Market opens lower on mixed Asian cues

Key benchmark indices were trading lower in early trade, tracking mixed Asian cues. At 9:19 IST, the barometer index, the S&P BSE Sensex, was down 75.84 points or 0.29% at 26,154.82. The Nifty 50 index was down 8.55 points or 0.11% at 8,078.25.

The market breadth, indicating the overall health of the market, was positive. On BSE, 568 shares rose and 424 shares fell. A total of 62 shares were unchanged. The BSE Mid-Cap index was currently up 0.13%. The BSE Small-Cap index was currently up 0.04%. Both these indices outperformed the Sensex.

Overseas, most Asian stocks were mixed. US stocks struggled for direction on Friday, 2 December 2016, with the Dow industrials finishing lower and the S&P 500 and the Nasdaq closing slightly higher as investors digested a weaker-than-expected payroll report, favoring sectors viewed as safe in economically uncertain times.

The uncertainty was underlined by the November jobs report, which showed 178,000 jobs added in the month, fewer than had been expected, while the count over the prior two months was reduced. However, the jobless rate fell sharply to a nine-year low of 4.6%.

Metal shares were in demand as copper price edged higher in the global commodities markets. Bhushan Steel (up 4.63%), Jindal Steel & Power (up 2.08%), Steel Authority of India (up 0.81%), Tata Steel (up 0.73%), Vedanta (up 0.49%), JSW Steel (up 0.46%), Hindustan Copper (up 0.43%), Hindalco Industries (up 0.39%) and National Aluminium Company (up 0.09%), edged higher. Hindustan Zinc was down 0.15%.

NMDC was up 2.36%. The company announced that Government of India, Ministry of Steel has communicated the 'in-principle' decision of the Cabinet Committee on Economic Affairs (CCEA) of Government of India to consider strategic disinvestment of the Nagarnar Steel Plant of the company. The announcement was made after market hours on Friday, 2 December 2016. Separately, company announced on Saturday, 3 December 2016, that the prices of lump iron ore with effect from 29 November 2016 was kept unchanged at Rs 2,100 wet metric tonne (WMT) compared to prices last revised in early November. The company rose fine ore prices by 5.68% to Rs 1,860 per WMT from 29 November 2016, compared to prices last revised in early November.

High Grade Copper for March 2017 delivery was currently up 1.41% at $2.662 per pound on the COMEX.

On the macro front, Markit Economics, an independent, global provider of some of the world's most influential business surveys will unveil the result of a monthly survey on the performance of India's services sector for November 2016 today, 5 December 2016.

The developments in the ongoing winter session of the Parliament will also be keenly watched. The winter session ends on 16 December 2016. The government will try to get key legislations related to the Goods and Services Tax (GST) Bill passed that will help the bill getting implemented from its earlier deadline of 1 April 2017. There was a virtual washout of proceedings barring the passage of the Bill to amend the I-T Act without discussion so far in winter session as opposition continued protests against the government over demonetization issue.

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