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Last Updated : Jan 30, 2017 11:56 AM IST | Source:

Nifty continues to struggle below 8650; IT, auto stocks drag

The 30-share Sensex was trading flat with a negative bias at 27867.73, while the broader index Nifty was trading lower by 0.12 percent at 8630.95.

Moneycontrol Bureau

11:50 am Chidambaram's Budget tips to Jaitley:
In his weekly column in the Indian Express newspaper, former Finance Minister P Chidambaram has offered some “unsolicited advice” for Arun Jaitley, who will be presenting his fourth Budget on Wednesday. Chief among the suggestions are that the government should not cut direct tax rates—income tax and corporate tax—and that it should instead cut indirect taxes like service tax and excise duties to boost demand in the economy. It is widely expected that the Budget will announce relax the income-tax threshold limits to regain the goodwill of the middle class, which has been inconvenienced by demonetisation.

11:40 am Earnings poll: 
Software firm Tech Mahindra's third quarter profit is expected to increase sharply by 21.2 percent sequentially to Rs 780 crore on strong operational performance. Rupee revenue during the quarter may increase 3 percent quarter-on-quarter to Rs 7,379.5 crore and dollar revenue is seen rising 2 percent to USD 1,094 million, according to average of estimates of analysts polled by CNBC-TV18.

Constant currency dollar revenue growth may be 3 percent. Topline growth may be supported by incremental 1.5-month contribution from Target group. Telecom business should do well aided by slight improvement in Comviva and stable LCC, say analysts.

11:20 am Market outlook: 
Capital gains tax and corporate tax are the parameters that the Street would be watching when Finance Minister Arun Jaitley presents Budget 2017 on February 1, feels veteran commentator Udayan Mukherjee. Any taxation on equity markets, though unlikely, will definitely irk the markets, the CNBC-TV18's Consulting Editor told the channel, adding that the markets haven’t factored in imposition of long-term capital gains tax. While the effect of a direct tax cut depends on the amount of relief the government provides, it may not be, however, a game-changer, Mukherjee said.

Commenting on recently market rally, he said that Nifty hitting 8600-8700 levels surprised many of the Dalal Street. The rally was partly driven by a combination of factors such as good earnings report card of companies, global upmove and Budget expectations, he said. On February 1, consumer-related plays will come out depending on tax cuts announced by the Finance Ministry, Mukherjee said, expressing reservations that such rally may not be sustainable. Housing companies stand to benefit on tax exemptions, he said. 

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Consolidation continued on equity benchmarks ahead of the Union Budget on February 1. The 30-share Sensex was trading flat with a negative bias at 27867.73, while the broader index Nifty was trading lower by 0.12 percent at 8630.95.

About 1,097 shares have advanced, 1,183 shares declined, and 256 shares are unchanged.

Bharti Airtel and Sun Pharma were top gainers in the Sensex, with gains of 4.28 percent and 1.69 percent, respectively. Hero MotoCorp and Tata Motors were the top losers on the index, after having lost 1.49 percent and 1.48 percent respectively. Telecom stocks were the top gainers on the Nifty, with Idea Cellular gaining 7.12 percent. The stock is witnessing strong movements on rumours of a merger from Vodafone. Aurobindo Pharma was the top loser on the index after having lost 1.48 percent. 

On the currency front, the rupee was trading at 68.06, up 0.02 paise, against the dollar.

Meanwhile, gold was trading higher at Rs 28,420. The yellow metal has gained 0.24 percent.

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First Published on Jan 30, 2017 11:19 am
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