Broader market trades firm; breadth positive

A bout of volatility was seen as key benchmarks bounced back after briefly slipping into the red in mid-morning trade. Metal stocks were firm amid optimism on the US China trade deal. At 11:22 IST, the barometer index, the S&P BSE Sensex, was up 64.69 points or 0.16% at 41,738.61. The Nifty 50 index was up 21.65 points or 0.18% at 12,281.35.

The S&P BSE Mid-Cap index was up 0.32% while the S&P BSE Small-Cap index was up 0.25%. Both these indices outperformed the Sensex.

The market breadth was positive. On the BSE, 1090 shares rose and 878 shares fell. In Nifty 50 index, 36 stocks advanced while 14 stocks declined.

Buzzing Index:

Metal stocks gained as US Treasury Secretary Steven Mnuchin reportedly said the deal will be signed in early January. The Nifty Metal index gained for fourth consecutive session, rising 4.42%. The Nifty Metal index was trading 0.54% higher at 2,705.75.

National Aluminium Company (up 1.79%), Tata Steel (up 1.5%), Jindal Steel & Power (up 1.34%), Hindustan Zinc (up 1.28%), Steel Authority of India (up 0.97%), Hindalco Industries (up 0.58%) and JSW Steel (up 0.38%) advanced.

Shares of NMDC rose 0.53% at Rs 124.10, extending their gains for ninth session in a row. The company said on Thursday it has been allocated two coal blocks in Hazaribagh district of Jharkhand.

Stocks in Spotlight:

Yes Bank was up 3.11% to Rs 51.45. The stock continued to be banned from trading in NSE's F&O segment after the security crossed 95% of market wide position limit.

CRISIL was up 0.67% after its board of directors approved 100% acquisition of Greenwich Associates LLC and its six subsidiaries, at a consideration of $40 million. Greenwich Associates LLC is a provider of data, analytics and qualitative insights to the global financial services industry.

Gati was down 0.35% after Goldman Sachs International (GSI) reduced stake in the company from 5.12% to 2.84% via open market.

Foreign Markets:

Most Asian markets declined on Friday. China on Friday left its new lending benchmark the loan prime rate unchanged, as expected, after it kept rates of medium-term loans steady earlier this month.

In US, all three benchmark stock indexes scored record highs again on Thursday, unfazed by President Donald Trump's impeachment, while finding ongoing support from the US-China trade deal, the passage of the United States-Mexico-Canada Agreement (USMCA) trade deal to replace North American Free Trade Agreement (NAFTA) by the House, and improving economic data.

Compared to NAFTA, the new treaty aims to help US farmers, ranchers, manufacturers, workers and consumers by opening new markets to American goods and reducing the cost of household staples such as drugs and groceries.

On economic front, new applications for US jobless benefits fell during the week ended 14 December 2019, dipping 18,000 to a seasonally adjusted 234,000 after surging to 252,000, a two-year high, the week before.

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