Amid expectations that a meeting between Prime Minister Narendra Modi and Congress president Sonia Gandhi will help break the impasse over the passage of the Goods and Services Tax (GST) constitutional amendment bill in parliament, key benchmark indices clocked modest gains. The barometer index, the S&P BSE Sensex, gained 169.57 points or 0.65% to settle at 26,128.20. The gains for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty gained 58.90 points or 0.75% to settle at 7,942.70. The Sensex reclaimed the psychological 26,000 mark. The Sensex and the Nifty, both, hit 3-week closing high. The two key benchmark indices witnessed intraday volatility.
Banking and metal sector stocks and index heavyweights L&T and Infosys led fresh upmove for the key benchmark indices which edged higher for the second trading session in a row. Expectations that the constitutional amendment bill on goods and services tax (GST) will be passed during the winter session of parliament aided fresh upmove on the domestic bourses. According to media reports, Modi will Gandhi today, 27 November 2015, evening to discuss the GST constitutional amendment bill and other bills to be debated during the winter session of parliament. The winter session of the parliament began yesterday, 26 November 2015, and will continue till 23 December 2015. Investors' focus is on whether the GST constitutional amendment bill will be passed in the Rajya Sabha. The constitutional amendment bill for the implementation of GST, which subsumes all indirect taxes to create a unified market across the country, has been cleared by the Lok Sabha and is awaiting legislative passage in the Rajya Sabha. A constitutional amendment bill requires a majority of two thirds in the house for its passage. The BJP-led NDA has a comfortable majority in Lok Sabha, but lags in numbers in the Rajya Sabha. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. Central taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST. At the state level, taxes like VAT/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. would be subsumed in GST.
The Sensex gained 169.57 points or 0.65% to settle at 26,128.20, its highest closing level since 6 November 2015. The barometer index jumped 226.02 points or 0.87% at the day's high of 26,184.65. The Sensex lost 21.31 points or 0.08% at the day's low of 25,937.32.
The Nifty gained 58.90 points or 0.75% to settle at 7,942.70, its highest closing level since 6 November 2015. The Nifty rose 75.50 points or 0.95% at the day's high of 7,959.30. The index lost 4.35 points or 0.05% at the day's low of 7,879.45.
The market breadth indicating the overall health of the market was positive. On BSE, 1,390 shares rose and 1,251 shares fell. A total of 227 shares were unchanged.
The BSE Mid-Cap index rose 0.46%. The BSE Small-Cap index rose 0.32%. Both these indices underperformed the Sensex.
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The total turnover on BSE amounted to Rs 2553 crore, lower than turnover of Rs 2854.66 crore registered during the previous trading session.
Index heavyweight and software major Infosys advanced 1.41% to Rs 1,068. The stock hit high of Rs 1,069.65 and low of Rs 1,046.20 in intraday trade.
Bank stocks logged gains across the board. Among private bank stocks, HDFC Bank (up 1.34%), Kotak Mahindra Bank (up 1.66%), ICICI Bank (up 1.76%), Axis Bank (up 1.16%), IndusInd Bank (up 0.84%) and Yes Bank (up 1.66%) gained.
Among PSU bank stocks, State Bank of India (SBI) (up 2.66%), Punjab National Bank (up 3.44%), Bank of Baroda (up 5.23%), Canara Bank (up 3.26%), IDBI Bank (up 4.15%), Bank of India (up 3.13%) and Union Bank of India (up 4.84%) advanced.
Meanwhile, according to the latest quarterly statistics released by the Reserve Bank of India (RBI), the growth in aggregate deposits and gross bank credit of commercial banks decelerated to 10.2% and 8.9%, respectively, in September 2015 from 12.3% and 9.5%, respectively, a year ago. The deceleration was in deposit and credit growth was broad based across population groups except for constant deposits growth in semi-urban areas and accelerated growth in gross bank credit in urban areas.
Hero MotoCorp rose 0.87% to Rs 2,704 amid volatility after a bulk deal was executed in the counter on NSE yesterday, 26 November 2015. The stock hit high of Rs 2,714.05 and low of Rs 2,660.50 in intraday trade. Bain Capital India Private Investors II offloaded 27.50 lakh shares of the company at Rs 2,591.25 per share in a bulk deal on the NSE yesterday, 26 November 2015. Morgan Stanley Asia (Singapore) Pte bought 16.90 lakh shares of Hero MotoCorp at Rs 2,590 per share on the NSE yesterday, 26 November 2015.
Metal and mining stocks edged higher on renewed buying. Vedanta (up 1.99%), Tata Steel (up 1.71%), Steel Authority of India (Sail) (up 3.06%), National Aluminium Company (up 1.53%), Hindustan Zinc (up 0.35%), NMDC (up 1.37%) and Hindustan Copper (up 3.28%) edged higher. JSW Steel (down 2.46%) and Jindal Steel & Power (down 0.39%) fell.
Hindalco Industries rose 3.53% after reports that the Jharkhand state government would soon allow the company to commence mining in Hisri. The state government had ordered the closure of five bauxite mines belonging to company back in September 2014 as part of its drive to crack down on mines running on temporary or deemed leases, report added.
Capital goods stocks edged higher. Bharat Heavy Electricals (Bhel) (up 1.41%), BEML (up 6.05%), Crompton Greaves (up 2.87%), ABB India (up 0.3%) and Thermax (up 1.27%) gained.
Index heavyweight and engineering and construction major L&T gained 2.32% to Rs 1,365. The stock hit high of Rs 1,366 and low of Rs 1,336.80 in intraday trade.
Siemens rose 0.68%. Siemens' profit after tax before exceptional items rose 13.5% to Rs 173 crore in Q4 September 2015 over Q4 September 2014. Revenue from continuing operations rose 10.9% to Rs 3231.30 crore in Q4 September 2015 over Q4 September 2014. It may be recalled that Siemens hived off its Metal Technologies business with effect from the close of business on 31 December 2014. The company announced the fourth quarter results after trading hours today, 27 November 2015.
Telecom stocks declined. Idea Cellular (down 2.24%), Bharti Airtel (down 0.26%), MTNL (down 3.25%), Tata Teleservices (Maharashtra) (down 1.42%) and Reliance Communications (down 0.47%) edged lower.
Ashok Leyland rose 3.77% after the company signed a contract with the government of Cote D'Ivoire for supply of 3,600 vehicles worth $200 million. The vehicles, which include trucks and buses, will be delivered over the next 12 months, Ashok Leyland said. The announcement was made after market hours yesterday, 26 November 2015.
Welspun Corp jumped 9.48% after the company said that it has won an order for supply of 216 kilometric tonne line pipes for an onshore project in America. Welspun Corp said that with the addition of this order, current order book of the company has crossed 1040 kilometric tonne worth Rs 6400 crore. The company made announcement after market hours yesterday, 26 November 2015.
PTC India lost 1.42% to Rs 66.10 after Citigroup Global Markets Mauritius sold 20.64 lakh shares of the company at an average price of Rs 66.61 per share in a bulk deal on the NSE yesterday, 26 November 2015.
SKS Microfinance surged 7.55%. The company has announced a reduction in the interest rate charged to borrowers from 20.75% to 19.75% with effect from 7 December 2015 for all future disbursals. The company made announcement before market hours today, 27 November 2015
Astra Microwave Products rose 1.43% after the company said that it has entered into memorandum of understanding to form a 50:50 joint venture company with Unique Broadband Systems, Canada to conduct business in the areas of ultra-high frequency (UHF) broadcasting, satellite up linking and medical imaging products for Indian and other regional markets specially South Asia and Russian Federation. The company made announcement during market hours today, 27 November 2015.
In overseas stock markets, reports of Chinese authorities' investigations into two major Chinese brokerages over suspected violations sent stocks tumbling in mainland China. The Shanghai Composite ended 5.48% lower. In Hong Kong, the Hang Seng index lost 1.87%. European stocks reversed initial losses triggered by a sharp slide in Chinese equities.
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