Market turns positive

Key indices were trading with small gains after turning positive in mid-morning trade. At 11:20 IST, the barometer index, the S&P BSE Sensex, rose 40.68 points or 0.12% at 33,877.42. The Nifty 50 index gained 14.55 points or 0.14% at 10,477.75.

The market swung between gains and losses near the flat line in early trade. The Sensex and Nifty, both, hit record high at the onset of the session. Stocks slipped into the red and were trading with small losses in morning trade. Indices turned positive in mid-morning trade.

The S&P BSE Mid-Cap index rose 0.59%. The S&P BSE Small-Cap index gained 1.02%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than two gainers for every loser on BSE. 1,610 shares rose and 746 shares fell. A total of 148 shares were unchanged.

Cement stocks dropped as Coal India said that its board has introduced evacuation facility charges at Rs 50 per tonne for dispatch of coal on all dispatches except dispatch through rapid loading arrangement. Shree Cement (down 0.12%), Ambuja Cements (down 0.52%), and UltraTech Cement (down 0.02%) declined. ACC rose 0.02%.

Grasim Industries declined 0.61%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

Telecom stocks were mixed. Reliance Communications (up 3.37%) and MTNL (up 11.63%) gained. Bharti Airtel (down 0.63%), Tata Teleservices (Maharashtra) (down 2.81%) and Idea Cellular (down 0.81%) declined.

Shares of Bharti Infratel rose 0.41%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

HDFC Bank declined 0.11%. The bank said that the board of directors of the bank, at a meeting held today, 20 December, 2017, have approved raising of funds aggregating up to Rs 24000 crore. The announcement was made during market hours today, 20 December 2017.

Out of which, the amount of Rs 8500 crore shall be raised through equity issue on a preferential basis to HDFC, the promoter of the bank. The balance shall be raised through issuance of equity shares/convertible securities/depository receipts.

Dewan Housing Finance Corporation rose 1.88% after the company said that it proposes to issue secured redeemable non-convertible debentures amounting to Rs 75 crore, including a greenshoe option of upto Rs 300 crore on private placement basis.

The issue will open on 22 December 2017 and close on the same day. The tenure of the instrument is 1151 days. The instrument offers coupon of 7.97% per annum compounded annually, payable on maturity. The rating agency CARE has put a rating of AAA to the said issue. The announcement was made after market hours yesterday, 19 December 2017.

Overseas, Asian stocks were mixed with investors awaiting the final votes on US tax-cut legislation. US stocks ended with modest losses yesterday, 19 December 2017, pulling back from all-time highs. Stocks remained lower as the House of Representatives, as expected, passed tax legislation that would slash corporate rates but will have to vote again today because the current draft doesn't comply with Senate rules.

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