The barometer index, the S&P BSE Sensex extended losses and hit fresh intraday low while the Nifty 50 index hovered near the intraday low in mid-afternoon trade. At 14:20 IST, the Sensex was down 53.57 points or 0.19% at 27,652.66. The Nifty was currently down 21.80 points or 0.26% at 8,523.05.
The Sensex fell 65.57 points or 0.23% at the day's low of 27631.94 in mid-afternoon trade, its lowest level since 11 July 2016. The barometer index rose 224.40 points or 0.81% at the day's high of 27,921.91 at the onset of trading session. The Nifty declined 25.35 points or 0.29% at the day's low of 8,519.50 in early trade, its lowest level since 25 July 2016. The index rose 56.55 points or 0.66% at the day's high of 8,601.40 at the onset of trading session.
The market breadth indicating the overall health of the market turned negative from positive in mid-afternoon trade. On BSE, 1,320 shares fell and 1,253 shares rose. A total of 164 shares were unchanged. The BSE Mid-Cap index was currently down 0.09%. The decline in this index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index was currently up 0.06%, outperforming the Sensex.
The Rajya Sabha yesterday, 3 August 2016 passed the Goods and Services Tax (GST) constitutional amendment bill which the Lok Sabha had already approved last year. With the Rajya Sabha clearing the constitution amendment bill for introduction of the GST, the amended GST bill once again will have to be ratified by the Lok Sabha. Once amendments to the bill are passed in the Lok Sabha it will later go to the state assemblies for clearance. Atleast 50% of the states must approve the legislation.
A key task for the proposed GST Council now will be determining the rate of taxation. A decision on the tax rate will have to be ratified by a three-fourth majority of the centre and the states. As per the proposed legislation, the centre will have one-third weightage on its vote and states will have two-third weightage. In its report submitted to the government last December, a panel headed by Chief Economic Adviser Arvind Subramanian had recommended a revenue-neutral rate (RNR) of GST of 15-15.5%, with a standard rate of 17-18% that is to be levied on most goods and all services.
The main objective of the GST is to eliminate excessive taxation. GST is a uniform indirect tax levied on goods and services across a country. The measure would harmonize 11 state and central levies into a national sales tax, reducing business transaction costs.
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In overseas stock markets, European and Asian stocks edged higher as crude oil held onto its recovery and high-yielding currencies climbed. The Bank of England is expected to cut benchmark interest rates after a monetary policy meet later in the global day today, 4 August 2016 in reaction to a string of data pointing to a sharp economic downturn following the UK's vote to leave the European Union. US stocks edged higher yesterday, 3 August 2016 as energy companies climbed with the price of oil. A survey showed that hiring by private companies continued at a solid but uninspiring clip in July.
Shares of power generation and power distribution companies were mixed. NHPC (up 0.2%), Power Grid Corporation of India (up 1.42%), and Reliance Infrastructure (up 0.45%) gained. Torrent Power (down 0.98%), Adani Power (down 0.94%) and Reliance Power (down 0.39%) declined.
NTPC gained 0.95% after the company announced that it has launched an issue of Rs 2000 crore notes due 2021 priced yesterday, 3 August 2016. The notes carry a coupon of 7.375% per annum payable annually. The notes will mature on 10 August 2021 and all Rupee denominated principal and interest payments will be made in US dollars. The notes are expected to be settled by 10 August 2016. The notes are being issued as green masala bonds and the proceeds will be used for financing investments in renewable energy projects like solar and wind energy projects. The announcement was made during market hours today, 4 August 2016.
Shares of PSU Coal mining major Coal India declined 1.03%.
Capital goods stocks were also mixed. Bharat Heavy Electricals (Bhel) (down 0.6%) and L&T (down 0.77%) declined. BEML (up 1.42%), Havells India (up 2.32%), Thermax (up 0.59%), and Crompton Greaves (up 3.06%) gained.
Siemens rose 0.05% after the company received an order worth about Rs 217 crore from Power Grid Company of Bangladesh project from Siemens AG, Germany. The announcement was made after market hours yesterday, 3 August 2016. The latest order is for supply of 400 kilovolt (kV)/230 kV switch yard equipments, reactors, power transformers, fire fighting systems, air-conditioning systems, auxiliary power system, building management systems, illumination systems, AC control and protections, engineering for civil and plant for 500 megawatts (MW) high voltage direct current (HVDC) station. The project is a part of India Bangladesh agreement for power exchange as per South Asia Sub Regional Economic Co-operation (SASEC) by Asian Development Bank (ADB), Siemens said.
Capital First rose 1.37% after consolidated net profit increased 48.4% to Rs 49.16 crore on 56.1% increase in total income to Rs 621.80 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 3 August 2016.
Entertainment Network (India) fell 3.28% after consolidated net profit dropped 41.6% to Rs 16.66 crore on 1.1% rise in total income to Rs 115.79 crore in Q1 June 2016 over Q1 June 2015. The result was announced before market hours today, 4 August 2016.
Pricol surged 10.35% after net profit jumped 1252.4% to Rs 22.18 crore on 38.7% increase in total income to Rs 319.88 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 3 August 2016. Vikram Mohan, Managing Director, Pricol said that the Q1 June 2016 results were better than expected, primarily due to sustained efforts to reduce costs, gain in market share and increased productivity.
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