Key indices continued to trade firm with modest gains in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, was up 97.48 points or 0.28% at 35,357.77. The Nifty 50 index was up 16.55 points or 0.15% at 10,833.55. Firmness in most Asian stocks and GST council in its latest meet slashing the tax rate on 54 services and 29 items and also simplifying return filing process for businesses boosted sentiment.
The market opened higher on firm Asian cues but soon slipped into the red in early trade. Recovery was soon materialized on the bourses in morning trade with indices hitting fresh intraday highs. Stocks held firm later during the session.
The S&P BSE Mid-Cap index was down 0.31%. The S&P BSE Small-Cap index was down 0.18%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, turned negative from positive in early afternoon trade. On the BSE, 1,568 shares fell and 1,095 shares rose. A total of 124 shares were unchanged.
HDFC Bank rose 1.1% after the net profit rose 20.1% to Rs 4642.60 crore on 17.84% rise in total income to Rs 24450.40 crore in Q3 December 2017 over Q3 December 2016. The announcement was made during market hours today, 19 January 2018.
Auto stocks declined. Mahindra & Mahindra (M&M) (down 0.1%), Ashok Leyland (down 0.62%), Maruti Suzuki India (down 0.32%), Hero MotoCorp (down 1.03%), Bajaj Auto (down 0.09%), Tata Motors (down 0.43%) and TVS Motor Company (down 0.46%) declined. Eicher Motors rose 0.26%.
The automobile industry has largely sought rationalization of tax slabs and removal or reduction of cess by the Government in Union Budget 2018-19. The government needs to create an effective and tax-friendly framework for smooth implementation of electrification of India's huge transport fleet.
Realty stocks were mixed. D B Realty (up 0.8%), Indiabulls Real Estate (up 1.13%), Unitech (up 2.84%), NBCC (up 0.42%), Godrej Properties (up 1.27%), and Oberoi Realty (up 0.86%) edged higher. DLF (down 0.1%), Sobha (down 0.02%), and Housing Development & Infrastructure (HDIL) (down 1.38%) declined.
Severely impacted by various reforms like RERA, GST and demonetisation, the realty sector is reportedly pinning its hopes on Budget 2018-19 for relief measures like lower taxes and infrastructure status for the sector. Industry players are expecting rationalisation of the GST rates from the current 12% to 6% and bringing stamp duty under the ambit of GST. Single window clearances for all approvals and additional tax incentives for first time home buyers are also expected.
Biocon rose 3.98% after the company and Sandoz announced a global partnership to develop, manufacture and commercialize multiple biosimilars in immunology and oncology for patients worldwide. Under the terms of the agreement, both companies will share responsibility for end-to-end development, manufacturing and global regulatory approvals for a number of products and will have a cost and profit share arrangement globally. The announcement was made after market hours yesterday, 18 January 2018.
Savita Oil Technologies rose 3.95% after the company said that its board will meet on 23 January 2018 to consider buyback of equity shares. The announcement was made after market hours yesterday, 18 January 2018.
Swan Energy gained 5.01% after the company said that the board of directors of the company, at its meeting held yesterday, 18 January 2018, approved raising of funds by way of issue of equity shares or any other eligible instrument or security through qualified institutions placements (QIP) or private placements/public issue of equity/debt securities or preferential issue or through any other permissible mode and/or combination thereof, as may be considered appropriate, for an aggregate amount not exceeding Rs 1000 crore. The announcement was made after market hours yesterday, 18 January 2018.
Meanwhile, the Union Finance Minister Arun Jaitley Chaired the 25th meeting of the GST Council in New Delhi yesterday, 18 January 2018. The Council has recommended certain changes in GST/IGST rate and clarifications in respect of GST rate on certain goods as per discussions in the 25th GST Council meeting. It slashed the tax rate on 54 services and 29 items, including old and used motor vehicles bio-diesel, while also simplifying return filing process for businesses. Certain policy changes have also been recommended by the GST Council.
Overseas, most Asian stocks gained although losses on Wall Street slowed the advance. Investors continue to watch the latest US budget battle on Capitol Hill, where uncertainly over a possible partial government shutdown this weekend continues. Legislation to avoid a US government shutdown at midnight on Friday advanced in Congress as the House of Representatives on Thursday night approved an extension of federal funds through 16 February, although the bill faced uncertain prospects in the Senate.
US stock benchmarks finished lower yesterday, 18 January 2018, pressured by worries over the possibility of a partial government shutdown, as investors sorted through a fresh batch of quarterly earnings results.
Among the macro data in US, first-time weekly jobless claims fell to a 45-year low, dropping by 41,000 to 220,000. Meanwhile, construction of new houses fell 8.2% in December to a 1.19 million annual rate. Permits for future construction were basically flat at 1.30 million. Still, permits, housing starts and the number of new homes completed all hit the highest levels since 2007. A gauge of Philadelphia-area manufacturing fell to five-month low of 22.2 in January, the Philadelphia Fed said.
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