Market turns range bound

Key benchmark indices hovered in narrow range in afternoon trade. At 13:15 IST, the barometer index, the S&P BSE Sensex, was down 148.88 points or 0.56% at 26,598.30. The Nifty 50 index was currently down 59.40 points or 0.72% at 8,202.35. Data over the weekend showing decline in the industrial production in October weighed on market sentiment.

The Sensex lost 170.38 points or 0.64% at the day's low of 26,576.80 in mid-morning trade trade, its lowest level since 8 December 2016. The index fell 21.87 points or 0.08% at the day's high of 26,725.31 in opening trade. The Nifty lost 66.40 points or 0.80% at the day's low of 8,195.35 in mid-morning trade, its lowest level since 8 December 2016. The index fell 31.10 points or 0.37% at the day's high of 8,230.65 in opening trade.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,304 shares declined and 1,106 shares rose. A total of 140 shares were unchanged.

The BSE Mid-Cap index was currently down 0.73%. The decline in this index was higher than the Sensex's decline in percentage terms. The BSE Small-Cap index was currently off 0.27%. The decline in this index was lower than the Sensex's decline in percentage terms.

Drug maker Alkem Laboratories was down 3.67% after the company said that U S Food and Drug Administration (USFDA) had conducted an inspection at the company's API (active pharmaceutical ingredient) manufacturing facility located at Ankleshwar, India from 5 December 2016 to 9 December 2016. In this regard, the company has received the inspection report which contains three 483 observations. The company shall put together a detailed response with adequate corrective and preventive measures to address the USFDA observations and the same is proposed to be filed within the timeline stipulated by USFDA. The announcement was made during trading hours today, 12 December 2016.

Metal shares were mixed. National Aluminium Company (up 6.23%), NMDC (up 2.88%), Bhushan Steel (up 2.17%), Hindustan Copper (up 0.55%), Steel Authority of India (up 0.36%) and Vedanta (up 0.33%), edged higher. Hindalco Industries (down 0.03%), Jindal Steel & Power (down 0.4%), Hindustan Zinc (down 0.62%), Tata Steel (down 0.85%) and JSW Steel (down 1.14%), edged lower.

Meanwhile, copper price edged lower in the global commodities markets. High Grade Copper for March 2017 delivery was currently down 0.26% at $2.641 per pound on the COMEX.

FMCG shares declined. Colgate Palmolive (India) (down 1.73%), Britannia Industries (down 1.42%), Nestle India (down 1.35%), Procter & Gamble Hygiene & Health Care (down 1.32%), GlaxoSmithKline Consumer Healthcare (down 1.19%), Hindustan Unilever (down 1.04%), Bajaj Corp (down 0.98%), Dabur India (down 0.91%), Godrej Consumer Products (down 0.68%), Marico (down 0.53%) and Jyothy Laboratories (down 0.42%), edged lower. Tata Global Beverages was up 0.40%.

On the macro front, India's industrial production declined 1.9% in October 2016 over October 2015. Twelve out of 22 industry groups in the manufacturing sector showed negative growth in October 2016. The data was released by the government after market hours on Friday, 9 December 2016.

Overseas, Asian stocks witnessed a mixed trend. In Japan, the Nikkei 225 index closed 0.84% higher. Japan's October core machinery orders rose for the first time in three months to beat expectations, government data showed. Core orders, regarded as an indicator of capital spending in the coming six to nine months, rose 4.1% in October from the previous month.

US major stock indices continued their recent winning streak, closing at all-time highs on Friday, 9 December 2016. All major indexes have been hitting record highs since the election amid hopes that the Trump administration will usher in tax cuts, deregulation and fiscal stimulus.

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