Market slightly lower in early trade

Key benchmark indices were trading slightly lower in early trade. At 9:25 IST, the barometer index, the S&P BSE Sensex was off 12.08 points or 0.04% at 27,803.10. The Nifty 50 index was currently off 7.25 points or 0.09% at 8,512.25

In overseas stock markets, most Asian markets were trading lower ahead of Bank of England's interest rate decision later in the global day. In US stocks, the S&P 500 and Dow Jones Industrial Average scored meager gains yesterday, 13 July 2016 but enough to extend their run into record territory and advance for a fourth session in a row. However, the tech-heavy Nasdaq Composite index took a breather following a five-session climb to end lower. Stocks got a slight bump from the US Fed's beige book report released yesterday, 13 July 2016 which indicated that the US economy is holding steady although consumption may be softening. The beige book is an anecdotal survey of economic conditions in the US compiled by the Fed's regional banks.

The Bank of England meets later in the global day today, 14 July 2016, and expecttations are that it will lower its benchmark lending rate by a quarter of a percentage point to 0.25% to counter the fallout from the Brexit vote. In the UK, Theresa May became the country's prime minister after former leader David Cameron tendered his resignation to the Queen.

Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 910 shares rose and 469 shares declined. A total of 67 shares were unchanged. The BSE Mid-Cap index was currently up 0.27%. The BSE Small-Cap index was currently up 0.42%. Both these indices underperformed the Sensex.

Shares of IT major Tata Consultancy Services (TCS) were off 0.38% ahead of its Q1 June 2016 results today, 14 July 2016.

Bajaj Auto slipped 0.29% after the stock turned ex-dividend today, 14 July 2016, for final dividend of Rs 5 per share for the year ended 31 March 2016 (FY 2016).

Kotak Mahindra Bank rose 0.85%. The stock turned ex-dividend today, 14 July 2016, for dividend of Rs 0.50 per share for the year ended 31 March 2016 (FY 2016).

Mahindra & Mahindra (M&M) fell 0.98%. M&M announced the incorporation of subsidiary company in the name of Merakisan to carry on the business of procuring and marketing agricultural produce including fruits and vegetables. Merakisan was incorporated as a wholly owned subsidiary of Mahindra Univeg (MUPL) which is a step-down subsidiary of M&M. The announcement was made after market hours yesterday, 13 July 2016.

NBCC (India) rose 3.55% to Rs 237.95 after the Cabinet Committee on Economic Affairs approved disinvestment of 15% paid up equity of the company out of Government of India's (GoI) 90% shareholding. The announcement was made after trading hours yesterday, 13 July 2016. The NBCC (India) stock slumped 10.72% to settle at Rs 229.80 yesterday, 13 July 2016, as investors awaited details regarding the quantum of the stake sale after media reports suggested that the government had approved divestment in the state-run firm. The divestment of stake will be carried out through the offer for sale (OFS) route via the stock exchanges mechanism. In order to inculcate a sense of belongingness amongst the employees of NBCC, GoI has decided to allot additional shares to the eligible and willing employees of the company at a discount of 5% to the issue/discovered (lowest cut off) price of the OFS. NBCC (India) is engaged in construction, engineering and project management consultancy services.

On the macro front, the inflation based on wholesale price index (WPI) for the month of June 2016 is scheduled to be released by the government today, 14 July 2016. WPI rose 0.79% in May 2016, after rising 0.34% in April.

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