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Sensex, Nifty trade near record high; breadth turns negative

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Capital Market
Last Updated : Dec 19 2019 | 2:50 PM IST

Key barometers were trading near record high levels in mid-afternoon trade. Buying was triggered by China exempting more US goods from tariffs after trade deal.

Beijing released a list Thursday of products that will no longer be subject to the tariffs, including certain types of industrial glue and adhesives, industrial polymers and types of paraffin, which can be found in cosmetics and food. The exemptions will come into force from December 26 until December 25 next year, according to a statement from the Customs Tariff Commission of the State Council.

In September 2019, China said it would exempt 16 categories of US products from tariffs including seafood items and anti-cancer drugs.

At 14:23 IST, the barometer index, the S&P BSE Sensex, was up 97.54 points or 0.25% at 41,662.34. The index hit a record high of 41,685.02.

The Nifty 50 index was up 29.80 points or 0.24% at 12,251.45. The index hit a record high of 12,261.25.

The S&P BSE Mid-Cap index was up 0.02% while the S&P BSE Small-Cap index rose 0.14%.

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The market breadth turned negative. On the BSE, 1121 shares rose and 1217 shares fell. A total of 171 shares were unchanged. In Nifty 50 index, 21 stocks advanced while 29 stocks declined.

Economy:

The 38th meeting of the Goods and Services Tax (GST) Council under the Chairmanship of the Union Minister for Finance & Corporate Affairs Nirmala Sitharaman took place on Wednesday (18 December 2019).

The council decided to tax woven and non-woven bags at 18%, compared with 12% at present. It exempted from tax the upfront amount payable for long-term lease of industrial and financial infrastructure plots by any entity that is owned 20% or more by the Centre or state governments. Presently, the exemption is available to an entity having 50% or more ownership of Central or State Government. This change shall become effective from 1 January 2020.

On lotteries, the new unified rate of 28% will be applicable from 1 March 2020. The tax is levied on the face value of the lottery tickets, inclusive of the prize money to be distributed to the winners, margin of agents, retailers and distributors.

Stocks in Spotlight:

Lupin advanced 0.64% to Rs 771. The company's alliance partner Concord Biotech has received the United States Food and Drug Administration (USFDA)'s approval for Mycophenolic Acid delayed-release tablets USP, 180 mg and 360 mg. The drug is a generic equivalent of Myfortic tablets of Novartis Pharmaceuticals Corporation.

In a separate announcement during market hours today, Lupin said it launched Doxercalciferol injection, 4 mcg/2 ml (2 mcg/mL) multi-dose vials, having received an approval from the United States Food and Drug Administration (USFDA) earlier. Doxercalciferol injection is the therapeutic generic equivalent of Sanofi Genzyme's Hectorol Injection.

MRPL slipped 0.97% to Rs 41.05. The scrip has lost 13.56% in ten consecutive trading sessions from its previous closing high of Rs 47.20 on 5 December 2019.

Numbers to Track:

The yield on 10-year benchmark federal paper rose to 6.707% at 14:19 IST compared with 6.705% in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 71.0950, compared with its close of 70.9750 during the previous trading session.

In the commodities market, Brent crude for February 2020 settlement was down 7 cents at $66.10 a barrel. The contract rose 7 cents or 0.10% to settle at $66.17 a barrel during the previous trading session. Crude oil prices declined as US industry data showed a rise in crude stockpile.

MCX Gold futures for 5 February 2019 settlement rose 0.06% to Rs 37,933 .

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First Published: Dec 19 2019 | 2:25 PM IST

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