Amid lacklustre trade witnessed so far, movement of key indices was restricted within a tight range around the flat line in morning trade amid mixed Asian cues. At 10:20 IST, the barometer index, the S&P BSE Sensex, was almost unchanged at 27,257.84. The Nifty 50 index was down 6.10 points or 0.07% at 8,410.90.
The BSE Mid-Cap index was up 0.15%. The BSE Small-Cap index was up 0.17%. Both these indices outperformed the Sensex. The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,054 shares rose and 897 shares declined. A total of 116 shares were unchanged.
Some PSU stocks gained. IDBI Bank (up 2.43%), GAIL (India) (up 1.01%), ONGC (up 0.66%), NTPC (up 0.64%), Engineers India (up 0.43%) and NMDC (up 0.14%) gained.
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi yesterday, 18 January 2017, gave its approval to alternative mechanism, who would decide on the quantum of disinvestment in a particular Central Public Sector Undertaking (CPSE) on a case by case basis subject to Government retaining 51% equity and management control.
This is in addition to the present functions performed by alternative mechanism as has been approved by CCEA in August 2014. This would reduce speculation and overhang and expedite the disinvestment process.
Most realty stocks extended recent gains triggered by reports the government is looking to provide higher tax incentives on home loans to boost demand and prop up the faltering realty sector in the upcoming Budget 2017-18, that has been further hit by demonetisation. DLF (up 0.01%), Sobha (up 0.78%), Oberoi Realty (up 0.28%), D B Realty (up 0.36%) and Housing Development & Infrastructure (HDIL) (up 0.08%) gained. Godrej Properties (down 0.45%), Unitech (down 0.22%), and Indiabulls Real Estate (down 0.48%) declined.
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Meanwhile, the real estate industry reportedly has high expectation from the upcoming budget 2016-17. Stakeholders are reportedly demanding that central government gives relaxation in income tax rate, provide clarity on GST, raise house rent allowance (HRA) deduction and announce policies to standardize construction materials in order to uplift the real estate industry. Realtors' apex body National Real Estate Development Council (NAREDCO) demanded infrastructure status to housing.
Agro Tech Foods jumped 13.68% after net profit rose 28.8% to Rs 8.27 crore on 2.7% increase in net sales to Rs 207.57 crore in Q3 December 2016 over Q3 December 2015. The result was announced after market hours yesterday, 18 January 2017.
Meanwhile, the Cabinet Committee on Economic Affairs (CCEA) has given its 'in principle' approval for listing of five public sector general insurance companies (PSGICs) on the stock exchanges viz. The New India Assurance, United India Insurance Company, Oriental Insurance Company, National Insurance Company and General Insurance Corporation of India. The shareholding of these PSGICs will be divested from 100% to 75% in one or more tranches over a period of time, as per the press release issued by the government at the fag end of market hours yesterday, 18 January 2017
Overseas, Asian stocks were mixed. The Dow Industrial Average yesterday, 18 January 2017, closed at the lowest level of 2017, marking a fourth straight day in the red for the blue-chip gauge, but the broader stock market managed modest gains. Federal Reserve Chairwoman Janet Yellen said she expects rate hikes a few times a year until the end of 2019.
Among economic data in US, industrial output accelerated last month at its strongest pace in two years. The housing-market index from the National Association of Homebuilders showed that builder sentiment slipped in January after notching its highest reading of the business cycle in December. Despite the drop, the January number was the second-highest reading of the cycle.
Wall Street trading over the past several days has been subdued as investors await signs that the stock-market rally that followed President-elect Donald Trump's November election victory, supported by his campaign promises to increase fiscal spending, cut taxes and roll back regulations, is based in reality and underpinned by solid corporate quarterly results.
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