Market hovers in positive terrain

Amid a bout of volatility, key benchmark indices trimmed gains after hitting fresh intraday high in morning trade. At 10:16 IST, the barometer index, the S&P BSE Sensex, was up 105.14 points or 0.40% at 26,454.24. The Nifty 50 index was up 34.15 points or 0.42% at 8,162.90. Positive leads from Asian markets and overnight rally on the Wall Street boosted investors sentiment in the domestic market.

The Sensex rose 141.32 points, or 0.54% at the day's high of 26,490.42, its highest intraday level since 1 December 2016. The index rose 44.89 points, or 0.17% at the day's low of 26,393.99. The Nifty rose 45.30 points, or 0.56% at the day's high of 8,174.05, its highest intraday level since 1 December 2016. The index rose 19.75 points, or 0.24% at the day's low of 8,148.50.

The broad market depicted strength. There were almost three gainers against every loser on BSE. 1,433 shares rose and 510 shares fell. A total of 89 shares were unchanged. The BSE Mid-Cap index was currently up 0.81%. The BSE Small-Cap index was currently up 0.78%. Both these indices outperformed the Sensex.

Metal shares edged higher. National Aluminium Company (up 3.37%), Hindalco Industries (up 0.92%), NMDC (up 0.86%), Hindustan Copper (up 0.67%), Steel Authority of India (up 0.59%), Hindustan Zinc (up 0.49%), JSW Steel (up 0.42%), Jindal Steel & Power (up 0.22%) and Vedanta (up 0.04%), edged higher. Bhushan Steel (down 0.12%) and Tata Steel (down 0.29%), edged lower.

Meanwhile, copper price edged lower in the global commodities markets. High Grade Copper for March 2017 delivery was currently down 0.80% at $2.6765 per pound on the COMEX.

FMCG shares were mixed. Dabur India (down 1.47%), Britannia Industries (down 1.22%), Hindustan Unilever (down 0.71%), Marico (down 0.45%), Procter & Gamble Hygiene & Health Care (down 0.36%), Colgate Palmolive (India) (down 0.33%) and Nestle India (down 0.14%), edged lower. Godrej Consumer Products (up 0.43%), Bajaj Corp (up 0.64%), GlaxoSmithKline Consumer Healthcare (up 0.71%), Tata Global Beverages (up 1.05%) and Jyothy Laboratories (up 1.40%), edged higher.

Overseas, Asian shares were trading 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 nonmanufacturing 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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