Banking and metal sector stocks and index heavyweights L&T and Infosys led fresh upmove for key benchmark. The barometer index, the S&P BSE Sensex, gained 184.99 points or 0.71% at 26,143.62, as per the provisional closing data. The Nifty 50 index gained 58.90 points or 0.75% at 7,942.70, as per the provisional closing data. The Sensex provisionally settled above the psychological 26,000 mark after alternately moving above and below that level in intraday trade. The Sensex surged to hit a 2-1/2-week high and the Nifty hit 3-week high in late trade. The two key benchmark indices witnessed intraday volatility. The Sensex jumped 226.02 points or 0.87% at the day's high of 26,184.65 in late trade, its highest level since 9 November 2015. The barometer index lost 21.31 points or 0.08% at the day's low of 25,937.32 in early trade. The Nifty rose 75.50 points or 0.95% at the day's high of 7,959.30 in late trade, its highest level since 6 November 2015. The index lost 4.35 points or 0.05% at the day's low of 7,879.45 in early trade.
The Sensex and the Nifty edged higher for the second trading session in a row. Expectations that the constitutional amendment bill on goods and services tax (GST) will be passed during the winter session of parliament aided fresh upmove on the domestic bourses. According to media reports, Prime Minister Narendra Modi will meet opposition Congress party leader Sonia Gandhi today, 27 November 2015, evening to discuss the GST constitutional amendment bill and other bills to be debated during the winter session of parliament. The winter session of the parliament began yesterday, 26 November 2015, and will continue till 23 December 2015. Investors' focus is on whether the GST constitutional amendment bill will be passed in the Rajya Sabha. The constitutional amendment bill for the implementation of GST, which subsumes all indirect taxes to create a unified market across the country, has been cleared by the Lok Sabha and is awaiting legislative passage in the Rajya Sabha. A constitutional amendment bill requires a majority of two thirds in the house for its passage. The BJP-led NDA has a comfortable majority in Lok Sabha, but lags in numbers in the Rajya Sabha. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. Central taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST. At the state level, taxes like VAT/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. would be subsumed in GST.
The market breadth indicating the overall health of the market was positive. On BSE, 1,383 shares rose and 1,247 shares fell. A total of 238 shares were unchanged. The BSE Mid-Cap index was provisionally up 0.46%. The BSE Small-Cap index was provisionally up 0.32%. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 2553 crore, lower than turnover of Rs 2854.66 crore registered during the previous trading session.
Index heavyweight and engineering and construction major L&T gained 2.32% to Rs 1,365. The stock hit high of Rs 1,366 and low of Rs 1,336.80 in intraday trade.
Index heavyweight and software major Infosys advanced 1.41% to Rs 1,068. The stock hit high of Rs 1,069.65 and low of Rs 1,046.20 in intraday trade.
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Bank stocks logged gains across the board. Among private bank stocks, HDFC Bank (up 1.34%), Kotak Mahindra Bank (up 1.66%), ICICI Bank (up 1.76%), Axis Bank (up 1.16%), IndusInd Bank (up 0.84%) and Yes Bank (up 1.66%) gained.
Among PSU bank stocks, State Bank of India (SBI) (up 2.66%), Punjab National Bank (up 3.44%), Bank of Baroda (up 5.23%), Canara Bank (up 3.26%), IDBI Bank (up 4.15%), Bank of India (up 3.13%) and Union Bank of India (up 4.84%) advanced.
Meanwhile, according to the latest quarterly statistics released by the Reserve Bank of India (RBI), the growth in aggregate deposits and gross bank credit of commercial banks decelerated to 10.2% and 8.9%, respectively, in September 2015 from 12.3% and 9.5%, respectively, a year ago. The deceleration was in deposit and credit growth was broad based across population groups except for constant deposits growth in semi-urban areas and accelerated growth in gross bank credit in urban areas.
In overseas stock markets, reports of Chinese authorities' investigations into two major Chinese brokerages over suspected violations sent stocks tumbling in mainland China. The Shanghai Composite ended 5.48% lower. In Hong Kong, the Hang Seng index lost 1.87%. European stocks reversed initial losses triggered by a sharp slide in Chinese stocks.
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