Key benchmark indices held firm in rangebound trade in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex rose 107.10 points or 0.3% at 35,367.39. The Nifty 50 index advanced 19.50 points or 0.18% at 10,836.50. Firmness in most global stocks and GST council in its latest meet slashing the tax rate on 54 services and 29 items and also simplifying return filing process for businesses boosted sentiment.
The market opened higher on firm Asian cues but soon slipped into the red in early trade. Recovery was soon materialized on the bourses in morning trade with indices hitting fresh intraday highs. Stocks held firm in rangebound trade later during the session.
The S&P BSE Mid-Cap index dropped 0.08%. The S&P BSE Small-Cap index rose 0.02%. Both these indices underperformed the Sensex.
The breadth, indicating the overall health of the market, was weak. On the BSE, 1,739 shares fell and 1,086 shares rose. A total of 130 shares were unchanged.
Most pharma stocks declined. Glenmark Pharmaceuticals (down 0.81%), Aurobindo Pharma (down 1.25%), Cipla (down 0.31%), Divi's Laboratories (down 0.37%), and Sun Pharmaceutical Industries (down 1.25%) declined. Dr Reddy's Laboratories (up 0.65%) and Cadila Healthcare (up 1.28%) gained.
Lupin declined 0.01%. The company announced the launch of its Doxycycline Hyclate Tablet USP, 100 mg having received an approval from the United States Food and Drug Administration (FDA) earlier.
Lupin's Doxycycline Hyclate Tablet USP, 100 mg is the AB rated generic equivalent of Pfizer Inc.'s Vibra-Tabs, 100 mg. It is indicated in the treatment of infections caused by various microorganisms and as an adjunctive therapy in severe acne. Doxycycline Hyclate Tablet USP, 100 mg had annual sales of approximately $144 million in the US as per IMS MAT November 2017. The company made the announcement during market hours today, 19 January 2018.
Shares of power generation and power distribution companies were mixed. Torrent Power (down 0.27%), GVK Power & Infrastructure (down 4.98%), NHPC (down 1.1%), NTPC (down 0.91%), Power Grid Corporation of India (down 2.67%), and Reliance Power (down 0.61%) declined. Tata Power Company (up 0.77%), Adani Power (up 1.22%), and Reliance Infrastructure (up 0.74%) gained.
Shares of psu coal major Coal India dropped 0.35%.
ITC fell 0.13%. The company's net profit rose 16.75% to Rs 3090.20 crore on 25.8% decline in total income to Rs 10579.11 crore in Q3 December 2017 over Q3 December 2016. The result was announced during market hours today, 19 January 2018. ITC's standalone cigarette revenue fell 44.15% to Rs 4629.19 crore in Q3 December 2017 over Q3 December 2016.
HDFC Bank rose 0.85% after net profit rose 20.1% to Rs 4642.60 crore on 17.84% rise in total income to Rs 24450.40 crore in Q3 December 2017 over Q3 December 2016. The result was announced during market hours today, 19 January 2018.
HDFC Bank's gross non-performing assets (NPAs) stood at Rs 8234.88 crore as on 31 December 2017 as against Rs 7702.84 crore as on 30 September 2017 and Rs 5232.27 crore as on 31 December 2016. The ratio of gross NPAs to gross advances stood at 1.29% as on 31 December 2017 as against 1.26% as on 30 September 2017 and 1.05% as on 31 December 2016. The ratio of net NPAs to net advances stood at 0.44% as on 31 December 2017 as against 0.43% as on 30 September 2017 and 0.32% as on 31 December 2016.
The bank's provisions and contingencies rose 88.8% to Rs 1351.44 crore in Q3 December 2017 over Q3 December 2016.
Jain Irrigation Systems declined 0.15%. The announcement was made before trading hours today, 19 January 2018. The Goods and Services Tax (GST) on drip irrigation systems including laterals, sprinklers products has been reduced from 18% to 12% as per decision taken at 25th GST Council meeting held yesterday, 18 January 2018. The new GST rates shall be effective from 25 January 2018. The company said it has decided to pass on this benefit of 6% directly to the customers/farmers.
Meanwhile, the Union Finance Minister Arun Jaitley Chaired the 25th meeting of the GST Council in New Delhi yesterday, 18 January 2018. The Council has recommended certain changes in GST/IGST rate and clarifications in respect of GST rate on certain goods as per discussions in the 25th GST Council meeting. It slashed the tax rate on 54 services and 29 items, including old and used motor vehicles bio-diesel, while also simplifying return filing process for businesses. Certain policy changes have also been recommended by the GST Council.
Overseas, European stocks and most Asian stocks gained although losses on Wall Street slowed the advance. Investors continue to watch the latest US budget battle on Capitol Hill, where uncertainly over a possible partial government shutdown this weekend continues. Legislation to avoid a US government shutdown at midnight on Friday advanced in Congress as the House of Representatives on Thursday night approved an extension of federal funds through 16 February, although the bill faced uncertain prospects in the Senate.
US stock benchmarks finished lower yesterday, 18 January 2018, pressured by worries over the possibility of a partial government shutdown, as investors sorted through a fresh batch of quarterly earnings results.
Among the macro data in US, first-time weekly jobless claims fell to a 45-year low, dropping by 41,000 to 220,000. Meanwhile, construction of new houses fell 8.2% in December to a 1.19 million annual rate. Permits for future construction were basically flat at 1.30 million. Still, permits, housing starts and the number of new homes completed all hit the highest levels since 2007. A gauge of Philadelphia-area manufacturing fell to five-month low of 22.2 in January, the Philadelphia Fed said.
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