Key benchmark indices languished in the negative terrain in mid-afternoon trade as lower opening of European stocks dampened sentiment. At 14:20 IST, the barometer index, the S&P BSE Sensex, was down 82.31 points or 0.3% at 27,205.86. The Nifty 50 index was down 25.80 points or 0.31% at 8,387. Profit booking emerged after last week's solid surge in indices.
Trading was restricted within a tight range around the flat line so far. Early gains supported by reports of a significant breakthrough on Goods & Services Tax front between the Centre and the states amid mixed Asian cues, soon faded and key indices slipped into the red. Indices later languished in the negative terrain sighting lower European stocks.
The BSE Mid-Cap index was up 0.03%. The BSE Small-Cap index was up 0.34%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,327 shares declined and 1,283 shares rose. A total of 169 shares were unchanged.
Most FMCG stocks gained on renewed buying. Tata Global Beverages (up 0.04%), Britannia Industries (up 0.97%), Jyothy Laboratories (up 0.92%), Procter & Gamble Hygiene and Health Care (up 0.06%), Hindustan Unilever (HUL) (up 1.67%), GlaxoSmithkline Consumer Healthcare (up 0.81%), Godrej Consumer Products (up 0.76%), and Bajaj Corp (up 0.29%) gained. Nestle India (down 0.27%), Marico (down 0.89%), Dabur India (down 0.36%), and Colgate Palmolive India (down 0.61%) declined.
Shares of power generation and power distribution companies edged lower on profit booking after recent gains. Torrent Power (down 0.65%), GVK Power & Infrastructure (down 0.17%), NHPC (down 1.82%), Adani Power (down 0.28%), Power Grid Corporation of India (down 1.48%), and Reliance Power (down 1.47%) declined. NTPC (up 0.7%) and Reliance Infrastructure (up 0.1%) gained.
Meanwhile, there are expectations of sops for the power sector in the upcoming Budget 2017-18. The upcoming Budget may reportedly extend the 80 IA tax holiday, provide further impetus to renewable energy, particularly hydro projects, offer clarity on the applicability of GST, lower the cess on coal and possibly reduce corporate tax rates.
Tata Power Company (Tata Power) declined 0.19%. The company announced that its total generation capacity from non-fossil fuel sources stands at 3,133 megawatts (MW), making it the largest renewable energy company in India. Taking a step further towards building a greener portfolio last year, the company revised its share of non-fossil fuel based capacity up to 35-40% by 2025.
The company is also in the process of implementing nearly 500 MW of renewable power projects at various locations. The announcement was made during market hours today, 17 January 2017.
Shares of state run coal mining major Coal India shed 1.88% to Rs 307.80. The stock hit high of Rs 315.25 and low of Rs 306.70 in intraday trade.
Cadila Healthcare rose 0.46% after the company announced that they have finalized an agreement with Kowa Company, Kowa Pharmaceuticals America, Inc. and Nissan Chemical Industries, to settle all outstanding patent litigation related to Livalo (pitavastatin calcium) tablets.
Under the terms of the agreement, Kowa and Nissan grants Zydus a license to market Zydus' generic version of Livalo beginning on 2 May 2023, or earlier under certain circumstances. Other terms of the settlement were not disclosed. The announcement was made during trading hours today, 17 January 2017.
K.P. Energy rose 4.04% after the company said that its board will meet on 28 January 2017, to consider bonus issue of shares. The announcement was made during trading hours today, 17 January 2017.
Meanwhile, Finance Minister Arun Jaitley reportedly said that in a significant breakthrough on Goods & Services Tax (GST) front, the Centre and the states reached a consensus on the contentious dual control issue preparing ground for the rollout of the biggest tax reform from 1 July 2017.
The Centre would assess 50% of the assessees under Rs 1.5 crore annual turnover and the states the other 50%. As much as 90% of the assessees with less than Rs 1.5 crore annual turnover will come under the states and the balance 10% under the Centre, report added. According to Jaitley, the whole process of preparing the draft laws and deciding the rate slabs will need time until March, which makes 1 July rollout a more realistic deadline than earlier 1 April.
Overseas, European stocks edged lower ahead of British Prime Minister Theresa May's speech on Brexit today, 17 January 2017. Investors will scrutinise May's speech for clues to whether she plans to prioritise immigration controls in a "hard Brexit" that some say could hurt UK's economy.
Asian stocks were mixed as US financial markets remained closed yesterday, 16 January 2017, for Martin Luther King Jr. Day crimping market activity.
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