Asian stocks retreat from highs after Trump tax plan

Asia stocks ticked down from a near two-year high on Thursday after a long-awaited U.S. tax plan failed to inspire investors, though sentiment remains supported by global growth prospects and receding worries about political risks in Europe.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.1 percent after hitting its highest level since June 2015 on Wednesday. Japan's Nikkei dipped 0.3 percent.

U.S. President Donald Trump proposed slashing tax rates for businesses to 15 percent from the current 35 percent for public corporations and 39.6 percent for small businesses, and on overseas corporate profits returned to the country.

But the one-page plan offered no specifics on how it would be paid for without increasing the deficit, which many analysts think would be difficult to achieve.

"There were no specifics in terms of funding for the tax cuts. The announcement appeared many thins are still in flux," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.

On Wall Street, the S&P 500 ended down 0.05 percent, failing to cling to earlier gains made on optimistic views on corporate earnings.

Overall profits of S&P 500 companies are estimated to have risen 11.8 percent in the first quarter, the most since 2011, according to Thomson Reuters I/B/E/S.

The world's share markets have been bolstered by relief over the first round of the French presidential election and also by signs of solid global economic growth in recent months.

The disappointment on the tax plan prompted fall in U.S. bond yields and the U.S. dollar.

The 10-year U.S. Treasuries yield slipped to 2.304 percent from two-week high of 2.350 percent touched earlier on Wednesday.

The euro traded at $1.0908 , having bounced back from Wednesday's low of $1.0856 and near its 4 1/2-month high of $1.09515 touched on Wednesday.

The ECB is scheduled to hold a policy meeting on Thursday, with the focus on the potential for a scaling back of monetary stimulus in the months ahead.
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Latest News - Benchmark indices kept their strong rally going in the morning trade as investors cheered BJP’s stunning victory in Uttar Pradesh assembly elections, which gives it room for adding more representatives in the Rajya Sabha. BJP won state elections in four out of five states that went to polls indicating that the popularity of Prime Minister Narendra Modi was still intact.

Both indices rallied by about 2% with Sensex surging as much as 615 points during the early trade while the broader Nifty50 hitting the record high of 9,123 at open(Read More)

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Latest News - Benchmark indices extended losses even as Asian markets rallied after the US Federal Reserve Chair Janet Yellen hinted at a likely rate hike in the forthcoming policy review.

At 1:19 pm, the S&P BSE Sensex was trading at 28,162, down 177 points, while the broader Nifty50 was ruling at 8,729, down 63 points.

In the broader market, BSE Midcap and BSE Smallcap lost 1.2% and 1.4%, respectively.

"Nifty is well placed above the 8,770 levels indicates strength and has a potential to test 8,840- 8,870 levels in coming trading sessions," said Nirmal Bang research in a technical note.

On Tuesday, foreign portfolio (Read More)

Markets at day’s low, Nifty fails to hold 8,800; Coal India down 2%

Latest News - Benchmark indices pared gains to turn flat after opening on a higher note today following Asian markets and Wall Street hitting record high on Friday.

Investors awaited CPI and WPI inflation data which will be released later today after the factory output contracted 0.4% in December.

At 12:05 pm, the S&P BSE Sensex was trading at 28,258, down 75 points, while the broader Nifty50 was ruling at 8,768, down 25 points.

In the broader market, BSE Midcap and BSE Smallcap fell 0.3% and 0.4% respectively.

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However, investor sentiment was upbeat as Asian shares ticked up on renewed optimism over US President Trump's tax reform plans and his change of tack to agree to honour the "one China" policy.

The S&P BSE Sensex ended at 28,351, up 17 points, while the broader Nifty50 quoted 8,805, up 11 points at close.

In the broader market, the BSE Mid-Cap and the BSE Smallcap indices underperformed the frontline indices and shed 0.4% and 0.5%, respectively.

The market breadth indicating the overall health of the market remained weak. On BSE, 1,789 shares fell and 1,092 shares rose. A total of 170 shares were (Read More)

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Latest News - Another instance of consensus falling short on predicting actual outcome! Surprising the market participants, the Reserve Bank of India (RBI) unexpectedly kept the interest rates on hold with the benchmark indices settling the week barely higher even as foreign investors poured in over Rs 700 crore, while global markets found succour in US President Donald Trump’s announcement of unveiling soon some "phenomenal" tax reforms.

During the week ended February 10, the S&P BSE Sensex added 0.3% or 94 points to settle at 28240, while Nifty50 gained 0.6% or 52 points to close at 8793.

Midcap and Smallcap stocks outperformed. Nifty Midcap 100 index hit its all-time high of 16227, up 1.2% for the week, while the BSE Midcap index rose 1.3%. The BSE Smallcap index surged 1.4%, ending above its nine-year high.

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Latest News - Benchmark indices opened on higher note with Nifty reclaiming its 8,800 mark but later pared gaind to trade in red as Asian markets stayed cautious following growing political risks in Europe and mixed overnight trade on Wall Street.

Street also watched out for some major companies to declare their Q3 earnings during the day. A total of 268 firms are supposed to report their third quarter results during the day including SAIL, BPCL, Power Grid, Lupin, Cairn India and Aurobindo Pharma.

Also, RBI, yesterday held repo rates at 6.25% for the second time in a row, changing its stance to "neutral" from "accommodative".

At 11:33 am, the S&P BSE Sensex was trading at 28,169, down 120 points, while the broader Nifty50 was ruling at (Read More)

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Latest News - The benchmark indices on Wednesday were trading flat ahead of Reserve Bank of India (RBI)'s monetary policy meeting due later in the day. Globally, Asian markets dipping below their four-month highs also sapped investor confidence.
At 10:10 am, the S&P BSE Sensex was trading at 28,329, down 6 points, while the broader Nifty50 was ruling at 8,770, up 2 points.
In the broader market, the BSE Midcap and BSE Smallcap indices outperformed the frontline indices to quote 0.5% and 0.4%, respectively.
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Rail stocks slide 4% ahead of Rail Budget

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Titagarh Wagons settled 4.06 per cent down at Rs 115.90 on BSE today, while Kalindee Rail Nirman (Engineers) ended 3.27 per cent down at Rs 113.95 from the previous close.

Texmaco Rail & Engineering lost 3.22 per cent and closed at Rs 106.65. Stone India went down by 2.94 per cent to settle at Rs 69.30.

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Latest News - The market put a stellar show in a holiday-truncated expiry week with benchmark indices rising the most in eighth-month thanks to higher rollovers to February series ahead of Union Budget 2017 as a pre-Budget rally defied the negative results from the companies such as Wipro, Ashok Leyland, HUL and M&M. Positive sentiment in global markets after Dow Jones, Wall Street’s closely-watched index, hit its fresh lifetime high of 20,000-mark, also aided the sentiment. 

During the week ended January 27, the S&P BSE Sensex added 3.1% or 848 points to settle at 26759, while Nifty50 gained 3.5% or 291 points to close the week at 8641. 

Midcap and Smallcap stocks jumped. The BSE Midcap index rose 3%, while the BSE Smallcap index surged 2.8%.

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