The stock market closed the lackluster trading session on a flat note. The barometer index, the S&P BSE Sensex, fell 8.33 points or 0.02% at 34,434.86, as per the provisional closing data. The Nifty 50 index declined 8.75 points or 0.08% at 10,628.75, as per the provisional closing data.
The Sensex had hit a record high in early trade. Later, the movement of key indices was confined to a narrow range around the flat line till mid-morning trade before extending losses amid weakness in Asian stocks. Key indices pared losses and hovered in narrow range in negative terrain in afternoon trade. Indices trimmed intraday losses in mid-afternoon trade and closed the session near the flat line.
The Sensex advanced 122.44 points, or 0.35%, at the day's high of 34,565.63 in early trade, a record high. The index lost 131.56 points, or 0.38%, at the day's low of 34,311.63 in mid-morning trade. The Nifty rose 18.50 points, or 0.17%, at the day's high of 10,655.50 in early trade. The index lost 44.30 points, or 0.41%, at the day's low of 10,592.70 in mid-morning trade.
Among secondary indices, the S&P BSE Mid-Cap index provisionally fell 0.31%, underperforming the Sensex. The S&P BSE Small-Cap index provisionally dropped 0.04%, outperforming the Sensex.
Overseas, European stocks edged lower as investors watch out for corporate earnings and fresh data. Asian stocks were mixed as investors booked profits in shares while oil prices hit three-year highs due to production cuts and a fall in inventories. US equities rose to record highs yesterday, 9 January 2018 as investors remained optimistic about the market heading into the corporate earnings season.
Back home, the breadth, indicating the overall health of the market, was negative. On the BSE, 1,617 shares declined and 1,309 shares advanced. A total of 126 shares were unchanged.
The total turnover on BSE amounted to Rs 5008.17 crore, lower than turnover of Rs 5458.26 crore registered during the previous trading session.
Shares of coal mining major Coal India advanced 1.3% at Rs 308.
Pharma major Dr Reddy's Laboratories dropped 1.25% at Rs 2,427.75.
IT stocks advanced. Wipro (up 2.33%), HCL Technologies (up 1.38%), Tech Mahindra (up 1.67%) and TCS (up 3.56%) advanced.
Infosys was up 0.85% at Rs 1,050.10. The company announced the successful conclusion of an advance pricing agreement (APA) with the US Internal Revenue Service (IRS). The APA will enhance predictability of the company's tax obligations in respect of its US operations. The company expects to reverse tax provisions of about $225 million made in previous periods which are no longer required. Further, the company expects to payout about $233 million due to the difference between the taxes payable for prior periods as per the APA and the actual taxes paid for such periods. This amount is expected to be paid over the next few quarters, Infosys said in a statement.
The reversal of the tax provisions will have a positive impact on the consolidated basic EPS for the quarter ending 31 December 2017 by about $0.1. The company also expects its overall effective tax rate to be lower by about 100 basis points for future periods covered under the APA. The announcement was made after market hours yesterday, 9 January 2018.
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