Key benchmark indices hovered with small gains in afternoon trade. At 13:18 IST, the barometer index, the S&P BSE Sensex, was up 51.32 points or 0.19% at 27,286.98. The Nifty 50 index was up 23.30 points or 0.28% at 8,421.30. Indian stocks rose today, 18 January 2017, after reports suggested that the Central Board of Direct Taxes put in abeyance its earlier circular raising foreign investors' concerns over a potential rise in tax liability under indirect transfer provisions. The Sensex rose 187.01 points or 0.68% at the day's high of 27,422.67 in morning trade, its highest level since 13 January 2017. It rose 21.08 points or 0.07% at the day's low of 27,256.74 in afternoon trade. The Nifty rose 62.30 points or 0.74% at the day's high of 8,460.30 in morning trade, its highest level since 13 January 2017. It rose 5.65 points or 0.06% at the day's low of 8,403.65 in afternoon trade. After opening higher amid mixed Asian cues, key indices extended intial gains but failed to pick up momentum and trimmed gains in early afternoon trade. The BSE Mid-Cap index was up 0.48%. The BSE Small-Cap index was up 0.63%. Both these indices outperformed the Sensex. The market breadth, indicating the overall health of the market, was positive. On BSE, 1,511 shares rose and 1,062 shares declined. A total of 155 shares were unchanged. As per reports, in a major relief to foreign portfolio investors (FPIs) in India, the Central Board of Direct Taxes (CBDT) yesterday, 17 January 2017, put in abeyance its 21 December 2016 circular that amplified their concerns over a potential rise in tax liability under India's controversial indirect transfer provisions. The move signalled the government's intent to spare small overseas investors in FPIs registered in India from paying taxes in India on redemption of shares/units. Bank stocks edged higher. Among public sector banks, Indian Bank (up 0.63%), IDBI Bank (up 0.61%), Punjab National Bank (up 0.35%) and Bank of India (up 0.52%) gained. Corporation Bank (down 0.58%) and Bank of Baroda (down 0.19%) edged lower. State Bank of India (SBI) was up 0.41% after the bank said that it concluded the issue of $500 million fixed rate senior unsecured notes having a maturity of 5 years at a coupon of 3.25% payable semi-annually. The bonds will be issued through the bank's London branch as of 24 January 2017 and shall be listed on Singapore Stock Exchange. The announcement was made after market hours yesterday, 17 January 2017. Among private sector banks, Kotak Mahindra Bank (up 1.63%), IndusInd Bank (up 1.15%), HDFC Bank (up 0.53%), ICICI Bank (up 0.52%) and RBL Bank (up 0.01%) edged higher. Axis Bank declined 0.43%. Yes Bank rose 0.99% after the bank announced that it has launched YES FINTECH - a unique business accelerator program in collaboration with T-Hub - India's fastest growing start-up engine catalysing innovation, scale and deal flow and Anthill, LetsTalkPayments, a global platform for financial technology (Fintech) insights is the knowledge partner. Yes Bank said it has been collaborating with and supporting more than 100 Fintech start-ups in the country to provide innovative financial solutions to its corporate, small and medium enterprises (SME) and retail customer base as part of its Alliances, Relationships & Technology (A.R.T) approach to digitized banking. YES FINTECH accelerator will further augment this approach and help the bank co-create disruptive innovations in the financial inclusion, micro, small and medium enterprises (MSME) focused solutions, payments, lending, compliance, risk management, trade finance, capital markets and forex & treasury space. The announcement was made after market hours yesterday, 17 January 2017. IT stocks were mixed. Persistent Systems (up 1.08%), HCL Technologies (up 0.43%), Wipro (up 0.3%) and Infosys (up 0.2%) edged higher. Oracle Financial Services Software (down 0.67%), Tech Mahindra (down 0.57%) and TCS (down 0.02%) edged lower. Overseas, Asian stocks were mixed as investors warily await President-elect Donald Trump's inauguration as the President later this week. US stocks retreated yesterday, 17 January 2017, as investors remained cautious in the wake of President-elect Donald Trump's charge that a strong dollar is hurting the economy. Trump's comments on the dollar sent the currency sharply lower. Trump reportedly told The Wall Street Journal in an interview that published Friday, 13 January 2017, that the US currency was “too strong” because China was keeping its own yuan weaker. “Our companies can't compete with them now because our currency is too strong, and it's killing us,” the president-elect said in the interview. Among economic data in US, the Empire State index for January slipped to 6.5, from a revised 7.6 in December, which was an 8-month high. Any reading above zero indicates improving conditions. Meanwhile, New York Federal Reserve President William Dudley played down the role of inflation in monetary policy decisions. Dudley said inflation is “simply not a problem” and that a strong dollar would limit corporations' ability to raise prices. UK Prime Minister Theresa May in a speech indicated Britain will press for a firm exit from the European Union. May said she'll put the terms of the country's exits from the EU to a parliamentary vote. Setting out a vision that could determine Britain's future for generations and the shape of the EU itself, May answered criticism that she has been coy about her strategy with a 12-point plan for what has been dubbed a hard Brexit. Powered by Capital Market - Live News |