IT stocks witness mixed trend

Key benchmark indices traded with modest gains in a narrow range in afternoon trade. At 13:15 IST, the barometer index, the S&P BSE Sensex advanced 111.45 points or 0.33% at 33,589.80. The Nifty 50 index rose 20.30 points or 0.2% at 10,347.20. Firmness in Asian stocks supported gains on the domestic bourses.

Market had opened higher on firm Asian stocks and amid record closing for US stocks. However, key indices soon pared gains and slipped into the red. Indices regained positive terrain in mid-morning trade and traded in a narrow range in positive zone so far.

The S&P BSE Mid-Cap index declined 0.12%. The S&P BSE Small-Cap index rose 0.3%. Both the indices underperformed the Sensex.

Overseas, Asian shares joined a global rally as strong world growth and rising corporate profits lured hordes of investors into equities.

US stock-market indexes ended at records and near session highs yesterday, 21 November 2017, finding support on another round of strong earnings, with technology shares leading the way. The Chicago Fed national activity index rose to 0.65 in October from 0.36 in September. Sales of previously-owned homes jumped to a seasonally adjusted annual pace of 5.48 million in October.

Janet Yellen, the outgoing chair of the Federal Reserve (Fed), reportedly said yesterday, 21 November 2017 that the Fed was still inclined to raise interest rates gradually as it sought to balance the risks of moving too fast and moving too slow. The Fed is widely expected to raise its benchmark rate by a quarter of a percentage point at its final policy meeting of the year in mid-December. The rate now sits in a range of 1% to 1.25%.

Yellen had early this week announced that she would step down from the Fed's board at the same time she ends her term as Fed chairwoman in early February. Jerome H. Powell is to succeed Yellen as the Fed's chairman.

Closer home, the breadth, indicating the overall health of the market, was almost even. On BSE, 1,275 shares fell and 1,244 shares rose. A total of 155 shares were unchanged.

IT stocks were mixed. Tech Mahindra (down 2.15%), Oracle Financial Services Software (down 0.27%) and Infosys (down 0.02%) declined. TCS (up 0.91%), HCL Technologies (up 0.38%) and Wipro (up 0.1%) gained.

Aviation stocks advanced. Jet Airways (India) (up 2.18%) and SpiceJet (up 0.53%) gained. InterGlobe Aviation (down 0.29%) declined.

Index heavyweight and housing finance major HDFC advanced 1.48% at Rs 1,717.50.

Shares of state-run lending major State Bank of India was up 1.78% at Rs 336.65.

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