Market hovers in red

After opening lower and extending losses, key benchmark indices languished near their intraday low in morning trade. At 10:17 IST, the barometer index, the S&P BSE Sensex, was down 81.50 points or 0.3% at 27,226.83. The Nifty 50 index was down 24.45 points or 0.29% at 8,410.65. Indices kept a low profile amid mixed Asian cues as caution prevailed ahead of US President-elect Donald Trump's inauguration.

The BSE Mid-Cap index was down 0.05%. The decline in this index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index was up 0.06%, outperforming the Sensex. The market breadth, indicating the overall health of the market, was negative. On the BSE, 981 shares fell and 960 shares rose. A total of 115 shares were unchanged.

The Sensex dropped 113.51 points or 0.41% at the day's low of 27,195.09 in morning trade, its lowest level since 17 January 2017. It lost 44.19 points or 0.16% at the day's high of 27,264.41, in early trade. The Nifty shed 38.05 points or 0.45% at the day's low of 8,397.05 in morning trade, its lowest level since 17 January 2017. It lost 11.45 points or 0.13% at the day's high of 8,423.65 in early trade.

Capital goods stocks witnessed a mixed trend. Bharat Heavy Electricals (Bhel) (up 0.3%), BEML (up 0.48%), and Havells India (up 2.72%) gained. ABB India (down 1.15%), Bharat Electronics (down 0.03%), Thermax (down 0.25%), and Siemens (down 0.71%) declined.

L&T shed 0.49%. The company's wholly owned subsidiary, L&T Hydrocarbon Engineering won orders worth Rs 1700 crore. The announcement was made before market hours today, 20 January 2017.

IT stocks declined in weak market. HCL Technologies (down 0.59%), TCS (down 0.17%), Infosys (down 1.06%), Tech Mahindra (down 0.72%), Oracle Financial Services Software (down 0.68%), MphasiS (down 0.29%) and Wipro (down 0.17%) edged lower.

Mahindra & Mahindra (M&M) rose 0.33% after the company announced its foray into Turkey, through the acquisition of Hisarlar Makina Sanayi ve Ticaret Anonim Sirketi (Hisarlar), a farm equipment company based in Turkey. The announcement was made during market hours today, 20 January 2017.

Under the transaction, which is expected to close by April 2017, M&M will acquire 75.1% stake in Hisarlar. The association will help in growing the farm equipment business in Turkey and Europe.

The balance shareholding will be with European Bank for Reconstruction & Development (EBRD), holding 18.7% and the founder Turker family will hold 6.2%. Further, Darby Converging Europe Fund III will exit its investment.

Overseas, Asian stocks were mixed as caution prevailed in financial markets ahead of US President-elect Donald Trump's inauguration later today, 20 January 2017.

China's economy grew by a faster-than-expected 6.8% in the fourth quarter, boosted by higher government spending and record bank lending. The economy expanded 6.7% in 2016, the National Bureau of Statistics said today, 20 January 2017, roughly in the middle of the government's 6.5-7% growth target but still the slowest pace in 26 years.

US stocks posted losses yesterday, 19 January 2017, as the Dow Jones Industrial Average fell for the fourth straight session. US homebuilding rebounded sharply in December amid stronger demand for rental housing, and the number of Americans filing for unemployment benefits fell to near the 43-year low touched in mid-November.

European Central Bank chief Mario Draghi yesterday, 19 January 2017, played down a recent rise in euro zone inflation, as investors parsed his statement and noted he had announced no changes to policy.

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