Key equity benchmarks firmed up and hit fresh intraday high in the afternoon trade. At 13:25 IST, the barometer index, the S&P BSE Sensex, rose 179.30 points or 0.49% at 36,652.23. The Nifty 50 index advanced 66.45 points or 0.62% at 10,807.80.
Broader market bounced back. The S&P BSE Mid-Cap index was up 0.86%. The S&P BSE Small-Cap index rose 0.26%.
The market breadth was negative. On the BSE, shares 976 rose and 1,193 shares fell. A total of 127 shares were unchanged.
Shares rebounded from early losses Friday, following a media report that the government could soon announce a rollback of higher taxes for foreign portfolio investors (FPIs).
Foreign investors have been selling extensively in the Indian equity market after the government announced levy of surcharge on super rich in the Union Budget. Finance minister Nirmala Sitharaman in her maiden Budget speech on 5 July 2019, proposed to enhance surcharge on individuals having taxable income from Rs 2 crore to Rs 5 crore and Rs 5 crore and above so that effective tax rates for these two categories will increase by around 3% and 7% respectively. The effective tax rate on the highest tax bracket goes up to 42.7% after the hike.
There are concerns that the increased surcharge on super-rich could also affect foreign funds investing in India since a same tax structures apply for individuals, Hindu Undivided Family (HUF) and Associations of Persons (AOPs). FPIs, including pension and retirement funds, educational endowment fund, etc, come in through trusts or AOPs route because it has been the most tax-efficient structure.
Zee Entertainment Enterprises (up 5.85%), Vedanta (up 5.62%), Indiabulls Housing Finance (up 5.05%), UPL (up 5.05%) and Yes Bank (up 4.71%) advanced.
IndusInd Bank (down 1.85%), ITC (down 1.83%), Bharti Infratel (down 0.99%), Eicher Motors (down 0.96%) and Larsen & Toubro (down 0.96%) declined.
Maruti Suzuki India rose 0.21%. The car major announced to proactively and voluntarily undertake a recall campaign for certain WagonR (1 litre) vehicles manufactured between 15 November 2018 and 12 August 2019. Recall campaigns are undertaken globally to rectify faults that may be potential safety defects. The company will inspect 40,618 vehicles of WagonR (1 litre) for a possible issue of fuel hose fouling with metal clamp. The announcement was made during trading hours today, 23 August 2019.
HDFC Bank fell 0.60% after the bank said it appointed Srinivasan Vaidyanathan as the chief financial officer (CFO), with immediate effect. The incumbent CFO of the bank, Sashidhar Jagdishan, would continue to head the finance function, and shoulder additional responsibilities as in charge of the verticals of legal & secretarial, human resources, corporate communications, infrastructure, administration, corporate social responsibility and 'change agent of the bank'. Vaidyanathan would continue to report to Jagdishan. Vaidyanathan and Jagdishan would be 'key managerial personnel' of the bank pursuant to Companies Act, 2013 and the Regulations. The announcement was made after the market hours yesterday, 22 August 2019.
Future Retail lost 5.91%. Amazon has agreed to make an equity investment in Future Coupons for acquiring a 49% stake comprising both, voting and non-voting shares. Kishore Biyani on behalf of the existing shareholders forming part of the promoter group and Future Coupons (promoters) said that they have entered into a share subscription agreement and a shareholders' agreement with Amazon.Com NV Investment Holdings LLC (Amazon). The announcement was made after market hours yesterday, 22 August 2019.
Infosys rose 0.81%. The IT major announcing a strategic partnership with University of Illinois Urbana-Champaign (UIUC) to develop new technologies and systems in precision medicine. Through this partnership Infosys also becomes a member of the Center for Computational Biotechnology and Genomic Medicine (CCBGM). The announcement was made after trading hours yesterday, 22 August 2019.
TCS advanced 1.40%. The IT major has launched an enhanced version of its unique diagnostic solution, the TCS lntelligent Cloud Migration Continuum (iCMC), to help customers build business cases, take informed decisions on the choice of cloud and sequencing of applications to target for cloud migration and modernization, as part of their digital transformation journey. The announcement was made after market hours yesterday, 22 August 2019.
Dabur India gained 0.01%. Dabur International has acquired management control of a new company namely Excel Investments (FZE) in Sharjah, UAE on 20 August 2019. Accordingly Excel Investments (FZE) has become a step down wholly owned subsidiary company of Dabur India. The announcement was made after trading hours yesterday, 22 August 2019.
Pidilite Industries rose 0.39% after a manufacturing plant of Pidilite Speciality Chemicals Bangladesh (PSCBL) was formally commissioned at Bhaluka in Mymensingh on 21 August 2019. PSCBL is a subsidiary of Pidilite Industries. The announcement was made after market hours yesterday, 22 August 2019.
Bharat Heavy Electricals (BHEL) rose 0.83% after credit rating agency CRISIL revised BHEL's long term bank facilities outlook from stable to negative. CRISIL cited weak operating performance and continued increase in working capital intensity as core reasons.
Glenmark Pharmaceuticals was up 1.24%. The pharma major announced that it has received a final approval by the United States Food & Drug Administration (USFDA) for Fulvestrant Injection, 250 mg/5 mL (50 mg/mL). Fulvestrant Injection is a generic version of Faslodex Injection, 250 mg/5 mL (50 mg/mL), of AstraZeneca Pharmaceuticals LP. According to IQVIA sales data for the 12 month period ending June 2019, the Faslodex Injection, 250 mg/5 mL (50 mg/mL) market achieved annual sales of approximately $549.9 million.
MEP Infrastructure Developers slumped 5.37%. Shares of road construction company MEP Infrastructure Developers slumped 6.38% to Rs 27.90. The company announced that it has received Letter of Acceptance (LoA) from Public Works Department, Government of Maharashtra on 22 August 2019. The company said that it has been appointed as a contractor for collection of toll at approved rates on all specified vehicles at Thane-Bhiwandi-Wadpa road Thane District in the State of Maharashtra. The contract is for the period of 3 years. The total contractual amount for the said project is Rs 36.63 crore payable on quarterly upfront basis.
TVS Motor Company was up by 1.19%. The manufacturer of two-wheelers and three-wheelers announced their support initiative for flood-affected states across India. As a part of the initiative, the company has extended service support for over 100,000 TVS Motor customers in flood-affected states of Gujarat, Maharashtra, Karnataka, Kerala, Tamil Nadu and states of North East India from 26 August 2019 to 15 September 2019.
Reliance Capital surged 10.16%. The shares of the finance corporation plunged 33.88% in the past four trading sessions to settle at Rs 32 yesterday, 22 August 2019, from its close of Rs 48.40 on 16 August 2019.
Overseas, European stocks were trading higher while Asian shares were mixed on Friday before US Federal Reserve Chair Jerome Powell's address at the Jackson Hole summit. US stocks ended mixed on Thursday as a fall in US jobless claims offset data showing a contraction in US manufacturing activity while investors awaited Federal Reserve Chair Jerome Powell's speech on Friday for clues on the central bank's monetary policy.
In economic data, the number of Americans filing applications for unemployment benefits fell sharply last week, suggesting the labor market was holding firm despite a manufacturing slowdown and concerns the economy is on a path toward recession.
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