Nifty above 17,650 mark, PSU bank stocks advance

The key equity indices traded with modest gains in the morning trade. The Nifty hovered above the 17,650 mark. PSU bank, consumer durables and realty shares were in demand while pharma, IT and healthcare stocks corrected.

At 10:27 IST, the barometer index, the S&P BSE Sensex, was up 282.88 points or 0.48% to 59,368.31. The Nifty 50 index gained 80.45 points or 0.46% to 17,685.40.

In the broader market, the S&P BSE Mid-Cap index rose 0.75% while the S&P BSE Small-Cap index gained 0.76%.

The market breadth was strong. On the BSE, 2,242 shares rose and 847 shares fell. A total of 122 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 23.19 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 322.34 crore in the Indian equity market on 24 August, provisional data showed.

Buzzing Index:

The Nifty PSU Bank index gained 2.23% to 2,931.80, extending its winning streak for the third session. The index advanced 5.14% in the three trading sessions.

Union Bank of India (up 5.19%), Bank of India (up 3.63%), UCO Bank (up 3.07%), Indian Bank (up 2.72%), Canara Bank (up 2.65%), Indian Overseas Bank (up 2.33%), Bank of Maharashtra (up 2.32%), Punjab National Bank (up 2.24%), Central Bank of India (up 1.64%) and State Bank of India (up 1.34%) edged higher.

Stocks in Spotlight:

Bharti Airtel rose 0.76%. Singtel said it will retain 29.7% in Airtel and it remains fully committed to Airtel's next phase of growth. Singtel's wholly-owned subsidiaries have entered into a share purchase agreement to sell a 3.3% direct stake in regional associate Airtel to Bharti Telecom, a joint venture between Bharti Enterprises and Singtel, at any time before 23 November 2022.

The sale will unlock approximately SGD 2.25 billion as part of the Singtel Group's capital recycling strategy. After the stake sale, Singtel's effective holding in Bharti Airtel will fall to 29.7%. Singtel will use the proceeds to fully fund 5G capex needs and growth initiatives in the next few years.

NHPC gained 2.21% after the company announced the signing of a memorandum between Government of Rajasthan and NHPC Renewable Energy for development of ultra mega renewable energy power park in the state of Rajasthan. The memorandum of understanding (MoU) provides a framework under which the parties may collaborate and cooperate for setting up of 10 GW renewable energy parks (UMREPP)/ projects at sites identified inside Rajasthan, by optimum utilization of resources and knowledge base of both parties; they could develop the renewable energy park & projects in the areas identified; and the renewable energy projects would be developed either on EPC or developer mode by NHPC REL.

PSP Projects rallied 3.78% after the company said that it has been awarded the contracts worth Rs 247.35 crore from Precast and Government segments. "With receipt of the above, the total order inflow for the financial year 2022-23 till date amounts to Rs 1,344.24 crore, the company said in a statement.

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