Market ekes out minuscule gains
Key benchmark indices eked out minuscule gains in a volatile trading session. The barometer index, the S&P BSE Sensex rose 16.86 points or 0.06% to settle at 27,714.37. The Nifty 50 index rose 6.25 points or 0.07% to settle at 8,551.10.
The Sensex and the Nifty snapped four-day losing streak.
Stocks of public sector banks edged higher. Stocks of private sector banks edged lower. Metal and mining stocks gained. Auto stocks rose on expectations that auto manufacturers may benefit from the Goods and Services Tax constitutional amendment bill passed by the Rajya Sabha yesterday, 3 August 2016.
Power Grid Corporation of India (PGCIL) edged higher after a bulk deal was executed on BSE. Dr Reddy's Laboratories (DRL) rose after the company announced that it has successfully completed the previously announced acquisition of 8 Abbreviated New Drug Applications in the US. Bata India edged lower after the company reported weak Q1 June 2016 results.
The Rajya Sabha yesterday, 3 August 2016 passed the Goods and Services Tax (GST) constitutional amendment bill which the Lok Sabha had already approved last year. With the Rajya Sabha clearing the constitution amendment bill for introduction of the GST, the amended GST bill once again will have to be ratified by the Lok Sabha. Once amendments to the bill are passed in the Lok Sabha it will later go to the state assemblies for clearance. Atleast 50% of the states must approve the legislation.
A key task for the proposed GST Council now will be determining the rate of taxation. A decision on the tax rate will have to be ratified by a three-fourth majority of the centre and the states. As per the proposed legislation, the centre will have one-third weightage on its vote and states will have two-third weightage. In its report submitted to the government last December, a panel headed by Chief Economic Adviser Arvind Subramanian had recommended a revenue-neutral rate (RNR) of GST of 15-15.5%, with a standard rate of 17-18% that is to be levied on most goods and all services.
The main objective of the GST is to eliminate excessive taxation. GST is a uniform indirect tax levied on goods and services across a country. The measure would harmonize 11 state and central levies into a national sales tax, reducing business transaction costs.
In overseas stock markets, European stocks edged higher as investors wait for what could be the Bank of England's first interest-rate cut since the global financial crisis. In UK, the FTSE 100 index was currently down 0.1%. The Bank of England is expected to cut benchmark interest rates after a monetary policy meet later in the global day today, 4 August 2016 in reaction to a string of data pointing to a sharp economic downturn following the UK's vote to leave the European Union. Earlier during the global day, Asian stocks edged higher as crude oil held onto its recovery and high-yielding currencies climbed.
US stocks rose yesterday, 3 August 2016 as energy companies climbed with the price of oil. US private employers added a better-than-expected 179,000 jobs last month, a report by a payrolls processor showed yesterday, 3 August 2016. The private employment figures come ahead of the US Labor Department's more comprehensive monthly non-farm payrolls report tomorrow, 5 August 2016, which includes both public and private-sector employment.
The Sensex rose 16.86 points or 0.06% to settle at 27,714.37, its highest closing level since 2 August 2016. The index rose 224.40 points or 0.81% at the day's high of 27,921.91. The index fell 69.54 points or 0.25% at the day's low of 27,627.97.
The Nifty rose 6.25 points or 0.07% to settle at 8,551.10, its highest closing level since 2 August 2016. The index rose 56.55 points or 0.66% at the day's high of 8,601.40. The index declined 26.70 points or 0.31% at the day's low of 8,518.15.
The BSE Mid-Cap index rose 0.38%. The BSE Small-Cap index gained 0.39%. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,430 shares rose and 1,264 shares fell. A total of 171 shares were unchanged.
The total turnover on BSE amounted to Rs 3154 crore, lower than turnover of Rs 3260.65 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Telecom index (up 1%), the BSE Auto index (up 1.35%), the BSE Metal index (up 1.53%) and the BSE Realty index (up 2.25%) outperformed the Sensex. The BSE IT index (down 0.53%) and the BSE Bankex index (down 0.17%) underperformed the Sensex.
Index heavyweight and software major Infosys was down 1.18% at Rs 1,072.15. The stock hit a high of Rs 1,090 and a low of Rs 1,070 in intraday trade.
Stocks of public sector banks edged higher. Indian Bank (up 10.24%), Bank of Baroda (up 4.5%), Union Bank of India (up 3.84%), Bank of India (up 1.38%), Punjab National Bank (up 0.7%) and Corporation Bank (up 0.74%) rose. State Bank of India (down 0.44%) edged lower.
Stocks of private sector banks edged lower. ICICI Bank (down 0.56%), Axis Bank (down 0.58%), IndusInd Bank (down 0.88%) and Yes Bank (down 0.44%) declined. Kotak Mahindra Bank (up 0.07%) edged higher.
Index heavyweight HDFC Bank was up 0.5%.
Metal and mining stocks gained. Tata Steel (up 4.6%), Vedanta (up 2.89%), Steel Authority of India (up 1.85%), NMDC (up 2.45%), National Aluminium Company (up 2.44%), Hindalco Industries (up 1.37%), Hindustan Zinc (up 0.77%), Jindal Steel & Power (up 1.43%), JSW Steel (up 1.05%) and Hindustan Copper (up 0.91%) rose.
Meanwhile, copper prices edged lower in global commodities markets. High Grade Copper for September 2016 delivery was currently off 1.32% at $2.1695 per pound on the COMEX.
Auto stocks rose on expectations that auto manufacturers may benefit from the Goods and Services Tax constitutional amendment bill passed by the Rajya Sabha yesterday, 3 August 2016. Tata Motors (up 4.41%), Bajaj Auto (up 0.87%), Hero MotoCorp (up 1.79%), Ashok Leyland (up 0.76%), Maruti Suzuki (India) (up 0.48%), TVS Motor Company (up 0.39%) and Eicher Motors (up 0.2%) edged higher. Mahindra & Mahindra (M&M) fell 0.74%. According to reports, on-road price of vehicles could drop by 8% once a nationwide Goods and Services Tax (GST) kicks off. Lower prices can be construed as indirect stimulus to boost auto sales volumes.
Power Grid Corporation of India (PGCIL) rose 1.08% at Rs 177.80 after a bulk deal of 15 lakh shares was executed in the counter at Rs 178.50 per share at 14:10 IST on BSE.
Ambuja Cements gained 1.05% after the company announced that Foreign Investment Promotion Board (FIPB) vide its letter dated 1 August 2016 conveyed its approval for the company's proposal to acquire 24% stake in Holcim (India) Private Limited (HIPL) and subsequent merger of HIPL with the company. The board of directors of the company at its meeting held today, 4 August 2016 took note of the satisfaction of all conditions precedent to, and confirmed the steps for, completion of the transaction. The Cabinet Committee on Economic Affairs (CCEA), Government of India had already given its approval for this transaction.
Dr Reddy's Laboratories (DRL) rose 0.75% after the company announced that it has successfully completed the previously announced acquisition of 8 Abbreviated New Drug Applications in the US. DRL announced that it has successfully completed the previously announced acquisition of eight Abbreviated New Drug Applications (ANDAs) in the US from Teva Pharmaceutical Industries (TEVA) and an affiliate of Allergan plc. The acquired portfolio consists of products that are being divested by Teva as a precondition to its closing of the acquisition of Allergan's generics business. The portfolio being acquired is a mix of six ANDAs pending approval, one approved ANDA and one ANDA with tentative approval and comprises complex generic products across diverse dosage forms. The branded versions of these 8 products clocked sales of approximately $3.5 billion in the US for twelve months ended June 2016, according to IMS Health data. The announcement was made after market hours yesterday, 3 August 2016.
Bata India fell 4.44% at Rs 528.65 after net profit fell 44.01% to Rs 50.49 crore on 1.01% decline in total income to Rs 685.69 crore in Q1 June 2016 over Q1 June 2015. The Q1 June 2016 result was weak partly due to base effect. The company's bottom line in Q1 June 2015 was boosted by income from property development. The company said in a Q1 results press release that its profit before tax and exceptional items rose 7% to Rs 76.24 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 3 August 2016.
The Sensex and the Nifty snapped four-day losing streak. The Sensex had declined 511.11 points or 1.81% in four trading sessions to settle at 27,697.51 yesterday, 3 August 2016, from its close of 28,208.62 on 28 July 2016. The Sensex has declined 337.49 points or 1.2% in August 2016 so far (till 4 August 2016). The Sensex has risen 1,596.83 points or 6.11% in calendar year 2016 so far (till 4 August 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,219.76 points or 23.2%. The Sensex is off 703.22 points or 2.47% from a 52-week high of 28,417.59 hit on 10 August 2015. The Sensex is off 2,310.37 points or 7.69% from a record high of 30,024.74 hit on 4 March 2015.
The Sensex and the Nifty snapped four-day losing streak.
Stocks of public sector banks edged higher. Stocks of private sector banks edged lower. Metal and mining stocks gained. Auto stocks rose on expectations that auto manufacturers may benefit from the Goods and Services Tax constitutional amendment bill passed by the Rajya Sabha yesterday, 3 August 2016.
Power Grid Corporation of India (PGCIL) edged higher after a bulk deal was executed on BSE. Dr Reddy's Laboratories (DRL) rose after the company announced that it has successfully completed the previously announced acquisition of 8 Abbreviated New Drug Applications in the US. Bata India edged lower after the company reported weak Q1 June 2016 results.
The Rajya Sabha yesterday, 3 August 2016 passed the Goods and Services Tax (GST) constitutional amendment bill which the Lok Sabha had already approved last year. With the Rajya Sabha clearing the constitution amendment bill for introduction of the GST, the amended GST bill once again will have to be ratified by the Lok Sabha. Once amendments to the bill are passed in the Lok Sabha it will later go to the state assemblies for clearance. Atleast 50% of the states must approve the legislation.
A key task for the proposed GST Council now will be determining the rate of taxation. A decision on the tax rate will have to be ratified by a three-fourth majority of the centre and the states. As per the proposed legislation, the centre will have one-third weightage on its vote and states will have two-third weightage. In its report submitted to the government last December, a panel headed by Chief Economic Adviser Arvind Subramanian had recommended a revenue-neutral rate (RNR) of GST of 15-15.5%, with a standard rate of 17-18% that is to be levied on most goods and all services.
The main objective of the GST is to eliminate excessive taxation. GST is a uniform indirect tax levied on goods and services across a country. The measure would harmonize 11 state and central levies into a national sales tax, reducing business transaction costs.
In overseas stock markets, European stocks edged higher as investors wait for what could be the Bank of England's first interest-rate cut since the global financial crisis. In UK, the FTSE 100 index was currently down 0.1%. The Bank of England is expected to cut benchmark interest rates after a monetary policy meet later in the global day today, 4 August 2016 in reaction to a string of data pointing to a sharp economic downturn following the UK's vote to leave the European Union. Earlier during the global day, Asian stocks edged higher as crude oil held onto its recovery and high-yielding currencies climbed.
US stocks rose yesterday, 3 August 2016 as energy companies climbed with the price of oil. US private employers added a better-than-expected 179,000 jobs last month, a report by a payrolls processor showed yesterday, 3 August 2016. The private employment figures come ahead of the US Labor Department's more comprehensive monthly non-farm payrolls report tomorrow, 5 August 2016, which includes both public and private-sector employment.
The Sensex rose 16.86 points or 0.06% to settle at 27,714.37, its highest closing level since 2 August 2016. The index rose 224.40 points or 0.81% at the day's high of 27,921.91. The index fell 69.54 points or 0.25% at the day's low of 27,627.97.
The Nifty rose 6.25 points or 0.07% to settle at 8,551.10, its highest closing level since 2 August 2016. The index rose 56.55 points or 0.66% at the day's high of 8,601.40. The index declined 26.70 points or 0.31% at the day's low of 8,518.15.
The BSE Mid-Cap index rose 0.38%. The BSE Small-Cap index gained 0.39%. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,430 shares rose and 1,264 shares fell. A total of 171 shares were unchanged.
The total turnover on BSE amounted to Rs 3154 crore, lower than turnover of Rs 3260.65 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Telecom index (up 1%), the BSE Auto index (up 1.35%), the BSE Metal index (up 1.53%) and the BSE Realty index (up 2.25%) outperformed the Sensex. The BSE IT index (down 0.53%) and the BSE Bankex index (down 0.17%) underperformed the Sensex.
Index heavyweight and software major Infosys was down 1.18% at Rs 1,072.15. The stock hit a high of Rs 1,090 and a low of Rs 1,070 in intraday trade.
Stocks of public sector banks edged higher. Indian Bank (up 10.24%), Bank of Baroda (up 4.5%), Union Bank of India (up 3.84%), Bank of India (up 1.38%), Punjab National Bank (up 0.7%) and Corporation Bank (up 0.74%) rose. State Bank of India (down 0.44%) edged lower.
Stocks of private sector banks edged lower. ICICI Bank (down 0.56%), Axis Bank (down 0.58%), IndusInd Bank (down 0.88%) and Yes Bank (down 0.44%) declined. Kotak Mahindra Bank (up 0.07%) edged higher.
Index heavyweight HDFC Bank was up 0.5%.
Metal and mining stocks gained. Tata Steel (up 4.6%), Vedanta (up 2.89%), Steel Authority of India (up 1.85%), NMDC (up 2.45%), National Aluminium Company (up 2.44%), Hindalco Industries (up 1.37%), Hindustan Zinc (up 0.77%), Jindal Steel & Power (up 1.43%), JSW Steel (up 1.05%) and Hindustan Copper (up 0.91%) rose.
Meanwhile, copper prices edged lower in global commodities markets. High Grade Copper for September 2016 delivery was currently off 1.32% at $2.1695 per pound on the COMEX.
Auto stocks rose on expectations that auto manufacturers may benefit from the Goods and Services Tax constitutional amendment bill passed by the Rajya Sabha yesterday, 3 August 2016. Tata Motors (up 4.41%), Bajaj Auto (up 0.87%), Hero MotoCorp (up 1.79%), Ashok Leyland (up 0.76%), Maruti Suzuki (India) (up 0.48%), TVS Motor Company (up 0.39%) and Eicher Motors (up 0.2%) edged higher. Mahindra & Mahindra (M&M) fell 0.74%. According to reports, on-road price of vehicles could drop by 8% once a nationwide Goods and Services Tax (GST) kicks off. Lower prices can be construed as indirect stimulus to boost auto sales volumes.
Power Grid Corporation of India (PGCIL) rose 1.08% at Rs 177.80 after a bulk deal of 15 lakh shares was executed in the counter at Rs 178.50 per share at 14:10 IST on BSE.
Ambuja Cements gained 1.05% after the company announced that Foreign Investment Promotion Board (FIPB) vide its letter dated 1 August 2016 conveyed its approval for the company's proposal to acquire 24% stake in Holcim (India) Private Limited (HIPL) and subsequent merger of HIPL with the company. The board of directors of the company at its meeting held today, 4 August 2016 took note of the satisfaction of all conditions precedent to, and confirmed the steps for, completion of the transaction. The Cabinet Committee on Economic Affairs (CCEA), Government of India had already given its approval for this transaction.
Dr Reddy's Laboratories (DRL) rose 0.75% after the company announced that it has successfully completed the previously announced acquisition of 8 Abbreviated New Drug Applications in the US. DRL announced that it has successfully completed the previously announced acquisition of eight Abbreviated New Drug Applications (ANDAs) in the US from Teva Pharmaceutical Industries (TEVA) and an affiliate of Allergan plc. The acquired portfolio consists of products that are being divested by Teva as a precondition to its closing of the acquisition of Allergan's generics business. The portfolio being acquired is a mix of six ANDAs pending approval, one approved ANDA and one ANDA with tentative approval and comprises complex generic products across diverse dosage forms. The branded versions of these 8 products clocked sales of approximately $3.5 billion in the US for twelve months ended June 2016, according to IMS Health data. The announcement was made after market hours yesterday, 3 August 2016.
Bata India fell 4.44% at Rs 528.65 after net profit fell 44.01% to Rs 50.49 crore on 1.01% decline in total income to Rs 685.69 crore in Q1 June 2016 over Q1 June 2015. The Q1 June 2016 result was weak partly due to base effect. The company's bottom line in Q1 June 2015 was boosted by income from property development. The company said in a Q1 results press release that its profit before tax and exceptional items rose 7% to Rs 76.24 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 3 August 2016.
The Sensex and the Nifty snapped four-day losing streak. The Sensex had declined 511.11 points or 1.81% in four trading sessions to settle at 27,697.51 yesterday, 3 August 2016, from its close of 28,208.62 on 28 July 2016. The Sensex has declined 337.49 points or 1.2% in August 2016 so far (till 4 August 2016). The Sensex has risen 1,596.83 points or 6.11% in calendar year 2016 so far (till 4 August 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,219.76 points or 23.2%. The Sensex is off 703.22 points or 2.47% from a 52-week high of 28,417.59 hit on 10 August 2015. The Sensex is off 2,310.37 points or 7.69% from a record high of 30,024.74 hit on 4 March 2015.
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