Key benchmark indices extended losses and hit fresh intraday low in early afternoon trade, however, losses were small. At 12:20 IST, the barometer index, the S&P BSE Sensex, was down 76.24 points or 0.28% at 27,211.93. The Nifty 50 index was down 25.70 points or 0.31% at 8,387.10.
Trading was restricted within a tight range around the flat line so far. 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.
The BSE Mid-Cap index was down 0.06%. The decline in this index was lower than Sensex's drop in percentage terms. The BSE Small-Cap index was up 0.28%, outperforming the Sensex.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,222 shares rose and 1,197 shares declined. A total of 156 shares were unchanged.
Index heavyweight ITC rose 0.74% to Rs 250.65 on reports a foreign brokerage reiterated 'buy' call on the stock with a target price of Rs 290 a share after cigarette price hike. According to reports, ITC increased rates of two of its mid-market cigarettes by up to 15% in late December 2016.
Telecom stocks were mixed. Reliance Communications (RCom) (down 0.79%) and Idea Cellular (down 1.14%) declined. Bharti Airtel (up 0.09%) and Tata Teleservices (Maharashtra) (up 0.17%) gained.
Shares of Bharti Infratel fell 0.63%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Also Read
Cement stocks were also mixed. ACC (down 0.97%) and Ambuja Cements (down 0.77%) declined. Shree Cement (up 1.6%) and UltraTech Cement (up 1.34%) gained.
Grasim Industries declined 0.12%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Ester Industries rose 1.2% after the company announced its plans to invest Rs 50 crore to set up a research and development (R&D) and innovation complex at Gurgaon. This centre proposes to house 40 scientists/engineers who will be responsible for researching and developing breakthrough innovations, Ester Industries said. The announcement was made after market hours yesterday, 16 January 2017.
The company has also recently filed a new patent under PCT for a master batch to produce specialised polyester yarn, Ester Industries said. With this latest filing, the total patent tally becomes nine. The master batch is for a cationic dyeable yarn which offers value advantages both from a quality and cost perspective, the company said. The product offers deeper and darker colours at a far more competitive price, it said. This product has already been approved by some Indian entities and is believed to enjoy strong potential in China and Taiwan, it added.
Asian Oilfield Services rose 2.78% after the company said that it has received letter of award of contract from Oil India for 2D Seismic Data Acquisition in Manipur (Area-1) from the unappraised areas of North East India for an estimated contract value of Rs 142.86 crore.
The company has acknowledged the receipt of this letter of award and has initiated the acceptance and execution of the same. The announcement was made during trading hours today, 17 January 2017.
Crompton Greaves rose 0.31% after the company said that it has won a significant order of $105 million or around Rs 720 crore from PT PLN, the state-owned electricity company of Indonesia. The announcement was made during trading hours today, 17 January 2017.
The order encompasses manufacture and installation of power transformers ranging from 30 MVA, 70/20kV to 500 MVA, 500/150kv. CG's power transformers will be installed across PT PLN's transmission network, spread over multiple substations and power plants in Java, Sumatra, Kalimantan, Sulawesi and the Papua islands of the Indonesian archipelago.
Shriram EPC rose 2.08% after the company said that a meeting of the board of directors is scheduled on 19 January 2017, to consider the issuance of shares in lieu of the working capital term loan to the corporate debt restructuring (CDR) lenders based on reconciliation with the bankers. The board will also consider issuance of shares upto Rs 35 crore to a private limited company on preferential basis. 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.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content