Market trades flat

Key benchmark indices were trading flat in early trade. At 9:28 IST, the barometer index, the S&P BSE Sensex was almost unchanged at 28,224.08. The Nifty 50 index was currently almost unchanged at 8,706.10. Capital goods and metal stocks gained.

In overseas stock markets, Asian stocks dropped with European banking sector concerns and lower crude oil prices dulling investors' appetite for riskier assets. US stocks rose yesterday, 27 September 2016 after the first presidential debate between Democratic candidate Hillary Clinton and Republican contender Donald Trump and a number of stronger-than-expected economic reports. Stocks are rising on the prospect of a Clinton presidency because the Democrat is viewed as a known quantity while some view Trump as being more unpredictable, a bad thing for stock investors. Additionally, US consumer confidence rose to 104.1 in September, the highest level since August 2007. The Case-Shiller home price index rose 5% for the year in July, while house prices rose 0.6%. The Markit flash services purchasing managers index for September rose to 51.9 in September from 51 in August.

Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 879 shares rose and 355 shares fell. A total of 62 shares were unchanged. The BSE Mid-Cap index was currently up 0.22%. The BSE Small-Cap index was currently up 0.32%. Both these indices outperformed the Sensex.

Tata Steel (up 0.73%), L&T (up 0.59%), Axis Bank (up 0.59%) and Coal India (up 0.5%) were the major gainers from the Sensex pack. Bharti Airtel dropped 0.79%.

State Bank of India (SBI) declined 0.06%. The bank said that on 27 September 2016 it issued and allotted 25,000 AT1 Basel III compliant non-convertible, perpetual, subordinated, unsecured debt instrument in the nature of debenture, of face value Rs 10 lakh each at par through private placement bearing coupon of 8.75% per annum payable annually with call option after 5 years or any coupon payment date thereafter aggregating to Rs 2500 crore in second tranche. The announcement was made after market hours yesterday, 27 September 2016.

Mahindra & Mahindra (M&M) gained 0.14% after the company said that it has agreed to acquire 1.49 crore shares or 100% of the share capital of Mahindra Two Wheelers Europe Holdings S.ar.l. from Mahindra Two Wheelers, a subsidiary of the company for Euro 26.3 million. The announcement was made after market hours yesterday, 27 September 2016. The indicative time period for completion of the acquisition is 30 days. MTWL-Europe is a special purpose vehicle to hold the investment in Peugeot Motorcycles S.A.S.

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