Strong market breadth

The Sensex trimmed gains while the Nifty hovered in positive zone in mid-morning trade. At 11:25 IST, the barometer index, the S&P BSE Sensex, was up 64.87 points or 0.19% at 34,075.48. The Nifty 50 index was up 5.20 points or 0.05% at 10,536.70. Gains in the Sensex were more in percentage terms than those of the Nifty. Many FMCG stocks rose. Realty stocks saw mixed trend.

A divergent trend was seen in early trade as the barometer index, the S&P BSE Sensex, was trading with small gains while the Nifty 50 index was trading with marginal losses. The Sensex scaled record high in early trade. The Sensex extended gains in morning trade while the Nifty regained positive zone in morning trade. The Nifty hit record high in morning trade.

Among secondary indices, the S&P BSE Mid-Cap index was up 0.37%. The S&P BSE Small-Cap index was up 0.46%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was strong. On the BSE, 1,514 shares rose and 931 shares fell. A total of 136 shares were unchanged.

Overseas, Asian markets were mixed in trading thinned by a holiday-shortened week. US stocks closed lower in light volume trade yesterday, 26 December 2017 as shares of Apple tumbled, offsetting gains in energy stocks as oil prices hit their highest in more than two years. European markets were closed yesterday, 26 December 2017 in observance of Boxing Day.

Back home, many FMCG stocks rose. Tata Global Beverages (up 0.29%), Hindustan Unilever (HUL) (up 0.9%), Dabur India (up 0.41%), Marico (up 0.6%), Procter & Gamble Hygiene and Health Care (up 0.5%), Jyothy Laboratories (up 0.18%), Bajaj Corp (up 0.51%) and Godrej Consumer Products (up 0.16%) gained.

Nestle India (down 0.71%), Colgate Palmolive India (down 0.07%), GlaxoSmithkline Consumer Healthcare (down 0.25%) and Britannia Industries (down 0.02%) declined.

Canara Bank rose 0.16% to Rs 375.20 after the bank announced that its board approved raising additional equity share capital amounting upto Rs 90 crore (based on face value) through qualified institutional placement (QIP) route, by issuing upto 9 crore equity shares of face value Rs 10 each with a premium to be decided as per the applicable guidelines/regulations for an aggregate amount not exceeding Rs 3500 crore inclusive of such premium. The announcement was made after market hours yesterday, 26 December 2017.

Realty stocks saw mixed trend. Phoenix Mills (up 1.6%), DLF (up 0.14%), Oberoi Realty (up 0.75%), Godrej Properties (up 0.11%) and Omaxe (up 0.61%) rose. D B Realty (down 2.72%), Indiabulls Real Estate (down 1.69%), Sobha (down 0.16%), Housing Development and Infrastructure (down 0.85%) and Unitech (down 0.27%) fell.

Prestige Estates Projects rose 4.34% after the company said it will acquire 66.66% stake in a group company, Prestige Projects, for Rs 324 crore. Prestige Projects (PPPL) was formed on 13 June 2008 and is an associate of Prestige Estates Projects. Prestige Estates Projects currently holds 33.34% stake in PPPL. PPPL is in the business of real estate development and owns a land parcel admeasuring over 180 acres located in Sarjapur road, Bengaluru. The announcement was made after market hours yesterday, 26 December 2017.

The company is proposing to develop a large scale affordable and mid income housing project (approximately over 7.5 million square feet of developable area) comprising of apartments, villas and plots along with various lifestyle amenities and necessary social infrastructure such as retail shopping malls, sports facilities etc. in this land.

PPPL has not registered any business turnover for the last three financial years, as the project is under various stages of planning and regulatory approvals.

Prestige Estates Projects through a wholly-owned special purpose vehicle (SPV) is in the process of acquisition of 66.66% equity stake in PPPL from the investors and land owners for a consideration of approximately Rs 324 crore. The acquisition is expected to be completed before 31 January 2018. Currently, investors hold 33.33% stake and land owners hold 33.33% stake in PPPL.

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