We had mentioned in Tuesday’s closing report that Nifty, Sensex were awaiting triggers. The major indices of the Indian stock markets were range-bound on Wednesday and closed with small gains over Tuesday’s close. The trends of the major indices in the course of Wednesday’s trading are given in the table below:
Mixed global cues and lower crude oil prices led the key Indian indices to trade on a flat note during the mid-afternoon session on Wednesday. Selling pressure was seen in capital goods, banking and metal stocks. The BSE market breadth was marginally tilted in favour of the bulls -- with 1,540 advances and 1,171 declines and 202 unchanged. On the NSE, on Wednesday, there were 929 advances, 648 declines and 276 unchanged.
On Wednesday, the benchmark indices opened on a flat note on the back of negative Asian and European markets, and slightly positive US markets. Investors were also watchful of the negotiations for amendments in a tax treaty between India and Singapore. In addition, caution prevailed in the markets ahead of futures and options (F&O) expiry on Thursday and hampered the upward trajectory. Moreover, apprehension of a possible interest rate hike in the US following Fed Reserve Chair Janet Yellen's speech later during the week, and lower crude oil prices led the key indices to cap gains. Largely, the markets are flat ahead of the F&O expiry tomorrow (Thursday), pointed out market analysts. Also, the stock markets have been trading flat, as oil prices are steeply down, one of the main reasons being caution ahead of US crude oil inventory data due tomorrow (Thursday), explained market analysts. The foreign institutional investors (FII) continue to be net sellers during the week.
Tata Power on Tuesday reported a 76% drop in its consolidated net profit to Rs72.49 crore for the quarter ended June 30, as compared to Rs303.14 crore in the same period last year. "PAT (profit after tax) stood at Rs72 crore mainly due to one off items as well as first time impact on account of INDAS. One-off items includes Rs120 crore in CGPL (Coastal Gujarat Power Ltd) and regulatory orders pertaining to previous years of Rs62 crore and INDAS related adjustments of Rs130 crore," the company said in a statement. Its consolidated revenue in the quarter under review stood at Rs6,566 crore (including regulatory income/expense) as compared to Rs7,016 crore in the corresponding period last year. The company has announced acquisition of renewable assets and also commissioned several non-fossil fuel based projects during the year, which is in line with its strategic intent. Tata Power shares closed at Rs76.45, up 2.27% on the BSE.
Implementation of the Goods and Services Tax (GST) regime will have an inflationary impact, leading to increase in tea prices, Tata Global Beverages' Chairman Cyrus P. Mistry said on Wednesday. "GST will have an inflationary impact on the prices of tea, but this will be across the board," he said while responding to a query of a shareholder at the company's 53rd Annual General Meeting. Mistry said that initially that GST will have inflationary impact on the company's current coffee and tea business as they have a tax incidence. However, there might be "short-term impact" of the GST but the "long term benefit is significant", he added. Mistry said the industry has been making representations for a favourable rate as coffee and tea are widely consumed beverages cutting across economic strata. The company is looking to tap e-commerce platforms to sell its products. The company’s shares closed at Rs140.35, up 0.68% on the BSE.
The Delhi assembly on Tuesday passed the Delhi Tax on Luxuries (Amendment) Bill, 2016 which is aimed at reducing burden on tourists and citizens and offering small hotels relief from luxury tax. The bill, introduced by Deputy Chief Minister Manish Sisodia in the assembly on Monday, seeks to double the threshold limit of luxury tax from a room costing Rs750 per day to Rs1,500 by amending Sections 2 and 8 of the existing 1996 Act. Speaking in assembly during the discussion on Tuesday, Sisodia, who also holds the finance portfolio, said that it will benefit the common man who searches for budget hotels. India Tourism Development Corporation shares closed at Rs196.10, up 0.28% on the BSE.
Bandhan Bank, which marks its first anniversary on Tuesday, plans to expand its branch network to 1,000 by August 2017 from the existing 701, said its chief. "Next year when we meet to celebrate our second anniversary we will surely have at least 1,000 branches and more products," MD and CEO CS Ghosh said at the bank's first anniversary celebration. Pan India, 33% of its branches are in unbanked rural area, as against RBI's stipulation of 25%, he said. He said that 45% of branches are in West Bengal and 68% of them are in rural and semi-urban areas. Bank Nifty gained 0.07% on Wednesday.
The top gainers and top losers of the major indices are given in the table below:
The closing values of the major Asian indices are given in the table below: