Key benchmark indices regained positive terrain and hit fresh intraday high in mid-afternoon trade. At 14:19 IST, the barometer index, the S&P BSE Sensex was up 78.80 points or 0.28% at 27,861.05. The Nifty 50 index was currently up 18.20 points or 0.21% at 8,590.75.
The Sensex rose 91.34 points or 0.32% at the day's high of 27,873.59 in mid-afternoon trade. The barometer index fell 83.54 points or 0.3% at the day's low of 27,698.71 in morning trade. The Nifty rose 23.50 points or 0.27% at the day's high of 8,596.05 in mid-afternoon trade. The index fell 28.80 points or 0.33% at the day's low of 8,543.75 in morning trade, its lowest level since 11 August 2016.
In overseas stock markets, European and Asian stocks edged lower after Federal Reserve Chairwoman Janet Yellen on Friday, 26 August 2016 signaled the possibility of an interest-rate increase later this year. High US interest rates would pull money out of emerging markets and redirect it to the US. Japanese shares bucked a weak trend in Asian stocks on weaker yen. Japan's Nikkei 225 Average settled 2.3% higher. A weaker local currency benefits exporters, as they can sell their goods at more competitive prices overseas.
US stocks closed mixed on Friday, 26 August 2016 after Federal Reserve Chairwoman Janet Yellen signaled the possibility of an interest-rate increase later this year. On Friday, 26 August 2016, Yellen in her highly-anticipated speech at an economic symposium at Jackson Hole, Wyoming said she was optimistic about the US economy, fueling expectations that interest rate hikes were ahead. She said the Federal Open Market Committee continued to anticipate gradual increases in the federal funds rate over time to achieve and sustain employment and inflation in line with the Fed's objectives. She added that the solid performance in the US labor market and outlook for economic activity and inflation had strengthened the case in recent months for an increase in the federal funds rate.
Closer home, the market breadth indicating the overall health of the market was negative. On BSE, 1,434 shares fell and 1,120 shares rose. A total of 192 shares were unchanged. The BSE Mid-Cap index was currently up 0.2%. The BSE Small-Cap index was currently up 0.15%. Both these indices underperformed the Sensex.
FMCG stocks were mixed. Tata Global Beverages (down 1.07%), Nestle India (down 1%), Marico (down 1.33%), Britannia Industries (down 0.63%), Dabur India (down 0.59%), Colgate Palmolive India (down %), and GlaxoSmithkline Consumer Healthcare (down 1.05%) declined. Jyothy Laboratories (up 2.39%), Hindustan Unilever (HUL) (up 0.01%), Godrej Consumer Products (up 0.7%), and Bajaj Corp (up 0.3%) gained.
Procter & Gamble Hygiene and Health Care fell 1.8% after net profit rose 2.16% to Rs 109.40 crore on 0.71% increase in total income to Rs 580.45 crore in Q4 June 2016 over Q4 June 2015. The result was announced after trading hours on Friday, 26 August 2016. The company's net sales remained flat at Rs 557.09 in Q4 June 2016 over Q4 June 2015, due to overall category slowdown on health care.
Capital goods stocks were mixed. Bharat Heavy Electricals (Bhel) (up 0.9%), ABB India (up 0.33%), and BEML (up 0.07%) gained. Havells India (down 0.78%), Bharat Electronics (down 0.27%), Thermax (down 0.41%), and Siemens (down 1.03%) declined.
L&T rose 1.76% to Rs 1,452.95. The company's Chairman A. M. Naik said at the company's Annual General Meeting in Mumbai on Friday, 26 August 2016, that the company's goal is to achieve revenue of Rs 2 lakh crore ($30 billion) by 2021 without compromising on profit margins. He said that economic conditions are starting to turn in favour of the company. Naik said that the opening of the defence sector will lead to business opportunities worth Rs 13 lakh crore over the next 10 years. He also said that there is estimated business opportunity of Rs 50000 crore over 10 years in nuclear power sector. Naik also said that L&T will tap business opportunity in government's Smart City projects and realty segment. Naik said that there are a number of projects in the road, ports, airports, railway sectors in pipeline with a total estimated value of over Rs 14 lakh crore. Naik said that L&T is also strengthening its operations in the Gulf, Africa and South East Asia. The stock had declined 2.02% to Rs 1,427.85 on Friday, 26 August 2016.
Vakrangee rose 2.41% after consolidated net profit of rose 39.97% to Rs 121.49 crore on 30.28% rise in net sales to Rs 917.52 crore in Q1 June 2016 over Q1 June 2015. The result was announced on Saturday, 27 August 2016. Vakrangee's total consolidated revenue from Vakrangee Kendra business segment rose 57.6% to Rs 550.6 crore in Q1 June 2016 over Q1 June 2015. The percentage share of total revenue of Vakrangee Kendra business has now increased to 60.4%. The company's consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) rose 16.5% to Rs 221.50 crore in Q1 June 2016 over Q1 June 2015.
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