Key benchmark indices reversed direction and hit fresh intraday low in the negative terrain in mid-morning trade. At 11:25 IST, the barometer index, the S&P BSE Sensex, was down 52.52 points or 0.19% at 27,235.65. The Nifty 50 index was down 12.10 points or 0.14% at 8,400.70.
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.
Buying momentum continued in mid-cap and small-cap counters. The BSE Mid-Cap index was up 0.17%. The BSE Small-Cap index was up 0.42%. Both these indices outperformed the Sensex. The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,272 shares rose and 1,008 shares declined. A total of 138 shares were unchanged.
Most metal & mining stocks declined. Jindal Steel & Power (down 1.39%), Vedanta (down 1.83%), Tata Steel (down 1.17%), Hindalco Industries (down 1.07%), JSW Steel (down 1.24%), Hindustan Zinc (down 0.4%) and National Aluminium Company (down 1.5%) edged lower. Bhushan Steel (up 0.35%), NMDC (up 0.24%), and Steel Authority of India (up 0.34%) gained.
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.
Capital goods stocks were mixed. Bharat Heavy Electricals (Bhel) (up 0.04%), L&T (up 0.34%), and Thermax (up 0.84%) gained. Siemens (down 0.11%), Havells India (down 0.3%), ABB India (down 0.24%), and Bharat Electronics (down 0.21%) declined.
TeamLease Services jumped 4.21% after the company said that it has signed a definitive agreement to acquire 100% shares in Keystone Business Solutions, a company incorporated under Companies Act, 1956 through its wholly owned subsidiary, TeamLease Staffing Services. The proposed acquisition does not fall within related party transaction and the promoters of the company have no interest in the entity proposed to be acquired. The consideration involved in the transaction is Rs 8.2 crore payable in cash. The indicative time period for completion of the acquisition is on or before 31 January 2017.
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Keystone Business Solutions was incorporated on 25 June 2009. It offers staffing solutions. It operates through its registered office situated in Bangalore. The announcement was made after market hours yesterday, 16 January 2017.
Suzlon Energy rose 3.22% after the company achieved the 10,000 megawatts (MW) cumulative wind energy installations in India (over 7,500 wind turbines installed pan-India). Suzlon's 10,000 MW of wind installation is capable of powering over 5 million households per annum and offsets approximately 21.5 million tonnes of Carbon Dioxide (CO2) emission annually which is equivalent to planting over 150 crore trees. The announcement was made after trading hours yesterday, 16 January 2017.
Suzlon said it will focus on continuous research and development (R&D) to harness technology and reduce levelised cost of energy by increasing plant load factor (PLF) and making low wind sites viable. Suzlon has witnessed an overhaul in terms of technology and its wide range of products is testament towards the same. Suzlon's end to end solutions approach and presence across entire value chain from concept to commissioning, proven execution capabilities and dedicated life cycle asset management service provider gives it a strong competitive advantage over its peers, the company added.
Delta Corp gained 1.52% after the company said that it was issued a licence for operating a casino in Gangtok, Sikkim, under the Sikkim Casino (Control &Tax) Act, 2002. The company is fully ready to commence its casino operations and will do so immediately. The announcement was made after market hours yesterday, 16 January 2017.
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.
Overseas, Asian stocks were mixed as US financial markets remained closed yesterday, 16 January 2017, for Martin Luther King Jr. Day crimping market activity.
British Prime Minister Theresa May will address 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.
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