IT stocks witness mixed trend

Key benchmark indices hovered in a narrow range in negative zone in mid-morning trade. At 11:17 IST, the barometer index, the S&P BSE Sensex, was down 41.32 points or 0.15% at 26,656.50. The Nifty 50 index was currently down 24.65 points or 0.3% at 8,197.15. Domestic market was trading on a lacklustre note tracking subdued trading on the bourses of its Asian peers ahead of a crucial Federal Reserve meeting.

The Sensex lost 73.16 points or 0.27% at the day's low of 2,624.66 in early trade. The index rose 38.52 points or 0.14% at the day's high of 26,736.34 at the onset of trading session. The Nifty lost 31.10 points or 0.37% at the day's low of 8,190.70 in mid-morning trade. The index rose 7.60 points or 0.09% at the day's high of 8,229.40 at the onset of trading session.

Overseas, Asian stocks witnessed a mixed trend as investors kept an eye on a key US Federal Reserve meeting due today, 14 December 2016. US equities closed higher yesterday, 13 December 2016, while the Dow Jones industrial average closed in on another milestone.

The Fed is expected to raise interest rates for only the second time in a decade amid recent data suggesting the US recovery is gaining traction. Higher US interest rates would attract foreign investments from the emerging markets towards the US.

Closer home, the market breadth, indicating the overall health of the market, was positive. On the BSE, 1,079 shares rose and 1,046 shares declined. A total of 122 shares were unchanged.

The BSE Mid-Cap index was currently down 0.09%. The decline in this index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index was currently up 0.09%, outperforming the Sensex.

On the macro front, data released by the government after market hours yesterday, 13 December 2016 showed that the all-India general CPI inflation dipped to 24-months low of 3.63% in November 2016 compared with 4.2% in October 2016. The core CPI inflation was nearly flat 4.9% in November 2016 from 4.86% in October 2016.

Back to market, realty stocks were mostly higher. Prestige Estates Projects (up 3.76%), Housing Development & Infrastructure (up 1.47%), DLF (up 1.25%), Godrej Properties (up 0.94%), Indiabulls Real Estate (up 0.78%) and Sobha (up 0.22%) edged higher. Unitech (down 0.84%) and Oberoi Realty (down 0.66%) edged lower.

IT stocks witnessed mixed trend. TCS (up 0.15%), Wipro (up 0.79%) and HCL Technologies (up 1.71%) edged higher. Infosys (down 0.06%), Tech Mahindra (down 0.83%) and Oracle Financial Services Software (down 0.62%) edged lower.

Bajaj Electricals rose 2.5% at Rs 223.25 after the company has entered into a strategic alliance with UK-based firm Gooee to take the next step in its journey towards digitization and in creating innovative lighting products and solutions on IoT (Internet of Things) platform. The announcement was made after market hours yesterday, 13 December 2016.

Under this arrangement, Gooee will be the first full stack operating platform providing Bajaj Electricals a service driven framework to deliver IoT applications to their discerning customers. IoT refers to the connection of devices other than computers and smartphones to the internet.

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