Benchmarks continue to trade firm amid firm global cues

Indian equity benchmarks continue to trade firm in afternoon session, following rebound in blue chip stocks, boosted by a global markets rally after the US Fed kept its monetary policy unchanged. Sentiments got a boost as the US Fed stated that it would take a ‘patient’ approach in deciding when to raise interest rates and all the major sectoral indices on BSE were trading in green. Besides global development, the cabinet's latest move to clear the Goods and Services Tax (GST) Constitutional Amendment Bill and appreciation in rupee value against the dollar also boosted sentiments and helped key indices to regain their crucial levels. Consumer durables and power were the top gaining indices trading up by over 2%. Buying was broad based with both mid cap and small cap indices were trading up by over 2%. Fertilisers and chemical stocks were on buyer's radar as India is planning to set up reverse special economic zone (SEZs) in Iran, mainly in the fertiliser and petrochemical sectors.

Stock specific movement, shares in Mastek has rallied around 18% to Rs 377, also its fresh 52-week high on domestic bourses, on back of heavy volumes. In past four trading sessions, shares of software services company has surged 39% from Rs 271 on December 12, 2014 after Mastek said its 100% subsidiary Majesco which is into core insurance systems and services entered into a definitive merger agreement with NYSE-listed Cover-All Technologies Inc. Further, the shares of Punjab National Bank and JK Tyre and Industries were trading higher by up to 8% after both the stocks turned ex-stock split in today session.

On global front, Asian markets were trading in green with Shanghai Composite up by 0.18% and Straits Times up by 0.19%. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 8,000 and 26,500 levels respectively. The market breadth on BSE was positive, out of 2,411 stocks traded, 1,822 stocks advanced, while 519 stocks declined on the BSE.

The BSE Sensex is currently trading at 26957.81, up by 247.68 points or 0.93% after trading in a range of 26900.57 and 27105.80. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 2.02%, while Small cap index up by 2.31%.

The gaining sectoral indices on the BSE were Consumer Durables up by 3.76%, Power up by 2.11%, INFRA up by 1.99%, Metal up by 1.77% and PSU up by 1.73%. The top gainers on the Sensex were GAIL India up by 4.35%, BHEL up by 3.87%, Hindalco up by 3.50%, Tata Power up by 2.99% and ICICI Bank up by 2.68%. On the flip side, Hero MotoCorp down by 0.70%, HDFC down by 0.57%, Reliance Industries down by 0.22%, Hindustan Unilever down by 0.19% and Wipro down by 0.16% were the top losers.

Meanwhile, the cabinet has cleared the Goods and Services Tax (GST) Constitutional Amendment Bill, clearing the way for its introduction in ongoing session of Parliament. The revised bill was brought before the Cabinet after the Centre and states earlier this week reached a consensus on contentious issues like petroleum product taxation.Earlier this week, the centre government decided to keep petroleum out of GST on the condition that states must agree to entry tax being subsumed in the new tax regime.  On the issue of compensation to states for revenue loss because of subsuming of all indirect taxes in the GST, Finance Ministry sought for legal opinion on how it could be accommodated in the Constitution Amendment Bill.

The government aims to roll out the goods and services tax (GST) from April 1, 2016. The proposed GST is one of the biggest taxation reforms in India and will replace existing state and federal levies such as excise duty, service tax and value-added tax (VAT) and will integrate State economies and boost overall growth. Under GST, the taxation burden will be divided equitably between manufacturing and services, through a lower tax rate by increasing the tax base and minimizing exemptions. The industry is awaiting its introduction, as GST would boost revenues and aid economic growth.

The GST rollout has missed several deadlines because of lack of consensus among states over certain crucial issues on the new tax regime. States have been demanding that petroleum, alcohol and tobacco should be kept out of the purview of GST. States earns over 50 per cent of their revenues from taxes on petrol and other petro products and wanted it to be out of GST so that they could continue with levying different tax rates on these products.

The CNX Nifty is currently trading at 8098.10, up by 68.30 points or 0.85% after trading in a range of 8084.90 and 8151.50. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were GAIL India up by 4.62%, BHEL up by 3.94%, Jindal Steel & Power up by 3.84%, Hindalco up by 3.60% and Tata Power up by 3.06%. On the flip side, Grasim Industries down by 1.18%, Ultratech Cement down by 0.81%, Power Grid Corpn down by 0.73%, Hero MotoCorp down by 0.69% and HCL Tech. down by 0.68% were the top losers.

Asian markets were trading in green, Shanghai Composite up by 5.4 points or 0.18% to 3,066.42, Straits Times up by 5.98 points or 0.19% to 3,233.2, FTSE Bursa Malaysia KLCI up by 20.3 points or 1.21% to 1,702.20, Taiwan Weighted up by 50.27 points or 0.57% to 8,878.63, Jakarta Composite up by 56.56 points or 1.12% to 5,092.21, Hang Seng up by 196.08 points or 0.87% to 22,781.92 and Nikkei 225 up by 361.42 points or 2.15% to 17,181.15. While, KOSPI Index down 2.66 points or 0.14% to 1,897.50