Market turns volatile

Volatility struck bourses as the key benchmark indices trimmed gains in mid-afternoon trade soon after hitting fresh intraday high. At 14:25 IST, the barometer index, the S&P BSE Sensex, was up 44.60 points or 0.13% at 33,956.41. The Nifty 50 index was up 20.70 points or 0.2% at 10,511.45. Most pharma shares edged lower. IT stocks saw mixed trend.

Trading was lackluster and rangebound around the flat line so far during the session. Key indices opened higher and traded with small gains in early trade. Stocks traded in a small range around the flat line later during the session.

Trading may remain volatile during last hour of trade as traders roll over positions in the futures & options (F&O) segment from the near month December 2017 series to January 2018 series. The December 2017 derivatives contracts expire today, 28 December 2017.

Among secondary indices, the S&P BSE Mid-Cap index rose 0.19%. The S&P BSE Small-Cap index gained 0.46%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was positive. On the BSE, 1,502 shares rose and 1,196 shares fell. A total of 181 shares were unchanged.

Most pharma shares edged lower. Cipla (down 0.5%), Sun Pharmaceutical Industries (down 1.33%), GlaxoSmithKline Pharmaceuticals (down 0.87%), Aurobindo Pharma (down 0.15%), Cadila Healthcare (down 0.17%) and Wockhardt (down 0.15%) declined. Dr. Reddy's Laboratories (up 1.79%), Glenmark Pharmaceuticals (up 2.09%), Lupin (up 1.39%) and Alkem Laboratories (up1.13%) rose.

IT stocks saw mixed trend. Tech Mahindra (down 0.3%), Wipro (down 0.77%) and HCL Technologies (down 0.65%) fell. TCS (up 0.97%) and Infosys (up 0.31%) rose.

Mahindra CIE Automotive rose 3.86% to Rs 259.90 after a domestic brokerage firm reportedly initiated coverage on the stock with a 'buy' rating and a target price of Rs 297 per share. The brokerage firm reportedly believes that strong earnings growth and limited capex will drive improvement in capital efficiencies of Mahindra CIE Automotive.

Overseas, European shares drifted lower in early trade with company news and macro events scarce in holiday-thinned trading. Asian markets rose following a rally in oil and copper prices this week. Trade was thin ahead of the long New Year's weekend.

Japan's factories and retailers posted better-than-expected growth in activity in November, while minutes from the central bank's last policy meeting showed board members raising the prospect of reducing stimulus. The 0.6% increase in industrial output in November was more than the median market projection and followed a 0.5% gain in October.

US stocks eked out a positive close yesterday, 27 December 2017 with gains in real estate and utilities offsetting declines in energy and telecommunications stocks. In US economic reports, the Conference Board's consumer confidence index fell to 122.1 in December from 128.6 in November.

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