A range bound movement was witnessed as key benchmark indices hovered in green in morning trade. At 10:20 IST, the barometer index, the S&P BSE Sensex was up 27.86 points or 0.11% at 25,665.97. The gains for the 50-unit Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty was currently up 16.05 points or 0.21% at 7,797.95.
Overseas cues were positive. Asian share markets edged higher after Wall Street welcomed an upbeat US jobs report that suggested the world's biggest economy was well placed to handle an expected first increase in interest rates in almost a decade. Strong job data and comments from European Central Bank President Mario Draghi that the bank can step up monetary stimulus if needed triggered a rally in US stocks on Friday, 4 December 2015.
Closer home, a committee headed by Chief Economic Adviser Dr. Arvind Subramanian on Possible Tax rates under goods and services tax (GST) has suggested revenue neutral rate in range between 15% and 15.5% (Centre and states combined) with a preference for the lower end of that range. The committee has recommended a two-rate structure for GST. In order to ensure that the standard rate is kept close to the revenue neutral rate (RNR), the maximum possible tax base should be taxed at the standard rate, the committee has suggested in its report submitted to the government. The committee has recommended that lower rates should be kept around 12% (Centre plus states) with standard rates varying between 17% and 18%.
The market breadth indicating the overall health of the market was strong. There were more than two gainers against every loser on BSE. 1,429 shares rose and 689 shares declined. A total of 101 shares were unchanged. The BSE Mid-Cap index was currently up 0.15%. The BSE Small-Cap index was currently up 0.56%. Both these indices outperformed the Sensex.
Cement stocks gained. Ambuja Cements (up 1.15%), Shree Cement (up 0.99%), UltraTech Cement (up 0.58%) and ACC (up 0.19%) edged higher.
Grasim Industries was up 1.43% at Rs 3,769.20. Grasim has exposure to cement sector through its holding in UltraTech Cement.
IT stocks also edged higher. Tech Mahindra (up 0.82%), Wipro (up 0.61%), Infosys (up 0.21%) and HCL Technologies (up 0.28%) gained. Oracle Financial Services Software (down 0.1%) and TCS (down 0.09%) edged lower.
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Cigarette major ITC declined 2.94% at Rs 325.75 after the committee headed by the Chief Economic Adviser Dr. Arvind Subramanian on possible tax rates under goods and services tax (GST) in its report recommended that the sin/demerit rate be fixed at about 40% (Centre plus states) and apply to luxury cars, aerated beverages, paan masala, and tobacco and tobacco products (for the states).
Tata Power Company (Tata Power) rose 0.16% at Rs 64.45 after the company said that the Bombay High Court has sanctioned the scheme of amalgamation of NewGen Saurashtra Windfarms (NSW) with Tata Power Renewable Energy (TPREL) and their respective shareholders and creditors. NSW is a wholly owned subsidiary of TPREL and TPREL is a wholly-owned subsidiary of Tata Power. The announcement was made during market hours today, 7 December 2015.
NMDC declined 0.54% at Rs 91.25 after the company reduced prices of lump ore by Rs 300 per tonne to Rs 1,800 per tonne with effect from 4 December 2015. In its monthly price review, the state-run iron ore miner has kept prices of iron ore fines unchanged at Rs 1,560 per tonne. The prices are excluding royalty, taxes, DMF, duties, levies etc. The announcement was made after market hours on Friday, 4 December 2015.
JK Tyre & Industries was up 1.48% at Rs 106.20. The stock was volatile. The stock hit a high of Rs 106.95 and a low of Rs 104.60 so far during the day. JK Tyre & Industries said after market hours on Friday, 4 December 2015 that owing to unprecedented rains in Tamil Nadu, operations at company's plant located at Sriperumbadur, Tamil Nadu have been disrupted for eight shifts. Total loss of production was of the order of about 700 tonnes, the company said. The production and dispatch are getting normalised effective on 4 December 2015, the company said. There is no damage to the plant and machinery. However, partial damage has been caused to compound wall, internal roads and fencing, the company said. The damages caused by natural calamity are adequately covered under the insurance policy of the company, it added. The company's plants located in other parts of the country are operating normally, JK Tyre & Industries said.
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