 "Selling pressure prevails at D-Street; RIL, ONGC dip 1.5%")
Markets closed lower for the fourth session with ITC contributing the most to the decline after Arvind Subramanian-led GST panel suggested that tobacco products including cigarettes will see a 40% tax. The taxation is over 25% value added tax (VAT) already charged on current products.
Provisionally, the Sensex lost 72 points to end at 25,566 and the Nifty shed 17 points to close at 7,765.
________________________(updated at 2:50 PM)
Markets continue to reel under pressure for the fourth session with ITC contributing the most to the decline after Arvind Subramanian-led GST panel suggested that tobacco products including cigarettes will see a 40% tax. The taxation is over 25% value added tax (VAT) already charged on current products.
Meanwhile, energy majors ONGC and RIL have cracked after OPEC decided to keep the output targets unchanged.
At 2:50 PM, the Sensex is down by 128 points at 25,510 and the Nifty has lost 24 at 7,758. The broader markets are, however, outperforming their larger peers with BSE Midcap index is flat with negative bias and BSE Smallcap index is up 0.2%.
STOCKS IN FOCUS
Drug maker, Sun Pharma continues to remain the stellar performer in today’s subdued market gaining 3% extending its Friday’s rally of 4% after the company announced that one of its subsidiaries has received final approval from the US FDA for its ANDA for generic version of Gleevec, Imatinib Mesylate tablets 100mg and 400mg.
Meanwhile, shares of logistics companies saw an uptrend as they would directly benefit if the GST bill gets cleared in the ongoing winter session of the Parliament. Aegis Logistics, Blue Dart, and Gati surged between 0.5-2.5%.
Metal stocks are trading higher as stock specific action continues. Tata Steel is up 1.7% as the company is believed to nearing a deal to sell-off one of its UK steel plants, according to media reports.
Hindalco has climbed 0.5% after the company planned to sell its sole copper mine to focus on its smelting business in India.
Financials are witnessing an uptick on buying interest at attractive valuations. Axis Bank, HDFC twins and ICICI Bank gained nearly 0.5% each.
Another sector which is seeing an upward march is the realty sector after Godrej Properties announced that it has received a good response for the Mumbai project.
Sobha, Godrej Properties, Prestige Estates Projects, DB Realty, Housing Development and Infrastructure (HDIL), National Buildings Construction Corporation (NBCC) and Indiabulls Real Estate are up 1-6% .
On the flip side, sell-off is seen among all the cigarette makers. Godfrey Phillip, VST industries and ITC slipped between 4-8%.
Oil and Gas exploration majors ONGC and RIL dropped 1.5% after OPEC decided to keep the output targets unchanged.
Another notable loser is Coal India losing 2.5% as the company is likely to miss output target for 2015-16 by 10 likely to miss output target for 2015-16 by 10 mt.
The auto stocks are trading lower as investors book profits at higher levels. Maruti Suzuki, Tata Motors, Hero Motocorp and Bajaj Auto have lost between 0.1-1%.
