Market pares gains

Key benchmark indices pared intraday gains and were trading almost unchanged in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex, was up 15.83 points or 0.06% at 27,273.47. The Nifty 50 index was unchanged at 8,416.30.

Trading on the bourses was restricted within a small range near the flat line so far. After witnessing initial swing between the gains and losses near the flat line amid mixed Asian cues, key indices pared gains after consolidating initial gains.

After witnessing good gains during the last week, key indices saw lacklustre trading on the bourses this week, with indices consolidating amid rangebound trade.

The BSE Mid-Cap index was up 0.41%. The BSE Small-Cap index was up 0.29%. Both these indices outperformed the Sensex. The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,407 shares rose and 1,184 shares declined. A total of 188 shares were unchanged.

Yes Bank rose 0.57% after net profit rose 30.61% to Rs 882.63 crore on 26.87% rise in total income to Rs 5229.96 crore in Q3 December 2016 over Q3 December 2015. The result was announced during market hours today, 19 January 2017.

Capital goods stocks saw a mixed trend. BEML (down 0.6%), Thermax (down 0.01%), Crompton Greaves (down 0.23%) and Siemens (down 1.07%) declined. Bharat Heavy Electricals (Bhel) (up 0.26%), Havells India (up 1.72%), and L&T (up 0.12%) gained.

Metal & mining stocks were mixed. Bhushan Steel (up 5.99%), Jindal Steel & Power (up 0.19%), Vedanta (up 0.57%), and JSW Steel (up 1.2%) gained. Tata Steel (down 0.16%), NMDC (down 0.17%), Hindalco Industries (down 0.2%), Steel Authority of India (down 0.01%), Hindustan Zinc (down 0.02%) and National Aluminium Company (down 0.62%) edged lower.

Idea Cellular rose 2.59% to Rs 69.25 after a bulk deal of 10 lakh shares was executed on the scrip at Rs 68.95 per share at 11:15 IST on BSE.

Bodal Chemicals rose 2.88% after the company announced that rating agency Credit Analysis & Research (CARE) has upgraded the credit rating for the long term bank facilities of the company to CARE A from CARE A-. The outlook is stable. Also, CARE upgraded the ratings for the short term bank facilities of the company to CARE A1 from CARE A2+.

The rating upgrade from CARE is on the basis of recent developments including operational and financial performance of the company for FY 2016 and also provisional performance for the first half of current financial year (FY 2017). The announcement was made after market hours yesterday, 18 January 2017.

Overseas, most European stocks edged higher in early trade amid a rebound overnight for the dollar and ahead of a European Central Bank rate decision today, 19 January 2017. The ECB will announce its January rate decision with Mario Draghi's regular press conference following later in Frankfurt.

No change is expected in either the bank's key lending rates or its quantitative easing program, investors will nonetheless remain focused on Draghi's assessment of the improved growth and inflation dynamics in the Eurozone economy for any signals of intention in the months ahead.

Asian stocks were mixed. In the US, the Dow Jones Industrial Average yesterday, 18 January 2017, closed at the lowest level of 2017, marking a fourth straight day in the red for the blue-chip gauge, but the broader stock market managed modest gains. Federal Reserve Chairwoman Janet Yellen said she expects rate hikes a few times a year until the end of 2019.

Among economic data in US, industrial output accelerated last month at its strongest pace in two years. The housing-market index from the National Association of Homebuilders showed that builder sentiment slipped in January after notching its highest reading of the business cycle in December. Despite the drop, the January number was the second-highest reading of the cycle.

Wall Street trading over the past several days has been subdued as investors await signs that the stock-market rally that followed President-elect Donald Trump's November election victory, supported by his campaign promises to increase fiscal spending, cut taxes and roll back regulations, is based in reality and underpinned by solid corporate quarterly results.

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