Amid divergent trend among various index constituents, key benchmark indices traded near the flat line in morning trade. At 10:20 IST, the barometer index, the S&P BSE Sensex, was off 2.08 points or 0.01% at 26,126.12. The Nifty 50 index was currently off 5.70 points or 0.07% at 7,937. The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,308 shares rose and 578 shares fell. A total of 127 shares were unchanged. The BSE Mid-Cap index was up 0.26%. The BSE Small-Cap index was up 0.58%. Both these indices outperformed the Sensex.
In overseas stock markets, Chinese stocks extended steep losses registered during the previous trading session triggered by renewed efforts by the securities regulator to clamp down on leveraged buying and concerns about the cooling economy. Most other Asian stocks were in red.
Auto stocks gained ahead of the announcement of monthly sales volume data for November 2015. Mahindra & Mahindra (M&M) (up 0.95%), Ashok Leyland (up 1.38%), Maruti Suzuki India (up 1.52%), Eicher Motors (up 0.44%), Hero MotoCorp (up 0.81%), Tata Motors (up 2.17%), Bajaj Auto (up 1.18%) and TVS Motor Company (up 1.18%) gained. Every month, auto companies start announcing sales volume data for the previous month from the first day of the month.
Capital goods stocks also gained. Bharat Heavy Electricals (Bhel) (up 1.05%), Havells India (up 0.44%), ABB India (up 0.86%), Bharat Electronics (up 0.35%), L&T (up 1.11%), and Thermax (up 0.47%) gained.
Siemens fell 0.31%. The company's profit after tax before exceptional items rose 13.5% to Rs 173 crore in Q4 September 2015 over Q4 September 2014. The company announced the fourth quarter results after trading hours on Friday, 27 November 2015. Siemens' revenue from continuing operations rose 10.9% to Rs 3231.30 crore in Q4 September 2015 over Q4 September 2014. It may be recalled that Siemens hived off its Metal Technologies business with effect from the close of business on 31 December 2014.
Nestle India dropped 0.9%. The company has resumed manufacturing of MAGGI noodles at its Tahliwal (Himachal Pradesh) factory. With this, the company has resumed manufacture of MAGGI Noodles at all five Noodle manufacturing facilities. Nestle India relaunched Maggi Noodles in the market on 9 November 2015.
IVRCL gained 4% after the company said that it has made an allotment of 2.42 crore equity shares of Rs 2 each at issue price of Rs 24.39 per share to corporate debt restructuring (CDR) lenders who have signed the master restructuring agreement. This allotment is towards conversion of funded interest term loan (FITL) into equity for the period of 1 July 2015 to 30 September 2015, IVRCL said. The announcement was made after market hours on Friday, 27 November 2015.
Texmo Pipes and Products surged 8.82% after the company said its production started in full capacity as the interruption of power supply was over. The announcement was made after market hours on Friday, 27 November 2015. The company said that its production had slowed down due to interruption of power supply and production was continuing through the use of diesel generator (DG) set.
Meanwhile, the opposition Congress party has said that the Goods and Services Tax (GST) should not exceed 18% so that the tax rate is kept moderate and does not impose a burden on the consumer. The Congress also said that the proposed extra 1% interstate tax is against the very idea of having a uniform GST. Considering that there will be 100% compensation for state governments for five years, this extra levy will be market distorting, the principal opposition party said. The Dispute Mechanism of the GST council should be made independent of political parties, the Congress party said.
The Congress' stand on GST comes as the Indian industry keenly awaits the progress on the ambitious indirect tax reform. On Friday, 27 November 2015, Prime Minister Narendra Modi met Congress president Sonia Gandhi and former Prime Minister Dr. Manmohan Singh in an effort to break the impasse over the passage of the GST constitutional amendment bill in parliament. The constitutional amendment bill for the implementation of GST, which subsumes all indirect taxes to create a unified market across the country, has been cleared by the Lok Sabha and is awaiting legislative passage in the Rajya Sabha. The government has listed GST constitutional amendment bill for its passage in the Rajya Sabha during the ongoing winter session of the parliament. A constitutional amendment bill requires a majority of two thirds in the house for its passage. The BJP-led NDA has a comfortable majority in Lok Sabha, but lags in numbers in the Rajya Sabha. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. Central taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST. At the state level, taxes like VAT/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. would be subsumed in GST.
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