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Sensex slips below 28,000 level

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by August 25, 2016 General

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Key benchmark indices drifted lower in mid-afternoon trade, with the barometer index, the S&P Sensex, falling below the psychologically important 28,000 level. At 14:15 IST, the was down 84.97 points or 0.3% at 27,974.97. The 50 index was currently down 19.05 points or 0.22% at 8,631.25. Weakness in European stocks weighed on the domestic bourses. In the derivatives segment, the near month August 2016 contracts are set to expire today, 25 August 2016.

The Sensex fell 101.94 points or 0.36% at the day’s low of 27,958 in mid-afternoon trade, its lowest level since 23 August 2016. The barometer index rose 94.27 points or 0.33% at the day’s high of 28,154.21 in early trade, its highest level since 19 August 2016. The Nifty fell 25 points or 0.28% at the day’s low of 8,625.30 in mid-afternoon trade. The index rose 32.75 points or 0.37% at the day’s high of 8,683.05 in early trade, its highest level since 22 August 2016.

The market breadth indicating the overall health of the market turned negative from positive in mid-afternoon trade. On BSE, 1,348 shares declined and 1,229 shares rose. A total of 176 shares were unchanged. The BSE Mid-Cap index was currently down 0.03%. The decline in this index was lower than Sensex’s fall in percentage terms. The BSE Small-Cap index was currently up 0.16%, outperforming the Sensex.

In overseas stock markets, European stocks edged lower as a closely watched indicator of the German economy declined in August 2016. Germany’s Ifo index dropped to 106.2 in August 2016 from 108.3 in July 2016. The German economy is Europe’s biggest economy. Asian stocks witnessed a mixed trend ahead of Federal Reserve Chairwoman Janet Yellen’s speech tomorrow, 26 August 2016, which could provide hints about the timing of the next rate hike from the Fed. US stocks closed lower yesterday, 24 August 2016, with healthcare stocks leading the decline triggered by intensifying outrage over the pricing of a lifesaving drug by Mylan Inc. Meanwhile, Yellen is due to speak tomorrow, 26 August 2016, at the Kansas City Fed’s annual Monetary Policy Symposium in Jackson Hole, Wyoming. Minutes from the Federal Open Market Committee’s (FOMC) July meeting showed officials were split on whether an increase in interest rate was needed soon.

Auto stocks declined. Tata Motors (down 0.86%), Maruti Suzuki India (down 0.44%), Ashok Leyland (down 0.17%), TVS Motor Company (down 0.54%), Hero MotoCorp (down 0.35%) and Mahindra & Mahindra (down 0.23%) edged lower. Eicher Motors (up 0.55%) and Bajaj Auto (up 0.03%) edged higher.

Capital goods stocks were mixed. Crompton Greaves (down 1.74%), Praj Industries (down 1.74%), Bharat Electronics (down 0.68%), L&T (down 0.36%) and Thermax (down 0.14%) edged lower. Siemens (up 0.12%), GE T&D India (up 2.19%), Bharat Heavy Electricals (up 2.45%), Havells India (up 1.63%), ABB India (up 0.22%) and BEML (up 0.35%) edged higher.

Index heavyweight and cigarette major ITC rose 1.44% to Rs 253.80 on reports that a foreign brokerage has maintained its outperform rating on the stock. The brokerage has reportedly stated in a research note that lower price hike will support cigarette volume growth. ITC’s earnings are likely to grow at a compound annual growth rate (CAGR) of 14% over FY 2016 to FY 2019, the brokerage reportedly said.

Meanwhile, ITC during market hours today, 25 August 2016, issued a clarification regarding news reports that it has moved court against Britannia Industries (Britannia) for copying biscuit packaging. ITC said that it has filed a suit against Britannia before the Delhi High Court as Britannia has copied the trade dress and colour combination of ITC’s Sunfeast Farmlite Digestive ALL Good’ biscuit packages for its ‘Britannia Nutrichoice Digestive Zero’ biscuit packages. The case was filed by the company on 20 August 2016 and will be coming up for hearing on 31 August 2016, ITC said.

Britannia Industries was up 0.9% at Rs 3,467.20. The company in its clarification issued after market hours yesterday, 24 August 2016, said that ITC has filed a suit against the company at Delhi High Court alleging that Britannia is copying the color combination of ITC’s ‘Sunfeast Farmlite Digestive All Good’ Biscuit Packs for its ‘Nutrichoice Digestive Zero’ biscuit packs. The matter came up for hearing before Delhi High Court on 22 August 2016 and 24 August 2016. The next date of hearing is 31 August 2016. No injunction (stay) has been granted as of now. As the matter is sub-judice, the company cannot comment further on this matter, Britannia Industries said.

Bajaj Electricals rose 1.28% at Rs 254.05 after a bulk deal of 2 lakh shares was executed on the scrip at Rs 255.50 per share at 10:50 on BSE.

Meanwhile, the Union Cabinet yesterday, 24 August 2016, approved amendments to the Double Taxation Avoidance Agreement (DTAA) with Cyprus, which could impact foreign portfolio investment and foreign direct investment into India from Cyprus. With the revision of the treaty, India will have the right to tax capital gains arising in India for entities resident in Cyprus. All existing investments from Cyprus and additional investments made up to 31 March 2017 will be grandfathered like the Mauritius Treaty and therefore capital gains tax will not be applicable on shares acquired prior to 1 April 2017. According to a government statement, the proposed DTAA with Cyprus also expands the scope of the Permanent Establishments (PE) that enables source based taxation of business income.

As per media reports, foreign direct investment into India from Cyprus totaled $3.3 billion in 2015-16. Companies based in Europe and the US use Cyprus to route investments in India to take advance of the tax treaty, reports suggest. The Indian government is also in discussion with Singapore for amending tax treaty with Singapore.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Sensex slips below 28,000 level

Key benchmark indices drifted lower in mid-afternoon trade, with the barometer index, the S&P BSE Sensex, falling below the psychologically important 28,000 level. At 14:15 IST, the Sensex was down 84.97 points or 0.3% at 27,974.97. The Nifty 50 index was currently down 19.05 points or 0.22% at 8,631.25. Weakness in European stocks weighed on the domestic bourses. In the derivatives segment, the near month August 2016 contracts are set to expire today, 25 August 2016.

Key benchmark indices drifted lower in mid-afternoon trade, with the barometer index, the S&P Sensex, falling below the psychologically important 28,000 level. At 14:15 IST, the was down 84.97 points or 0.3% at 27,974.97. The 50 index was currently down 19.05 points or 0.22% at 8,631.25. Weakness in European stocks weighed on the domestic bourses. In the derivatives segment, the near month August 2016 contracts are set to expire today, 25 August 2016.

The Sensex fell 101.94 points or 0.36% at the day’s low of 27,958 in mid-afternoon trade, its lowest level since 23 August 2016. The barometer index rose 94.27 points or 0.33% at the day’s high of 28,154.21 in early trade, its highest level since 19 August 2016. The Nifty fell 25 points or 0.28% at the day’s low of 8,625.30 in mid-afternoon trade. The index rose 32.75 points or 0.37% at the day’s high of 8,683.05 in early trade, its highest level since 22 August 2016.

The market breadth indicating the overall health of the market turned negative from positive in mid-afternoon trade. On BSE, 1,348 shares declined and 1,229 shares rose. A total of 176 shares were unchanged. The BSE Mid-Cap index was currently down 0.03%. The decline in this index was lower than Sensex’s fall in percentage terms. The BSE Small-Cap index was currently up 0.16%, outperforming the Sensex.

In overseas stock markets, European stocks edged lower as a closely watched indicator of the German economy declined in August 2016. Germany’s Ifo index dropped to 106.2 in August 2016 from 108.3 in July 2016. The German economy is Europe’s biggest economy. Asian stocks witnessed a mixed trend ahead of Federal Reserve Chairwoman Janet Yellen’s speech tomorrow, 26 August 2016, which could provide hints about the timing of the next rate hike from the Fed. US stocks closed lower yesterday, 24 August 2016, with healthcare stocks leading the decline triggered by intensifying outrage over the pricing of a lifesaving drug by Mylan Inc. Meanwhile, Yellen is due to speak tomorrow, 26 August 2016, at the Kansas City Fed’s annual Monetary Policy Symposium in Jackson Hole, Wyoming. Minutes from the Federal Open Market Committee’s (FOMC) July meeting showed officials were split on whether an increase in interest rate was needed soon.

Auto stocks declined. Tata Motors (down 0.86%), Maruti Suzuki India (down 0.44%), Ashok Leyland (down 0.17%), TVS Motor Company (down 0.54%), Hero MotoCorp (down 0.35%) and Mahindra & Mahindra (down 0.23%) edged lower. Eicher Motors (up 0.55%) and Bajaj Auto (up 0.03%) edged higher.

Capital goods stocks were mixed. Crompton Greaves (down 1.74%), Praj Industries (down 1.74%), Bharat Electronics (down 0.68%), L&T (down 0.36%) and Thermax (down 0.14%) edged lower. Siemens (up 0.12%), GE T&D India (up 2.19%), Bharat Heavy Electricals (up 2.45%), Havells India (up 1.63%), ABB India (up 0.22%) and BEML (up 0.35%) edged higher.

Index heavyweight and cigarette major ITC rose 1.44% to Rs 253.80 on reports that a foreign brokerage has maintained its outperform rating on the stock. The brokerage has reportedly stated in a research note that lower price hike will support cigarette volume growth. ITC’s earnings are likely to grow at a compound annual growth rate (CAGR) of 14% over FY 2016 to FY 2019, the brokerage reportedly said.

Meanwhile, ITC during market hours today, 25 August 2016, issued a clarification regarding news reports that it has moved court against Britannia Industries (Britannia) for copying biscuit packaging. ITC said that it has filed a suit against Britannia before the Delhi High Court as Britannia has copied the trade dress and colour combination of ITC’s Sunfeast Farmlite Digestive ALL Good’ biscuit packages for its ‘Britannia Nutrichoice Digestive Zero’ biscuit packages. The case was filed by the company on 20 August 2016 and will be coming up for hearing on 31 August 2016, ITC said.

Britannia Industries was up 0.9% at Rs 3,467.20. The company in its clarification issued after market hours yesterday, 24 August 2016, said that ITC has filed a suit against the company at Delhi High Court alleging that Britannia is copying the color combination of ITC’s ‘Sunfeast Farmlite Digestive All Good’ Biscuit Packs for its ‘Nutrichoice Digestive Zero’ biscuit packs. The matter came up for hearing before Delhi High Court on 22 August 2016 and 24 August 2016. The next date of hearing is 31 August 2016. No injunction (stay) has been granted as of now. As the matter is sub-judice, the company cannot comment further on this matter, Britannia Industries said.

Bajaj Electricals rose 1.28% at Rs 254.05 after a bulk deal of 2 lakh shares was executed on the scrip at Rs 255.50 per share at 10:50 on BSE.

Meanwhile, the Union Cabinet yesterday, 24 August 2016, approved amendments to the Double Taxation Avoidance Agreement (DTAA) with Cyprus, which could impact foreign portfolio investment and foreign direct investment into India from Cyprus. With the revision of the treaty, India will have the right to tax capital gains arising in India for entities resident in Cyprus. All existing investments from Cyprus and additional investments made up to 31 March 2017 will be grandfathered like the Mauritius Treaty and therefore capital gains tax will not be applicable on shares acquired prior to 1 April 2017. According to a government statement, the proposed DTAA with Cyprus also expands the scope of the Permanent Establishments (PE) that enables source based taxation of business income.

As per media reports, foreign direct investment into India from Cyprus totaled $3.3 billion in 2015-16. Companies based in Europe and the US use Cyprus to route investments in India to take advance of the tax treaty, reports suggest. The Indian government is also in discussion with Singapore for amending tax treaty with Singapore.

Powered by Capital Market – Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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