Realty, IT stocks edge higher

Key benchmark indices were trading with small gains after hovering in a small range in positive terrain in morning trade. At 10:20 IST, the barometer index, the S&P BSE Sensex, was up 25.03 points or 0.09% at 26,399.42. The Nifty 50 index was currently up 6.45 points or 0.08% at 8,110.80.

Key indices witnessed a tepid start for the trade amid no clear direction from Asian stocks, which trade mixed.

The BSE Mid-Cap index was currently down 0.38%. The BSE Small-Cap index was currently up 0.05%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 976 shares rose and 932 shares declined. A total of 120 shares were unchanged.

Realty stocks rose on renewed buying. DLF (up 0.63%), D B Realty (up 0.31%), Sobha (up 0.63%), Unitech (up 1.13%), NBCC (India) (up 1.16%), Godrej Properties (up 0.01%), Housing Development & Infrastructure (HDIL) (up 0.17%), and Oberoi Realty (up 0.9%) edged higher. Indiabulls Real Estate declined 0.83%.

Realty stocks have been hit the hardest post the demonetisation move announced in early November to remove Rs 500 and Rs 1,000 notes from circulation. This sector is known to have a high volume of cash transactions, being the preferred route for stowing back money.

IT stocks advanced on relatively brighter outlook for the US economy. Tech Mahindra (up 0.73%), HCL Technologies (up 0.52%), TCS (up 0.68%), Infosys (up 0.45%), and Wipro (up 0.55%) edged higher. US is the biggest outsourcing market for the Indian IT firms.

Opto Circuits (India) surged 18.08% after the company and its subsidiaries bagged an order worth Rs 91 crore from Philips Health Care for various products manufactured by the Opto Group of companies. The announcement was made after market hours yesterday, 19 December 2016.

Vinod Ramnani, Chairman & Managing Director of Opto Circuits (India) commented that the latest long term contract helps the company in strengthening its relationship with Philips Health Care.

Overseas, Asian stocks were mixed after the Bank of Japan (BOJ) kept monetary policy steady and offered a brighter view of the economy today, 20 December 2016.

The BOJ maintained the 0.1% interest it charges on a portion of excess reserves that financial institutions park with the central bank. It also left unchanged its 10-year government bond yield target of around zero percent. Japan's economy is projected to grow 1.5% in inflation-adjusted terms in the fiscal year starting in April, thanks to a gradual uptick in the global economy and a recent weakening of the yen against the dollar.

US stocks closed with modest gains yesterday, 19 December 2016, in low volume trade as traders bought some recently less-favored sectors, while some top postelection plays lagged. In economic news, the flash US Markit PMI services for December was 53.4, down slightly from 54.6 in November.

In her first speech after raising interest rates for only the second time this decade, Federal Reserve Chairwoman Janet Yellen said the US has the strongest jobs market in nearly a decade, and there are indications wage growth is picking up. But Yellen also noted the economy is growing more slowly than in past recoveries and productivity growth has been disappointing. Yellen was speaking at a University of Baltimore commencement ceremony.

The Federal Reserve had raised rates for the second time in a decade last week and surprised by forecasting three rate hikes for 2017, more than the consensus two.

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