Auto, cement stocks trade mixed

Key benchmark indices were trading with small losses in mid-morning trade. At 11:25 IST, the barometer index, the S&P BSE Sensex, was down 62.61 points or 0.24% at 26,426.95. The Nifty 50 index was currently down 18.55 points or 0.23% at 8,120.90. Weakness in Asian stocks marred sentiment on the domestic bourses.

After opening slightly higher, key indices slipped into the red at the onset of the trade and hovered in negative terrain so far during the session. The market breadth, indicating the overall health of the market, turned positive from negative. On the BSE, 1,093 shares rose and 1,070 shares fell. A total of 138 shares were unchanged.

Among side indices, the BSE Mid-Cap index was currently down 0.15%. The BSE Small-Cap index was currently down 0.06%. The decline in both these indices was lower than the Sensex's decline in percentage terms.

Auto stocks witnessed a mixed trend. Ashok Leyland (up 1.8%), Hero MotoCorp (up 0.22%), and TVS Motor Company (up 0.4%) gained. Maruti Suzuki India (down 0.98%), Eicher Motors (down 0.86%), Tata Motors (down 0.91%) and Bajaj Auto (down 0.58%) declined.

Mahindra & Mahindra (M&M) gained 0.41% after the company announced that Mahindra Intertrade (MIL), a wholly owned subsidiary of Mahindra Vehicle Manufacturers (MVML) which in turn is a wholly owned subsidiary of the company, has on 16 December 2016, incorporated a joint venture company named Mahindra MSTC Recycling (Mahindra MSTC).

MSTC, a Government of India enterprise is a joint venture partner. Mahindra MSTC has become a subsidiary of MIL and in turn of MVML and of the company with effect from 16 December 2016. The announcement was made on Saturday, 17 December 2016.

Cement stocks were also mixed. ACC (down 0.95%) and UltraTech Cement (down 0.54%) declined. Shree Cement (up 0.35%) and Ambuja Cements (up 0.07%) rose.

Grasim Industries rose 0.23%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

Axis Bank fell 0.69% after the bank announced that it has reviewed and decided to reduce its marginal cost of funds based lending rates (MCLR) by 10 basis points (bps) in the overnight tenor and by 15 bps across all other tenors with effect from Saturday, 17 December 2016. The announcement was made after market hours on Friday, 16 December 2016.

The bank's MCLR for overnight loans will be 8.55%, for one month will be 8.55% and for three months will be 8.75%. The MCLR on 6-month loans will be 8.85% and for one-year loans the rate would be 8.9%, the bank said. MCLR for two-year loans would be at 8.95% and loans with three-year maturity would carry an MCLR of 9%, the bank said.

Aban Offshore rose 2.43% after the company said it will invest 49% in the equity share of Aban Drilling Services. Aban Drilling Services is a newly incorporated company with paid up capital of Rs 50,000 (5,000 equity shares of Rs 10 each). With this acquisition, Aban Offshore will explore opportunity in deep water drilling.

Shares of Laurus Labs, a leading research and development (R&D) driven pharmaceutical company were trading at Rs 476.35 on BSE, a premium of 11.3% over the initial public offer price of Rs 428 on its debut on the bourses today, 19 December 2016. The stock debuted at Rs 490, a premium of 14.49% to the initial public offer (IPO) price. So far the stock hit a high of Rs 498 and low of Rs 475. On BSE, so far 23.15 lakh shares were traded on the counter.

Overseas, most Asian stocks edged lower after Chinese government researchers see GDP growth slowing in 2017. China's economy will grow at around 6.5% year-on-year in 2017, according to a forecast from government think tank China Academy of Social Sciences (CASS) published today, 19 December 2016. CASS sees quarterly on-year growth of 6.5% in the first and second quarters, and 6.4% in the third and fourth quarters. China's economy has grown at 6.7% for the first three quarters of 2016.

US stocks closed lower on Friday, 16 December 2016, with the Dow Jones Industrial Average swinging to a loss, following reports that a Chinese warship seized an underwater US Navy drone in international waters off the coast of the Philippines. In the latest economic data in US, housing starts tumbled 18.7% in November, while the number is volatile, it pointed to a housing market recovery that remains choppy.

Wall Street stocks had surged since the presidential election in November. The gains have been attributed to expectations that Donald Trump's policy proposals, such as increased infrastructure spending, tax cuts and deregulation, will spur economic growth.

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