Key equity indices firmed up once again in mid-morning trade amid fresh buying support. At 11:22 IST, the barometer index, the S&P BSE Sensex, was up 267.12 points or 0.75% at 35,917.06. The Nifty 50 index was up 71.60 points or 0.67% at 10,801.45. The sentiment was strong amid positive global cues.
The Nifty was trading a tad above 10,800 mark after opening above that level. The Sensex was trading below 36,000 mark after opening above that level.
The key indices jumped at opening trades and advanced further. However, the indices came off day's high in morning trade as profit selling emerged at higher levels. The indices firmed up once again in mid-morning trade amid fresh buying support.
Among secondary barometers, the BSE Mid-Cap index was up 0.31%. The BSE Small-Cap index was up 0.66%.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1393 shares rose and 556 shares fell. A total of 113 shares were unchanged.
Shares of the state-run oil marketing companies (PSU OMCs) fell after Brent crude prices bounced back overnight. BPCL (down 2.17%), HPCL (down 1.93%), and Indian Oil Corporation (IOCL) (down 0.97%) declined.
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In the global commodities markets, Brent for February 2019 settlement jumped $4 a barrel or 7.93% to settle at $54.47 a barrel during the previous trading session.
Higher crude oil prices could increase under-recoveries of public-sector undertaking oil marketing companies (PSU OMCs) on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
Auto shares were in demand. Escorts (up 2.25%), Mahindra & Mahindra (up 1.19%), Eicher Motors (up 0.97%), Tata Motors (up 0.85%), Maruti Suzuki India (up 0.61%), Ashok Leyland (up 0.53%), Bajaj Auto (up 0.21%) and Hero MotoCorp (up 0.08%), edged higher. TVS Motor Company was down 0.62%.
FMCG major Hindustan Unilever (HUL) rose 0.61% after the company said it is considering legal options after GST authority found it guilty of not passing on rate cut benefits to consumers. The announcement was made after market hours yesterday, 26 December 2018.
In clarification to media report indicating GST authority has found HUL guilty of profiteering Rs 383 crore, HUL clarified that the National Anti Profiteering Authority (NAA) has passed an order against the company on 24 December 2018 for depositing an amount of Rs 223 crore.
HUL has always maintained that the GST is a progressive reform which will benefit consumers and the industry at large. In the absence of set rules and guidelines on profiteering, HUL has gone by the spirit of the law, and passed on the entire benefit received under GST to consumers - either through reduction in prices or through increase in grammage. In addition, HUL had taken many steps as a matter of good governance and by keeping consumers interest in mind. HUL kept the Government informed of the approach and the manner that it had adopted in passing on the GST benefits to consumers.
The NAA order refers to the need to pass on the benefit of reduction in rates to consumers which is fully consistent with HUL's stand and actions. However, it makes a narrow interpretation of the law and does not take into account well established industry practice backed by law. Also, no methodology has been determined by NAA as required under law to determine if benefit has been passed or not. Given there is divergence on some basic issues, HUL will, consider legal options available to it. There is no material impact of the demand and as well as this article on the company, HUL said.
Meanwhile, the Reserve Bank of India (RBI) on Wednesday constituted an expert committee to review the extant economic capital framework of the central bank. The committee will be headed by Bimal Jalan, former RBI governor, while Rakesh Mohan, former deputy governor and former DEA (Department of Economic Affairs) secretary, is the vice chairman of the committee.
Overseas, Asian shares rose across the board on Thursday following an overnight surge in stocks on Wall Street.
In US, the Dow logged a 1,000-point gain as equities roared back from oversold conditions. Shoppers delivered the strongest holiday sales increase for US retailers in six years, according to Mastercard Spending Pulse, which tracks online and in-store spending with all forms of payment.
On the US data front, the Case-Shiller 20-city price index rose a seasonally adjusted 0.4% in October, while the year-over-year advance fell to 5% from a revised 5.2% in September.
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