Market logs modest decline in volatile trade

Key benchmark indices, led by index pivotals State Bank of India and HDFC, logged modest losses in volatile trade. The barometer index, the S&P BSE Sensex, fell 63.78 points or 0.19% at 33,848.03, as per the provisional closing data. The Nifty 50 index fell 12.85 points or 0.12% at 10,477.90, as per the provisional closing data. Metal and mining stocks logged strong gains across the board as copper prices rose in global markets.

Trading was lackluster and rangebound around the flat line so far during the session. Key indices opened higher and traded with small gains in early trade. Stocks traded in a small range around the flat line later during the session. Volatility struck bourses as the key benchmark indices trimmed gains in mid-afternoon trade soon after hitting fresh intraday high. Stocks dropped in late trade with the Sensex hitting one-week low.

Volatility was high in late trade as traders rolled over positions in the futures & options (F&O) segment from the near month December 2017 series to January 2018 series. The December 2017 derivatives contracts expired today, 28 December 2017.

The Sensex gained 111.84 points or 0.33% at the day's high of 34,023.65 in late trade. The index fell 159.78 points or 0.47% at the day's low of 33,752.03 in late trade, its lowest level since 21 December 2017. The Nifty gained 43.80 points or 0.42% at the day's high of 10,534.55 in late trade. The index fell 30.30 points or 0.29% at the day's low of 10,460.45 in late trade, its lowest level since 22 December 2017.

Among secondary indices, the S&P BSE Mid-Cap index provisionally rose 0.1%. The S&P BSE Small-Cap index provisionally rose 0.32%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was positive. On the BSE, 1,458 shares rose and 1,302 shares fell. A total of 197 shares were unchanged.

The total turnover on BSE amounted to Rs 4737.72 crore, lower than turnover of Rs 7078.18 crore registered during the previous trading session.

Index heavyweight and housing finance major HDFC fell 0.79% to Rs 1,694.50.\

Metal and mining stocks logged strong gains across the board as copper prices rose in global markets. Hindustan Copper (up 7.12%), JSW Steel (up 1.98%), National Aluminium Company (up 6.14%), Hindalco Industries (up 3.65%), Jindal Steel & Power (JSPL) (up 4.34%), Hindustan Zinc (up 2.42%), NMDC (up 0.95%), Tata Steel (up 2.17%), Steel Authority of India (up 1.7%) and Vedanta (up 2.05%) rose.

High Grade Copper for March 2018 delivery was currently up 0.55% at $3.3020 per pound on the COMEX.

Kolte-Patil Developers rose 3.02% after the company announced that global investment firm KKR has committed Rs 193 crore in Kolte-PatiI I-Ven Townships (Pune), a joint venture of Kolte-Patil and ICICI Venture Funds Management Company. Kolte-PatiI I-Ven Townships is developing Life Republic, a 383-acre township located in Pune's IT hub, Hinjewadi. The announcement was made after market hours yesterday, 27 December 2017.

KPIT will utilise the funds from this investment to attain financial closure at R1 sector of Life Republic, meeting working capital requirements and reducing cost of outstanding debt attributable to the development.

Overseas, European shares were trading lower with company news and macro events scarce in holiday-thinned trading. Asian markets rose following a rally in oil and copper prices this week. Trade was thin ahead of the long New Year's weekend.

Japan's factories and retailers posted better-than-expected growth in activity in November, while minutes from the central bank's last policy meeting showed board members raising the prospect of reducing stimulus. The 0.6% increase in industrial output in November was more than the median market projection and followed a 0.5% gain in October.

US stocks eked out a positive close yesterday, 27 December 2017 with gains in real estate and utilities offsetting declines in energy and telecommunications stocks. In US economic reports, the Conference Board's consumer confidence index fell to 122.1 in December from 128.6 in November.

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