Indices gyrate between gains and losses in early trade

Key benchmark indices were trading with small gains after swinging between gains and losses around the flat line as mixed Asian stocks provided no clear direction. At 9:30 IST, the barometer index, the S&P BSE Sensex, was up 22.95 points or 0.08% at 27,280.59. The Nifty 50 index was up 3.60 points or 0.04% at 8,420.60.

The BSE Mid-Cap index was up 0.32%. The BSE Small-Cap index was up 0.26%. Both these indices outperformed the Sensex. The market breadth, indicating the overall health of the market, was strong. On the BSE, 915 shares rose and 460 shares declined. A total of 80 shares were unchanged.

Overseas, Asian stocks were mixed. The Dow Industrial Average yesterday, 18 January 2017, closed at the lowest level of 2017, marking a fourth straight day in the red for the blue-chip gauge, but the broader stock market managed modest gains. Federal Reserve Chairwoman Janet Yellen said she expects rate hikes a few times a year until the end of 2019.

Among economic data in US, industrial output accelerated last month at its strongest pace in two years. The housing-market index from the National Association of Homebuilders showed that builder sentiment slipped in January after notching its highest reading of the business cycle in December. Despite the drop, the January number was the second-highest reading of the cycle.

Wall Street trading over the past several days has been subdued as investors await signs that the stock-market rally that followed President-elect Donald Trump's November election victory, supported by his campaign promises to increase fiscal spending, cut taxes and roll back regulations, is based in reality and underpinned by solid corporate quarterly results.

Bharat Heavy Electricals (Bhel) (up 1.2%), ONGC (up 0.81%) and Tata Motors (up 0.7%) were the major gainers from the Sensex pack.

Cipla rose 0.3% after the company announced that its wholly owned subsidiary Goldencross Pharma has entered in to a definitive agreement to sell its 100% equity stake in Four M Propack Limited, India (Four M Propack) to Shriji Polymers (India) (Shriji Polymers) for a consideration of Rs 13.5 crore and an additional sum derived on the basis of the value of mutual funds, cash and bank balance, tax refunds, etc. at the time of closing estimated at around Rs 5.7 crore. The announcement was made after market hours yesterday, 18 January 2017.

Shriji Polymers is engaged in the business of manufacturing of HDPE bottles and PP caps for the pharmaceutical industry. The turnover of Four M Propack for the financial year ended 31 March 2016 was Rs 9.77 crore which is entirely on account of sales to the company. The net worth of Four M Propack as on 31 March 2016 was Rs 15.82 crore constituting 0.001% of the consolidated net worth of the company.

The transaction is expected to be completed within 45 days from date of signing of the definitive agreement, subject to completion of certain condition precedent and receipt of applicable approvals.

Cipla said that none of the persons belonging to promoter/promoter Group(s) of the company has any interest in the transaction and it is not a related party transaction for the company.

Axis Bank shed 1.18% ahead of its Q3 results today, 19 January 2017.

Yes Bank declined 0.47% ahead of its Q3 results today, 19 January 2017.

NHPC slumped 5.86%. The company announced that TLDP-III (4 X 33) 132 megawatts (MW) power station in West Bengal has been completely restored on 18 January 2017 which was under complete shutdown for restoration work of GIS (Line-I Bay). The announcement was made after market hours yesterday, 18 January 2017.

Punjab National Bank (PNB) dropped 0.77%. The bank announced that the bank and India Post Payments Bank (IPPB) have signed a memorandum of understanding on 17 January 2017, wherein PNB shall provide technology platform for pilot launch of IPPB on receipt of regulatory approval from the Reserve Bank of India. The announcement was made after market hours yesterday, 18 January 2017.

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