Market pares intraday gains

After hovering in a narrow range, key benchmark indices pared some gains in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, was up 57.13 points or 0.19% at 29,588.56. The Nifty 50 index was up 12.25 points or 0.13% at 9,156.05.

Investors' sentiment got a boost after the much-awaited tax reform -- Goods and Services Tax (GST) -- inched closer to its 1 July 2017 rollout date with the Lok Sabha approving four supplementary legislations yesterday, 29 March 2017.

The market could see some volatility in intraday as traders roll over positions in the futures & options (F&O) segment from the near month March 2017 series to April 2017 series. The near month March 2017 derivatives contract expire today, 30 March 2017.

Among secondary barometers, the BSE Mid-Cap index was currently up 0.42%. The BSE Small-Cap index was currently up 0.83%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,683 shares rose and 765 shares fell. A total of 190 shares were unchanged.

Pharmaceutical shares edged higher. Aurobindo Pharma (up 1.39%), Cadila Healthcare (up 1.01%), Wockhardt (up 0.86%), Divi's Laboratories (up 0.69%), IPCA Laboratories (up 0.39%), Cipla (up 0.38%), Dr Reddy's Laboratories (up 0.22%), Sun Pharmaceutical Industries (up 0.20%), GlaxoSmithKline Pharmaceuticals (up 0.17%), Glenmark Pharmaceuticals (up 0.17%) and Lupin (up 0.01%), edged higher. Strides Shasun (down 0.05%) and Piramal Enterprises (down 0.43%), edged lower.

Vedanta was up 0.76% to Rs 270.85. The board of directors of Vedanta has approved the second interim dividend of Rs 17.70 per equity share for the financial year ending March 2017. The record date for the purpose of payment of dividend is Wednesday, 12 April 2017. Further, the board has also approved dividend of Rs 17.70 per equity share to shareholders of Cairn India, who will become shareholders of Vedanta pursuant to the scheme of arrangement between Vedanta and Cairn India. The dividend would be paid to the Cairn India shareholders as on a record date to be fixed after the scheme becomes effective. The total amount of dividend payout including that to Cairn shareholders is Rs 6580 crore.

Most capital goods shares edged higher. Suzlon Energy (up 4.66%), ABB India (up 3.13%), Havells India (up 2.56%), Reliance Defence and Engineering (up 2.03%), Punj Lloyd (up 1.79%), Thermax (up 1.06%), SKF India (up 1.03%), Crompton Greaves (up 0.65%), Jindal Saw (up 0.43%), BEML (up 0.36%), Praj Industries (up 0.31%), GE T&D India (up 0.22%), Siemens (up 0.16%) and GE Power India (up 0.02%), edged higher. Lakshmi Machine Works (down 0.29%) and AIA Engineering (down 0.46%), edged lower.

Engineering and construction major L&T was up 0.44% to Rs 1,562.90. The company announced during trading hours today, 30 March 2017, that its construction arm recently won orders worth Rs 1725 crore across two of its business segments.

State-run Bharat Heavy Electricals (Bhel) was down 0.54% to Rs 166.75. The company announced during trading hours today, 30 March 2017, that it has successfully commissioned yet another coal-based supercritical thermal unit of 800 MW in Karnataka. This is the second unit of the 2x800 MW Yeramarus Thermal Power Station located in Raichur district of Karnataka. The first unit of this power plant was commissioned earlier by Bhel in March, 2016. Bhel continues to prove its prowess as a leading supercritical power equipment manufacturer having assimilated supercritical technology, suited to Indian conditions.

On the economic front, the Lok Sabha cleared four bills related to the Goods and Services Tax (GST) yesterday, 29 March 2017, setting the stage for 28 states, along with Delhi and Puducherry, to enact state laws over the next three months to roll out the new tax regime from July 2017.

The four bills Integrated GST, Central GST, Union Territory GST and Compensation Bill will be followed by work in the GST council, comprising FM Arun Jaitley and state finance ministers, to finalise rules and product- and service-wise rates by the end of April.

GST will replace central excise, service tax and state VAT and several other levies, in addition to subsuming existing cesses and surcharges.

Overseas, Asian stocks were trading lower despite a positive lead from Wall Street as investors reassessed the outlook for monetary policy at the European Central Bank.

The tech-heavy Nasdaq closed higher for a fourth straight session Wednesday, while the Dow industrials finished lower, as stock investors digested hawkish comments from Federal Reserve speakers and a drop in US gasoline inventories bolstered the energy sector. The Nasdaq Composite Index climbed 22.41 points, or 0.4%, to finish at 5,897.55. The Dow Jones Industrial Average fell 42.18 points, or 0.2%, to close at 20,659.32.

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