Key barometers turn flat

Key benchmarks were trading near flat line in early afternoon trade. At 12:17 IST, the barometer index, the S&P BSE Sensex, was up 7.26 points or 0.02% at 34,623.39. The Nifty 50 index was up 4.95 points or 0.05% at 10,521.65.

After opening lower, the market bounced and hit fresh intraday high in morning trade. Indices were unable to sustain at higher levels and re-entered negative terrain in mid-morning trade. Indices turned range bound near flat line in early afternoon trade.

Among secondary barometers, the BSE Mid-Cap index was up 0.29%. The BSE Small-Cap index was up 0.55%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1203 shares rose and 1183 shares fell. A total of 113 shares were unchanged.

Cement shares declined. UltraTech Cement (down 2.43%), ACC (down 1.27%) and Ambuja Cements (down 0.22%), edged lower.

Grasim Industries was down 0.41%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

Telecom shares rose. Idea Cellular (up 5.78%), Bharti Airtel (up 2.26%), Tata Teleservices (Maharashtra) (up 1.64%), Reliance Communications (up 1.49%) and MTNL (up 0.63%), edged higher.

Telecom tower infrastructure provider Bharti Infratel was down 1.56%.

On the political front, Janata Dal (Secular), or JD(S), leader H D Kumaraswamy will take oath as Chief Minister of Karnataka on Wednesday, 23 May 2018 at 16.30 IST on the steps of the Vidhana Soudha, the state secretariat. Governor Vajubhai Vala will administer the oath of office and secrecy to Kumaraswamy.

The 12 May 2018 Karnataka assembly polls threw up a hung verdict with BJP emerging as the single largest party with 104 seats. The Congress was next with 78 and the JD(S) followed with 37. The BSP has one MLA and two seats went to Independents.

Overseas, Asian shares were mixed. The US market jumped overnight as investors applauded easing trade animosities between the US and China.

US Treasury Secretary Steven Mnuchin reportedly said that bilateral trade talks with China had made very meaningful progress and that it was now up to both parties to implement what had been discussed. Mnuchin said over the weekend that the Trump administration would delay implementation of tariffs on Chinese goods and put the trade war on hold while working out details of a deal between the countries.

A focus for global markets this week is Wednesday's release of minutes from the Federal Reserve's latest monetary policy meeting. Investors will be watching the minutes for clues about the pace of the current tightening cycle.

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