Negative market breadth

Volatility was high as key benchmark indices slipped into negative terrain in early afternoon trade. At 12:17 IST, the barometer index, the S&P BSE Sensex, was down 65.61 points or 0.25% at 26,537.23. The Nifty 50 index was currently down 17.45 points or 0.21% at 8,165.

The market breadth, indicating the overall health of the market, turned negative from positive. On BSE, 1,178 shares declined and 1,168 shares rose. A total of 142 shares were unchanged. The BSE Mid-Cap index was currently down 0.17%. The decline in this index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index was currently up 0.20%, outperforming the Sensex.

Most metal shares edged higher. Hindustan Zinc (up 2.94%), Steel Authority of India (up 0.95%), NMDC (up 0.78%), Bhushan Steel (up 0.62%), Tata Steel (up 0.59%), Vedanta (up 0.45%) and JSW Steel (up 0.17%), edged higher. Hindustan Copper (down 0.17%), Hindalco Industries (down 0.31%), Jindal Steel & Power (down 1.72%) and National Aluminium Company (down 5.36%), edged lower.

Meanwhile, copper price edged higher in the global commodities markets. High Grade Copper for March 2017 delivery was currently up 0.36% at $2.614 per pound on the COMEX.

Most auto stocks edged higher. Mahindra & Mahindra (up 0.92%), Escorts (up 0.91%), Bajaj Auto (up 0.81%), Ashok Leyland (up 0.58%), Maruti Suzuki India (up 0.25%) and Hero MotoCorp (up 0.18%), edged higher. TVS Motor Company (down 0.42%), Eicher Motors (down 1.27%) and Tata Motors (down 1.35%), edged lower.

Yes Bank rose 02% after the bank said that it has collaborated with FortyTwo42 Labs, a global security Research Lab as a co-innovation partner. Yes Bank said that the partnership is for developing next generation Fintech and cyber security solutions. One of the first innovations, the PI-CONTROL platform that the bank has jointly developed with FortyTwo42 Labs will be rolled out in the next few weeks. The solution has the capability to provide real time cryptographic digital transaction signing at massive scale. FortyTwo42 Labs has a set up in Vizag and Pune in India and Tel Aviv in Israel. The announcement was made during market hours today, 15 December 2016.

Tata Communications rose 1.86% after the company announced partnership with Hitachi Sunway, a leading one-stop IT services and solutions provider in ASEAN. Hitachi Sunway Information Systems Sdn. Bhd (Hitachi Sunway), a leading one-stop IT services and solutions provider in ASEAN, announced a partnership with Tata Communications. With this partnership, Hitachi Sunway will now be able to provide its more than 1,000 enterprise customers in ASEAN access to Tata Communications' robust portfolio of managed network services, managed security services and unified communications & collaboration (UCC) offerings. The announcement was made during market hours today, 15 December 2016.

Overseas, Asian stock markets edged lower as the dollar strengthened sharply and investors digest the Federal Reserve's first interest rate rise this year and its hawkish rate outlook for 2017. Higher interest rates in US would attract foreign investments from emerging markets towards the US. US stocks ended a volatile session lower yesterday, 14 December 2016, as investors grappled with the prospect of a faster pace of rate increases in 2017 than had been previously forecast.

The Federal Reserve raised its key short-term rate yesterday, 14 December 2016, on the expected lines, but it also forecast three rate increases in 2017, compared with the two that had been anticipated at its previous meeting in September. The increase was unanimous and modest, raising the Fed's key interest rate by a quarter point, from a range of 0.25 to 0.5% to a range of 0.5 to 0.75%.

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