Shares turn range bound

Key benchmark indices hovered in a narrow range in mid-morning trade. At 11:15 IST, the barometer index, the S&P BSE Sensex, was up 117.76 points or 0.45% at 26,466.86. The Nifty 50 index was up 36.25 points or 0.45% at 8,165. Positive leads from Asian markets and overnight rally on the Wall Street boosted investors sentiment in the domestic market.

The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,552 shares rose and 642 shares fell. A total of 119 shares were unchanged. The BSE Mid-Cap index was currently up 0.74%. The BSE Small-Cap index was currently up 0.81%. Both these indices outperformed the Sensex.

Telecom stocks were in demand. MTNL (up 2.89%), Idea Cellular (up 1.51%), Reliance Communications (up 0.97%), Bharti Airtel (up 0.92%) and Tata Teleservices (Maharashtra) (up 0.16%), edged higher.

Telecom tower infrastructure provider Bharti Infratel was down 0.83%.

Most pharmaceutical shares edged higher. IPCA Laboratories (up 0.90%), Aurobindo Pharma (up 0.83%), Strides Shasun (up 0.81%), Wockhardt (up 0.80%), Piramal Enterprises (up 0.76%), Divi's Laboratories (up 0.74%), Dr Reddy's Laboratories (up 0.68%), Glenmark Pharmaceuticals (up 0.63%), Alkem Laboratories (up 0.59%), Cipla (up 0.45%) and Cadila Healthcare (up 0.39%), edged higher. Lupin (down 0.07%), GlaxoSmithKline Pharmaceuticals (down 0.13%) and Sun Pharmaceutical Industries (down 0.25%), edged lower.

Oracle Financial Services Software declined 0.8% after the company is estimating a charge of Rs 60 crore on its receivables from customers in Egypt during the current quarter. The announcement was made after market hours yesterday, 5 December 2016.

Oracle Financial Services Software announced that due to significant devaluation of Egyptian Pound post the recent liberalization of the exchange rates by the Egypt Government, the company is estimating a charge of Rs 60 crore on its receivables from customers in Egypt during the current quarter.

OM Metals Infraprojects jumped 6.57% after the company announced that it was awarded a works contract totalling Rs 19.91 crore. The announcement was made after market hours yesterday, 5 December 2016.

OM Metals Infraprojects announced that the company has been awarded a works contract for hydro mechanical works package for modernization and renovation of 180 megawatts Baira Siul hydro electric power station in Himachal Pradesh by NHPC. The contract value is Rs 19.91 crore and this contract has to be executed in 28 months time period.

Overseas, Asian shares were trading higher as investors judged the selloff after Italy's referendum was overdone, with robust US economic data also helping sentiment. In US, the Dow Jones Industrial Average finished at a record yesterday, 5 December 2016, as solid economic data offset concerns about Europe's stability in the wake of a rejection of Italy's vote on Sunday, 4 December 2016, to reform existing constitutional rules. The broader stock market rose after a survey showed that the services side of the economy grew at its fastest pace in November in a year. The Institute of Supply Management nonmanufacturing index climbed to 57.2 last month. Any reading over 50 indicates economic expansion.

On macro front, a two-day meet of the monetary policy committee (MPC) of the Reserve Bank of India (RBI) is scheduled today, 6 December 2016 and tomorrow, 7 December 2016. It will be interesting to watch RBI's monetary policy stance this time in a scenario of government's recent historic move of demonetization of higher denomination notes and amid easing consumer inflation. RBI had cut policy rates by 25 basis points in its last meet in October.

Meanwhile, Chief minister of Tamil Nadu, J Jayalalithaa, died yesterday, 5 December 2016, after undergoing treatment at Apollo Hospitals in Chennai. She was 68.

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