Broader markets continue to outperform in a flat market

Markets have consolidated in the late afternoon trades and are trading in narrow range as pressure in select index heavyweights are arresting the gains in energy and metal shares.

At 2:45pm, the S&P BSE Sensex was down by 37 points at 25,586 and the Nifty50 was up 4 points at 7,787.

However, broader markets depicted strength with BSE Midcap and Smallcap indices up between 0.6-0.9% each.

Overseas, after a plunge of nearly 7% and a day of suspension, the Chinese stock markets resumed trading with intraday gains. However, they couldn’t sustain their gains and closed down 0.3%.

Its peers, Nikkei and Hang Seng also finished lower between 0.4-0.6% each

After receiving the beating yesterday, the European markets resumed trading with significant gains.

Back home, in a setback to the automobile manufacturers, the Supreme Court of India upheld the ban on diesel vehicles in Delhi. The automobile manufacturers had moved the Supreme Court seeking modification of the court’s December order banning registration of diesel vehicles in the capital.

CRUDE OIL

Oil prices rebounded as geopolitical tensions between Saudi Arabia and Iran deepened, but supply glut and economic weakness in China are keeping the prices in check.

US benchmark West Texas Intermediate for delivery in February was up 25 cents at $37.01 and Brent crude was trading 24 cents higher at $37.46.

KEY STOCKS

Metal pack is rallying in a flat market after China returned to stability in today’s trade. Tata Steel has emerged as the highest gainer with nearly 7% gains while Vedanta, Jindal Steel, NMDC have all gained between 3-5% each.

Shares of JSW Steel have jumped nearly 4% on the BSE after the company announced that the Karnataka High Court on December 3 gave the steel maker a partial relief in the Forest Development Tax case.

L&T has advanced nearly 1% after its subsidiary L&T Infotech has received clearance from Sebi for the proposed Rs 2,000 crore IPO.

Oil and Gas stocks have also registered gains after crude prices advance for the second day.  GAIL (India), ONGC, CAIRN India, and RIL have all escalated between 1-3.5% each.

On the flip side, Coal India was down 1.4% as offtake for December 2015 was lower at 48.16 mt against a target of 49.46 mt.

Infosys, TCS, HUL, have dipped between 0.5-1.5% each on account of profit taking.

Among other shares, shares of the companies engaged in hotel business are in focus and have rallied on the bourses after Goldman Sachs has bought minority stake in Indian hotel investment and development firm SAMHI Hotels.  Jindal Hotels, Kamat Hotels, Royal Orchid Hotels, Advani Hotels, Hotel Leela Venture, TAJGVK Hotels & Resorts and Viceroy Hotels gained between 5%-20% each.

Shares of IFCI have jumped 8% on the BSE after the company's board at its meeting held on January 04, 2016 has approved divesting stakes in two companies.

Shares of State Bank of Travancore have fallen by 1.2% on the BSE after the Reserve Bank of India (RBI) slapped a penalty of Rs 1 crore on the bank for violation of some of its instructions.

Shares of Gravita India have surged 9% after the company announced its entry into plastic recycling business.