Key indices remained firm and traded with modest gains in mid-morning trade. At 11:20 IST, the barometer index, the S&P BSE Sensex, was up 121.08 points or 0.34% at 35,381.37. The Nifty 50 index was up 26.55 points or 0.25% at 10,843.55. Firmness in most Asian stocks and GST council in its latest meet slashing the tax rate on 54 services and 29 items and also simplifying return filing process for businesses boosted sentiment.
The market opened higher on firm Asian cues but soon slipped into the red in early trade. Recovery was soon materialized on the bourses in morning trade with indices hitting fresh intraday highs. Stocks held firm in mid-morning trade.
The S&P BSE Mid-Cap index was up 0.15%, underperforming the Sensex. The S&P BSE Small-Cap index was up 0.4% outperforming the Sensex.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,347 shares rose and 1,249 shares fell. A total of 106 shares were unchanged.
Capital goods stocks were mixed. Bharat Heavy Electricals (Bhel) (up 0.75%), Bharat Electronics (up 0.79%), and L&T (up 1.32%) gained. Havells India (down 0.62%), ABB India (down 0.91%), Thermax (down 0.61%), and Siemens (down 0.71%) declined.
Most IT stocks dropped. TCS (down 0.07%) and Infosys (down 1.42%) declined.
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Wipro declined 0.94% ahead of its Q3 results today, 19 January 2018.
Tech Mahindra fell 0.6%. The company said that it will acquire 17.5% stake in US-based Altiostar Networks for $15 million. Altiostar is a telecom software development company, having presence in 6 countries in Europe, APAC and Latam regions. The announcement was made after market hours yesterday, 18 January 2018.
HCL Technologies rose 0.43% after consolidated net profit rose 0.3% to Rs 2194 crore on 3% rise in revenue to Rs 12808 crore in Q3 December 2017 over Q2 September 2017. The announcement was made before market hours today, 19 January 2018.
From the upcoming union budget, the IT industry has been reportedly seeking that adjustments to past years' income emanating from advance price agreements (APAs) should be recognised as income of those years itself. Besides, equalisation levy should be treated as tax on income and be eligible for tax credit in a foreign country to the overseas online ad businesses. The industry is also seeking an extension in the exemptions granted to STP units in relation to procurements, as it used to be before the GST rollout.
Alembic jumped 8.47% after the company said that its board will meet on 23 January 2018 to consider buyback of equity shares. The announcement was made after market hours yesterday, 18 January 2018.
Meanwhile, the Union Finance Minister Arun Jaitley Chaired the 25th meeting of the GST Council in New Delhi yesterday, 18 January 2018. The Council has recommended certain changes in GST/IGST rate and clarifications in respect of GST rate on certain goods as per discussions in the 25th GST Council meeting. It slashed the tax rate on 54 services and 29 items, including old and used motor vehicles bio-diesel, while also simplifying return filing process for businesses. Certain policy changes have also been recommended by the GST Council.
Overseas, most Asian stocks gained although losses on Wall Street slowed the advance. Investors continue to watch the latest US budget battle on Capitol Hill, where uncertainly over a possible partial government shutdown this weekend continues. Legislation to avoid a US government shutdown at midnight on Friday advanced in Congress as the House of Representatives on Thursday night approved an extension of federal funds through 16 February, although the bill faced uncertain prospects in the Senate.
US stock benchmarks finished lower yesterday, 18 January 2018, pressured by worries over the possibility of a partial government shutdown, as investors sorted through a fresh batch of quarterly earnings results.
Among the macro data in US, first-time weekly jobless claims fell to a 45-year low, dropping by 41,000 to 220,000. Meanwhile, construction of new houses fell 8.2% in December to a 1.19 million annual rate. Permits for future construction were basically flat at 1.30 million. Still, permits, housing starts and the number of new homes completed all hit the highest levels since 2007. A gauge of Philadelphia-area manufacturing fell to five-month low of 22.2 in January, the Philadelphia Fed said.
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