Benchmark indices hover in positive zone

A rangebound movement was witnessed as key benchmark indices hovered in positive zone in morning trade. At 10:15 IST, the barometer index, the S&P BSE Sensex, was up 41.55 points or 0.15% at 28,031.76. The Nifty 50 index was currently up 7.60 points or 0.09% at 8,640.20. The Sensex was currently trading above the psychologically important 28,000 level. It had settled a tad below that level during the previous trading session.

The Sensex rose 118.18 points or 0.42% at the day's high of 28,108.39 at the onset of trading session, its highest level since 22 August 2016. The barometer index rose 13.30 points or 0.04% at the day's low of 28,003.51 in early trade. The Nifty rose 28.45 points or 0.32% at the day's high of 8,661.05 at the onset of trading session, its highest level since 22 August 2016. The index rose 1.20 points or 0.01% at the day's low of 8,633.80 in early trade.

 

In overseas stock markets, Asian stocks witnessed a mixed trend ahead of Federal Reserve Chairwoman Janet Yellen's speech later this week, which could provide hints about the timing of the next rate hike from the Fed. US stocks registered small gains yesterday, 23 August 2016, after upbeat data on US new-home sales. Yellen is due to speak on Friday 26 August 2016, at the Kansas City Fed's annual Monetary Policy Symposium in Jackson Hole, Wyoming. Minutes from the Federal Open Market Committee's (FOMC) July meeting showed officials were split on whether an increase in interest rate was needed soon.

Closer home, the broad market depicted strength. There were nearly two gainers against every loser on BSE. 1,229 shares rose and 625 shares declined. A total of 113 shares were unchanged. The BSE Mid-Cap index was currently up 0.55%. The BSE Small-Cap index was currently up 0.44%. Both these indices outperformed the Sensex.

Cement stocks edged lower. Ambuja Cements (down 0.74%), ACC (down 0.42%) and UltraTech Cement (down 0.22%) declined. Shree Cement was unchanged at Rs 16,759.65.

Grasim Industries was up 0.06% at Rs 4,527. Grasim has exposure to cement sector through its holding in UltraTech Cement.

IT stocks were mixed. TCS (down 0.95%), Oracle Financial Services Software (down 0.13%) and HCL Technologies (down 0.23%) edged lower. Tech Mahindra (up 1.03%) and Wipro (up 0.41%) edged higher.

Index heavyweight and software major Infosys rose 1.92% at Rs 1,059.20 on reports that the company may get about $60 million (Rs 400 crore) in incremental revenue over the third and fourth quarters of the current financial year (FY 2017) as part of the Rs 1380 crore Goods Services and Tax Network (GSTN) project. Under the ongoing GSTN project, Infosys has started importing hardware, including servers and network equipment devices, payment for which will be made by GSTN starting October this year, reports suggested.

Idea Cellular was down 3.27% at Rs 97.50 after the company after market hours yesterday, 23 August 2016, denied reports that it was in merger talks with Vodafone India. The stock had surged 6.72% to settle at Rs 100.80 yesterday, 23 August 2016, after a news report suggested that the two companies had initiated exploratory talks for a possible merger.

Aurobindo Pharma rose 4.85% at Rs 772 after consolidated net profit rose 24% to Rs 584.60 crore on 12.9% growth in total operating income to Rs 3725.90 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 23 August 2016. The company's earnings before interest, taxation, depreciation, and amortization (EBITDA) before forex rose 22.6% to Rs 889 crore in Q1 June 2016 over Q1 June 2015. EBITDA margin improved to 23.9% in Q1 June 2016 from 22% in Q1 June 2015.

Aurobindo Pharma's Managing Director N. Govindarajan said that the quarter witnessed a double digit growth on the back of overall business performance. With focus on execution and capability enhancements, Aurobindo continues to progress on specialty generics for a sustained long term growth, he said.

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