Finance Minister Arun Jaitley has said that tax payers should be trusted, unless proven otherwise and batted for a globally compatible lower level of taxation. Jaitley said voluntary compliance by citizens of payment of due taxes needs to be reciprocated by authorities with a tax-friendly administration.
On the bright side, the rupee managed to end at a two-week high against the US dollar.
While volumes remain thin, some buying could keep the indices afloat before the F&O choppiness sets in later this week. A report suggests that a government clarification on indirect transfer of shares could result in foreign investors paying up to 40% tax on their capital market investments in India. Monday weakness was more to do with statements from the PM that financial market participants may have to pay more taxes.
Nifty saw bears out in force to drive the index to the lowest since the 'brexit low' of 24th June.With expiry on Thursday & foreign flows muted expect a strong pullback from grossly oversold territory which could see the Nifty test 8100 this week. For today expect negative rhetoric on taxes to dominate opening, however domestic flows should add colour with buying in banks, metals & IT stocks.
Among other stocks in focus:
Jet Airways: Airline major Jet Airways on Monday said that it will introduce its wide-body Airbus A330 aircraft on certain additional domestic and international routes.
Shilpa Medicare: The company has raised around Rs 172.42 crore by allotting 30,25,000 shares to Mauritius-based TA FII Investors Ltd.
Apollo Hospitals Enterprise: Apollo Hospitals informed stock exchanges that the company has issued a Letter of Comfort for an aggregate sum of Rs 37.10 crore to ICICI Bank in connection with the sanction of credit facilities in favour of its step-down subsidiary, “Alliance Dental Care Limited, Chennai”.
Empee Distilleries: The board of the company has withdrawn the proposal for sale of 19.5 million shares of 10 rupees each in Empee Hotels.
Panacea Biotec: The company has launched fully-liquid tetravalent vaccine easyfour-TT used for primary immunisation and as booster dose for diphtheria, tetanus, pertussis and Hib.
Future Enterprises: The company has sold 16.09 per cent of equity share capital Future Lifesyle Fashions Ltd. This shares has been bought on floor of exchange by Future Corporate Resources Ltd, a promoter group company, by way of inter-se transfer under block deal mechanism at prevailing market rate at time of trade.
Union Quality Plastics: The company announced that the meeting of the board of directors of the company is scheduled to be held on Dec 29, to consider and approve forfeiture of 1,01,700 partly paid up equity shares.
L&T: L&T Construction, the construction arm of L&T, has won orders worth Rs30.39bn across its various business segments.
NTPC Ltd: NTPC has commissioned the Unit-1 of 800MW of Kudgi Super Thermal Power Project on December 25.
Emami Infra: Emami Infrastructure has informed stock exchanges that the Calcutta High Court has passed an order dated October 31, 2016 for dissolution without winding up of the transferor companies, ie Emami Realty and Emami Rainbow Niketan and that they be dissolved from the date of filing of the order with the Registrar of Companies, West Bengal.
RCI Industries: The company has informed bourses that the meeting of board of directors is scheduled to be held on Dec 30 to consider and approve the issue of equity shares on preferential basis.
Lupin: The pharma company has received tentative approval from the US health regulator to sell Olmesartan medoximil tablets, used for treating high blood pressure, in the American market.
Gayatri Projects: The board of directors of Gayatri Projects Ltd, at a meeting held (Dec 26, 2016), has approved sub-division of nominal value of the company's equity shares of Rs 10 each to Rs 2 per share.