Mid-Cap, Small-Cap indices decline over 1% each

Key benchmark indices pared losses and traded near the flat line after slipping into the red in mid-morning trade. At 11:20 IST, the barometer index, the S&P BSE Sensex, fell 4.61 points or 0.01% at 34,838.90. The Nifty 50 index declined 13.25 points or 0.12% at 10,728.30. Profit booking emerged after indices scaled record highs yesterday, 15 January 2018.

Indices opened with small gains and hovered in the positive terrain near the flat line till morning trade. Stocks pared losses after slipping into the red in mid-morning trade.

Among the secondary indices, the S&P BSE Mid-Cap index fell 1.01%. The S&P BSE Small-Cap index dropped 1.45%. Both these indices underperformed the Sensex.

The broad market depicted weakness. There were almost three losers for every gainer on BSE. 1,995 shares declined and 683 shares rose. A total of 80 shares were unchanged.

Buying activity was witnessed in IT stocks. Tech Mahindra (up 3.02%), HCL Technologies (up 3.21%), TCS (up 3.07%), Infosys (up 1.81%), and Wipro (up 3.4%) edged higher.

Realty stocks declined. Sobha (down 1.14%), Indiabulls Real Estate (down 2.92%), Unitech (down 5.48%), Oberoi Realty (down 0.35%), DLF (down 0.9%), HDIL (down 1.75%) and Phoenix Mills (down 4.01%) edged lower.

Severely impacted by various reforms like RERA, GST and demonetisation, the realty sector is reportedly pinning its hopes on Budget 2018-19 for relief measures like lower taxes and infrastructure status. Industry players are expecting rationalisation of the GST rates from the current 12% to 6% and bringing stamp duty under the ambit of GST. Single window clearances for all approvals and additional tax incentives for first time home buyers are also expected.

Max Ventures and Industries fell 3.67% after the company said that its board approved raising up to Rs 450 crore via rights issue of shares. The announcement was made after market hours yesterday, 15 January 2018.

Among macroeconomic data, exports rose 12.36% to $27.03 billion in December 2017 over December 2016. Imports rose 21.12% to $41.91 billion in December 2017 over December 2016. The trade deficit for December 2017 was estimated at $14.88 billion as against the deficit of $10.54 billion during December 2016.

Overseas, Asian stocks gained, erasing early losses amid announcements of corporate earnings. US stock markets remained shut yesterday, 15 January 2018, for the Martin Luther King Jr. holiday.

Among macro data, the trade surplus in the 19 countries sharing the euro expanded in November to its highest point in eight months. The European statistics office Eurostat said the euro zone's surplus in goods trade rose in unadjusted terms to 26.3 billion euros in November, up from 18.9 billion euros in October. It was also higher than the 23.8 billion surplus recorded a year earlier.

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