Market trims gains

A bout of volatility was witnessed in early afternoon trade as key benchmark indices trimmed intraday gains. At 12:20 IST, the barometer index, the S&P BSE Sensex was up 40.66 points or 0.14% at 28,387.56. The gains for the Nifty 50 index were higher than the Sensex's gains in percentage terms. The Nifty was currently up 25.80 points or 0.3% at 8,770.15. Earlier, key indices after opening higher had extended gains and hit multi-month highs in morning trade.

The market breadth indicating the overall health of the market was positive. On BSE, 1,254 shares rose and 1,148 shares declined. A total of 184 shares were unchanged. The BSE Mid-Cap index was currently up 0.35%. The BSE Small-Cap index was currently up 0.53%. Both these indices outperformed the Sensex.

In overseas stock markets, Asian stocks were mixed. US stocks slipped yesterday, 30 August 2016, as the dollar strengthened on expectations that the Federal Reserve was moving closer to raising interest rates. US consumer confidence rose to an 11-month high in August, with households more upbeat about the labour market, data showed overnight. The focus is now on US nonfarm-payroll data for August due on Friday, 2 September 2016.

Most capital goods stocks gained. Havells India (up 0.13%), ABB India (up 0.49%), Bharat Electronics (up 1.1%), L&T (up 0.77%), and Siemens (up 0.31%) gained. Thermax (down 0.16%) and Bharat Heavy Electricals (Bhel) (down 0.43%) declined.

Bank stocks also gained. Among public sector banks, Punjab National Bank (up 0.75%), Bank of Baroda (up 0.09%), State Bank of India (SBI) (up 0.42%), Union Bank of India (up 0.53%), Canara Bank (up 0.55%), and Bank of India (up 0.6%) edged higher.

Among private sector banks, ICICI Bank (up 0.7%), HDFC Bank (up 0.36%), and IndusInd Bank (up 2.39%) edged higher. Axis Bank (down 0.23%) and Yes Bank (down 0.79%) declined.

Kotak Mahindra Bank rose 1.68% after the Reserve Bank of India (RBI) has informed the bank that it has granted approval to Canada Pension Plan Investment Board (CPPIB) for acquiring shares in excess of 5% and below 10% of the paid up capital of the bank. CPPIB, a registered foreign institutional investor in India, already owns 4.89% stake in Kotak Mahindra Bank (as per the shareholding pattern as on 30 June 2016). The announcement was made after market hours yesterday, 30 August 2016.

Shares of RBL Bank were trading at Rs 293.50 at 11:35 IST on BSE, a premium of 30.44% over the initial public offer price of Rs 225. The stock debuted at Rs 273.70, a premium of 21.64% to the initial public offer (IPO) price. So far the stock hit a high of Rs 305 and low of Rs 273.70. On BSE, so far 1.10 crore shares were traded on the counter. RBL Bank is professionally managed and has no identifiable promoter.

Zee Entertainment Enterprises (ZEE) gained 0.94% after the announcement that Sony Pictures Networks India (SPN) and its affiliates entered into definitive agreements to acquire TEN Sports Network from ZEE and its subsidiaries for $385 million. Completion of the acquisition is subject to regulatory approval. The acquisition will add South Asia's leading sports network to SPN's existing portfolio of channels. The transaction is expected to be concluded in 4 to 5 months.

The TEN Sports channels being acquired include TEN 1, TEN 1 HD, TEN 2, TEN 3, TEN Golf HD, TEN Cricket, TEN Sports that operate in several countries including the Indian sub-continent, Maldives, Singapore, Hong Kong, Middle East, Caribbean. TEN Sports holds broadcast rights to major cricket boards (South Africa, Pakistan, Sri Lanka, West Indies and Zimbabwe). In addition, Ten Sports holds rights to wrestling (WWE), football (UEFA Champions League, UEFA Europa League, French League, English Football League Cup), tennis (WTA Events, ATP events), golf (European Tour, Asian Tour, Ryder Cup, US PGA Championship, LPGA Tour, Professional Golf Tour of India and Golf Channel Block), athletics (Asian Games, Commonwealth Games), motor sports (Moto GP) and cycling (Tour de France) events. The announcement was made during market hours today, 31 August 2016. SPN, formerly Multi Screen Media Private Ltd, is a subsidiary of Sony Pictures Entertainment, which owns and operates the Sony Entertainment network of television channels.

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