Indian shares climbed after the implementation of the Goods and Service Tax – the country's most significant economic reform in decades – over the weekend. FMCG major ITC led the winner's list, after the government notified cigarettes will be exempted of additional excise duty under the GST regime.
The NSE Nifty 50 index gained 0.4 percent to 9,554 while the S&P BSE Sensex Index opened above the 31,000 mark, with gains of 0.5 percent. The market breadth was firmly in favour of the buyers with 1,014 stocks gaining and 402 that declining on the NSE.
Here Are The Stocks Moving The Market This Morning:
ITC: Hits Record High
Shares of the cigarette-to-soap maker rose as much as 9.6 percent to Rs 354.8, a fresh record high, after some brokerages said the tax relief under the GST regime called for a re-rating of the stock.
Brokerage house CSLA reiterated its ‘Buy' rating on stock and raised price target to Rs 417 from Rs 375 earlier.
#BQStocks | ITC surges to record high as tax burden on cigarettes fall under #GST, reports @darshanvmehta1.https://t.co/oGYF1UGcP6 pic.twitter.com/2lzPtj9JOC
The Relative Strength Index (RSI) is 78, indicating that the stock may be overbought. Trading volume rose 15.9 times its 30-day average in early trading.
SpiceJet: Subdued Ahead Of Key Verdict
Shares of the carrier fell 3.5 percent to Rs 127.5 as the Delhi High Court is likely to pronounce its verdict on SpiceJet-Maran share transfer row on Monday.
The budget carrier and its co-founder Ajay Singh had moved the high court against a single judge order directing it to deposit Rs 579 crore in connection with a share transfer dispute with previous owner Kalanithi Maran.
The stock returned 126 percent so far this year and a gain of 101 percent in the past 52 weeks.
Fertiliser Stocks: Boosts On GST Rate Reduction
Shares of the fertiliser makers gained anywhere between 5 percent and 0.5 percent after the GST council reduced the tax rate on fertiliser to 5 percent from previously decided 12 percent.
Finance Minister Arun Jaitley said that the decision to reduce the tax rate on fertilisers was taken because of apprehensions that price of the crop nutrient may go up, according to a PTI report.
- Rashtriya Chemicals and Fertilizers rose 1.3 percent to Rs 76.85
- National Fertilizers rose 8.2 percent, the biggest intraday jump since February 13, to Rs 76.5
- Deepak Fertilizers & Petrochemical Corporation rose 4.1 percent to Rs 280
- Chambal Fertilizers and Chemicals rose 6.26 percent intraday, the biggest jump since May 30, to Rs 124.7
- Mangalore Chemicals and Fertilizers rose 3.74 percent to Rs 70.75
Hindustan Unilever: Slashes Select Detergent Bar Price
Shares of the FMCG company rose 1.5 percent to Rs 1,095.50 after the company product manufacturer reduced prices of select soaps, according to Business Today report.
The trading volume was 1.3 times the 20-day average for this time of day. The stock returned 32 percent so far this year and a gain of 23 percent in the past 52 weeks.
IDBI Bank: Swings After Stake Sale
Shares of the lender parred swung between gains and losses after it sold 12.5 lakh shares of Clearing Corporation of India on June 30, according to the company's exchange filing.
The Relative Strength Index (RSI) is 27, indicating that the stock may be oversold. The stock returned a negative 23 percent so far this year, compared to 11.2 percent gain in Nifty PSU Bank index.
Datamatics Global Services: New Buy
Shares of the consultancy service provider rose as much as 2.7 percent to Rs 106 after it said it will acquire a 71.1 percent stake in Techjini Solutions Private Limited.
Techjini, a mobile and web development company, caters to over 35 companies across business verticals such as media, engineering, manufacturing and start-ups, the company said in a press release.
The cost of acquisition will be around Rs 39.10 crore.
The stock returned a negative 19 percent so far this year and a gain of 70 percent in the past 52 weeks.
Hero MotoCorp: Welcomes GST By Reducing Prices
Shares of the two-wheeler manufacturer swung between gains and losses after the country's largest two-wheeler maker reduced prices of its mass selling models by up to Rs 1,800 to pass on GST benefits to its customers.
The actual benefit varies from state-to-state, depending on the pre- and post-GST rates, it said in a filing. Some of the premium segment models would see a reduction of up to Rs 4,000 in certain markets, Hero MotoCorp said. “In one or two states, such as Haryana, where the pre-GST rates were lower than the post-GST rate, the prices of a few models may go up marginally,” it added.
The stock returned 24 percent so far this year and a gain of 20 percent in the past 52 weeks.
Also Read: Hero MotoCorp Cuts Prices To Pass On GST Benefits
Automakers: June Sales Buzz
Maruti Suzuki India Ltd. rose 1.77 percent to Rs 7,345 after it reported a 7.6 percent rise in overall sales for the month of June. While its domestic sales increased by 1.2 percent on year-on year-basis, exports increased 96 percent, compared to corresponding period in last year.
Meanwhile, the country's largest auto company also reduced prices by up to 3 percent for its select models, the company said in its exchange filing.
The stock is up on high trading volumes at two times its 30-day average.
Eicher Motors Ltd. rose as much as 2.1 percent to Rs 27,608.35, after the company's motorcycle arm, Royal Enfield reported a 25 percent on year-on-year rise in sales during the month of June.
The stock has returned 26 percent so far this year and has gained 43 percent over the past 52 weeks.
Mahindra & Mahindra Ltd. June sales declined 8.4 percent on a year-on-year basis. The overall sales for first quarter of current fiscal declined 4 percent, compared to corresponding period last year.
Besides this, the Tractor sales volume increased 9 percent in previous month and grew 13 percent during the April-June period.
Brokerage firm, Motilal Oswal Securities maintained a ‘buy' rating on the stock, increasing its price target to Rs 1,619 from Rs 1,603.
Shares gained as much as 1.74 percent to Rs 1,372 on the National Stock Exchange.
Tata Motors Ltd. fell as much as 1.5 percent to Rs 426.25 after the Jaguar-Land Rover (JLR) owner's overall June sales declined 9 percent compared to last year.
Besides this, The automobile manufacturer reduces JLR prices between 6-7 percent, post GST roll-out.
The stock returned a negative 9.2 percent so far this year and has lost 6.4 percent in the past 52 weeks.
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