Benchmark indices extend losses

Weakness continued on the bourses in mid-afternoon trade. At 14:15 IST, the barometer index, the S&P BSE Sensex, was off 157.17 points or 0.61% at 25,480.94. The decline for the Sensex was higher in percentage terms than that for the 50-unit Nifty 50 index. The Nifty was currently off 34.20 points or 0.44% at 7,747.70. The Sensex hit its lowest level in almost three weeks when it fell 160.42 points or 0.62% at the day's low of 25,477.69 in mid-afternoon trade. The barometer index rose 147.42 points or 0.57% at the day's high of 25,785.53 at the onset of the trading session. The Nifty also hit its lowest level in almost three weeks when it fell 35.85 points or 0.46% at the day's low of 7,746.05 in mid-afternoon trade. The index rose 43.50 points or 0.55% at the day's high of 7,825.40 at the onset of the trading session.

In overseas stock markets, Asian and European stocks edged higher after Wall Street welcomed an upbeat US jobs report that suggested the world's biggest economy was well placed to handle an expected first increase in interest rates in almost a decade. Strong job data and comments from European Central Bank President Mario Draghi that the bank can step up monetary stimulus if needed triggered a rally in US stocks on Friday, 4 December 2015.

Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,375 shares rose and 1,249 shares declined. A total of 141 shares were unchanged. The BSE Mid-Cap index was currently down 0.16%. The decline in this index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index was currently up 0.18%, outperforming the Sensex.

Pharma stocks were mixed. Sun Pharmaceutical Industries (up 2.9%), Glenmark Pharmaceuticals (up 0.87%), Lupin (up 0.57%), GlaxoSmithkline Pharmaceuticals (up 0.24%), Divi's Laboratories (up 0.43%) and Cadila Healthcare (up 0.2%) edged higher. Ipca Laboratories (down 1.31%), Aurobindo Pharma (down 0.74%), Strides Shasun (down 0.82%), Dr Reddy's Laboratories (down 0.41%), Cipla (down 0.6%), Wockhardt (down 0.4%) edged lower.

Metal and mining stocks edged lower. National Aluminium Company (down 1.59%), Steel Authority of India (down 0.11%), Jindal Steel & Power (down 0.21%), Hindustan Zinc (down 0.92%) and Vedanta (down 0.05%) edged lower. Tata Steel (up 2.02%), Hindalco Industries (up 0.51%) and JSW Steel (up 0.08%) edged higher.

NMDC declined 0.87% at Rs 90.95 after the company reduced prices of lump ore by Rs 300 per tonne to Rs 1,800 per tonne with effect from 4 December 2015. In its monthly price review, the state-run iron ore miner has kept prices of iron ore fines unchanged at Rs 1,560 per tonne. The prices are excluding royalty, taxes, DMF, duties, levies etc. The announcement was made after market hours on Friday, 4 December 2015.

Cigarette major ITC declined 7.08% at Rs 311.85 after the committee headed by the Chief Economic Adviser Dr. Arvind Subramanian on possible tax rates under goods and services tax (GST) in its report recommended that the sin/demerit rate be fixed at about 40% (Centre plus states) and apply to luxury cars, aerated beverages, paan masala, and tobacco and tobacco products (for the states).

NIIT rose 0.63% at Rs 95.15 after the company announced entering into a strategic partnership with HP for offering Post Graduate Certificate Program in software testing. NIIT said that the Post Graduate Certificate Program in software testing will enable learners to apply key testing skills and practices using HP tools. The announcement was made during market hours today, 7 December 2015.

Meanwhile, a committee headed by Chief Economic Adviser Dr. Arvind Subramanian on Possible Tax rates under goods and services tax (GST) has suggested revenue neutral rate in range between 15% and 15.5% (Centre and states combined) with a preference for the lower end of that range. The committee has recommended a two-rate structure for GST. In order to ensure that the standard rate is kept close to the revenue neutral rate (RNR), the maximum possible tax base should be taxed at the standard rate, the committee has suggested in its report submitted to the government. The committee has recommended that lower rates should be kept around 12% (Centre plus states) with standard rates varying between 17% and 18%.

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