Key benchmark indices provisionally settled with small losses after a rangebound and lackluster session of trade as lower European stocks dampened sentiment. The barometer index, the S&P BSE Sensex, declined 52.51 points or 0.19% at 27,235.66, as per the provisional closing data. The Nifty 50 index shed 22.95 points or 0.27% at 8,389.85, as per the provisional closing data. Profit booking emerged after last week's solid surge in indices as investors maintained caution ahead of British Prime Minister Theresa May's speech on Brexit later today, 17 January 2017.
Trading was restricted within a tight range around the flat line throughout the session. Early gains supported by reports of a significant breakthrough on Goods & Services Tax front between the Centre and the states amid mixed Asian cues, soon faded and key indices slipped into the red in morning trade. Indices later languished in the negative terrain with lower European stocks adding to the gloom towards the fag end of the session.
The BSE Mid-Cap index was provisionally unchanged. The BSE Small-Cap index provisionally gained 0.33%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was almost even. On the BSE, 1,379 shares declined and 1,365 shares rose. A total of 177 shares were unchanged.
The total turnover on BSE amounted to Rs 3,043.95 crore, slightly higher than turnover of Rs 3032.20 crore registered during the previous trading session.
Most metal & mining stocks declined. Jindal Steel & Power (down 1.77%), Vedanta (down 3.12%), Tata Steel (down 0.88%), Hindalco Industries (down 0.96%), JSW Steel (down 1.58%), Hindustan Zinc (down 0.51%), Bhushan Steel (down 0.94%), NMDC (down 1.11%), and National Aluminium Company (down 2%) edged lower. Steel Authority of India rose 0.68%.
The steel ministry has reportedly sought reduction in import duty on both coking coal and nickel -- vital components of steel making -- a move that may revive the sector, in the upcoming Budget 2017-18.
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Index heavyweight Reliance Industries (RIL) fell 3.53% after reporting small growth in profitability and drop in gross refining margin in Q3. The company's consolidated net profit rose 3.6% to Rs 7506 crore on 16.1% increase in turnover to Rs 84189 crore in Q3 December 2016 over Q3 December 2015.
The result was announced after market hours yesterday, 16 January 2017. The result is as per Indian Accounting Standards (Ind AS).
Increase in revenue is primarily on account of increase in prices of refining and petrochemical products led by 13% increase in Brent crude prices. Turnover was also boosted by robust growth in retail business.
Other income rose 12.13% to Rs 2736 crore in Q3 December 2016 over Q3 December 2015, primarily due to higher profit on sale of investments partially offset by lower interest income.
RIL's standalone gross refining margin (GRM) for Q3 December 2016 stood at $10.8 a barrel as against $11.5 a barrel in Q3 December 2015 and $10.1 a barrel in Q2 September 2016.
Meanwhile, Finance Minister Arun Jaitley reportedly said that in a significant breakthrough on Goods & Services Tax (GST) front, the Centre and the states reached a consensus on the contentious dual control issue preparing ground for the rollout of the biggest tax reform from 1 July 2017.
The Centre would assess 50% of the assessees under Rs 1.5 crore annual turnover and the states the other 50%. As much as 90% of the assessees with less than Rs 1.5 crore annual turnover will come under the states and the balance 10% under the Centre, report added. According to Jaitley, the whole process of preparing the draft laws and deciding the rate slabs will need time until March, which makes 1 July rollout a more realistic deadline than earlier 1 April.
The International Monetary Fund (IMF) yesterday, 16 January 2017, cut India's economic growth estimate for 2016-17 to 6.6% from its earlier projection of 7.6% due to the impact of the government's move to scrap some high value currency notes in early November.
The agency raised China's GDP growth estimate for 2016-17 to 6.7% from the earlier 6.5%. If the projections are realised then India risks losing the "fastest growing major economy" tag. IMF expects India's economy to recover and grow by 7.2% in 2017-18, still slower than the previous estimate of 7.6%. In 2018-19, it expects the Indian economy to grow by 7.7%.
Overseas, European stocks edged lower ahead of British Prime Minister Theresa May's speech on Brexit today, 17 January 2017. Investors will scrutinise May's speech for clues to whether she plans to prioritise immigration controls in a "hard Brexit" that some say could hurt UK's economy.
Asian stocks were mixed as US financial markets remained closed yesterday, 16 January 2017, for Martin Luther King Jr. Day crimping market activity.
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