Market provisionally ends on a flat note

A divergent trend was witnessed as the barometer index, the S&P BSE Sensex, settled with marginal losses while the Nifty 50 index registered tiny gains. The barometer index, the S&P BSE Sensex, fell 2.76 points or 0.01% to 26,210.68, as per the provisional closing data. The Nifty 50 index rose 2 points or 0.02% at 8,034.85, as per the provisional closing data. Intense volatility was hallmark of the day's trading session as the key benchmark indices erased entire intraday gains accumulated since early trade. Global stocks saw mixed trend in thin trading.

In today's trade, the key indices further retreated in mid-afternoon trade soon after hitting intraday high to sink in negative zone. The Sensex hit more than one-week high and the Nifty hit highest level in one-week in mid-afternoon trade. The Sensex gained 201.61 points or 0.77% at the day's high of 26,415.05 in mid-afternoon trade, its highest level since 20 December 2016. The index fell 21.72 points or 0.08% at the day's low of 26,191.72 in late trade. The Nifty gained 67.70 points or 0.84% at the day's high of 8,100.55 in mid-afternoon trade, its highest level since 21 December 2016. The index fell 4.45 points or 0.06% at the day's low of 8,028.40 in late trade.

In side indices, the BSE Mid-Cap index provisionally rose 0.53%. The BSE Small-Cap index provisionally rose 0.87%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,522 shares rose and 1,093 shares fell. A total of 184 shares were unchanged.

The total turnover on BSE amounted to Rs 2459.04 crore, higher than the turnover of Rs 2419.19 crore registered during the previous trading session.

Pharma shares extended yesterday's gains as the rupee continued to weaken against the dollar. A weak rupee boosts the value of overseas earnings of pharma firms in local terms. Pharma companies derive substantial revenue from exports.

Aurobindo Pharma (up 1.33%), Cipla (up 0.11%), Dr Reddy's Laboratories (up 0.9%), Glenmark Pharmaceuticals (up 0.82%), Lupin (up 0.63%), Sun Pharmaceutical Industries (up 0.16%), Alkem Laboratories (up 0.76%), and Wockhardt (up 0.77%) gained. GlaxoSmithKline Pharmaceuticals (down 0.43%) fell.

In the foreign exchange market, the partially convertible rupee was hovering at 68.155, compared with closing of 68.06 during the previous trading session.

Cadila Healthcare rose 0.2% after the company issued clarification with regard to media reports of receiving warning letter from the United States Food and Drug Administration. Cadila Healthcare in its clarification issued to the stock exchanges during market hours today, 28 December 2016, said that Zydus Discovery DMCC, a 100% subsidiary of Cadila Healthcare has received an untitled letter and not a warning letter from the United States Food and Drug Administration (USFDA), as being projected in media reports.

The letter is related to a product promotion of a drug which is not marketed in the US and is currently marketed only in India. Cadila Healthcare said it has taken necessary actions to respond to the letter.

Bharti Infratel rose 2.31% to Rs 339.30 on reports that a foreign brokerage has upgraded the stock to neutral from underperform. The foreign brokerage reportedly said though Bharti Infratel continues to face headwinds in the near term including headwinds from increased competition and consolidation by mobile operators, the risk-reward is more balanced after recent underperformance. The brokerage noted that accelerated 4G deployment by telecom companies could result in strong growth in tenancy, or rental of mobile towers, over the next few quarters.

Overseas, European stocks were trading on a mixed note. Asian stocks, too, settled on a mixed note. Among economic data in Asia, Japanese industrial production rose 1.5% on month in November on a seasonally adjusted basis. The rise came after output stayed flat in October, according to data released by the Ministry of Economy, Trade and Industry.

US stocks rose in a thinly traded session yesterday, 27 December 2016 with the Nasdaq Composite index hitting its latest in a series of records as the market's recent upward bias continued, helped by a gain in technology shares. In the latest economic data, Consumer confidence in December jumped to 113.7 from a revised 109.4 in November, hitting its highest level since 2001.

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