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Indices trade with tiny gains

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Capital Market
Last Updated : Jul 05 2017 | 9:47 AM IST

Key benchmark indices were trading with tiny gains after range bound early trade tracking small gains in Asian stocks. At 9:30 IST, the barometer index, the S&P BSE Sensex was up 14.32 points or 0.05% at 31,224.11. The Nifty 50 index was up 6.90 points or 0.07% at 9,620.20.

The S&P BSE Mid-Cap index rose 0.4%. The S&P BSE Small-Cap index gained 0.5%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was strong. On the BSE, 991 shares gained and 407 shares fell. A total of 71 shares were unchanged.

Index heavyweight Reliance Industries rose 0.93%.

Wipro declined 0.23%. The company announced that the company and Ramot, the business engagement centre at Tel Aviv University (TAU) formed a partnership for joint research in emerging technologies. The announcement was made before market hours today, 5 July 2017. TAU is Israel's largest institution of higher learning.

Mahindra & Mahindra (M&M) rose 0.76% after the company announced revised prices of its vehicles pursuant to the implementation of Goods & Services Tax (GST), with immediate effect. The announcement was made after market hours yesterday, 4 July 2017.

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The prices of vehicles for end-customers on large utility vehicles (UVs) and sports utility vehicles (SUVs) have been reduced by an average of 6.9%, while those that come under small car segment have been reduced by an average of 1.4%. Similarly, end-customer prices have been reduced by an average of 1.1% for small commercial vehicles and 0.5% for light commercial vehicles (LCVs) and heavy commercial vehicles (HCVs).

Since the GST rates on hybrid vehicles are significantly higher than that in the pre-GST regime, the prices for the end-customers of hybrid vehicles have been increased marginally. These price changes to end-customers will vary across states or even cities within a state, due to the differing levels of pre-GST local taxes.

The effect of the imposition of GST for tractors, which were not levied an excise duty, should be neutral given the input tax credits that would be available to original equipment manufacturers (OEMs). Hence there will be no change for end-customer prices for tractors.

ICICI Bank rose 0.19% after ICICI Prudential Life Insurance Company, India's only listed life insurance company and unit of ICICI Bank has confirmed its interest in buying the beleaguered Sahara Life's insurance business. The company confirmed that it has expressed its interest to evaluate taking over policyholders' liabilities and assets of Sahara Life. The last reported policyholders' liabilities of Sahara Life is about Rs 900 crore, which is less than 1% of the company's balance sheet size. The announcement was made after market hours yesterday, 4 July 2017.

On macroeconomic data front, Markit Economics will unveil the result of a monthly survey on the performance of India's services sector in June 2017 at 10:30 IST today, 5 July 2017. The Nikkei Services PMI in India rose to 52.2 in May 2017 from 50.2 in April 2017.

Overseas, most Asian stocks rose amid geopolitical concerns after North Korea launched a long-range ballistic missile. North Korea reportedly claimed today, 5 July 2017 the missile it launched yesterday, 4 July 2017 was an intercontinental ballistic missile capable of carrying a heavy nuclear warhead. The missile launched on Tuesday, 4 July 2017 landed in Japan's exclusive economic zone (EEZ).

On macroeconomic data front, the Caixin services Purchasing Managers' Index (PMI) showed on that growth in China's services sector slowed in June. The Caixin services PMI fell to 51.6 from the 52.8 figure seen in May. The June composite PMI, which takes into account both the services and manufacturing sectors, fell to 51.1 compared with the 51.5 number seen last month.

Activity in Japan's services sector accelerated from the previous month to expand at its fastest pace in almost two years, a private survey showed. The Markit/Nikkei Japan Services Purchasing Managers Index (PMI) rose to a seasonally adjusted 53.3 in June from 53 in May as new business, outstanding business and hiring expanded.

US markets were closed yesterday, 4 July 2017 for Independence Day.

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First Published: Jul 05 2017 | 9:29 AM IST

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