Key benchmark indices held firm in mid-morning trade. At 11:20 IST, the barometer index, the S&P BSE Sensex, rose 124.48 points or 0.36% at 34,895.53. The Nifty 50 index advanced 30.90 points or 0.29% at 10,731.35. Reduction in additional borrowing by the government and expectations of big ticket changes in the Goods and Services Tax in the GST council's next meet boosted sentiment. Indices bucked weak trend in Asian stocks.
Indices opened slightly lower and swung between gains and losses in early trade. Stocks extended gains and hit fresh intraday high in morning trade and held firm in mid-morning trade.
Among the secondary indices, the S&P BSE Mid-Cap index fell 1.74%. The S&P BSE Small-Cap index dropped 2.21%. Both these indices underperformed the Sensex.
Broad market depicted weakness. There were more than two losers for every gainer on BSE. 1,702 shares declined and 842 shares rose. A total of 104 shares were unchanged.
Cement stocks were mixed. ACC (down 0.33%), Shree Cement (down 0.23%), and Ambuja Cements (down 0.13%) declined. UltraTech Cement rose 0.55%.
Grasim Industries rose 0.96%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Realty stocks declined. Sobha (down 2.26%), Indiabulls Real Estate (down 1.76%), Unitech (down 2.69%), Oberoi Realty (down 1.31%), DLF (down 0.51%), and D B Realty (down 1.81%) edged lower.
Severely impacted by various reforms like RERA, GST and demonetisation, the realty sector is reportedly pinning its hopes on Budget 2018-19 for relief measures like lower taxes and infrastructure status for the sector. Industry players are expecting rationalisation of the GST rates from the current 12% to 6% and bringing stamp duty under the ambit of GST. Single window clearances for all approvals and additional tax incentives for first time home buyers are also expected.
Hatsun Agro Product lost 4.44% after net profit dropped 52.67% to Rs 14.98 crore on 7.06% rise in total income to Rs 1014.13 crore in Q3 December 2017 over Q3 December 2016. The result was announced after market hours yesterday, 16 January 2018.
J B Chemicals & Pharmaceuticals rose 3.15% after the company announced receipt of European GMP approval for its formulation facilities at Panoli in Gujarat from Medicines Authority of Malta. The inspection is outcome of a successful current good manufacturing practice (cGMP) inspection carried out in September/October 2017. The announcement was made before market hours today, 17 January 2018.
According to the certificate received, dosage formulations including capsules, liquids (for internal use), semi solids (topical preparations like ointments, creams and gels) and tablets are found to be good manufacturing practice (GMP) compliant for manufacturing and testing.
On the macro front, the government has cut its additional market borrowing requirement by more than half for the fiscal year ending in March 2018 to Rs 20000 crore ($3.13 billion), Economics Affairs Secretary S.C. Garg reportedly said. Last month, the finance ministry had said that the government is likely to borrow additional Rs 50000 crore ($7.79 billion) in 2017/18 fiscal year that ends in March 2018.
Meanwhile, country's six-month old revamped indirect tax system is reportedly set to undergo significant changes, which will include simplification of return filing process, amendment in laws and rules to simplify procedures, along with rate cuts of around 70 goods and services. The Goods and Services Tax (GST) Councilthe apex body for decision making headed by finance minister Arun Jaitleyis reportedly likely to consider the big bang recommendations from states and various officers' panel in its next meeting tomorrow, 18 January 2018.
Overseas, Asian stocks stepped back from a record high as the region's resource shares were dented by falling oil and commodity prices while digital currencies tumbled on worries about tighter regulations.
Japanese orders for machinery surged to their highest level in a decade in November. Cabinet Office data showed core orders, a highly volatile data series regarded as an indicator of capital spending in the coming six to nine months, grew 5.7% in November from the previous month.
US benchmark indices pulled back from lifetime highs set earlier in the session to end mostly lower yesterday, 16 January 2018, on likely profit booking amid concerns over the possibility of a government shutdown. On the data front, the Empire State manufacturing survey slipped to 17.7 in January from a revised 19.6 in December, the New York Fed said.
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