Strong market breadth

Amid a bout of volatility, key benchmark indices bounced back and hit fresh intraday high in morning trade. At 10:16 IST, the barometer index, the S&P BSE Sensex, was up 113.64 points or 0.43% at 26,716.48. The Nifty 50 index was currently up 35.30 points or 0.43% at 8,217.75.

The Sensex rose 130.76 points, or 0.49% at the day's high of 26.733.60 in morning trade. The index fell 195.26 points, or 0.73% at the day's low of 26,407.58 in early trade, its lowest level since 8 December 2016. The Nifty rose 40.70 points, or 0.50% at the day's high of 8,223.15 in morning trade. The index fell 60.50 points, or 0.74% at the day's low of 8,121.95 in early trade, its lowest level since 7 December 2016.

The BSE Mid-Cap index was currently up 0.77%. The BSE Small-Cap index was currently up 0.84%. Both these indices outperformed the Sensex.

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%.

Closer home, the broad market depicted strength. There were more than two gainers against every loser on BSE. 1,304 shares rose and 616 shares declined. A total of 94 shares were unchanged.

Most cement stocks edged higher. ACC (up 0.75%) and Ambuja Cements (up 0.41%), edged higher. UltraTech Cement was down 0.49%.

Grasim Industries was up 0.38%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

Most telecom stocks edged lower. MTNL (down 0.8%), Bharti Airtel (down 0.73%), Tata Teleservices (Maharashtra) (down 0.48%) and Idea Cellular (down 0.26%), edged lower. Reliance Communications was up 0.28%.

Telecom tower infrastructure provider Bharti Infratel was down 0.63%.

Cipla rose 1.15% after the company announced that Cipla Holding B.V., a wholly owned subsidiary of the company in Netherlands, Cipla Netherlands, has entered into a joint venture agreement with its joint venture partner, Ahran Tejarat Company. The announcement was made after market hours yesterday, 14 December 2016.

Cipla Netherlands will hold a 75% stake in a joint venture company in Iran while Ahran Tejarat will hold the remaining 25% stake. The expected investment by Cipla Netherlands is estimated to be a maximum of Euro 16.875 million. The joint venture company proposes to undertake manufacturing and marketing of pharmaceutical products in Iran.

Separately, Cipla announced that a meeting of the board of directors of the company is scheduled to be held on 19 December 2016, to consider the proposal of raising funds through issue of equity shares or American depository receipts or global depository receipts or foreign currency convertible bonds or non-convertible debentures- in the form of bonds or otherwise or bonds or any other securities/financial instruments, whether denominated in Indian Rupee and/or foreign currency(ies), either by way of a public issue or by way of a private placement, including through a qualified institutions placement in accordance with the provisions of the applicable law.

The fund raising would be subject to necessary permissions, sanctions and approvals, including shareholders' approval and such other statutory approvals as may be required and the provisions of the laws.

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