Key benchmark indices trimmed losses in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex, fell 15.63 points or 0.05% at 33,545.92. The Nifty 50 index lost 6.50 points or 0.06% at 10,335.80. Lower European stocks weighed on sentiment.
Indices hovered between gains and losses near the flat line in early trade amid mixed Asian cues. Indices extended gains in mid-morning trade. Later, indices trimmed gains and slipped into negative zone in afternoon trade. The market trimmed losses in mid-afternoon trade amid drop in European stocks.
Earlier during the session, the Government constituting a task force to review the Income-tax Act, 1961 and to draft a new Direct Tax Law in consonance with economic needs of the country supported gains on the bourses.
Among secondary indices, the S&P BSE Mid-Cap index fell 0.14%. The S&P BSE Small-Cap index advanced 0.36%. Both theses indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was almost flat. On BSE, 1,299 shares rose and 1,274 shares declined. A total of 153 shares were unchanged.
Shares of power generation and power distribution companies were mixed. NHPC (down 0.37%), NTPC (down 1.07%), Adani Power (down 0.85%), Reliance Infrastructure (down 0.97%) and Reliance Power (down 1.3%) declined. Torrent Power (up 1.03%), Tata Power Company (up 0.16%), JSW Energy (up 3.69%), and Power Grid Corporation of India (up 0.92%) gained.
Shares of psu coal mining major Coal India dropped 0.75%.
Metal and mining stocks were also mixed. Jindal Steel & Power (down 1.62%), Vedanta (down 1.73%), Tata Steel (down 0.36%), Hindalco Industries (down 2.45%), and JSW Steel (down 0.48%) edged lower. National Aluminium Company (up 0.49%), Bhushan Steel (up 1.72%), NMDC (up 0.44%), Hindustan Zinc (up 0.08%) and Steel Authority of India (up 0.43%) gained.
On the macro front, in order to review the Income-tax Act, 1961 (the Act) and to draft a new Direct Tax Law in consonance with economic needs of the country, the Government yesterday, 22 November 2017, constituted a task force with Arbind Modi, Member (Legislation), CBDT-Convener. Dr. Arvind Subramanian, Chief Economic Adviser (CEA) will be a permanent special invitee in the task force.
The terms of reference of the task force is to draft an appropriate Direct Tax Legislation keeping in view; the direct tax system prevalent in various countries, the international best practices, the economic needs of the country and any other matter connected thereto.
Overseas, European stocks dropped following a mixed closed in the US and expected lower trading flows due to Thanksgiving. US markets will remain closed today, 23 November 2017, for Thanksgiving. The German economy picked up speed in the third quarter, propelled by exports and corporate investments, the Federal Statistical Office, Destatis, said. Germany's gross domestic product grew at a quarter-to-quarter rate of 0.8% in the three months through September, or 3.3% in annualized terms, Destatis said.
Asian stocks were mixed with Chinese stocks dropping after Beijing took steps to halt the proliferation of small online lenders.
In US, the S&P 500 index and the Dow Jones Industrials Average ended slightly lower yesterday, 22 November 2017, maintaining a soft tone after the Federal Reserve minutes indicated that an interest-rate hike is likely but the pace of future tightening could be more moderate than expected given muted inflation. The Nasdaq Composite Index bucked the broader trend to finish at a record, logging its third gain in a row.
The Fed viewed a near-term increase in interest rates as possible but central bank officials also expressed concerns about persistently low inflation, hinting that the bank may dial back its rate increases in 2018. The minutes also showed that several members worried that keeping interest rates too low could create a financial bubble.
Coming to the economic data, US durable-goods orders fell 1.2% in October. Excluding transportation, orders increased 0.4%. Initial jobless claims a tool to measure US layoffs, fell by 13,000 to 239,000 in the week ended 18 November. The University of Michigan's latest read on consumer sentiment came in at 98.5, topping expectations.
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