Early gains withered away as key benchmark indices trimmed initial gains and traded with tiny gains in morning trade. At 10:20 IST, the barometer index, the S&P BSE Sensex, was up 4.65 points or 0.02% at 27,292.82. The Nifty 50 index was up 3.50 points or 0.04% at 8,416.30.
After opening higher and adding on to initial gains supported by reports of a significant breakthrough on Goods & Services Tax front between the Centre and the states, key indices trimmed gains in morning trade.
Buying momentum continued in mid-cap and small-cap counters. The BSE Mid-Cap index was up 0.44%. The BSE Small-Cap index was up 0.59%. Both these indices outperformed the Sensex. The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,313 shares rose and 666 shares declined. A total of 97 shares were unchanged.
IT stocks advanced in firm market. Tech Mahindra (up 1.53%), Oracle Financial Services Software (up 0.92%) and Wipro (up 0.79%) edged higher.
TCS rose 1.26% after the company announced a partnership with Aurus, Inc., a global leader in innovative payments technology, to deliver payment solutions for retailers using TCS OmniStore, a first of its kind unified store commerce platform. The omnichannel payment solution facilitates transactions across channels and delivers unmatched convenience and security to both end consumers and retailers.
Through this partnership with Aurus, retailers using TCS OmniStore will be able to easily process multiple payments across channels. The announcement was made after market hours yesterday, 16 January 2017.
HCL Technologies gained 0.82%. The company after market hours yesterday, 16 January 2017, issued a clarification to the stock exchanges on a law suit filed against HCL America Inc., a wholly owned subsidiary of the company. CultureSphere Inc., a California based corporation, has made certain claims and allegations against HCL America Inc and has filed a suit against HCL America Inc in Santa Clara County Superior Court.
While the matter is sub-judice and the company will respect the legal outcome, the company, in the interest of its stakeholders, would like to clarify that the allegations in the lawsuit are totally baseless, and there have been no agreements written or unwritten between the parties, HCL Technologies said. The company added that it will defend its position accordingly.
Infosys rose 0.83% after the company announced its internal carbon price at $10.5 per ton of CO2e, at an event organized by the Carbon Pricing Leadership Coalition (CPLC) in Zurich. A significant milestone for Infosys, the price will be applicable for a period of two years and will represent the cost of decarbonizing 1 ton of CO2e.
Infosys has been working towards building a clean energy future and has been on track to meet its commitment of becoming carbon neutral in 2018. In addition, Infosys has also committed to reduce its per-capita electricity consumption by 50% from the 2008 level and use 100% renewable power for electricity by 2018. The announcement was made after market hours yesterday, 16 January 2017.
Most realty stocks rose on reports the government is looking to provide higher tax incentives on home loans to boost demand and prop up the faltering realty sector that has been further hit by demonetisation in the upcoming Budget 2017-18. DLF (up 1.23%), Sobha (up 0.7%), Unitech (up 0.66%), Godrej Properties (up 1.12%), and Oberoi Realty (up 1.7%) and Indiabulls Real Estate (up 0.57%) edged higher. D B Realty (down 0.87%) and Housing Development & Infrastructure (HDIL) (down 0.39%) declined.
Meanwhile, the real estate industry reportedly has high expectation from the upcoming budget 2016-17. Stakeholders are reportedly demanding that central government gives relaxation in income tax rate, provide clarity on GST, raise house rent allowance (HRA) deduction and announce policies to standardize construction materials in order to uplift the real estate industry. Realtors' apex body National Real Estate Development Council (NAREDCO) demanded infrastructure status to housing.
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, Asian stocks were mixed as US financial markets remained closed yesterday, 16 January 2017, for Martin Luther King Jr. Day crimping market activity.
British Prime Minister Theresa May will address 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.
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