A bout of volatility was seen in morning trade as the key benchmark indices hit intraday high after reversing initial gains to briefly turn negative. At 10:15 IST, the barometer index, the S&P BSE Sensex, was up 107.69 points or 0.41% at 26,066.32. The Nifty 50 index was up 39 points or 0.49% at 7,922.80. The Sensex was currently trading above the psychological 26,000 mark after moving above and below that mark so far during the day. The Sensex and the Nifty, both, hit their highest level in 2-1/2 weeks. The Sensex jumped 150.54 points or 0.57% at the day's high of 26,109.17 in morning trade, its highest level since 9 November 2015. The Nifty rose 48.40 points or 0.61% at the day's high of 7,932.20 in morning trade, its highest level since 9 November 2015.
Key benchmark indices extended previous session's gains on expectations that the constitutional amendment bill on goods and services tax (GST) will be passed during the winter session of parliament. The month-long winter session of 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.
The broad market depicted strength. There were more than more than two gainers against every loser on BSE. 1,281 shares rose and 632 shares fell. A total of 160 shares were unchanged. The BSE Mid-Cap index was up 0.63%. The BSE Small-Cap index was up 0.57%. Both these indices outperformed the Sensex.
In overseas markets, Chinese stocks led decline in Asian stocks after data showed that industrial companies' earnings in China slid 4.6% in October. US stock markets were closed yesterday, 26 November 2015 for Thanksgiving Day holiday.
Bank stocks logged gains across the board. Among private bank stocks, HDFC Bank (up 1.05%), Kotak Mahindra Bank (up 0.85%), ICICI Bank (up 1.59%), Axis Bank (up 1.53%), IndusInd Bank (up 0.89%) and Yes Bank (up 1.33%) gained.
Among PSU bank stocks, State Bank of India (SBI) (up 1.09%), Punjab National Bank (up 1.75%), Bank of Baroda (up 2.7%), Canara Bank (up 1.68%), IDBI Bank (up 1.51%), Bank of India (up 1.62%) and Union Bank of India (up 2.03%) advanced.
Ashok Leyland rose 2.35% after the company said it has signed a contract with the government of Cote D'Ivoire for supply of 3,600 vehicles worth $200 million. The vehicles, which include trucks and buses, will be delivered over the next 12 months, Ashok Leyland said. The announcement was made after market hours yesterday, 26 November 2015.
Welspun Corp jumped 11.17% after the company said that it has won an order for supply of 216 kilometric tonne line pipes for an onshore project in America. Welspun Corp said that with the addition of this order, current order book of the company has crossed 1040 kilometric tonne worth Rs 6400 crore. The company made announcement after market hours yesterday, 26 November 2015.
Stone India rose 2.29% after the company said it has received an order worth Rs 9.39 crore from Western Railway for design, maintenance, supply, installation and commissioning of 18 units of passenger escalators. The announcement was made after market hours yesterday, 26 November 2015.
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