Key benchmark indices provisionally closed with tiny gains after a volatile session of trade amid mixed cues from the global stocks. The barometer index, the S&P BSE Sensex, rose 4 points or 0.01% at 27,239.66, as per the provisional closing data. The gains of the Nifty 50 index were higher than those for Sensex in percentage terms. The Nifty gained 19 points or 0.23% at 8,417.
Earlier during the day, key indices had regained positive terrain after slipping into the red for a brief period after witnessing initial gains triggered by reports suggesting that the Central Board of Direct Taxes put in abeyance its earlier circular raising foreign investors' concerns over a potential rise in tax liability under indirect transfer provisions.
The BSE Mid-Cap index provisionally rose 0.39%. The BSE Small-Cap index provisionally gained 0.58%. Both these indices outperformed the Sensex. The market breadth, indicating the overall health of the market, was positive. On BSE, 1,500 shares rose and 1,255 shares declined. A total of 170 shares were unchanged.
The total turnover on BSE amounted to Rs 3065.87 crore, slightly higher than turnover of Rs 3054.12 crore registered during the previous trading session.
Metal & mining stocks witnessed buying interest. JSW Steel (up 2.41%), Bhushan Steel (up 0.71%), Vedanta (up 3.2%), Hindalco Industries (up 3.54%), Hindustan Zinc (up 1.44%), Jindal Steel & Power (up 3.49%), Tata Steel (up 2.84%), Steel Authority of India (Sail) (up 0.17%), National Aluminum Company (up 5.46%) and NMDC (up 1.85%) gained. Hindustan Copper fell 0.31%.
The steel ministry has reportedly sought reduction in import duty on both coking coal and nickel -- vital components of steel making -- a move that may revive the sector, in the upcoming Budget 2017-18.
Siemens rose 1.74% after the company announced the launch of its new range of energy efficient motor SIMOTICS 1LE7. The new SIMOTICS 1LE7 range of motors is the newest entrant in the existing range of motors offered by Siemens in India. These motors offer efficiency values higher than the IE3 standards - which is currently the highest efficiency class as recognized by Indian Standards. The announcement was made during trading hours today, 18 January 2017.
Siemens SIMOTICS 1LE7 motors are capable of offering an average monetary savings of up to 8-20% depending on the frame size. Apart from generating savings, the SIMOTICS 1LE7 range of motors will assist customers to reduce lifecycle costs, and meet environmental regulations. The announcement was made during trading hours today, 18 January 2017.
Meanwhile, 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.
Overseas, most European stocks edged higher amid volatility. UK Prime Minister Theresa May in a speech yesterday, 17 January 2017, 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".
Asian stocks were mixed as investors warily await President-elect Donald Trump's inauguration as the President later this week.
US equities declined yesterday, 17 January 2017, with financials lagging, as uncertainty around President-elect Donald Trump's policies grew.
Trump reportedly criticized a proposed corporate tax plan from the House of Representatives, labeling the plan as "too complicated," in a recent interview with a leading news agency. He also reportedly told in that interview that the US currency was too strong because China was keeping its own yuan weaker.
US stock markets have soared since the Presidential election partially on hopes of corporate tax reform, deregulation of certain sectors and more government spending. Trump's inauguration is scheduled later this week.
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.
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