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Key indices witness divergent trend

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Key benchmark indices witnessed divergent trend in early trade. At 9:16 IST, the barometer index, the S&P was down 19.55 points or 0.07% at 28,031.33. The 50 index was currently up 8.80 points or 0.1% at 8,686.70.

In overseas stock markets, Asian stocks edged higher tracking overnight gains in US stock markets. In mainland China, the Shanghai Composite was currently up 0.11%. In Hong Kong, the Hang Seng was currently down 0.13%. Latest data showed that China's gross domestic product (GDP) rose 6.7% in the third quarter from a year earlier. Another data showed that China's industrial output increased 6.1% in September 2016, from a year earlier. US stocks registered modest gains yesterday, 18 October 2016, helped by stronger-than-expected quarterly reports and after mixed inflation data.

Closer home, the market breadth indicating overall health of the market was strong. On BSE, 934 shares rose and 312 shares declined. A total of 64 shares were unchanged. The Mid-Cap index was currently up 0.12%. The Small-Cap index was currently up 0.33%. Both these indices outperformed the

Telecom stocks were mixed. Idea Cellular (up 0.55%) and Reliance Communications (up 0.86%) edged higher. Bharti Airtel (down 0.46%) edged lower.

Bharti Infratel was down 0.03%. Bharti Infratel is a telecom tower arm of Bharti Airtel.

Mahindra & Mahindra (M&M) rose 0.16% at Rs 1,333.95. The company announced after market hours yesterday, 18 October 2016 that it has subscribed to and has been allotted 60 lakh equity shares of Rs 10 each of Classic Legends Private (CLPL), constituting 60% of its post-issue capital, offered to the company by CLPL on preferential basis. CLPL is into automobile industry. It is yet to commence its commercial operations.

Reliance Industries (RIL) was up 0.71% at Rs 1,087. The company announced after market hours yesterday, 18 October 2016 that the DTA unit of Jamnagar refinery of the company is planning to shut down the Fluidized Catalytic Cracking Unit (FCCU) for routine Maintenance & Inspection activities from the second week of November 2016 for about 5 weeks. The shutdown will provide an opportunity to carry out a revamp job in one of the Polypropylene units. All the four crude distillation units along with other major secondary processing units are expected to operate at normal throughput, RIL said.

Bank of Baroda (BoB) rose 0.22% at Rs 156 after the bank announced that a meeting of the Capital Raising Committee of the Board is scheduled to meet on 21 October 2016, to consider and approve the issue of bonds. The announcement was made after market hours yesterday, 18 October 2016. It may be recalled that BoB had announced on 15 October 2016 that it had initiated the process of raising funds through issuance of Basel III Compliant AT-I (Additional Tier-I Capital) Bonds of Rs 1000 crore with Green Shoe option of Rs 1000 crore (Total size not to exceed Rs 2000 crore) on private placement basis.

Meanwhile, reports suggested that a four-tier structure for Goods and Services Tax (GST) comprising a lower rate of 6%, two standard rates of 12% and 18%, and a higher rate of 26% with an additional cess for luxury and demerit goods were proposed in the third meeting of GST Council held yesterday, 18 October 2016. The higher rate for services under the indirect tax regime is proposed to be 18%, while essential services such as transportation are proposed to be taxed at 6% or 12%, as per reports.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, October 19 2016. 09:15 IST