Benchmarks add gains; Oil & Gas, Consumer Durables lead

Indian equity markets added gains hovering near the highest point of the day in the late afternoon session on account of buying in frontline blue chip counters. Advancement of monsoons and favorable macroeconomic parameters coupled with a strengthened rupee has lifted the sentiments. Investors took note of Union Finance Minister Arun Jaitley’s that India’s 7.5% economic growth rate is not its best potential growth rate and there is restlessness in the Narendra Modi-led government to boost economic growth and set higher GDP targets in the coming years, too provided some upside. Traders were seen piling position in Oil & Gas, Consumer Durables and Bankex stocks, while selling was being witnessed in Realty sector stocks. In scrip specific development, Cipla was trading in red as massive churn took place at the drug firm in the last 3-4 months, with many exits seen at the top and mid-level management posts.

On the global front, the Asian markets were trading mostly in red while the European markets were trading on pessimistic note. Back home, the NSE Nifty and BSE Sensex were trading above the psychological 8,150 and 27,100 levels respectively. The market breadth on BSE was positive in the ratio of 1619:949 while 111 scrips remained unchanged.

The BSE Sensex is currently trading at 27143.56, up by 310.90 points or 1.16% after trading in a range of 26910.26 and 27160.52. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.83%, while Small cap index was up by 1.18%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 2.30%, Consumer Durables up by 1.83%, Bankex up by 1.15%, Auto up by 1.06%, Capital Goods up by 0.99%, while Realty down by 0.15% was the lone losing index on BSE.

The top gainers on the Sensex were Reliance Industries up by 4.30%, Tata Motors up by 2.61%, Bharti Airtel up by 2.42%, ONGC up by 2.01% and SBI up by 2.00%.

On the flip side, Cipla down by 0.87%, Coal India down by 0.29%, NTPC down by 0.22% and GAIL India down by 0.15% were the top losers.

Meanwhile, in its bid to roll out GST from April 1, 2016, the Finance Ministry has set up two committees to suggest tax rates and look into IT preparedness for the new indirect tax regime. A committee headed by Chief Economic Adviser (CEA) Arvind Subramanian has been formed to come up with a revenue neutral rate or a rate at which there will be no revenue losses to states under the proposed GST regime, while a steering committee too has been formed under the co-chairmanship of additional secretary, department of revenue, and member secretary, Empowered Committee of State Finance Ministers.

The Finance Ministry in its statement said that the committee formed under the Finance Ministry's CEA would “recommend possible tax rates under GST that would be consistent with the present level of revenue collection of Centre and states”. While making recommendations, it would take into account expected levels of growth of economy, different levels of compliance and broadening of tax base under Goods and Services Tax (GST).

Steering Committee has members from Revenue Department, Central Board of Excise and Customs, Goods and Services Tax Network (GSTN) and representatives of state governments. It would monitor the progress of IT preparedness of GSTN/CBEC/Tax authorities, finalisation of reports of all the sub-committees on different aspects relating to the mechanics of GST and drafting of CGST, IGST and SGST laws/rules. The Committee would monitor the progress on consultations with various stakeholders like trade and industry and training of officers.

The Constitutional Amendment Bill for rolling out of GST has been referred to a Rajya Sabha Select Committee. GST will subsume most indirect taxes levied by the central and state governments such as excise duty, service tax, VAT and sales tax, the new regime proposes to facilitate a common market across the country, leading to economies of scale and reducing inflation through an efficient supply chain.

The CNX Nifty is currently trading at 8176.80, up by 85.25 points or 1.05% after trading in a range of 8101.80 and 8181.30. There were 37 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Reliance Industries up by 4.27%, Lupin up by 2.70%, Tata Motors up by 2.62%, Asian Paints up by 2.47% and BPCL up by 2.44%.

On the flip side, Tech Mahindra down by 0.97%, Zee Entertainment down by 0.95%, Cipla down by 0.80%, Bank of Baroda down by 0.43% and NMDC down by 0.38% were the top losers.

The Asian markets were trading mostly in red; Nikkei 225 decreased 228.45 points or 1.13% to 19,990.82, Shanghai Composite decreased 182.54 points or 3.67% to 4,785.36, Hang Seng decreased 59.13 points or 0.22% to 26,694.66, Straits Times decreased 23.21 points or 0.7% to 3,302.70, Jakarta Composite decreased 10.55 points or 0.21% to 4,935.20 and FTSE Bursa Malaysia KLCI decreased 10.39 points or 0.6% to 1,716.47.

On the other hand, KOSPI Index increased 7.02 points or 0.34% to 2,041.88 and Taiwan Weighted increased 28.54 points or 0.31% to 9,218.37.

The European markets were trading in red; Germany’s DAX decreased 99.71 points or 0.91% to 10,878.30, France’s CAC decreased 36.69 points or 0.77% to 4,753.93 and UK’s FTSE 100 decreased 24.01 points or 0.36% to 6,656.54.