Benchmarks make gap-up opening; Nifty surpasses 7,700 mark

Indian equity benchmarks have made a gap-up opening and are trading jubilantly in morning deals with frontline gauges surpassing their crucial 25,800 (Sensex) and 7,700 (Nifty) bastions, supported by firm global cues. The US markets made a recovery and ended higher in last session supported by some good earnings announcements. The Asian markets too were trading mostly in the green terrain at this point of time, coming out of the incident of downing of a passenger jet in Ukraine.

Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too equally participated in the rally. Traders also reacted positively on better than expected Q1 earnings of Reliance Industries. The company’s standalone net profit for the first quarter stood at Rs 5,649 crore, 5.5 per cent higher from the corresponding period a year ago, backed by lower interest and depreciation costs along with slightly better refining margins. The consolidated net profit rose 13.7 per cent to Rs 5,957 crore.

Meanwhile, none of the sectoral indices were trading in the red, while oil and gas and realty witnessed the maximum gain in trade. Banking, consumer durables, infrastructure, FMCG, metel power and PSU too were trading significantly. The broader indices too were trading in-line with benchmarks, while the market breadth on the BSE was positive; there were 1,463 shares on the gaining side against 435 shares on the losing side while 72 shares remain unchanged.

The BSE Sensex opened at 25776.54; around 135 point higher compared to its previous closing of 25641.56, and has touched a high and a low of 25861.15 and 25769.21 respectively. The index is currently trading at 25852.98, up by 211.42 points or 0.82%. There were 26 stocks advancing against 4 declines on the index.

The overall market breadth has made a strong start with 74.26% stocks advancing against 22.08% declines. The broader indices were trading in the green; the BSE Mid cap and Small cap indices up by 1.13% and 1.22% respectively. 

The top gaining sectoral indices on the BSE were Oil and Gas up by 1.45%, Realty up by 1.22%, Bankex up by 1.08%, Consumer Durables up by 0.95% and Infrastructure up by 0.95%, while there was no loser on the sectoral index.

The top gainers on the Sensex were RIL up by 2.68%, HDFC up by 1.93%, HDFC Bank up by 1.65%, Maruti Suzuki up by 1.54% and Tata Steel up by 1.36%. On the flip side, Hindalco was down by 1.33%, Bajaj Auto was down by 0.21%, Tata Motors was down by 0.07% and Wipro was down by 0.02% were the top losers on the Sensex.

Meanwhile, as around Rs 4 lakh crore are locked up in litigations, the Central Board of Direct Taxes (CBDT) has set up a six-member committee to suggest ways to reduce mounting disputes at various tax appellate forums. The committee, comprising senior Indian Revenue Service officials, will appraise the efficacy of existing dispute resolution forums of Commissioner of Income Tax (Appeals) and the Income-Tax Appellate Tribunal (ITAT).

The Panel has also been asked by CBDT to give its recommendations for different income groups and separately for corporate and non-corporate assessees. The panel will have to analyse assessment orders separately by categorising income groups up to Rs 25 lakh, Rs 25 lakh - Rs 1 crore, Rs 1 crore - Rs 10 crore and Rs 10 crore and above.

Besides the committee to examine the assessment orders, appellate orders and scrutiny report for appeal to the ITAT. Furthermore, the committee will conduct analysis of assessment orders, orders of CIT (A) and success rate of appeals filed by the department/assessee before the ITAT. The panel will have to submit its report within eight weeks. The latest initiative of the CBDT is also in line with the intent of the government to reduce tax litigation and bring certainty in the tax environment.

The CNX Nifty opened at 7,701.65; about 38 points higher as compared to its previous closing of 7,663.90, and has touched a high and a low of 7,722.05 and 7,700.95 respectively. The index is currently trading at 7,718.30, up by 54.40 points or 0.71%. There were 42 stocks advancing against 8 declines on the index.

The top gainers of the Nifty were RIL up by 2.81%, Kotak Mahindra Bank up by 2.60%, HDFC up by 1.59%, Maruti Suzuki up by 1.48% and HDFC Bank up by 1.30%. On the flip side, Ultratech Cement down by 1.55%, Hindalco down by 1.22%, Grasim down by 0.39%, Lupin down by 0.31% and Bajaj Auto down by 0.30% were the major losers on the index.

Asian markets were trading mostly in the green; Hang Seng gained 2.37 points or 0.01% to 23,457.16, KOSPI Index strengthened by 1.13 points or 0.06% to 2,020.55, Straits Times increased 2.49 points or 0.08% to 3,313.02, Jakarta Composite soared 32.25 points or 0.63% to 5,119.27, Taiwan Weighted was up by 31.70 points or 0.34% to 9,432.67.

On the flip side, Shanghai Composite tumbled by 3.61 points or 0.18% to 2,055.45 and FTSE Bursa Malaysia KLCI was down by 1.36 points or 0.07% to 1,871.61. The Japanese market remained shut for the trade today for Marine Day Holiday.