Broad market depicts strength

Amid a divergent trend among various index constituents, the key benchmark indices hovered in a small range above the flat line in mid-morning trade. At 11:27 IST, the barometer index, the S&P BSE Sensex, was up 28.66 points or 0.11% to 26,239.34. The Nifty 50 index was currently up 16.95 points or 0.21% at 8,051.80.

The market may remain volatile during the day as traders roll over positions in the futures & options (F&O) segment from the near month December 2016 series to January 2017 series. The near month December 2016 derivatives contracts expire today, 29 December 2016.

In side indices, the BSE Mid-Cap index was currently up 0.69%. The BSE Small-Cap index was currently up 0.72%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,446 shares gained and 663 shares fell. A total of 141 shares were unchanged.

ONGC (up 1.13%), GAIL (India) (up 0.93%) and TCS (up 0.83%) were the major gainers from the Sensex pack.

Metal and mining stocks gained as copper prices rose in global commodity markets. Vedanta (up 1.02%), JSW Steel (up 0.23%), Tata Steel (up 0.5%), Steel Authority of India (Sail) (up 1.14%), National Aluminium Company (up 1.26%), Hindustan Zinc (up 1.36%), Jindal Steel & Power (up 2.21%), Hindalco Industries (up 0.2%), NMDC (up 1.16%) and Hindustan Copper (up 0.59%) edged higher.

Copper edged higher in the global commodities market. High Grade Copper for March 2017 delivery was currently up 0.4% at $2.511 per pound on the COMEX.

Telecom stocks rose. Bharti Airtel (up 0.6%), Idea Cellular (up 1.26%), MTNL (up 3.02%), Tata Teleservices (Maharashtra) (up 1.01%) and Reliance Communications (up 0.3%) gained.

Shares of Bharti Infratel fell 1.53%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

Godfrey Phillips India lost 3.49% to Rs 987 on profit booking after gaining 22.84% in the preceding two sessions to settle at Rs 1,022.70 yesterday, 28 December 2016, from its close of Rs 832.50 on 26 December 2016. Among the latest developments, APMS Investment Fund sold 69,000 shares of Godfrey Phillips India to Quick Investment India at Rs 1,085 per share in a block deal on the BSE yesterday, 28 December 2016. Quick Investment India held 4.17% while APMS Investment Fund owned 1.57% in Godfrey Phillips India end September 2016.

Reliance Defence and Engineering rose 1.84% to Rs 55.40 after Morgan Stanley purchased bulk shares of the company via bulk deal mechanism on the BSE yesterday, 28 December 2016. Valiant Mauritius Partners sold 54.44 lakh shares of Reliance Defence and Engineering (RDEL) at Rs 54.15 per share in a bulk deal on the BSE on 28 December 2016. Valiant Mauritius Partners Offshore offloaded 68.78 lakh shares at Rs 54.15 a piece. Morgan Stanley Mauritius Company bought these 1.23 crore shares. Valiant Mauritius Partners FDI held 2.23% stake in RDEL end September 2016.

IRB Infrastructure Developers rose 2.13% after the company said it received letter of award from National Highways Authority of India (NHAI) for six-laning of 90 km stretch of National Highway (NH) 79A and NH 79 in Rajasthan on design-build-finance-operate-transfer (DBFOT) (Toll) under National Highways Development Project (NHDP) Phase V package - I project. The estimated project cost of the company is approximately Rs 1530 crore.

The concession period of the project is 20 years, including construction period of 910 days. The company will get tolling rights on project from the appointed date. The company has offered premium of Rs 186.30 crore to NHAI in terms of the concession agreement, the company said. The announcement was made after market hours yesterday, 28 December 2016.

Overseas, most Asian stocks were trading on a mixed note. Trading has been thin across the globe during the last week of the year. US stocks fell yesterday, 28 December 2016 as shares financials and materials declined. In economic news, the Pending Home Sales Index, a forward-looking indicator based on contract signings, declined 2.5% to 107.3 in November from 110 in October, data released by National Association of Realtors showed yesterday, 28 December 2016.

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