Key benchmark indices trimmed gains after hitting fresh intraday high in mid-morning trade. At 11:17 IST, the barometer index, the S&P BSE Sensex, was up 32.21 points or 0.12% at 26,635.05. The Nifty 50 index was currently up 8.35 points or 0.10% at 8,190.80.
The Sensex rose 135.02 points, or 0.51% at the day's high of 26,737.86 in mid-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 43.45 points, or 0.53% at the day's high of 8,225.90 in mid-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 market breadth, indicating the overall health of the market, was strong. On BSE, 1,335 shares rose and 840 shares declined. A total of 131 shares were unchanged. The BSE Mid-Cap index was currently up 0.25%. The BSE Small-Cap index was currently up 0.62%. Both these indices outperformed the Sensex.
IT shares edged higher. TCS (up 2.29%), HCL Technologies (up 1.91%), Hexaware Technologies (up 1.26%), Tech Mahindra (up 0.97%), MphasiS (up 0.69%), Wipro (up 0.60%), MindTree (up 0.51%) and Oracle Financial Services Software (up 0.39%), edged higher. Persistent Systems was down 0.12%.
IT major Infosys was up 1.60% at Rs 1,015.05 after the company announced that it has made an investment from its Innovation Fund in IdeaForge, an Indian startup focused on Unmanned Aerial Vehicle (UAV) solutions. IdeaForge's high performance UAVs, which have been designed and built in India, have significant potential in industrial use cases. The investment is subject to receipt of regulatory approvals and customary closing conditions. The announcement was made after market hours yesterday, 14 December 2016.
Pharmaceutical shares were mixed. Sun Pharmaceutical Industries (down 1.71%), Cadila Healthcare (down 0.44%), Aurobindo Pharma (down 0.36%), Dr Reddy's Laboratories (down 0.33%), Lupin (down 0.32%), GlaxoSmithKline Pharmaceuticals (down 0.29%), Divi's Laboratories (down 0.24%) and Glenmark Pharmaceuticals (down 0.01%), edged lower. Wockhardt (up 0.06%), Piramal Enterprises (up 0.18%), IPCA Laboratories (up 0.23%), Strides Shasun (up 0.51%) and Alkem Laboratories (up 0.99%), edged higher.
Cipla was down 0.34%. 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 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. Investment by Cipla Netherlands is estimated to a maximum of Euro 16.875 million. The joint venture 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 debenture (in 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.
Titagarh Wagons gained 3.33% after the company reported net profit of Rs 5.24 crore in Q2 September 2016 compared with net loss of Rs 0.53 crore in Q2 September 2015. Net total income from operations rose 19.53% to Rs 103.82 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 14 December 2016.
Cimmco rose 2.41% after the company reported net loss of Rs 4.32 crore in Q2 September 2016 compared with net loss of Rs 5.24 crore in Q2 September 2015. Net total income from operations jumped 519% to Rs 43.70 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 14 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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