Gains in banking, metal stocks and index heavyweights L&T and HDFC aided upmove as key benchmark indices extended gains in mid-afternoon trade. At 14:18 IST, the barometer index, the S&P BSE Sensex, was up 153.49 points or 0.59% at 26,112.12. The Nifty 50 index was up 47.90 points or 0.61% at 7,931.70. The Sensex was currently trading above the psychological 26,000 mark having alternately moved above and below that level in intraday trade so far. The market breadth indicating the overall health of the market once again turned positive from negative in mid-afternoon trade. On BSE, 1,292 shares rose and 1,241 shares fell. A total of 214 shares were unchanged. Earlier, the breadth had turned negative from positive in afternoon trade. The BSE Mid-Cap index was up 0.42%. The BSE Small-Cap index was up 0.27%. Both these indices underperformed the Sensex.
Expectations that the constitutional amendment bill on goods and services tax (GST) will be passed during the winter session of parliament aided the upmove on the domestic bourses. According to media reports, Prime Minister Narendra Modi will meet opposition Congress party leader Sonia Gandhi today, 27 November 2015, evening to discuss the GST constitutional amendment bill and other bills to be debated during the winter session of parliament. The winter session of the parliament began yesterday, 26 November 2015, and will continue till 23 December 2015. Investors' focus is on whether the GST constitutional amendment bill will be passed in the Rajya Sabha. 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. 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, the upper house, where members are elected by the strength of legislators in the states house. 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.
Index heavyweight and housing finance major HDFC advanced 1.02% to Rs 1,235. The stock hit high of Rs 1,238.35 and low of Rs 1,218.10 so far during the day.
Index heavyweight and engineering and construction major L&T gained 2.1% to Rs 1,362. The stock hit high of Rs 1,364 and low of Rs 1,336.80 so far during the day.
Shares of cigarette makers declined. Index heavyweight and cigarette major ITC fell 0.38% to Rs 341.30. The stock hit a high of Rs 344.50 and low of Rs 338.95 so far during the day.
Among other cigarette makers, Godfrey Phillips India (down 5.49%), VST Industries (down 1.78%) and Golden Tobacco (down 4.13%) dropped.
PTC India lost 1.27% to Rs 66.20 after Citigroup Global Markets Mauritius sold 20.64 lakh shares of the company at an average price of Rs 66.61 per share in a bulk deal on the NSE yesterday, 26 November 2015.
Astra Microwave Products rose 2.11% after the company said that it has entered into memorandum of understanding to form a 50:50 joint venture company with Unique Broadband Systems, Canada to conduct business in the areas of ultra-high frequency (UHF) broadcasting, satellite up linking and medical imaging products for Indian and other regional markets specially South Asia and Russian Federation. The company made announcement during market hours today, 27 November 2015.
In overseas stock markets, reports of Chinese authorities' investigations into two major Chinese brokerages over suspected violations sent stocks tumbling in mainland China. The Shanghai Composite ended 5.48% lower. In Hong Kong, the Hang Seng index lost 1.87%. European stocks edged lower as investors reacted to sharp fall in China's stock market.
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