After witnessing a bout of volatility in morning trade, key benchmark indices extended gains in mid-morning trade with the barometer index, the S&P BSE Sensex, hitting 2-1/2-week high and the Nifty hitting 3-week high. At 11:15 IST, the barometer index, the S&P BSE Sensex, was up 156.13 points or 0.6% at 26,114.76. The Nifty 50 index was up 51.70 points or 0.66% at 7,935.50. The Sensex retained the psychological 26,000 mark. Earlier, the Sensex alternately swung above and below the psychological 26,000 mark in early trade after reclaiming that level when it opened with an upward gap. The Sensex jumped 164.18 points or 0.63% at the day's high of 26,122.81 in mid-morning trade, its highest level since 9 November 2015. The Nifty rose 55.10 points or 0.69% at the day's high of 7,938.90 in mid-morning trade, its highest level since 6 November 2015.
The broad market depicted strength. There were almost two gainers against every loser on BSE. 1,403 shares rose and 729 shares fell. A total of 179 shares were unchanged. The BSE Mid-Cap index was up 0.68%. The BSE Small-Cap index was up 0.71%. Both these indices outperformed the Sensex.
Expectations that the constitutional amendment bill on goods and services tax (GST) will be passed during the winter session of parliament aided fresh upmove on the domestic bourses. According to 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.
Metal and mining stocks edged higher on renewed buying. Vedanta (up 3.49%), JSW Steel (up 0.57%), Tata Steel (up 2.72%), Steel Authority of India (Sail) (up 3.28%), National Aluminium Company (up 0.06%), Hindustan Zinc (up 1.48%), Jindal Steel & Power (up 1.77%), Hindalco Industries (up 2.73%), NMDC (up 1.91%) and Hindustan Copper (up 5.85%) edged higher.
Capital goods stocks also moved higher. ABB India (up 0.91%), Bharat Heavy Electricals (Bhel) (up 1.99%), BEML (up 1.79%), Bharat Electronics (up 0.87%), Crompton Greaves (up 1.14%), L&T (up 2.15%) and Thermax (up 0.36%) gained.
Siemens rose 1.28%. The company unveils its results for Q4 and year ended 30 September 2015 today, 27 November 2015.
SKS Microfinance surged 6.36%. The company has announced a reduction in the interest rate charged to borrowers from 20.75% to 19.75% with effect from 7 December 2015 for all future disbursals. The company made announcement before market hours today, 27 November 2015.
In overseas stock markets, Chinese stocks led decline in Asian stocks after the latest data showed profits earned by Chinese industrial companies fell 4.6% in October 2015 from a year earlier, declining for the fifth consecutive month as the world's second-largest economy slows and industries deal with overcapacity. US stock markets were closed yesterday, 26 November 2015 for Thanksgiving Day holiday.
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