Market turns range bound

Key benchmark indices were trading lower in a narrow range in afternoon trade. At 13:18 IST, the barometer index, the S&P BSE Sensex, was down 37.97 points or 0.12% at 31,999.41. The Nifty index was down 17.70 points or 0.18% at 9,874. The Sensex was currently trading a tad below the psychological 32,000 level after alternately swinging above and below that level so far during the day.

Key benchmark indices edged lower in early trade weighed by poor Q1 result of IT major TCS. Key benchmark indices extended fall in morning trade. Stocks cut losses soon after hitting fresh intraday low in mid-morning trade.

The S&P BSE Mid-Cap index was up 0.18%, outperforming the Sensex. The S&P BSE Small-Cap index was off 0.26%. The fall in this index was higher than Sensex's decline in percentage terms.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 1,595 shares fell and 928 shares rose. A total of 126 shares were unchanged.

Metal shares declined. Bhushan Steel (down 3.01%), National Aluminium Company (down 2.06%), Hindustan Zinc (down 0.78%), Jindal Steel & Power (down 0.72%), Steel Authority of India (down 0.57%), Tata Steel (down 0.53%), Vedanta (down 0.34%), Hindustan Copper (down 0.31%) and NMDC (down 0.17%), edgd lower. JSW Steel (up 0.26%) and Hindalco Industries (up 0.86%), edged higher.

Meanwhile, copper price edged higher in the global commodities markets. High Grade Copper for September 2017 delivery was currently up 0.26% at $2.6685 per pound on the COMEX.

Power generation stocks were mixed. Adani Power (down 1.49%), Torrent Power (down 1.35%), NHPC (down 0.94%), Tata Power (down 0.42%), Jaiprakash Power Ventures (down 0.2%) and JSW Energy (down 0.08%), edged lower. NTPC (up 0.18%), GMR Infrastructure (up 0.56%), Reliance Power (up 0.80%), Reliance Infrastructure (up 1.08%) and CESC (up 2.45%), edged higher.

State-run Power Grid Corporation of India was up 0.19%. State-run Coal India was down 1.32%.

IT major Infosys advanced 1.10% to Rs 987 after the company increased its revenue growth guidance in both dollar and rupee terms for FY 2018 at the time of announcing Q1 June 2017 results. Infosys' consolidated net profit fell 3.3% to Rs 3483 crore on 0.2% decline in revenue to Rs 17078 crore in Q1 June 2017 over Q4 March 2017. The results are as per International Financial Reporting Standards (IFRS) and was announced before market hours today, 14 July 2017.

The company expects its consolidated revenue to grow 7.1%-9.1% in dollar terms for the financial year ending March 2018 (FY 2018), which was higher than the revenue growth guidance of 6.1%-8.1% issued by the company at the time of announcing Q4 March 2017 earnings.

The company expects its consolidated revenue to grow 3%-5% in Rupee terms for FY 2018, based on the exchange rates as of 30 June 2017. This was higher than the revenue growth guidance of 2.5%-4.5% issued by the company at the time of announcing Q4 March 2017 earnings.

Vishal Sikka, CEO of Infosys said that the company's persistent focus on execution in Q1 was reflected in broad-based performance on multiple fronts - revenue growth, resilient margins despite multiple headwinds, healthy cash generation and overall business results.

The company's COO U B Pravin Rao commented that the company had broad-based growth across geographical and industry segments. The company's initiatives on operational discipline led to record levels of utilization and better realization during the quarter, he added.

On the macro front, the government will today, 14 July 2017 announce the data on inflation based on wholesale price index (WPI) for June 2017.

Overseas, most European shares declined as investors awaited US inflation data and earnings from some of America's biggest banks.

Most Asian stocks were trading higher in anticipation of US inflation data and earnings from some of the large banks, Wells Fargo & Co., JPMorgan Chase & Co. and Citigroup Inc.

In US, the Dow yesterday, 13 July 2017 closed at a record for the 24th time in 2017, as gains in the financial sector helped the broader market book modest gains. The Dow Jones Industrial Average, rose 20.95 points, or 0.1%, to close at 21,553.09. The S&P 500 index, gained 4.58 points, or 0.2%, to end at 2,447.83. The Nasdaq Composite Index finished up 13.27 points, or 0.2%, at 6,274.44.

US Federal Reserve Chairwoman Janet Yellen reiterated a dovish stance in her second day of congressional testimony yesterday, 13 July 2017. Yellen told a Senate Banking Committee yesterday, 13 July 2017 the federal-funds rate wouldn't need to rise significantly to get to a neutral policy stance.

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