Key indices languish in negative zone

Key benchmark indices hovered within a narrow range in negative zone in the morning trade. At 10:15 IST, the barometer index, the S&P BSE Sensex was down 40.88 points or 0.16% at 25,539.46. The 50-unit Nifty 50 index was currently down 15.30 points or 0.2% at 7,769.35. The market breadth indicating the overall health of the market was strong. On BSE, 1,369 shares rose and 770 shares declined. A total of 98 shares were unchanged. The BSE Mid-Cap index was currently up 0.23%. The BSE Small-Cap index was currently up 0.34%. Both these indices outperformed the Sensex.

In overseas markets, Asian markets witnessed a mixed trend. Stocks edged higher in mainland China on reports that China will keep in effect a ban on share sales by listed companies' major shareholders until new rules are promulgated. The Shanghai Composite index was currently up 0.69%. US stocks closed modestly higher yesterday, 5 January 2016.

Metal and mining stocks witnessed across the board decline after a monthly survey pointed to weakness in China's services sector. Tata Steel (down 1.37%), Hindustan Zinc (down 1.19%), Vedanta (down 1.03%), Steel Authority of India (down 1.28%), Hindalco Industries (down 1.03%), Jindal Steel & Power (down 0.42%), NMDC (down 0.75%) and JSW Steel (down 0.66%) declined. National Aluminium Company (up 0.39%) edged higher. China is the world's largest consumer of steel, copper and aluminum.

Latest data showed that the Caixin China services purchasing managers' index (PMI) fell to a 17-month low of 50.2 in December 2015 from 51.2 in November 2015.

Cement stocks declined. Ambuja Cements (down 1.01%), ACC (down 0.41%) and UltraTech Cement (down 0.55%) edged lower. Shree Cement (up 1.97%) edged higher.

Grasim Industries (Grasim) was off 0.73% at Rs 3,630.65. Aditya Birla Chemicals (India) (ABCIL) was up 0.87% at Rs 231.90. Grasim and ABCIL separately announced after market hours yesterday, 5 January 2016, that their respective board of directors fixed 15 January 2016 as the record date in terms of the scheme of merger for determining the entitlement of the shareholders of ABCIL to receive shares of Grasim Industries in the ratio of one share of Grasim Industries for every 16 shares held in ABCIL. Grasim will issue 14.62 lakh equity shares to the eligible shareholders of ABCIL. ABCIL has been merged with Grasim Industries from the appointed date of 1 April 2015 with all the requisite approvals for the scheme of amalgamation in place.

Tata Motors was down 1.24% at Rs 370. The stock hit a high of Rs 378 and a low of Rs 369.30 so far during the day. Jaguar Land Rover (JLR) North America yesterday, 5 January 2016, said its US sales rose 30% to 9,638 units in December 2015 over December 2014. Land Rover sales rose 47% to 8,441 units in December 2015 over December 2014. Jaguar sales fell 29% to 1,197 units in December 2015 over December 2014. JLR is British luxury car unit of Tata Motors. The sales figures were announced after close of Indian market hours yesterday, 5 January 2016.

Blue Blends (India) was locked at 5% upper circuit at Rs 68.60 after the company announced that a meeting of the board of directors of the company will be held on 12 January 2016 to discuss on the issue of equity shares on preferential basis to non-promoter group. The board of directors will also discuss on that day the business plan and capacity expansion of the company. The announcement was made after market hours yesterday, 5 January 2016.

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