IT stocks gain

Key indices continued to trade with small gains in mid-morning trade. At 11:20 IST, the barometer index, the S&P BSE Sensex, advanced 36.60 points or 0.11% at 33,598.15. The Nifty 50 index rose 14.90 points or 0.14% at 10,357.20.

Indices hovered between gains and losses near the flat line in early trade amid mixed Asian cues. Stocks hovered with small gains in a narrow range later during the session.

The S&P BSE Mid-Cap index rose 0.28%. The S&P BSE Small-Cap index advanced 0.78%. Both these indices outperformed the Sensex.

The breadth indicating health of the market was strong. On BSE, 1,481 shares rose and 824 shares declined. A total of 129 shares were unchanged.

IT stocks rose on positive economic data in US, the biggest outsourcing market for the Indian IT firms. Tech Mahindra (up 1.63%), HCL Technologies (up 1.08%), TCS (up 0.25%), and Infosys (up 1.21%) edged higher. Wipro declined 0.05%.

Capital goods stocks extended recent gains. Bharat Heavy Electricals (Bhel) (up 0.34%), BEML (up 2.7%), CG Power & Industries (up 0.23%), Bharat Electronics (up 2.92%), L&T (up 0.05%), Thermax (up 1.38%), and Siemens (up 0.27%) gained.

Lasa Supergenerics rose 3.03% after the company said it will start its pilot production trial runs at its Unit IV from 25 November 2017. The announcement was made after market hours yesterday, 22 November 2017.

Lasa Supergenerics said that the company will start its pilot production trial runs at its Unit IV from 25 November 2017. Production and capacity per annum will include Albendazole Intermediate 400MT, Fenbondazole Intermediate 200MT, 2 4 DCP 600MT, Closantel Intermediate 100MT and additionally few components of backward integration for its recent new launches, Lasa Supergenerics said. Regular production will be subject to successful trial, the company said.

De Nora India lost 4.11% after the company reported net loss of Rs 1.01 crore in Q2 September 2017 as compared with net profit of Rs 0.57 crore in Q2 September 2016. The announcement was made after market hours yesterday, 22 November 2017. De Nora India's net sales dropped 51.73% to Rs 4.32 crore in Q2 September 2017 over Q2 September 2016.

On the macro front, in order to review the Income-tax Act, 1961 (the Act) and to draft a new Direct Tax Law in consonance with economic needs of the country, the Government yesterday, 22 November 2017, has constituted a task force with Arbind Modi, Member (Legislation), CBDT-Convener. Dr. Arvind Subramanian, Chief Economic Adviser (CEA) will be a permanent special invitee in the task force.

The terms of reference of the task force is to draft an appropriate Direct Tax Legislation keeping in view; the direct tax system prevalent in various countries, the international best practices, the economic needs of the country and any other matter connected thereto.

Overseas, Asian stocks were mixed. In US, the S&P 500 index and the Dow Jones Industrials Average ended slightly lower yesterday, 22 November 2017, maintaining a soft tone after the Federal Reserve minutes indicated that an interest-rate hike is likely but the pace of future tightening could be more moderate than expected given muted inflation. The Nasdaq Composite Index bucked the broader trend to finish at a record, logging its third gain in a row.

The Fed viewed a near-term increase in interest rates as possible but central bank officials also expressed concerns about persistently low inflation, hinting that the bank may dial back its rate increases in 2018. The minutes also showed that several members worried that keeping interest rates too low could create a financial bubble.

US durable-goods orders fell 1.2% in October. Excluding transportation orders increased 0.4%. Initial jobless claims a tool to measure US layoffs, fell by 13,000 to 239,000 in the week ended 18 November. The University of Michigan's latest read on consumer sentiment came in at 98.5, topping expectations.

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