Key benchmark indices held firm in mid-morning trade as reports suggesting that the Central Board of Direct Taxes put in abeyance its earlier circular that had raised foreign investors' concerns over a potential rise in tax liability under indirect transfer provisions perked up sentiment. At 11:25 IST, the barometer index, the S&P BSE Sensex, was up 140.32 points or 0.52% at 27,375.98. The Nifty 50 index was up 46 points or 0.55% at 8,444.
The Sensex rose 187.01 points or 0.68% at the day's high of 27,422.67 in mid-morning trade, its highest level since 13 January 2017. It gained 21.08 points or 0.07% at the day's low of 27,256.74 in early trade. The Nifty rose 62.30 points or 0.74% at the day's high of 8,460.30 in mid-morning trade, its highest level since 13 January 2017. It rose 5.65 points or 0.06% at the day's low of 8,403.65 in early trade.
After opening higher, key indices trimmed intraday gains after extending early gains in morning trade amid mixed Asian cues.
The BSE Mid-Cap index was up 0.61%. The BSE Small-Cap index was up 0.73%. Both these indices outperformed the Sensex. The broad market depicts strength with almost two gainers for every loser on the BSE. 1,540 shares rose and 784 shares declined. A total of 147 shares were unchanged.
As per reports, in a major relief to foreign portfolio investors (FPIs) in India, the Central Board of Direct Taxes (CBDT) yesterday, 17 January 2017, put in abeyance its 21 December 2016 circular that amplified their concerns over a potential rise in tax liability under India's controversial indirect transfer provisions. The move signalled the government's intent to spare small overseas investors in FPIs registered in India from paying taxes in India on redemption of shares/units.
Most realty stocks extended recent gains triggered by reports the government is looking to provide higher tax incentives on home loans to boost demand and prop up the faltering realty sector in the upcoming Budget 2017-18, that has been further hit by demonetisation. DLF (up 0.87%), Sobha (up 0.73%), Unitech (up 0.44%), and Oberoi Realty (up 0.46%), Indiabulls Real Estate (up 1.96%), D B Realty (up 1.56%) and Housing Development & Infrastructure (HDIL) (up 0.94%) gained. Godrej Properties declined 0.42%.
Meanwhile, the real estate industry reportedly has high expectation from the upcoming budget 2016-17. Stakeholders are reportedly demanding that central government gives relaxation in income tax rate, provide clarity on GST, raise house rent allowance (HRA) deduction and announce policies to standardize construction materials in order to uplift the real estate industry. Realtors' apex body National Real Estate Development Council (NAREDCO) demanded infrastructure status to housing.
Cement stocks gained across the board. ACC (up 1.06%), Shree Cement (up 1.29%), Ambuja Cements (up 1.81%), and UltraTech Cement (up 1.42%) gained.
Grasim Industries advanced 2.41%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Bharat Wire Ropes was locked at 5% upper circuit at Rs 86.20 after the company said that it has booked orders of about Rs 8 crore which also constitutes a defense order of about Rs 6.5 crore.
The company has bid for various projects and the outstanding bids/offers are for about Rs 60 crore, which are at various stages of evaluation. The announcement was made after market hours yesterday, 17 January 2017.
Quess Corp rose 0.55% after the company said that its shareholders approved the proposal to issue non-convertible debentures (NCDs) worth Rs 150 crore. The proposal was granted through a postal ballot process on 17 January 2017. The company's board had approved the NCD issue in its meeting held on 28 November 2016.
Meanwhile, the company said that a special committee will meet on 20 January 2017, to approve the terms of issuance of the NCDs. The committee will fix the dates for opening the offer to issue NCDs. The committee will fix issue price of the NCDs. The committee will appoint the debenture trustee for the issuance. The committee will also approve the other terms of the issuance. The announcement was made after market hours yesterday, 17 January 2017.
Vijaya Bank rose 0.38% after the bank successfully raised Basel-III compliant additional tier-1 bonds, Series IV of Rs 325 crore through private placement. The bonds carry coupon rate of 10.49% per annum. The announcement was made after market hours yesterday, 17 January 2017.
Hinduja Ventures rose 1.99% after the company said that it has disinvested its stake in Hinduja Energy (India). The company had invested in 6.11 crore shares of Hinduja Energy (India) at Rs 187.10 crore in November 2013. The company's board of directors had on 22 October 2016 and 22 December 2016 approved the disinvestment of its stake in Hinduja Energy (India).
Accordingly, the company has disinvested 6.11 crore shares of Hinduja Energy (India) at a profit and fully realised the sale proceeds. The announcement was made after market hours yesterday, 17 January 2017.
Overseas, Asian stocks were mixed as investors warily await President-elect Donald Trump's inauguration as the President later this week.
US stocks retreated yesterday, 17 January 2017, as investors remained cautious in the wake of President-elect Donald Trump's charge that a strong dollar is hurting the economy. Trump's comments on the dollar sent the currency sharply lower.
Trump reportedly told The Wall Street Journal in an interview that published Friday, 13 January 2017, that the US currency was too strong because China was keeping its own yuan weaker. Our companies can't compete with them now because our currency is too strong, and it's killing us, the president-elect said in the interview.
Among economic data in US, the Empire State index for January slipped to 6.5, from a revised 7.6 in December, which was an 8-month high. Any reading above zero indicates improving conditions. Meanwhile, New York Federal Reserve President William Dudley played down the role of inflation in monetary policy decisions. Dudley said inflation is simply not a problem and that a strong dollar would limit corporations' ability to raise prices.
UK Prime Minister Theresa May in a speech indicated Britain will press for a firm exit from the European Union. May said she'll put the terms of the country's exits from the EU to a parliamentary vote. Setting out a vision that could determine Britain's future for generations and the shape of the EU itself, May answered criticism that she has been coy about her strategy with a 12-point plan for what has been dubbed a "hard Brexit".
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
