in percentage terms than those for the Nifty 50 index. The Nifty was up 2.25 points or 0.03% at 8,222.15.

The broad market depicted strength. There were more than two gainers against every loser on BSE. 858 shares rose and 319 shares fell. A total of 58 shares were unchanged. The BSE Mid-Cap index was currently up 0.31%. The BSE Small-Cap index was currently up 0.34%. Both these indices outperformed the Sensex.

In the overseas market, most Asia markets were trading higher today, 22 June 2016. 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.

Hindustan Unilever (HUL) was down 0.76% on turning 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) was up 1.35%. The company 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 was up 0.70% after the company 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.

Most metal shares edged higher. Jindal Steel & Power (up 1.43%), Bhushan Steel (up 0.88%), Vedanta (up 0.52%), Steel Authority of India (up 0.45%), NMDC (up 0.33%), Hindustan Copper (up 0.19%), Hindalco Industries (up 0.08%), JSW Steel (up 0.06%) and Hindustan Zinc (up 0.03%), edged higher. National Aluminium Company (down 0.24%) and Tata Steel (down 0.25%), edged lower.

Meanwhile, copper price edged lower in the global commodities markets. High Grade Copper for July 2016 delivery was currently down 0.05% at $2.115 per pound on the COMEX.

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