The benchmark indices ended flat amid lack of local and global cues as caution prevailed on the day the annual Jackson Hole gathering of central bankers gets underway.
Investors focused on the central banking conference in Jackson Hole, Wyoming, where Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi were both due to speak, although new policy messages were considered unlikely.
Back home, Infosys extended gains for the second straight day on the prospects of its celebrated co-founder Nandan Nilekani returning to the company as a non-executive chairman.
Meanwhile, domestic market will remain shut on Friday to observe Ganesh Chaturthi.
Vinod Nair, Head of Research, Geojit Financial Services
Market traded in a narrow range as every upward move in the current consolidation phase is facing strong resistance due to lack of encouraging cues. Moreover, tomorrow’s Fed chair speech at Jackson Hole will be watchful, whereas the domestic market will remain shut to observe a holiday, which influenced the participants to stay on the back foot. On the other hand, healthcare stocks remained in focus on supportive USFDA grounds, which led the sector to outperform.
The breadth, indicating the overall health of the market, was strong. On the BSE, 1,432 shares declined and 1,127 shares rose. A total of 148 shares remained unchanged.
Broader markets outperform
The BSE Midcap index gained 0.8%, while the BSE Smallcap index closed 0.3% higher.
Top five gainers on the Nifty were all from the pharma pack and added between 2% to 4%.
Markets at close
The Sensex closed at 31,596, up 28 points, while the broader Nifty50 settled at 9,857, up 4 points.
IndusInd Bank, Dewan Housing Finance (DHFL), Hindustan Petroleum Corporation (HPCL), Dilip Buildcon, JSW Steel, Avenue Supermarts (D-Mart) and Vakrangee are among 13 stocks from the S&P BSE 500 index that hit their respective record highs on BSE. CLICK HERE FOR FULL REPORT
Nifty Pharma holds gains
Nifty Pharma (up 3%) leads among NSE sectoral indices thanks to gains in Cadila, Divi's Lab and Aurobindo Pharma.
Oil prices steadied on Thursday, holding on to most of their recent gains after another fall in US crude inventories indicated a tighter market, and as a tropical storm headed towards oil producing facilities in the Gulf of Mexico. Benchmark Brent crude was down 5 cents a barrel at $52.52. US light, sweet crude was 5 cents lower at $48.36 a barrel.
At 3:00 pm, the Sensex was trading at 31,627, up 59 points, while the broader Nifty50 was ruling at 9,868, up 16 points.
The task ahead for Infosys
What it needs to do to restore confidence and continue to be a preferred employer. READ IT HERE
Aptech hit a nine-year high of Rs 306, up 11% on BSE in intra-day trade, extending its 2-day rally on back of heavy volumes. The stock is trading at its highest level since January 21, 2008. READ MORE
Europeans stocks opened higher as investors await comments on monetary policy from the Jackson Hole meeting.
The pan-European Stoxx 600 was 0.32% higher in early deals with most sectors moving in positive territory.
Infosys board members to resign for Nandan Nilekani's return: Report
Majority of Infosys board members have offered to resign in a shakeout at India's second-largest software company that will likely see its celebrated co-founder Nandan Nilekani return a decade after he quit, according to a report by television channel ET Now.
Nilekani is said to have asked for a clean board before he takes over at Infosys.
The board members - except for Punita Sinha and Roopa Kudva- are likely to resign, said the report, which could not be independently confirmed.
Equity benchmarks continued to trade in a tight range in afternoon due to lack of triggers at domestic as well as global level.
At 1:18 pm, the BSE Sensex was trading at 31,630, up 62 points while the Nifty50 was ruling at 9,873, up 20 points
Shares of Indian Hume Pipe Company advanced nearly 4% intraday as it has received order worth Rs 100.46 crore.
The order includes the augmentation of water supply scheme part-II-distribution system, Bilaspur (Chattisgarh) under AMRUT mission.
Infosys back on top 10 m-cap list
With the m-cap of Rs 210,379 crore, Infosys is currently stands at ninth rank, ahead of Indian Oil Corporation, which had m-cap of Rs 208,318 crore at 11:49 am, the BSE data shows.
The m-cap of Infosys had declined by Rs 33,914 crore or 14.5% in just two trading sessions between August 18 and August 21, after Vishal Sikka, the company’s first non-founder Chief Executive Officer (CEO), resigned on last Friday, August 17, citing slander by founders. READ MORE
Bank of India slashes savings deposit rate
Bank of India fell 1% after it slashed savings deposit rate by 50 bps to 3.5% for balance upto Rs 50 lakh but kept savings deposit rate unchanged at 4% for balance above Rs 50 lakh.
Cadila Healthcare surges
Cadila Healthcare has moved higher by 7% to Rs 496 on BSE in intra-day trade after the drug maker announced that the Zydus Cadila received final approval from the US health regulator to market antipsychotic Ziprasidone Hydrochloride capsules. READ MORE
Lupin rose over 3% to Rs 984 on BSE after the company announced the launch of generic Seroquel XR tablets in the US.
Avenue Supermarts, which operates supermarket chain D-Mart stores, hit a new high, crossing Rs 1,000 mark at Rs 1,018, up 3% on BSE in intra-day trade in an otherwise range-bound market.
Avenue Supermarts (D-Mart) has continued its upward move in past nine trading sessions. Since August 10, the stock rallied 16% from Rs 880 as compared to a marginal 0.19% rise in the S&P BSE Sensex. READ MORE
Neville Noronha, CEO & MD, Avenue Supermarts
Castrol India fell 1.65% to Rs 382.30 on BSE after net profit dropped 33.35% to Rs 137.90 crore on 10.34% fall in total income to Rs 885.90 crore in Q2 June 2017 over Q2 June 2016.
Canada, Japan up India bet, investors double equity holdings in past year
India's long-term growth potential and a politically stable environment are leading more geographies to raise their bets on the country.
Canada, which has historically not been a big investor in Indian equities, has seen its equity holding in listed Indian shares double in the past year and grow by more than 100 times in the past eight years.
The country is now the seventh largest investor in the India and stands a good chance of overtaking Norway, United Kingdom (UK) and Luxembourg to enter the top five league. READ MORE
At 10:33 am, the BSE Sensex was trading at 31,590, up 22 points while the Nifty50 was ruling at 9,854, up 2 points
Liquor stocks gain
Shares of liquor companies have rallied by up to 15% on BSE in early morning trade after the report suggests that the Supreme Court on Wednesday clarified that the liquor ban on highways does not extend to municipal areas.
The court, in an order dated July 11, which was uploaded on the Supreme Court website on Wednesday, clarified that the 500-metre ban does not prohibit licensed establishments within municipal areas.
Among the individual stocks, United Spirits, Globus Spirits, GM Breweries, Pincon Spirit and Radico Khaitan were up in the range of 5% to 13% on BSE. READ MORE
Where are the markets headed?
Investors should not get perturbed by intermittent corrections in the market, leading money managers from Mutual Fund Industry concluded at the Business Standard Fund Cafe held in Mumbai recently. Cement, capital goods and consumption are among a few sectors which are expected to lead the next leg of the rally.
Click here to find out what top money managers had to say about markets prospects and investment options at the event.
LIC to meet FinMin on Infosys buyback
Life Insurance Corporation of India (LIC) will soon consult the finance ministry on the Infosys crisis.
According to sources, the insurer may seek the ministry’s guidance on opting to take the buyback route opened by Infosys. The state-run insurance company, which owns 7.03 per cent stake in the information technology (IT) major, is mulling over the amount of shares it would tender in the repurchase scheme.
Extending gains for the third session straight, Nifty Metal index gained 0.7% led by gains in JSPL, NALCO, JSW Steel and Hindalco
PSU Bank index fell 0.3% with 10 of 11 stocks trading in red after the Cabinet on Wednesday approved a framework to speed up mergers of public sector banks, the first of which could take place by March. The mergers will not involve any cash but only share swaps.
Infosys gained over 1%, becoming the top gainer on BSE Sensex after reports that Nandan Nilekani may return to the company's board of directors to calm investors' nerves
Top gainers and losers on BSE Sensex
Broader markets were also trading flat, in line with the benchmark indices with BSE Midcap and BSE Smallcap up 0.1% and 0.2% respectively.
Markets at open
Benchmark indices opened flat on Thursday following Asian markets, which shrugged off comments from US President Donald Trump about a shutdown of his government if the US Congress fails to fund a Mexico border wall.
At 9:18 am, the S&P BSE Sensex was trading at 31,606, up 38 points while Nifty50 was ruling at 9,861, up 9 points.
Fund Pick: L&T Midcap Fund
Launched in August 2004, L&T Midcap Fund is classified under the small and mid-cap equity schemes of CRISIL Mutual Fund Ranking. It has featured in the top 30 percentile (CRISIL Fund Rank 1 or 2) in the five consecutive quarters ended June 2017. The fund's quarterly average assets under management (AUM) tallied at Rs 9,014 crore in June 2017 under the guidance of S N Lahiri. READ MORE
The daily trend in Nifty has turned up after 3 days and as for now has taken support at 9,700 levels giving a bounce to close at 9,850. A move beyond 9,850 would take it further up to 9,880-9,900 levels, however, the support for the day is seen at 9,800 while resistance is seen at 9,900.
Sebi to conduct fresh probe into Infosys-Panaya deal
The Securities and Exchange Board of India (Sebi) will conduct a fresh probe into corporate governance complaints against Infosys in connection with the Panaya acquisition.
Sources said the role of several board members of the information technology giant could also come under the market regulator’s scanner.
In June, Sebi had conducted a preliminary probe into the allegations levelled by an anonymous whistle-blower on the acquisition of the Israel-based Panaya, which Infosys bought in February 2015 for $200 million. Click here for more
Cabinet fast tracks merger of PSU banks
The Cabinet on Wednesday approved a framework to speed up mergers of public sector banks, the first of which could take place by March.
The mergers will not involve any cash but only share swaps. The government also said there would be no job losses after any of the mergers.
The decision lifted banking stocks, but bankers said the decision should not be forced on them. Finance Minister Arun Jaitley made it clear the process would be initiated by the boards of the banks. READ MORE
Nandan Nilekani's may return to Infosys
Infosys co-founder Nandan Nilekani is likely to return to the helm of Infosys, sources familiar with the developments said. He could take the role of non-executive chairman, becoming a bridge between the board and Infosys founder NR Narayana Murthy, who had suggested to Nilekani that he take on a role in Infosys, the sources said.
Nilekani, who quit Infosys as its chief executive officer in 2007 to head the Unique Identification Authority of India (UIDAI), had been maintaining his distance from Infosys, repeatedly stating he had no role to play at a company he built along with six other founders.
Our take is that the textile industry would change its prospects significantly in the next two to three years. Sutlej Textiles & Industries, with recent acquisitions and expansions is in a formidable position to grow its fundamentals substantially in this backdrop.
We also expect the textile industry to expand its valuation multiple on the stock market significantly in the next two to three years along with anticipated recovery in the textile exports. We reiterate a BUY on the stock with a target price of Rs 1,220 (which is 10x it’s FY2019E EPS of Rs 122)
Oil prices rose after US crude inventories declined for the eighth straight week and as a storm approached the Gulf Coast with the potential to disrupt oil and refined products output
Market outlook for the day
Today the markets are likely to open on flat note. All emerging markets are trading mixed. The coming session is likely to witness a range of 9750 on declines and 9950 on advances: SMC Global
Trump said at a rally in Arizona that he would be willing to risk a government shutdown to secure funding for a wall along the U.S.-Mexico border. Those comments came ahead of a late-September deadline to raise the US debt ceiling or risk defaulting on debt payments.
The Nifty50 futures on the Singapore Stock Exchange were trading 12.50 points higher at 9867.50 indicating a flat opening for the domestic market.
Asian stocks edged up on Thursday, shaking off the risk aversion that gripped financial markets overnight after US President Donald Trump's threat to shut down the government, though the dollar remained sluggish.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.15% in early trade while Japan's Nikkei pulled back 0.25% on a stronger yen.
Wall Street falls as Trump threatens government shutdown
US stocks closed lower as investors grappled with a threat from President Donald Trump to shut down the government if Congress fails to fund a Mexico border wall.
Stocks managed to briefly pare losses after comments from US House Speaker Paul Ryan calling a government shutdown unnecessary.
The Dow Jones Industrial Average fell 87.8 points, or 0.4%, to 21,812.09, the S&P 500 lost 8.44 points, or 0.34%, to 2,444.07 and the Nasdaq Composite dropped 19.07 points, or 0.3%, to 6,278.41.
Good morning and welcome to market's libe blog. Catch all the live market action here