Market turns range bound

Key benchmark indices hovered in narrow range in mid-afternoon trade. At 14:16 IST, the barometer index, the S&P BSE Sensex, was up 17.11 points or 0.06% at 26,660.35. The Nifty 50 index was currently up 10.95 points or 0.13% at 8,203.20.

Among secondary barometers, the BSE Mid-Cap index was currently up 0.10%. The BSE Small-Cap index was currently up 0.63%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1,618 shares rose and 1,022 shares fell. A total of 136 shares were unchanged.

Overseas, European shares were trading higher in early trade today, 4 January 2017, following gains across much of Asia. Stocks in Asia rose after data fueled confidence in the US economy, and as equity traders in Tokyo returned from holidays with the yen nursing a three-day slump. Japan's Nikkei 225 rose 2.51%. Hong Kong's Hang Seng fell 0.07%.

US stocks on Tuesday, 3 January 2017, started the first trading day of 2017 on a positive note but closed off of intraday highs as oil prices turned sharply lower, puncturing some of the initial exuberance that underpinned an early rally in the Dow Jones Industrial Average.

US manufacturing posted the fourth straight month of faster expansion in December 2016 as new orders and output jumped, pointing to a growing economy, the Institute for Supply Management said yesterday, 3 January 2017. The ISM manufacturing index rose 1.5 points from November to 54.7%, with 11 of the 18 industries surveyed reporting growth. A reading in the purchasing managers index above 50 indicates growth.

Back home, aviation stocks were in demand. SpiceJet (up 2.40%), Interglobe Aviation (up 2.16%) and Jet Airways India (up 1.68%), edged higher.

Power generation stocks were in demand. Jaiprakash Power Ventures (up 5.72%), Adani Power (up 3.09%), GMR Infrastructure (up 2.62%), CESC (up 0.89%), Reliance Infrastructure (up 0.75%), Reliance Power (up 0.72%), Torrent Power (up 0.59%), NHPC (up 0.55%), NTPC (up 0.42%), Tata Power (up 0.33%) and JSW Energy (up 0.16%), edged higher.

State-run Coal India was up 1.03%. State-run Power Grid Corporation of India was down 0.48%.

HCL Technologies rose 2.56% after the company said it has completed acquisition of Butler America Aerospace, LLC. The announcement was made during market hours today, 4 January 2017.

HCL Technologies had announced in October 2016 regarding its acquisition of Butler America Aerospace, LLC (Butler Aerospace), an aerospace & defense engineering service provider to US aerospace and defense customers. Butler Aerospace is a wholly owned subsidiary of Butler America LLC. The acquisition is excluding the staffing business of Butler America Inc. The consideration for this acquisition was $85 million payable in cash.

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