Benchmark indices posted tiny losses on Tuesday after surging in previous two sessions. Banks and metal stocks witnessed correction after recent rally. IT stocks bounced after steep losses in the past two sessions.
The barometer index, the S&P BSE Sensex, rose 7.11 points or 0.02% to 39,097.14, as per the provisional closing data. The Nifty 50 index fell 12 points or 0.1% to 11,588.20, as per the provisional closing data.
The market breadth was negative. On the BSE, 1183 shares rose and 1365 shares fell. A total of 148 shares remain unchanged. In Nifty 50 index, 22 stocks advanced and 28 stocks declined.
The S&P BSE Small-Cap index rose 0.17%. The S&P BSE Mid-Cap index fell 0.51%.
The Nifty jumped in early trade, but profit booking dragged the index lower in morning trade. It hit the day's low of 11,539.20 in early afternoon trade. The 50-unit index struggled to regain momentum and traded below 11,600 for most part of the session. The Nifty firmed up in late trade and ended a tad below 11,600 mark.
Finance Minister Nirmala Sitharaman on Friday, 20 September, slashed corporate tax rate to 22% without exemptions. The effective corporate tax rate after surcharge will stand at 25.17%. To further attract investment in manufacturing, local companies incorporated after October 2019 will pay tax at 15%. The government will give MAT relief for those opting to continue paying surcharge and cess at 22%. MAT has been reduced to 15% from 18.5% for companies who continue to avail exemptions and incentives. The step has significant positive implications for corporates' profitability, broader economy and market valuations.
IT stocks gained after witnessing selling pressure in last two sessions. The Nifty IT index declined 3.1% in two trading sessions from its previous closing high of 15,522.45 on Thursday, 19 September 2019.
Tata Elxsi (up 6.5%), Hexaware Technologies (up 4.65%), Infosys (up 3.71%), Tech Mahindra (up 3.18%), TCS (up 1.51%), NIIT Technologies (up 1.44%), HCL Technologies (up 1.36%) and Zensar Technologies (up 0.4%) were top gainers in IT segment.
IT major Wipro rose 0.29% to Rs 240.70. The IT major has launched the first phase of noomis, online platform of Febraban, to help financial services organisations to collaborate and share information. Febraban is an industry association that represents the financial services sector in Brazil. It also organizes CIAB, an information technology trade show for financial services in Latin America. The announcement was made after market hours yesterday, 23 September 2019.
The S&P BSE IT index was up 2.23% at 15,402.96. The Nifty IT index was up 1.98% at 15,338.90.
The S&P BSE Metal tumbled 1.7% and the S&P BSE Bankex fell 1.25% amid profit selling.
Reliance Industries rose 3.29% on media reports that a foreign brokerage house maintained its 'overweight' call with a target price of Rs 1,469 per share today, 24 September 2019. The firm has stated that investor's confidence is increasing the firm's earnings; while lower taxes and cheaper gas feed costs would lower the outlook risk.
Maruti Suzuki India rose 1.79% to Rs 7022.9 after the company's chairman R.C. Bhargava told the media on Monday, 23 September 2019, that the firm expects higher car sales in September. The company's chairman R.C. Bhargava was quoted by the media on Monday, 23 September 2019, that Maruti Suzuki India expects sales of its cars in September to be higher than the previous month as the uncertainty around the goods and services tax (GST) rate cut is over. Bhargava told the media that the booking levels have gone up substantially compared to last month, and the expectation is that the 29th and 30th of September will probably witness very high retail sales, he reportedly added. The festive season in India that typically starts in end-September and lasts till October usually sees an uptick in auto sales.
Retail major, Trent was up 1.47% after the company informed that it has acquired 51% share in Booker India for a sum of Rs 22 crore. Booker India operates in 6 stores and the acquisition will help Trent in business expansion.
Shares of Trent hit an intraday high of Rs 523.20 which is also a 52-week high for the counter.
Multi Commodity Exchange of India (MCX) surged 5.82% to Rs 991.50 after a foreign brokerage firm reportedly upgraded the stock to 'overweight' from 'equal-weight' with a price target of Rs 1260 in the next 12 months. The stock hit an intraday of Rs 1030.50 which is also a 52-week high for the counter.
Manappuram Finance gained 1.83%. The board of directors of Manappuram Finance approved the issuance of the Private Placement of Rated, Secured, Redeemable Non-Convertible Debentures having face value of Rs 10 lakh each for the amount of Rs 215 crore with an option to retain over subscription up to Rs 250 crore aggregating to Rs 465 crore. The announcement was made after market hours yesterday, 23 September 2019.
Biocon was trading 0.38% lower at Rs 224.55. The company announced that its subsidiary, Biocon Biologics, has acquired R&D capital assets from Pfizer Healthcare India, The biologics research facility is located at TICEL Bio Park in Chennai. The facility will have a research and innovation centre, a well equipped cell line development and drug substance process development bioreactors. The facility is expected to be operational in few months.
Thomas Cook (India) fell 2.51% to Rs 149.80, extending yesterday's 1.82% decline. Media reported that the Ministry of Corporate Affairs (MCA) is probing Thomas Cook (India) in relation to a 'suspicious' money transaction with a Delhi-based forex trader, Aarush Forex. The ministry's Western Regional Director has commenced inspection of the world's oldest travel firm. The company, however, clarified that the media reports are factually incorrect. The company said that it has not received intimation from the Ministry of Corporate Affairs and have no existing relationship with Aarush Forex. Investors also panicked after UK travel giant Thomas Cook declared for bankruptcy. Following the news, Thomas Cook (India) clarified to the bourses that it is a completely separate entity from Thomas Cook UK post acquisition in 2012 by Canada based Fairfax Financial Holdings. The media updates on Thomas Cook UK have no correlation and hence no impact on Thomas Cook India.
Overseas, shares in Europe and Asia edged higher as traders monitor the latest U.S.-China trade developments. US Treasury Secretary Steven Mnuchin reportedly said US-China trade talks will resume in early October.
U.S. stocks closed mixed, but largely unchanged Monday after investors weighed downbeat data on eurozone manufacturing activity.
In eurozone, manufacturing activity contracted more sharply in September, posting its worst reading in nearly seven years. The flash eurozone manufacturing purchasing managers index (PMI) fell to 45.6 in September, down from 47 in August.
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