Market turns range bound

After paring gains in morning trade, key benchmark indices turned range bound in mid-morning trade. At 11:16 IST, the barometer index, the S&P BSE Sensex, was up 77.85 points or 0.28% at 28,138.99. The Nifty 50 index was up 26.75 points or 0.31% at 8,724.35. The market shrugged off negative leads from Asian markets and a decline on the Wall Street on Friday, 7 October 2016. The broad market depicted strength. There were almost two gainers against every loser on BSE. 1,583 shares rose and 798 shares fell. A total of 119 shares were unchanged. The BSE Mid-Cap index was currently up 0.4%. The BSE Small-Cap index was currently up 0.64%. Both these indices outperformed the Sensex.

In overseas stock markets, most Asian stock markets were trading lower. Markets in Hong Kong, Japan and Taiwan were shut for public holidays. US stocks fell on Friday, 7 October 2016, to end the week lower following a report on US employment that came in below expectations but was viewed as strong enough for the US central bank to consider raising interest rates by the end of the year. The US economy added 156,000 jobs last month, while the unemployment rate ticked up to 5% as more workers entered the labor market.

Back home, most FMCG shares edged higher. Bajaj Corp (up 1.81%), Tata Global Beverages (up 1.03%), Colgate Palmolive (India) (up 0.67%), Dabur India (up 0.6%), Hindustan Unilever (up 0.53%), Britannia Industries (up 0.34%), Marico (up 0.29%), Procter & Gamble Hygiene & Health Care (up 0.18%), Nestle India (up 0.08%) and GlaxoSmithKline Consumer Healthcare (up 0.07%), edged higher. Godrej Consumer Products (down 0.47%) and Jyothy Laboratories (down 0.85%), edged lower.

Most IT shares rose. Hexaware Technologies (up 1.96%), Oracle Financial Services Software (up 1.47%), Tech Mahindra (up 0.91%), MindTree (up 0.74%), Persistent Systems (up 0.21%) and Wipro (up 0.14%) edged higher. HCL Technologies (down 0.22%) and MphasiS (down 0.48%) edged lower.

IT major Infosys was up 0.93% to Rs 1,022.10. The company declares its Q2 September 2016 results on Friday, 14 October 2016.

IT major TCS was up 0.05% to Rs 2,369.50. The company declares its Q2 September 2016 results on Thursday, 13 October 2016.

A2Z Infra Engineering was up 4.94% after the company announced that it has received a contract from Jharkhand Urja Sancharan Nigam (JUSNL) for design, engineering, supply, erection, testing and commissioning on turnkey basis of deposit work of Steel Authority of India (SAIL). Total contract price of the work is around Rs 96 crore. The announcement was made after market hours on Friday, 7 October 2016.

Adani Transmission (ATL) gained 2.29% to Rs 42.50 after the company announced that it completed the acquisition of 74% shares of Maru Transmission Service Company (MTSCL) and 49% shares of Aravali Transmission Service Company (ATSCL). MTSCL and ATSCL are the operational transmission assets of GMR Energy. While payment has been made for 100% stake in both the companies, the remaining stake in both the companies will be transferred to ATL in a manner consistent with the transmission service agreement. This acquisition is in sync with ATL strategy to enhance the value for its stakeholders, through organic as well as inorganic growth. With these acquisitions, cumulative network of ATL will reach around 10,900 circuit kilometre (ckt kms), out of which around 9,000 ckt kms are under operation (including 3,500 ckt kms under process of acquisition) and approximate 1,900 ckt kms are under various stages of construction. With this scale of operations, ATL will enjoy substantial benefit of scale in terms of cost optimization and shared resources. The announcement was made after market hours on Friday, 7 October 2016.

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