Key benchmark indices were trading with small gains after regaining positive terrain after slipping into the red for a brief period in mid-afternoon trade amid mixed open for European stocks. At 14:20 IST, the barometer index, the S&P BSE Sensex, was up 13.82 points or 0.05% at 27,249.48. The Nifty 50 index was up 10.85 points or 0.13% at 8,408.85.
Earlier during the day, key indices had trimmed gains after consolidating initial gains amid mixed Asian cues and after reports suggested that the Central Board of Direct Taxes put in abeyance its earlier circular raising foreign investors' concerns over a potential rise in tax liability under indirect transfer provisions.
The BSE Mid-Cap index was up 0.3%. The BSE Small-Cap index was up 0.52%. Both these indices outperformed the Sensex. The market breadth, indicating the overall health of the market, was positive. On BSE, 1,455 shares rose and 1,186 shares declined. A total of 154 shares were unchanged.
FMCG stocks gained on renewed buying. Tata Global Beverages (up 0.9%), Nestle India (up 0.63%), Marico (up 1.34%), Britannia Industries (up 1.69%), Procter & Gamble Hygiene and Health Care (up 0.07%), Hindustan Unilever (HUL) (up 0.55%), Dabur India (up 0.94%), Colgate Palmolive India (up 0.54%), and GlaxoSmithkline Consumer Healthcare (up 0.4%) gained. Jyothy Laboratories (down 0.3%), Bajaj Corp (down 0.08%) and Godrej Consumer Products (down 0.49%) declined.
Shares of power generation and power distribution companies were mixed. Torrent Power (up 0.51%), GVK Power & Infrastructure (up 0.51%), Adani Power (up 2.17%), Power Grid Corporation of India (up 0.38%), Tata Power Company (up 1.55%) and Reliance Power (up 0.34%) gained. NHPC (down 0.33%), NTPC (down 1.82%) and Reliance Infrastructure (down 0.13%) declined.
Meanwhile, there are expectations of announcement of sops for the power sector in the upcoming Budget 2017-18. The upcoming Budget may reportedly extend the 80 IA tax holiday, provide further impetus to renewable energy, particularly hydro projects, offer clarity on the applicability of GST, lower the cess on coal and possibly reduce corporate tax rates.
Reliance Defence and Engineering rose 0.85% after the company said it delivered yet another 74,500 deadweight tonage (DWT) new-built ice-class Panamax bulk carrier, 'Sea Amber', on 17 January 2017 to an international customer. The announcement was made during trading hours today, 18 January 2017.
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Swan Energy gained 2.51% after the company received an expression of interest from Tata Realty and Infrastructure, showing its willingness to invest upto 10% of equity of subsidiary firm, Swan LNG. The announcement was made during market hours today, 18 January 2017.
Tata Elxsi rose 5.04% on reports that the company was looking to test a driverless car on the roads of Bangalore. Tata Elxsi works with carmakers and their specialised component suppliers. It is leveraging its knowledge in computer science and artificial Intelligence to grab a share of the soon to be multi-billion dollar global industry. It has already begun simulating and testing autonomous cars at a facility on the outskirts of Bengaluru, the report added.
As per reports, in a major relief to foreign portfolio investors (FPIs) in India, the Central Board of Direct Taxes (CBDT) yesterday, 17 January 2017, put in abeyance its 21 December 2016 circular that amplified their concerns over a potential rise in tax liability under India's controversial indirect transfer provisions. The move signalled the government's intent to spare small overseas investors in FPIs registered in India from paying taxes in India on redemption of shares/units.
Overseas, most European stocks edged higher amid initial volatility. UK Prime Minister Theresa May in a speech yesterday, 17 January 2017, indicated Britain will press for a firm exit from the European Union. May said she'll put the terms of the country's exits from the EU to a parliamentary vote. Setting out a vision that could determine Britain's future for generations and the shape of the EU itself, May answered criticism that she has been coy about her strategy with a 12-point plan for what has been dubbed a "hard Brexit".
Asian stocks were mixed as investors warily await President-elect Donald Trump's inauguration as the President later this week.
US stocks retreated yesterday, 17 January 2017, as investors remained cautious in the wake of President-elect Donald Trump's charge that a strong dollar is hurting the economy. Trump's comments on the dollar sent the currency sharply lower.
Trump reportedly told The Wall Street Journal in an interview that published Friday, 13 January 2017, that the US currency was too strong because China was keeping its own yuan weaker. Our companies can't compete with them now because our currency is too strong, and it's killing us, the president-elect said in the interview.
Among economic data in US, the Empire State index for January slipped to 6.5, from a revised 7.6 in December, which was an 8-month high. Any reading above zero indicates improving conditions. Meanwhile, New York Federal Reserve President William Dudley played down the role of inflation in monetary policy decisions. Dudley said inflation is simply not a problem and that a strong dollar would limit corporations' ability to raise prices.
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