Key benchmark indices extended intraday losses in mid-afternoon trade. At 14:15 IST, the barometer index, the S&P BSE Sensex was down 125.34 points or 0.44% at 28,083.28. The decline in the Nifty 50 index was lower than the Sensex's fall in percentage terms. The Nifty was currently down 22.50 points or 0.26% at 8,643.80. Weakness in Asian stocks weighed on sentiment on the domestic bourses.
The Sensex lost 141.96 points or 0.5% at the day's low of 28,066.66 in mid-afternoon trade. The barometer index rose 24.85 points or 0.08% at the day's high of 28,233.47 at the onset of trading session. The Nifty lost 30.10 points or 0.34% at the day's low of 8,636.20 in morning trade. The index rose 4.05 points or 0.04% at the day's high of 8,670.35 at the onset of trading session.
The market breadth indicating the overall health of the market turned negative from positive in mid-afternoon trade. On BSE, 1,259 shares rose and 1,281 shares declined. A total of 213 shares were unchanged. The BSE Mid-Cap index was currently up 0.77%. The BSE Small-Cap index was currently up 0.37%. Both these indices outperformed the Sensex.
In its monsoon update issued yesterday, 28 July 2016, the India Meteorological Department (IMD) said that for the country as a whole, cumulative rainfall during this year's monsoon as on 27 July 2016, was at 0% above the Long Period Average (LPA).
In overseas stock markets, most European stocks edged higher helped by a rally in bank stocks. Asian stocks edged lower after the Bank of Japan's (BOJ) modest easing action dissapointed investors. In Japan, the Nikkei 225 Average ended 0.56% higher. The Bank of Japan (BOJ) kept interest rates and government bond buying unchanged after the conclusion of a two-day monetary policy meeting. The Nikkei 225 Average was currently up 0.04%. The Japan's central bank said it would buy 6 trillion worth of exchange-traded funds annually, up from 3.3 trillion previously, in an attempt to stoke inflation and growth by pumping money into the economy. BOJ said it would leave its asset-purchase target at 80 trillion a year. US stocks closed slightly higher yesterday, 28 July 2016 amid declines in oil prices, as major tech stocks gained.
Pharma stocks edged higher. Strides Shasun (up 2.18%), Wockhardt (up 2.37%), Cipla (up 2.11%), Aurobindo Pharma (up 1.69%), Lupin (up 1.6%), Alkem Laboratories (up 1.36%), Cadila Healthcare (up 1.83%), Sun Pharmaceutical Industries (up 1.39%), Ipca Laboratories (up 1.92%), Glenmark Pharmaceuticals (up 0.65%) and Divi's Laboratories (up 0.81%) rose. GlaxoSmithkline Pharmaceuticals (down 0.72%) and Dr Reddy's Laboratories (down 0.06%) declined.
Realty stocks were mixed. Prestige Estates Projects (up 1.75%), Unitech (up 0.67%), DLF (up 1.27%), Housing Development and Infrastructure (up 0.34%) and Godrej Properties (up 0.27%) edged higher. Oberoi Realty (down 0.68%), Indiabulls Real Estate (down 1.06%), D B Realty (down 0.45%) and Sobha (down 0.33%) edged lower.
Larsen & Toubro Infotech (L&T Infotech) rose 1.96% after consolidated net profit rose 3.3% to Rs 235.80 crore on 0.2% drop in revenue to Rs 1550 crore in Q1 June 2016 over Q4 March 2016. Sanjay Jalona, Chief Executive Officer & Managing Director of L&T Infotech said that with over 4% sequential growth in services revenue and close to 22% of company's projects in Digital technologies, the company has seen growth across verticals. The result was announced after market hours yesterday, 28 July 2016.
Bharat Heavy Electricals (Bhel) was off 2.61%. The company announced during market hours today, 29 July 2016 that it has secured orders worth Rs 437 crore from Neyveli Lignite Corporation (NLC) and Bharat Electronics (BEL) for setting up 80 megawatts (MW) of solar photovoltaic (SPV) power plants on engineering, procurement and construction (EPC) basis.
Meanwhile, according to reports, the Congress party yesterday, 28 July 2016, indicated to the government that the outcome on its negotiations on the Goods and Services Tax (GST) constitutional amendment bill, particularly scrapping the 1% additional tax on the interstate supply of goods, has been positive. This has paved the way for the government to take up the constitutional amendment bill in the Rajya Sabha as early as next week, reports suggested.
The GST bill, which has been approved by the Lok Sabha is pending in the Rajya Sabha. A constitutional amendment bill requires at least 50% attendance and support of two-third of those present and voting in the house. For the GST bill to become a law, the bill also needs to be approved by half the state assemblies after its passage in the parliament. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. The GST seeks to create a seamless national market in the country by replacing plethora of state taxes and central taxes by one tax. The month-long monsoon session of the parliament will conclude on 12 August 2016.
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