IT stocks witness mixed trend

The stock market continued to trade with modest gains in afternoon trade as firmness in global stocks supported gains on the domestic bourses. At 13:15 IST, the barometer index, the S&P BSE Sensex, gained 89.08 points or 0.27% at 33,690.76. The Nifty 50 index rose 28.35 points or 0.27% at 10,417.10.

The market opened higher and traded with modest gains so far during the session.

Among secondary indices, the S&P BSE Mid-Cap index rose 0.98%. The S&P BSE Small-Cap index gained 1.13%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than two gainers for every loser on BSE. 1,777 shares rose and 746 shares fell. A total of 157 shares were unchanged.

IT stocks were mixed. Oracle Financial Services Software (up 1.16%), TCS (up 0.68%) and Persistent Systems (up 0.43%) edged higher. HCL Technologies (down 1.77%), Infosys (down 1.07%) and Wipro (down 0.83%) dropped.

Tech Mahindra gained 0.31% at Rs 495.50 after the company said that Supreme Court of India has refused to entertain the Enforcement Directorate's (ED) special leave petition (SLP) seeking prosecution of the company. The announcement was made during market hours today, 19 December 2017.

The ED had filed a SLP before the Supreme Court of India, challenging the single judge order of High Court for Telangana and Andhra Pradesh, quashing the criminal proceedings initiated by ED against Tech Mahindra, seeking prosecution under the provisions of Prevention of Money Laundering Act (PMLA). In effect, Tech Mahindra stands absolved of any criminal liability for alleged money laundering under the provisions of PMLA. Certified copy of the order is awaited.

Pharma stocks nudged higher. Aurobindo Pharma (up 1.81%), Cipla (up 1.47%), Divi's Laboratories (up 0.31%) and Sun Pharmaceutical Industries (up 0.03%) gained. Cadila Healthcare (down 0.36%) and Lupin (down 0.31%) declined.

Dr Reddy's Laboratories gained 0.23% after the company's US subsidiary announced that it has reached a settlement with the US government, in a case that is more than six years old, involving packaging for the five blister packed prescription products. In a joint filing by the parties, the company and US Department of Justice agreed to the settlement of the action without any adjudication of any issue of fact or law. The announcement was made before market hours today, 19 December 2017.

Bharat Wire Ropes jumped 13.96% at Rs 129.40 after the company said it won orders worth about Rs 48 crore from domestic and international market since 18 October 2017. The majority of orders are from renowned European customers. The announcement was made during trading hours today, 19 December 2017.

In the ongoing winter session of the Parliament, finance minister Arun Jaitley, responding to a query from P. Chidambaram on GST, reportedly said that the centre would await consensus of the states and hopes that states agree to the consensus sooner or later with respect to bringing petroleum products under the ambit of the Goods and Services Tax (GST).

Overseas, most Asian stocks gained after a record-setting session on Wall Street on bets that US lawmakers would pass sweeping tax legislation. Among economic news, Japan's government revised up its growth projections for the current and next fiscal years, forecasting the economy to expand 1.9% and 1.8% respectively on the back of steady improvement in domestic demand, the Cabinet Office said.

US stocks closed at all-time highs yesterday, 18 December 2017, as investors eagerly awaited a vote on a bill that would cut corporate taxes. A slew of corporate deals also helped lift sentiment.

Congress is reportedly expected to vote as early as today, 19 December 2017, on a plan that would slash the federal corporate tax rate to 21% from 35%. Passing the bill would mark a big legislative win for Republicans, who have been pushing to revamp the US tax code for most of 2017.

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