Market turns range bound

Key benchmark indices were range bound in early afternoon trade. At 12:16 IST, the barometer index, the S&P BSE Sensex, was up 48.67 points or 0.18% at 26,441.43. The Nifty 50 index was up 20.20 points or 0.25% at 8,163.35.

Overseas, most Asian shares were trading higher as investors covered short positions and looked to the upcoming policy meeting of the European Central Bank for comfort after a referendum defeat tipped Italy into political turmoil. US stocks rose yesterday, 6 December 2016, with the Dow Jones Industrial Average finishing at an all-time high for a second day in a row.

Back home, the market breadth, indicating the overall health of the market, was positive. On BSE, 1,380 shares rose and 925 shares fell. A total of 149 shares were unchanged. The BSE Mid-Cap index was currently up 0.35%. The BSE Small-Cap index was currently up 0.31%. Both these indices outperformed the Sensex.

Power generation stocks edged higher. Torrent Power (up 2.40%), Adani Power (up 2.33%), NTPC (up 0.98%), GMR Infrastructure (up 0.92%), JSW Energy (up 0.77%), NHPC (up 0.55%), Reliance Infrastructure (up 0.51%), Jaiprakash Power Ventures (up 0.48%), Reliance Power (up 0.36%), CESC (up 0.35%) and Tata Power (up 0.07%), edged higher.

State-run Coal India was up 0.11%. State-run Power Grid Corporation of India was up 0.52%.

GVK Power & Infrastructure rose 1.05% after Vertex Projects LLP bought 9.48 crore shares at an average price of Rs 5.70 per share via bulk deal mechanism on the NSE yesterday, 6 December 2016.

G V Krishna Reddy offloaded 2.37 crore shares of GVK Power & Infrastructure (GVK Power) at Rs 5.70 per share in a bulk deal on the NSE on 6 December 2016. G V Sanjay Reddy sold 4.26 crore shares at Rs 5.70 a piece. Krishnaram Bhupal liquidated 2.84 crore shares at Rs 5.70 per share. Vertex Projects LLP bought all 9.48 crore shares in these deals. G V Krishna Reddy, G V Sanjay Reddy, Krishnaram Bhupal and Vertex Projects LLP owned 4.12%, 7.42%, 4.95% and 37.76% stake respectively in GVK Power end September 2016.

Telecom stocks rose. MTNL (up 3.98%), Idea Cellular (up 2.08%), Reliance Communications (up 0.83%) and Bharti Airtel (up 0.44%), edged higher. Tata Teleservices (Maharashtra) was down 0.16%.

Telecom tower infrastructure provider Bharti Infratel was down 0.42%.

On macro front, a two-day meet of the monetary policy committee (MPC) of the Reserve Bank of India (RBI) will conclude today, 7 December 2016. It will be interesting to watch RBI's monetary policy stance this time in a scenario of government's recent historic move of demonetization of higher denomination notes and amid easing consumer inflation. RBI had cut policy rates by 25 basis points in its last meet in October.

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