Key indices reversed early gains and hit fresh intraday low in mid-morning trade. IT stocks jumped after falling in the past two days. The Nifty gave up 11,600 level and descended lower. At 11:23 IST, the barometer index, the S&P BSE Sensex, was down 54.63 points or 0.14% at 39,035.40. The Nifty 50 index was down 23.10 points or 0.2% at 11,577.10.
The S&P BSE Mid-Cap index was down 0.43%. The S&P BSE Small-Cap index was up 0.05%.
The market breadth, indicating the overall health of the market, turned negative from positive. On the BSE, 961 shares rose and 1151 shares fell. A total of 109 shares were unchanged.
On Nifty 50 index, 20 stocks advanced while 30 stocks declined.
Finance Minister Nirmala Sitharaman on Friday, 20 September, slashed corporate tax rate to 22% without exemptions. The effective corporate tax rate after surcharge will stand at 25.17%. To further attract investment in manufacturing, local companies incorporated after October 2019 will pay tax at 15%. The government will give MAT relief for those opting to continue paying surcharge and cess at 22%. MAT has been reduced to 15% from 18.5% for companies who continue to avail exemptions and incentives. The step has significant positive implications for corporates' profitability, broader economy and market valuations.
Biocon was trading 0.24% lower at Rs 224.85. The company announced that its subsidiary, Biocon Biologics, has acquired R&D capital assets from Pfizer Healthcare India, The biologics research facility is located at TICEL Bio Park in Chennai. The facility will have a research and innovation centre, a well equipped cell line development and drug substance process development bioreactors. The facility is expected to be operational in few months.
IT stocks gained after witnessing selling pressure in last two sessions. The Nifty IT index declined 3.1% in two trading sessions from its close of 15,522.45 on Thursday, 19 September 2019.
Tata Elxsi (up 5.83%), Tech Mahindra (up 2.44%), Infosys (up 2.43%), Hexaware Technologies (up 2.33%), TCS (up 1.75%), NIIT Technologies (up 1.29%), Wipro (up 0.85%) and HCL Technologies (up 0.69%) were top gainers in IT segment.
The S&P BSE IT index was up 1.78% at 15,335.41. The Nifty IT index was up 1.56% at 15,275.05.
Zee Entertainment Enterprises (ZEEL) tumbled 2.43% to Rs 265.50, extending recent fall. Shares tumbled as lenders to the Essel group sold pledged promoters' shares of ZEEL for over Rs 200 crore on Monday. As per the bulk deal data, Catalyst Trusteeship offloaded 72.50 lakh shares of ZEEL at an average price of Rs 281.75 on the NSE yesterday, 23 September 2019. As of 30 June 2019, the ZEEL promoters held 34.38 crore shares, or 35.80% stake, in the company. Of this, over 21.99 crore shares were pledged.
Zee Entertainment Enterprises has tanked 24.21% in seven trading session from its previous closing high of Rs 350.30 on 13 September 2019. The stock hit an intraday low of Rs 256.1 which is also a 52-week low for the counter.
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