Market in wait & watch mode ahead of earnings season

Benchmark Sensex today closed almost 33 points lower at 26,726.55, extending losses for the second straight session, dragged down by healthcare, oil&gas and power stocks amid caution ahead of December quarter earnings due from this week.
A sense of uncertainty prevailed among investors, who fear that companies' quarterly results will be impacted by the Centre's surprise demonetisation move. Besides, other developments with regard to state assembly elections and next month's Union Budget are also influencing sentiment.
Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services Ltd, "The market is consolidating in a narrow range ahead of the kick start of earnings season this week. The participants are lined up with checklist to determine how the effect of cash crunch and the rise in commodity prices have impacted the margins and the profitability. Any underestimated impact is likely to create a cascading effect to the euphoria of a pre-budget rally."

The key indices traded choppy with realty, IT, FMCG and industrials gaining and oil&gas, healthcare, energy and power sector stocks falling. The broader shares of midcap and smallcap companies outperformed the headline indices.
The Sensex opened higher at 26,860.81 and hovered between 26,860.88 and 26,701.18 before ending at 26,726.55, showing a loss of 32.68 or 0.12 per cent.
The gauge had lost 119.01 points in previous trade.

The NSE 50-share Nifty also closed marginally lower by 7.75 points, or 0.09 per cent, at 8,236.05.
Overseas, Asian stocks ended mixed with Japan stock market closed for holiday. Shanghai Composite, Singapore, Hong kong stocks gained between 0.25 to 0.64 per cent.

Closer home, foreign portfolio investors (FPIs) sold
shares worth a net of Rs 255.21 crore on Friday, as per provisional data released by the stock exchanges.
Both the BSE mid-cap index provisionally rose 0.23 per cent. The BSE small-cap index provisionally advanced 0.45 per cent. Both these indices outperformed the Sensex.
Back home, of the 30-share Sensex pack, 18 scrips ended lower, led by Dr Reddy, which fell by 3.00 per cent, followed by ONGC 2.17 per cent and Asian Paints by 1.88 per cent.
Other major losers were Coal India (1.86 pct), Lupin (1.40 pct), M&M (1.38 pct), Gail (1.37 pct), Power Grid (1.32 pct), Sun Pharma (1.26 pct) and L&T (1.09 pct).

However, ITC rose by 1.30 per cent, followed by TCS 0.88 per cent, Maruti (0.62 pc), Wipro (0.59 pct), Tata Steel (0.56 pct) and Tata Motors (0.51 pct).
Among BSE sectoral and industry indices, oil&gas fell by 0.93 per cent, followed by healthcare 0.81 per cnt, utilities 0.71 per cent, energy 0.53 per cent, power 0.51 per cent, telecom 0.31 per cent and metal 0.23 per cent.
However, realty rose by 0.62 per cent followed by IT by 0.59 per cent, FMCG 0.58 per cent and teck 0.45 per cent.
The market breadth turned positive as 1,600 shares ended higher, 1,206 closed lower while 140 ruled steady.

Total turnover on the BSE amounted to Rs 2,759.62 crore, lower than turnover of Rs 3,334.06 crore registered during the previous trading session.