Market ends with modest gains

Shares ended with modest gains after hovering in a narrow range for most part of the trading session. The barometer index, the S&P BSE Sensex, up 43.66 points or 0.17% to 26,392.76, as per the provisional closing data. The Nifty 50 index up 14.40 points or 0.18% to 8,143.15, as per the provisional closing data.

The market breadth, indicating the overall health of the market, was strong. On BSE. 1,525 shares rose and 1,131 shares fell. A total of 156 shares were unchanged. The BSE Mid-Cap index provisionally rose 0.52%. The BSE Small-Cap index provisionally rose 0.41%. Both these indices outperformed the Sensex.

The total turnover on BSE amounted to Rs 2186.57 crore, higher than turnover of Rs 2141.06 crore registered during the previous trading session.

Metal shares edged higher. National Aluminium Company (up 9.32%), Jindal Steel & Power (up 3.13%), Hindustan Copper (up 1.93%), Tata Steel (up 1.12%), Vedanta (up 0.95%), NMDC (up 0.73%), Hindustan Zinc (up 0.40%), Steel Authority of India (up 0.20%) and Hindalco Industries (up 0.03%), edged higher. JSW Steel (down 0.13%) and Bhushan Steel (down 1.09%), edged lower.

Meanwhile, copper price edged lower in the global commodities markets. High Grade Copper for March 2017 delivery was currently down 1.22% at $2.665 per pound on the COMEX.

Tata Power Company rose 2.73%. The company announced that its strategic engineering division, Tata Power SED won a prestigious order from Ministry of Defence for supply of Command post and launcher of Pinaka multi rocket launcher system of one regiment to Indian Army. The announcement was made after market hours yesterday, 5 December 2016.

Drug major Lupin fell 0.56%. The company announced that Lupin Somerset also known as Novel Laboratories, Inc received final approval for its Hydrocodone Bitartrate and Acetaminophen Tablets, USP, 5mg/325mg, 7.5 mg/325 mg and 10 mg/325 mg from the United States Food and Drug Administration (FDA) to market a generic equivalent of Allergan Sales LLC's Norco Tablets 5 mg/325 mg, 7.5 mg/325 mg and 10 mg/325 mg. The company shall launch the product shortly. It is indicated for the relief of moderate to moderately severe pain. It has US sales of $849.50 million as per IMS MAT September 2016. The announcement was made after market hours yesterday, 5 December 2016.

Overseas, most European shares bounced back after a negative start today, 6 December 2016. Except China's Shanghai Composite, all other Asian shares edged higher as investors judged the selloff after Italy's referendum was overdone, with robust US economic data also helping sentiment. In US, the Dow Jones Industrial Average finished at a record yesterday, 5 December 2016, as solid economic data offset concerns about Europe's stability in the wake of a rejection of Italy's vote on Sunday, 4 December 2016, to reform existing constitutional rules. The broader stock market rose after a survey showed that the services side of the economy grew at its fastest pace in November in a year. The Institute of Supply Management non-manufacturing index climbed to 57.2 last month. Any reading over 50 indicates economic expansion.

On macro front, a two-day meet of the monetary policy committee (MPC) of the Reserve Bank of India (RBI) is scheduled today, 6 December 2016 and tomorrow, 7 December 2016. It will be interesting to watch RBI's monetary policy stance this time in a scenario of government's recent historic move of demonetization of higher denomination notes and amid easing consumer inflation. RBI had cut policy rates by 25 basis points in its last meet in October.

Meanwhile, Chief minister of Tamil Nadu, J Jayalalithaa, died yesterday, 5 December 2016, after undergoing treatment at Apollo Hospitals in Chennai. She was 68.

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