Market hovers near flat line

Key benchmark indices were hovering near the flat line in early afternoon trade, alternately swinging between positive and negative zone. At 12:30 IST, the barometer index, the S&P BSE Sensex, was down 9.68 points or 0.04% at 26,868.56. The Nifty 50 index was currently down 4.10 points or 0.05% at 8,269.70. The Sensex was currently trading below the psychologically important 27,000 mark, after hitting an intraday high above that level in mid-morning trade.

The Sensex and the Nifty, both, reversed direction soon after hitting their highest intraday level in almost two months in mid-morning trade. The Sensex rose 131.37 points, or 0.49% at the day's high of 27,009.61 in mid-morning trade, its highest level since 11 November 2016. The index fell 35.18 points, or 0.13% at the day's low of 26,843.06 in early afternoon trade. The Nifty rose 33.05 points, or 0.40% at the day's high of 8,306.85 in mid-morning trade, its highest level since 11 November 2016. The index fell 14.40 points, or 0.17% at the day's low of 8,259.40 in mid-morning trade.

Among secondary barometers, the BSE Mid-Cap index was currently up 0.28%. The BSE Small-Cap index was currently up 0.02%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1,284 shares fell and 1,163 shares rose. A total of 156 shares were unchanged.

FMCG stocks saw mixed trend. Britannia Industries (down 0.53%), GlaxoSmithkline Consumer Healthcare (down 0.15%), Dabur India (down 0.61%), Godrej Consumer Products (down 0.09%), Nestle India (down 0.14%), Jyothy Laboratories (down 0.01%) and Bajaj Corp (down 0.05%) fell. Colgate-Palmolive (India) (up 0.21%), Hindustan Unilever (up 0.33%), Marico (up 0.86%), Tata Global Beverages (up 0.08%) and Procter & Gamble Hygiene and Health Care (up 0.03%) rose.

Cement stocks fell. UltraTech Cement (down 1.06%), Ambuja Cements (down 0.07%) and Shree Cement (down 0.03%) fell. ACC (up 0.6%) rose.

Grasim Industries was off 1.9% at Rs 855.35. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

Bharti Infratel rose 1.66% to Rs 355.55 on reports a foreign brokerage has upgraded its recommendation on the stock to buy. The brokerage expects stronger tenancy growth for Bharti Infratel. Bharti Airtel's stake sale in the company could be a catalyst, it added. The brokerage has raised its earnings estimates for Bharti Infratel by 2-3% for FY 2018-19.

GE Power India rose 1.55% after the company said it has been awarded a contract by NTPC ALSTOM Power Services (a 50:50 joint venture between NTPC & GE) of approximately Rs 198.80 crore including duties and taxes. The order is for steam turbine upgrade project at NTPC's Ramagundam super thermal power plant in Telangana. The company's scope of work consists of supply of steam turbine module, its auxiliaries, turbine controller and spares including supervision of erection, commissioning and testing, GE Power India said. The announcement was made after market hours yesterday, 5 January 2017.

Chartered Logistics advanced 1.26% after net profit rose 49.6% to Rs 4.10 crore on 3.2% decline in net sales to Rs 38.20 crore in Q3 December 2016 over Q3 December 2015. The result was announced after market hours yesterday, 5 January 2017.

Overseas, most Asian stocks were trading higher today, 6 January 2017. China's Shanghai Composite was down 0.21%. Japan's Nikkei 225 fell 0.34%. In US, the tech-heavy Nasdaq closed at a record yesterday, 5 January 2017, as the broader stock market finished lower, dragged down by a steep slide in the financial sector and major retailers. Mixed data on jobs also raised concerns a day before the closely watched December employment report due today, 6 January 2017.

In US, the private sector added 153,000 jobs in December, according to ADP, a rate that was below forecasts, while first-time jobless claims fell 28,000 in the latest week, dropping to a nearly 43-year low. Separately, a reading on the US services sector held steady at a 12-month high in December, suggesting growth in non-manufacturing activity, mainly the service sector, remains strong.

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