Post Session: Quick Review

Indian equity benchmarks traded on a choppy note and ended the session in red, weighed by Metal, Oil & Gas and PSU stocks. Index heavyweight Reliance Industries dragged Nifty and Sensex below 8,400 and 27,300 respectively. The market is expected to move within a range in the result season ahead of the budget as more companies gear up to report earnings. The government will unveil budget on February 1, 2017, and investors hope for incentives to support an economy hit by cash shortages after a ban on higher-value banknotes. After a positive opening in early deals, markets soon drifted below neutral line following the International Monetary Fund (IMF) report, which so far had maintained that India is a bright spot against the gloomy global economic outlook, too has cut India’s economic growth estimate for 2016-17 to 6.6% from its earlier projection of 7.6%, due to the impact of the government's move of demonetization of high value currency notes in early November. Some selling also crept in on reports that India slipped 3 places to 92nd rank from last year rank of 89th in the latest rankings of the global talent competitiveness index. This index measures how countries grow, attract and retain talent. The report accompanying the rankings by INSEAD Produced in partnership with The Adecco Group and the Human Capital Leadership Institute of Singapore (HCLI), said that India’s information technology (IT) sector is already witnessing jobless growth, paralleling the recently publicized downside of the tech boom in the United States that not enough jobs. The downside was limited by news that the Goods and Services Tax (GST) Council on Monday broke a deadlock over issues of administrative control over assessees and broadly agreed to roll out the GST from July 1, instead of the earlier deadline of April 1. Under the proposed tax regime, 90% of all assessees with a turnover of Rs 1.5 crore or less will be assessed for scrutiny and audit by state authorities, the remaining 10% by the Centre. The Council also resolved a logjam over the right to tax economic activities within 12 nautical miles from India’s coasts.

On the global front, Asian markets closed mostly in green, with Shanghai’s benchmark stock index ended in green, snapping a five-day losing streak, as small-caps staged a sharp afternoon rebound that let an index tracking them halt an eight-day slide. Japan’s Nikkei fell to its lowest level in more than a month as a strong yen soured sentiments, while shares of Honda tumbled after it said an air bag made by Takata Corp had ruptured in one of its cars in Japan. Japanese Economy Minister Nobuteru Ishihara said that a fall in the British pound and declines in stocks reflected uncertainty about Britain's departure from the European Union and about the global economy. European markets were trading in red ahead of a highly-anticipated speech by British premier Theresa May on plans for Brexit.

Back home, select logistics companies like Snowman Logistics, Gateway Distripark, Gati, Sical Logistics and Patel Integrated closed in green by the news that India will likely be able to roll out the Goods and Services Tax (GST) from July 1, 2017.

The BSE Sensex ended at 27215.25, down by 72.92 points or 0.27% after trading in a range of 27179.19 and 27381.43. There were 11 stocks advancing against 19 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was down by 0.09%, while Small cap index was up by 0.29%. (Provisional)

The top gaining sectoral indices on the BSE were FMCG up by 1.00%, Power up by 0.51%, IT up by 0.31%, TECK up by 0.08% and Realty up by 0.02%, while Metal down by 1.60%, Oil & Gas down by 1.49%, PSU down by 0.38%, Auto down by 0.31% and Bankex down by 0.27% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were NTPC up by 3.05%, Asian Paints up by 2.70%, Axis Bank up by 1.70%, Hero MotoCorp up by 1.63% and Hindustan Unilever up by 1.52%. (Provisional)

On the flip side, Reliance Industries down by 3.53%, Coal India down by 2.06%, Adani Ports & Special Economic Zone down by 1.78%, ONGC down by 1.44% and HDFC down by 1.13% were the top losers. (Provisional)

Meanwhile, in order to help start-ups in the country, Commerce and Industry Minister Nirmala Sitharaman has indicated that start-ups may get additional tax benefits in the forthcoming budget, which will be unveiled on February 1, 2017. She said that the ministry has suggested the Finance Ministry to make older start-ups eligible for tax benefits by moving the cut-off date from April 1, 2016, and also increase the tax holiday period for start-ups to 7 years from the current 3 years to encourage budding entrepreneurs.

The minister has said that tax and tax-related matters always come from start-ups as it makes tangible difference to a start-up, and in that some work has happened, more to be happening. She also said that tax related (benefits) will have to come only through the budget. She added that all the suggestions of the entrepreneurs have been compiled by the ministry and given to the Finance Ministry and suggestions with regard to exempting start-ups from Minimum Alternate Tax (MAT) have also been forwarded.

On the funding constraints of start-ups, Sitharaman said that the ministry will meet officials from Reserve Bank of India (RBI), Small Industries Development Bank of India (SIDBI), banks and venture capital funds to help them get funding. Further, she said the government is committed to removing legislative hurdles, if any, being faced by them. The Centre is also involving local authorities, including states, to help the budding entrepreneurs in terms of local taxes among others.

The CNX Nifty ended at 8388.80, down by 24.00 points or 0.29% after trading in a range of 8378.30 and 8440.90. There were 15 stocks advancing against 36 stocks declining on the index. (Provisional)

The top gainers on Nifty were NTPC up by 3.08%, Asian Paints up by 2.60%, Axis Bank up by 2.12%, Hero MotoCorp up by 1.96% and Hindustan Unilever up by 1.50%. (Provisional)

On the flip side, Reliance Industries down by 3.37%, Adani Ports & Special Economic Zone down by 1.98%, Coal India down by 1.93%, ONGC down by 1.54% and Grasim Industries down by 1.05% were the top losers. (Provisional)

The European markets were trading in red; UK’s FTSE 100 decreased 22.98 points or 0.31% to 7,304.15, Germany’s DAX decreased 75.1 points or 0.65% to 11,479.61 and France’s CAC decreased 22.67 points or 0.46% to 4,859.51.

Asian equity markets ended mostly in green on Tuesday, with investors awaiting British Prime Minister Theresa May’s speech on Brexit later in the day and Friday’s inauguration of Donald Trump as US president. In her speech, May is expected to outline plans for the United Kingdom's to exit the European Union. Japanese shares fell to its lowest level in more than a month as a strong yen soured sentiment. Meanwhile, Chinese shares ended higher, snapping a five-day losing streak, as small-caps staged a sharp afternoon rebound that let an index tracking them halt an eight-day slide.