Market trims gains in volatile trade

Volatility ruled the roost in afternoon trade as the key benchmark indices erased almost entire intraday gains and were hovering just above the flat line. At 13:18 IST, the barometer index, the S&P BSE Sensex, was currently up 5.21 points or 0.02% at 26,600.66. The Nifty 50 index was currently up 7.80 points or 0.1% at 8,187.30.

The Sensex rose 98.12 points, or 0.37% at the day's high of 26,693.57 in early afternoon trade. The index fell 107.08 points, or 0.40% at the day's low of 26,488.37 in morning trade. The Nifty rose 35.25 points, or 0.43% at the day's high of 8,214.75 in early afternoon trade. The index fell 30.90 points, or 0.38% at the day's low of 8,148.60 in morning trade.

Among secondary barometers, the BSE Mid-Cap index was currently up 0.41%. The BSE Small-Cap index was currently up 0.86%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,810 shares rose and 706 shares fell. A total of 112 shares were unchanged.

Capital goods stocks gained on renewed buying. Bharat Heavy Electricals (Bhel) (up 2.12%), BEML (up 1.24%), Bharat Electronics (up 3.9%), ABB India (up 0.96%), Crompton Greaves (up 1.17%), L&T (up 0.43%), Siemens (up 0.19%) and Thermax (up 1.67%) rose.

FMCG stocks saw mixed trend. Marico (up 1.52%), GlaxoSmithkline Consumer Healthcare (up 1.06%), Godrej Consumer Products (up 0.59%), Hindustan Unilever (up 0.6%), Nestle India (up 0.74%), Tata Global Beverages (up 0.57%) and Bajaj Corp (up 0.64%) rose. Procter & Gamble Hygiene and Health Care (down 0.71%), Jyothy Laboratories (down 0.43%), Britannia Industries (down 0.81%), Colgate-Palmolive (India) (down 0.53%) and Dabur India (down 0.67%) fell.

BPCL rose 2.23% to Rs 652.50 on reports that a foreign brokerage has maintained buy call on the stock for a target price of Rs 710.

Great Eastern Shipping Company rose 0.69% after the company signed contract to buy 2 Suezmax Crude Carriers of about 1.57 lakh deadweight tonnage (dwt) each. The 2010 and 2011 vessels are expected to join the company's fleet in Q4 March 2017. The announcement was made after market hours yesterday, 2 January 2017.

The company's current fleet stands at 38 vessels, comprising 24 tankers (7 crude carriers, 15 product tankers, 2 LPG carriers) and 14 dry bulk carriers (1 Capesize, 7 Kamsarmaxes, 6 Supramaxes) with an average age of 9.89 years aggregating 2.94 million dwt. It also has 2 secondhand Aframaxes, 1 secondhand Suezmax and l newbuilding Kamsarmax on order. After delivery of these 6 contracted vessels, the company will have a fleet of 44 vessels.

On the macro front, core sector output rose 4.9% in November 2016 on the back of a strong expansion in steel production and electricity generation, but the pace of growth was down from 6.6% in October 2016, data released yesterday, 2 January 2017, showed. Part of the buoyancy was due to the base effect of a lower growth rate at 0.6% in November 2015.

Meanwhile, during the current financial year 2016-17, the Government has so far realised Rs 23528.73 crore, which include Rs 21432.38 crore through minority stake sale in 14 central public sector enterprises (CPSEs) and Rs 2096.35 crore through strategic disinvestment. The total realization of Rs 21432.38 crore, by end-November 2016 through CPSEs' disinvestment receipts, constitutes around 59.53% of the budgeted target of Rs 36000 crore (CPSEs' disinvestment), the Ministry of Finance said in a statement during trading hours today, 3 January 2017.

The disinvestment target for the current financial year ending 31 March 2017 has been estimated at Rs 56500 crore comprising Rs 36000 crore from disinvestment of CPSEs and Rs 20500 crore from strategic disinvestment.

Overseas, Asian stocks were trading higher after a key indicator of China's private manufacturing showed robust gains in December 2016. Indonesia's Jakarta Composite Index was, however, down 0.47%. Japan was closed for an extended New Year holiday.

China's Caixin Manufacturing Purchasing Managers' index (PMI) rose 51.9, compared to 50.9 in November on the back of increased demand. A reading above 50 represents expansion in a sector, whereas a reading below 50 represents contraction. The private manufacturing survey results come after figures at the weekend showed China's official PMI fell to 51.4 in December.

Trading in US index futures indicated that the Dow Jones Industrial Average could rise 114 points at the opening bell today, 3 January 2017. US financial markets were closed yesterday, 2 January 2017.

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