After witnessing a divergent trend in early trade, key benchmark indices languished in negative zone with small losses in morning trade. At 10:15 IST, the barometer index, the S&P BSE Sensex was down 83.96 points or 0.25% at 33,230.60. The Nifty 50 index fell 39.85 points or 0.39% at 10,281.90.
Market sentiment was lackluster amid mixed cues from Asian markets and lower closing on the Wall Street on Friday.
Among secondary indices, the S&P BSE Mid-Cap index fell 0.18%. The decline in this index was lower than the Sensex's slide in percentage terms. The S&P BSE Small-Cap index advanced 0.04%, outperforming the Sensex.
The breadth, indicating the overall health of the market, turned negative from positive. On BSE, 1,074 shares dropped and 1,043 shares rose. A total of 81 shares were unchanged.
Telecom and telecom tower infrastructure stocks declined. Reliance Communications (down 10.32%), Idea Cellular (down 2.52%), Bharti Infratel (down 0.6%) and Bharti Airtel (down 0.67%) fell.
Cement stocks edged higher. Ambuja Cements (up 1.28%), Shree Cement (up 0.89%), ACC (up 0.77%) and UltraTech Cement (up 0.3%) gained. Grasim Industries was down 0.63% at Rs 1,238.60. Grasim has exposure to cement sector through its holding in UltraTech Cement.
On the macro front, data released by the government after market hours on Friday, 10 November 2017 showed that India's index of industrial production (IIP) rose 3.8% in September 2017 over September 2016. The IIP growth in August 2017 was at 4.5%.
The Goods and Services Tax (GST) Council, at its meeting held on Friday, 10 November 2017 at Guwahati, announced rationalization of the tax structure. With regard to recommendations on the composition scheme, a uniform rate of tax of 1% under composition scheme is recommended for manufacturers and traders (for traders, turnover will be counted only for supply of taxable goods). No change for composition scheme for restaurants. Annual turnover eligibility for composition scheme will be increased to Rs 2 crore from the present limit of Rs 1 crore under the law. Thereafter, eligibility for composition will be increased to Rs 1.5 crore per annum.
The Council has recommended major relief in GST rates on certain goods and services. These recommendations spread across many sectors and across commodities. As per these recommendations, the list of 28% GST rated goods is recommended to be pruned substantially, from 224 tariff headings to only 50 tariff headings including 4 headings which have been partially reduced to 18%.
Further, the Council has recommended changes in GST rates on a number of goods, so as to rationalise the rate structure with a view to minimise classification disputes.
Overseas, Asian stocks witnessed a mixed trend. US stocks closed mostly lower on Friday, 10 November 2017, as they snapped multi-week winning streaks while some of the largest tech stocks pulled back.
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