Market settled with modest gains helped by a recovery in afternoon trade after trading in negative terrain till then. The barometer index, the S&P BSE Sensex, rose 118.44 points or 0.45% to settle at 26,349.10. The Nifty 50 index advanced 41.95 points or 0.52% to settle at 8,128.75.
The key benchmark indices languished in negative zone till afternoon trade on weak Asian cues and amid subdued closing on the Wall Street overnight. Weak domestic services data released around mid-morning trade also added to the gloom. However, the indices, entered the positive zone in the later part of the trading session, albeit seeing some volatility, tracking positive sentiment on the European bourses.
Bank stocks advanced. Yes Bank edged higher after the bank said it has partnered with Ola, India's most popular mobile app for transportation, to set up mobile automated teller machines (ATMs) and enable convenient cash withdrawals for citizens by any bank's debit cards. Metal shares edged higher as copper price rose in the global commodities markets. Auto stocks registered gains.
The Sensex rose 118.44 points or 0.45% to settle at 26,349.10, its highest closing level since 1 December 2016. The index rose 160.14 points, or 0.61% at the day's high of 26,390.80. The index fell 105.31 points, or 0.4% at the day's low of 26,125.35.
The Nifty advanced 41.95 points or 0.52% to settle at 8,128.75, its highest closing level since 1 December 2016. The index rose 55.10 points, or 0.68% at the day's high of 8,141.90. The index fell 29.95 points, or 0.37% at the day's low of 8,056.85.
The BSE Mid-Cap index settled 0.66% higher, outperforming the Sensex. The BSE Small-Cap index gained 0.26%, underperforming the Sensex.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,532 shares rose and 1,099 shares declined. A total of 149 shares were unchanged.
The total turnover on BSE amounted to Rs 2139.55 crore, lower than turnover of Rs 2727.04 crore registered during the previous trading session.
Among the sectoral indices on the BSE, the BSE FMCG index (up 1.36%), the BSE Telecom index (up 1.49%), the BSE Auto index (up 1.92%), the BSE Bankex index (up 0.81%) and the BSE Metal index (up 1.52%) outperformed the Sensex. The BSE IT index (down 0.74%), the BSE Capital Goods index (down 0.16%) and the BSE Oil & Gas index (down 0.18%) underperformed the Sensex.
Bank stocks advanced. Among public sector banks, Union Bank of India (up 1.8%), Punjab National Bank (up 1.27%), Bank of India (up 1.16%), Bank of Baroda (up 0.93%) and State Bank of India (up 0.9%) edged higher. Indian Bank (down 0.23%) edged lower.
Among private sector banks, IndusInd Bank (up 2.99%), RBL Bank (up 1.2%), Kotak Mahindra Bank (up 0.64%), ICICI Bank (up 0.42%), HDFC Bank (up 0.38%) and Axis Bank (up 0.26%) edged higher.
Yes Bank rose 2.89% after the bank said it has partnered with Ola, India's most popular mobile app for transportation, to set up mobile automated teller machines (ATMs) and enable convenient cash withdrawals for citizens by any bank's debit cards.
The service will be made available in over 30 locations across ten cities including, Mumbai, Delhi, Bangalore, Chennai, Pune, Kolkata, Chandigarh, Ahmedabad and Jaipur. The withdrawal is enabled using point of sale machines available in Ola cabs stationed near Yes Bank branches across various locations in these cities.
The partnership is done to ease the process of cash withdrawals and provide seamless service to the customers with additional mobile infrastructure powered by Ola.
Metal shares edged higher as copper price rose in the global commodities markets. National Aluminium Company (up 3.97%), Hindalco Industries (up 3.35%), Steel Authority of India (up 3.03%), Jindal Steel & Power (up 2.01%), Tata Steel (up 1.76%), Vedanta (up 1.68%), Hindustan Copper (up 1.45%) and Hindustan Zinc (up 1.12%), edged higher. JSW Steel fell 0.4%.
High Grade Copper for March 2017 delivery was currently up 1.39% at $2.6615 per pound on the COMEX.
NMDC rose 5.19% at Rs 122.55. The company announced that Government of India, Ministry of Steel has communicated the 'in-principle' decision of the Cabinet Committee on Economic Affairs (CCEA) of Government of India to consider strategic disinvestment of the Nagarnar Steel Plant of the company. The announcement was made after market hours on Friday, 2 December 2016.
Separately, company announced on Saturday, 3 December 2016, that the prices of lump iron ore with effect from 29 November 2016 was kept unchanged at Rs 2,100 wet metric tonne (WMT) compared to prices last revised in early November. The company rose fine ore prices by 5.68% to Rs 1,860 per WMT from 29 November 2016, compared to prices last revised in early November.
Auto stocks registered gains. Mahindra & Mahindra (up 3.29%), Ashok Leyland (up 3.28%), Maruti Suzuki India (up 2.68%), Bajaj Auto (up 1.98%), Tata Motors (up 1.51%), Hero MotoCorp (up 1.28%) and Eicher Motors (up 0.19%) edged higher. TVS Motor Company (down 0.31%) edged lower.
Dr Reddy's Laboratories (DRL) dropped amid intraday volatility. The stock shed 0.27% at Rs 3,171.25. The stock hit a high of Rs 3,191.60 and a low of Rs 3,124 intraday. The company during market hours today, 5 December 2016, announced that it has launched Nystatin and Triamcinolone Acetonide Cream, USP in the US market, approved by the US drug regulator, US Food & Drug Administration (USFDA).
Nystatin and Triamcinolone Acetonide Cream, USP is the generic equivalent of Nystatin and Triamcinolone Acetonide Cream, USP 100,000 units/g-0.1% manufactured by Taro Pharmaceuticals USA Inc.
The generic had US sales of about $119 million for the most recent twelve months ended in October 2016, according to IMS health.
On the macro front, latest data released by Markit Economics showed that India's services sector activity declined sharply last month as cash shortages hit the sector in the wake of the government's move to demonetise higher denomination notes. The seasonally adjusted headline Nikkei India Services Business Activity Index dropped to 46.70 in November, from 54.50 in October, registering contraction for the first time since June 2015 and pointed to the sharpest reduction in output for almost three years.
Overseas, European stocks advanced while the euro recovered from early losses as investors shrugged off Italian voters' rejection of a constitutional referendum.
Most Asian stocks edged lower as investors feared the no vote in Italy's referendum on Sunday, 4 December 2016, could hurt the country's banking system and lead to global contagion. Italy's prime minister resigned following a heavy referendum defeat.
US stocks struggled for direction on Friday, 2 December 2016, with the Dow industrials finishing lower and the S&P 500 and the Nasdaq closing slightly higher as investors digested a weaker-than-expected payroll report, favoring sectors viewed as safe in economically uncertain times.
The uncertainty was underlined by the November jobs report, which showed 178,000 jobs added in the month, fewer than had been expected, while the count over the prior two months was reduced. However, the jobless rate fell sharply to a nine-year low of 4.6%.
Back home, Both the Sensex and the Nifty reversed two-day losing streak. The Sensex had fallen 422.15 points or 1.58% to settle at 26,230.66 on Friday, 2 December 2016, from its close of 26,652.81 on 30 November 2016. The Sensex has risen 231.56 points or 0.88% in calendar year 2016 so far (till 5 December 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 3,854.49 points or 17.13%. From a 52-week high of 29,077.28 hit on 8 September 2016, the barometer index has fallen 2,728.18 points or 9.38%. The Sensex is off 3,675.64 points or 12.24% from a record high of 30,024.74 hit on 4 March 2015.
Market volatility is here to stay as a two-day meet of the monetary policy committee (MPC) of the Reserve Bank of India (RBI) is scheduled on Tuesday, 6 & Wednesday, 7 December 2016. It will be interesting to watch RBI's monetary policy stance this time in a scenario of government's recent historic move of demonetization of higher denomination notes and amid easing consumer inflation. RBI had cut policy rates by 25 basis points in its last meet in October.
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