Sensex, Nifty Turn Choppy; SBI Leads, Coal India Extends Fall

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10:50 a.m.; Stock update: Shipping Corporation Of India slumps 5% to Rs. 70 after weak Q1 earnings

10:45 a.m.: Sensex stays flat but midcaps, smallcaps extend recent outperformance; BSE midcap, smallcap indices rise nearly 0.50% each

10.15 a.m. Markets continue to be choppy, with the Sensex down 10 points at 28,114 and the Nifty up 2 points at 8,675.

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Coal India (-1.5 per cent) has replaced Reliance Industries (-0.6 per cent) as top Nifty loser. Coal India shares have now fallen nearly 4 per cent in two sessions amid buzz of an impending stake sale. Bharti Infratel, TCS and Power Grid are stocks trading 1 per cent lower in the Nifty50 index.

09.50 a.m. SBI shares are up 3 per cent and the stock continues to retain its top place in the Nifty50 index. State Bank of Travancore shares are up 7 per cent and SBBJ shares are up 2.5 per cent. However, State Bank of Mysore shares crashed 10 per cent today.

SBBJ shareholders will get 28 SBI shares for every 10 shares, while SBT and SBM shareholders will get 22 SBI shares for every 10 shares, according to the swap ratio decided by SBI’s board yesterday.

The merger between SBI and six associate banks will result in 1.8 per cent dilution of SBI. Post-merger, SBI will become five times as big as its private sector competitor ICICI Bank. SBI will take a one-time hit of Rs. 3,000 crore on account of pension liability post-merger. The merger is expected to be completed during FY17.

09.30 a.m. Markets have turned choppy with the Sensex and Nifty slipping in the red after a positive start. Energy, FMCG and consumer durable stocks are under selling pressure.

Reliance Industries is the top Nifty loser, down 1 per cent. Power Grid, Kotak Mahindra Bank, HDFC, Adani Ports, BPCL and Coal India are shares trading 0.5 per cent to 1 per cent lower.

(Read: What stocks to buy and sell today)

09.15 a.m. Markets have opened on a positive note, with SBI shares leading the gains in early trade. The BSE Sensex is trading 50 points higher, while the Nifty is hovering around the key 8,700 mark.

09.00 a.m. Rupee opens lower at 66.95 per dollar as against Thursday’s close of 66.81.

08.35 a.m. The Nifty has been consolidating around 8,600-8,700 for the past few days, with bulls seem to be having an upper hand, supported by buying momentum from foreign institutional investors. FIIs bought cash shares worth Rs. 162 crore yesterday, while DIIs sold shares worth Rs. 14 crore.

08.30 a.m.State Bank of India will be in focus today as its board approved merger plan with six associate banks. (Read the full story)

Fortis Healthcare board will meet today to decide on the demerger of SRL Diagnostics. Sun TV and Oberoi Realty will report their June quarter earnings today.

08.20 a.m. The BSE Sensex and the broader Nifty are likely to open lower on Friday, tracking weakness in Asian stock markets. The Nifty futures trading on the Singapore Exchange were down 14 points or 0.16 per cent as of 08.20 a.m., suggesting a negative start for domestic markets.

Asian markets turned lower after a positive start on Friday, with Hang Seng falling 0.6 per cent and Shanghai Shenzen slipping 0.42 per cent. Japan’s Nikkei index traded flat.

Overnight, the Wall Street benefited from buoyant crude oil prices and expectations that US borrowing costs will remain at stimulatory levels at least until year-end.

Global equities received a lift this week after the Federal Reserve’s July policy meeting minutes showed that the US central bank was in no hurry to hike interest rates.

In currencies, the dollar remained on the defensive after sliding to an 8-week low overnight in response to the Fed’s minutes. A weaker greenback tends to help commodities as it favours non-US buyers of dollar-denominated products.