Auto stocks nudge higher

Benchmark indices continued to trade firm in positive terrain in early afternoon trade. At 12:17 IST, the barometer index, the S&P BSE Sensex, was up 129.17 points or 0.48% at 26,855.72. The Nifty 50 index was up 33.05 points or 0.4% at 8,269.10.

The BSE Mid-Cap index was up 0.31%, underperforming the Sensex. The BSE Small-Cap index was up 0.64%, outperforming the Sensex.

The market breadth, indicating the overall health of the market was strong. On the BSE, 1,565 shares rose and 933 shares declined. A total of 129 shares were unchanged.

IT stocks were mixed. Wipro (up 0.97%), Infosys (up 0.33%), TCS (up 0.19%) and Persistent Systems (up 0.02%) edged higher. Tech Mahindra (down 0.29%), HCL Technologies (down 0.29%) and Oracle Financial Services Software (down 0.09%) edged lower.

Auto stocks mostly moved higher. Tata Motors (up 2.47%), Mahindra & Mahindra (up 0.52%), Hero MotoCorp (up 0.12%), Maruti Suzuki India (up 0.07%) and Bajaj Auto (up 0.03%) gained. Eicher Motors (down 0.96%), TVS Motor Company (down 0.14%) and Ashok Leyland (down 0.18%) edged lower.

Voltamp Transformers rose 2.03% after the company announced that working at its Savli factory, Vadodara, Gujarat has resumed from 7 January 2017 and the production activities are normal at present. It may be recalled that Voltamp Transformers had on 22 December 2016 announced suspension of operations at Savli factory in Gujarat from 21 December 2016 after a few of contract workmen resorted to violence on 20 December 2016. The announcement was made after market hours yesterday, 9 January 2017.

Overseas, Asian stocks were mixed amid lacklustre closing on the Wall Street and sharp slide in oil prices overnight. In mainland China, the Shanghai Composite was down 0.21%. In Hong Kong, the Hang Seng was up 0.58%.

Among economic data, growth in China's consumer price index (CPI), the main gauge of inflation, increased 2.1% from a year ago in December, slightly down from November's 2.3% rise, the National Bureau of Statistics (NBS) said today, 10 January 2017.

Meanwhile, China's producer price index (PPI), which measures costs for goods at the factory gate, reached a five-year high in December, official data showed today, 10 January 2017. The reading rose 5.5% year on year, the highest reading since September 2011, according to NBS. On a month-to-month basis, it increased 1.6%.

In the US, major stock indices closed mixed yesterday, 9 January 2017, with and utilities lagging, as investors geared up for the start of earnings season and digested falling oil prices. The Nasdaq composite hit a new all-time closing high.

Meanwhile, Atlanta Federal Reserve bank president Dennis Lockhart said yesterday, 9 January 2017 that recovery from the economic crisis is largely done, and officials should now turn to addressing longer-term issues like how to boost productivity. The economy is near full employment, inflation is close to the Fed's 2% goal, and the US appears locked in for steady growth of around 2% annually, Lockhart said.

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