Market bounces back from day's low

Key benchmark indices firmed up after hitting fresh intraday low in morning trade. At 10:18 IST, the barometer index, the S&P BSE Sensex, was up 83.39 points or 0.31% at 26,777.67. The Nifty 50 index was up 13.35 points or 0.16% at 8,260.20. The Sensex rose 108.98 points, or 0.41% at the day's high of 26,803.26 in early trade, its highest level since 15 November 2016. The index rose 13.53 points, or 0.05% at the day's low of 26,707.81 in morning trade. The Nifty rose 25.05 points, or 0.30% at the day's high of 8,271.90 in early trade, its highest level since 15 November 2016. The index fell 4.90 points, or 0.06% at the day's low of 8,241.95 in morning trade.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1,183 shares rose and 704 shares fell. A total of 105 shares were unchanged. The BSE Mid-Cap index was currently up 0.15%, underperforming the Sensex. The BSE Small-Cap index was currently up 0.50%, outperforming the Sensex.

Overseas, Asian shares were mixed after the European Central Bank (ECB) trimmed the size of its asset purchase programme. US stocks closed at record levels yesterday, 8 December 2016, after ECB outcome.

ECB yesterday, 8 December 2016, pledged to continue with its programme of money printing to shore up the euro zone recovery but surprised financial markets by reducing the amount of stimulus it expects to provide each month. ECB left interest rates unchanged and said it would continue its programme of quantitative easing (QE) to next December or beyond if necessary. But the central bank said it would reduce its monthly asset buys to 60 billion euros as of April, from the current 80 billion euros. It, however, said it reserved the right to increase the size of purchases again.

Mahindra & Mahindra (M&M) was up 0.44% to Rs 1,211.60. The company said it will be undertaking scheduled maintenance shutdown at some of its automotive and tractor plants in December 2016. It will also observe on need basis few days as 'no production days' at some of its automotive/tractor plants including Chakan plant of its wholly-owned subsidiary Mahindra Vehicle Manufacturers as part of its efforts to optimize inventories during December year-end. The management does not envisage any adverse impact on the availability of products in the market due to adequacy of stocks to serve the market requirements.

IT stocks were in demand. Hexaware Technologies (up 2.12%), Infosys (up 1.55%), Tech Mahindra (up 1.16%), HCL Technologies (up 1.12%), TCS (up 0.66%), MindTree (up 0.54%), Wipro (up 0.19%), MphasiS (up 0.17%), Persistent Systems (up 0.17%) and Oracle Financial Services Software (up 0.16%), edged higher.

Pharmaceutical shares were mixed. IPCA Laboratories (up 0.95%), Strides Shasun (up 0.68%), Wockhardt (up 0.38%), Aurobindo Pharma (up 0.30%), GlaxoSmithKline Pharmaceuticals (up 0.23%), Piramal Enterprises (up 0.22%) and Alkem Laboratories (up 0.01%), edged higher. Dr Reddy's Laboratories (down 0.13%), Sun Pharmaceutical Industries (down 0.26%), Cadila Healthcare (down 0.33%), Lupin (down 0.4%), Cipla (down 0.48%), Glenmark Pharmaceuticals (down 0.77%) and Divi's Laboratories (down 1.2%), edged lower.

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