Thursday 12 January 2017

Nifty reclaims 8,400 mark; Pharma, Metal stocks drag

The Indian stock market gained  for a third day with benchmarks extending their two-month high lead as some investors assessed that the impact of the demonetisation may be factored in and take positions ahead of the Union Budget early next month.

At 10:18 AM, the BSE Sensex is trading higher by 72 points at 27,213, while the NIFTY50 jumped 18 points at 8,399 mark. The Nifty50 hit 8,400 mark for the first time since Nov 11, 2016.

The BSE Mid-cap Index was down by 0.22% at 12,510, whereas BSE Small-cap Index was down by 0.16% at 12,686.

Infosys, Infratel, Adani Ports, ONGC and UltraTech Cements were among the gainers, whereas Aurobindo Pharma, Sun Pharmaceuticals, Dr Reddy's and Lupin were among those losing sheen on NSE.

A total of 26 stocks registered a fresh 52-week high in trade today, while five stocks touched a new 52-week low on the NSE.

Out of 1,901 stocks traded on the NSE, 926 declined, 579 advanced and 396 remained unchanged today.

Some buying was observed in media, banking auto and financial services sectors, while pharma, metal, realty, and FMCG stocks are showed weakness on NSE.

The INDIA VIX was down 1% at 14.69.

The Indian rupee opened higher by 17 paise against US Dollar at 68.15 per dollar versus 68.32 Wednesday.

Yen witnessed strong recovery against the greenback, as the differentials between US 10yr and Japanese bonds narrowed.

Conversely, Mexican Peso plummeted to fresh lows amid concerns of US automobile companies curtailing production capacity in Mexico.

Trump mentioned that he will be the biggest creator of jobs in American history, he also reiterated his aggressive stance on Mexico and China as far as trade is concerned. It seems the uncertainty over his policies will aggravate after he assumes power. Markets will eventually see a political impasse entailing muddled negotiations when Trump outlines his economic plans, invariably inviting opposition from stubborn US Congress. Meanwhile, World Bank stated that Donald Trump's plan to cut corporate and personal income taxes can provide a boost to the global economy, but there is a serious concern over the anti-trade sentiment. Prevalent backdrop is indisputably conducive for the yellow metal, with prices expected to extend the prevalent northward journey.

The government will issue IIP and CPI data for November and December on January 12 and WPI data on January 16.

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