Market turns volatile

A bout of volatility was witnessed as the key benchmark indices sharply pared gains in mid-morning trade. At 11:19 IST, the barometer index, the S&P BSE Sensex, was up 40.49 points or 0.13% at 32,226.90. The Nifty 50 index was up 10.65 points or 0.11% at 10,089.95.

The Sensex pared gains after hitting fresh intraday high in mid-morning trade. The Sensex rose 142.20 points, or 0.44% at the day's high of 32,328.61 in mid-morning trade. The index rose 47.31 points, or 0.15% at the day's low of 32,233.72 in early trade. The Nifty rose 47.20 points, or 0.47% at the day's high of 10,126.50 in morning trade. The index rose 18.50 points, or 0.18% at the day's low of 10,097.80 in early trade.

Among secondary barometers, the BSE Mid-Cap index was up 0.55%. The BSE Small-Cap index was up 0.64%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1,363 shares rose and 895 shares fell. A total of 122 shares were unchanged.

IT shares were mixed. MindTree (up 2.80%), HCL Technologies (up 0.79%), Infosys (up 0.79%), Hexaware Technologies (up 0.36%) and MphasiS (up 0.18%), edged higher. Oracle Financial Services Software (down 0.02%), TCS (down 0.02%), Tech Mahindra (down 0.07%) and Persistent Systems (down 0.41%), edged lower.

IT major Wipro was down 4.31% to Rs 283.30. The company said that it has become the official technology partner to McLaren Technology Group to help drive digitalization across its businesses. The announcement was made before market hours today, 14 September 2017.

Separately, Wipro said after market hours yesterday, 13 September 2017, that it has joined Hyperledger to design and develop open source-based blockchain solutions for enterprise grade blockchain deployments.

Cement shares were in demand. UltraTech Cement (up 0.64%), ACC (up 0.36%) and Ambuja Cements (up 0.19%), edged higher.

Grasim Industries was up 0.02%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

SMS Pharmaceuticals surged 7% after net profit jumped 117.2% to Rs 9.23 crore on 43.2% growth in net sales to Rs 132.62 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 13 September 2017.

Jubilant FoodWorks rose 3.42% after the company reassured that all its food ingredients are safe for consumption. The company issued the clarification after market hours yesterday, 13 September 2017, with respect to news report suggesting that live bugs were found in Domino's Pizza seasoning sachet.

Jubilant FoodWorks said that it has not received any other complaint of this nature. The news report was with respect to a consumer complaint received on 11 September 2017, regarding oregano sachets, supplied by one of its vendors, in an outlet in Gurugram. The company has since carried out a comprehensive inspection across vendors and stores and gave the above reassurance. The company said that it values its consumers experience and would like to reassure all its consumers about best quality products, service and a great Domino's experience at all times.

Overseas, most Asian shares declined after disappointing economic data out of China. China's Shanghai Composite index was down 0.33%. China's National Bureau of Statistics said the world's second-largest economy saw 6% annual growth in its industrial output in August, slower than 6.4% growth in July. Retail sales expanded 10.1% on year in August, compared with 10.4% in July. The data suggested that China's economy continued to cool.

Investors are waiting for the latest updates on the US economy ahead of the Federal Reserve meeting due next week. Later in the global day today, the US Labor Department is scheduled to release reports on consumer price for August and the number of people who applied for unemployment benefit last week.

US market edged higher overnight, but trading was subdued as investors searched for catalysts that could breathe new life into the rally.The S&P 500 added 1.89 points to finish at 2,498.37. The Dow Jones Industrial Average edged up 39.32 points, or 0.2%, to end at 22,158.18 while the Nasdaq Composite Index rose 5.91 points to close at 6,460.19.

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