Benchmarks extend gains; Nifty regains 8,300 mark

Indian equity benchmarks extended their northward journey in late morning session with frontline gauges recapturing their crucial 8,300 (Nifty) and 26,550 (Sensex) levels as participants engaged in enlarging positions tracking a firm global cues amid steady progress in monsoon. Besides, strengthening of rupee, which appreciated by another six paise to 63.49 a dollar at the forex market too had positive impact. Traders seem to have gained courage with Finance Minister Arun Jaitley’s statement on the basis of policy changes along with a good monsoon that the path to 10 percent growth in Indian economy is not impossible. Some support also came with the report that foreign direct investment inflows into India surged 112% in April to $3.6 billion from $1.7 billion in the year-ago period. The increase was 71% over the inflows in the previous month.

On global front, Asian markets were trading mostly in green as Greece presented new proposals on reforming its bailout, fuelling hopes of an end to a five-month deadlock, averting a default and possible exit from the euro zone.  However, US markets ended modestly lower in last session on some global concerns from China and Greece. Back home, all the BSE sectoral indices were trading significantly in the green. Among them, Realty index was the star-performer which was up 2.10 percent, followed by Banking up by 2 per cent and Metal up by 1.04 percent. In scrip specific development, shares of Larsen & Toubro (L&T) gained after L&T’s Metallurgical and Material Handling (L&T-MMH) business secured new orders worth Rs 1,507 crore across various verticals. Furthermore, Aurobindo Pharma rose after the company received final approvals from the US Food & Drug Administration (USFDA) to manufacture and market Entacapone Tablets USP, 200mg.

The market breadth on BSE was positive, out of 2069 stocks traded, 1345 stocks advanced, while 625 stocks declined on the BSE. 

The BSE Sensex is currently trading at 27559.47, up by 243.30 points or 0.89% after trading in a range of 27417.03 and 27573.34. 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 0.75%, while Small cap index up by 0.94%.

The top gaining sectoral indices on the BSE were Realty up by 2.10%, Bankex up by 2.00%, Metal up by 1.04%, Consumer Durables up by 1.00% and IT up by 0.75%, while there were no losers in the space.

The top gainers on the Sensex were Axis Bank up by 2.68%, HDFC Bank up by 2.10%, Coal India up by 1.75%, Tata Motors up by 1.59% and Tata Steel up by 1.33%. On the flip side, Wipro down by 1.05%, ONGC down by 0.91%, Mahindra & Mahindra down by 0.76%, Bharti Airtel down by 0.73% and Reliance Industries down by 0.20% were the top losers.

Meanwhile, Finance Minister Arun Jaitley assuring the US investors that the government does not intend to legislate retrospectively and is looking to put a 'quietus' to the matter has termed the controversial retrospective taxation regime a “legacy issue”. The finance minister, who is on a 10 day visit to US to sell the India growth story, said the government has categorically made it clear that “we do not intend to legislate retrospectively. We do not intend that any fresh action under the old retrospective laws be taken.”

Jaitley added that for the future, this is a closed issue and investors are quite appreciative of that. As far as past is concerned, it relates to only some individual companies and the issue is pending before some judicial or dispute redressal mechanism body. “And therefore, when I said we are looking for putting a quietus to this, I had in mind waiting for the expeditious disposal of that dispute.” FM said that just as some transfer pricing has been resolved by a judgement of the Bombay High Court, which we accepted and we put an end to the whole issue that is what the similar quietus I was referring to.

Last year, the government had set up a four-member committee, headed by Joint Secretary of the Foreign Tax and Tax Research-I unit of Central Board of Direct Taxes to scrutinise all cases arising out of retrospective tax amendment.

Finance minister termed India as a bright spot in an otherwise troubled global economy and said that the new Indian government offers a stable, predictable and transparent policy regime, making the country an attractive destination for investors. He added that the government is fairly determined to continue this process so that it can give further boost to our economy.

The CNX Nifty is currently trading at 8306.40, up by 81.45 points or 0.99% after trading in a range of 8257.40 and 8307.95. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Bank of Baroda up by 3.03%, Axis Bank up by 2.83%, Kotak Mahindra Bank up by 2.78%, Yes Bank up by 2.64% and Indusind Bank up by 2.17%. On the flip side, ONGC down by 1.13%, Idea Cellular down by 1.03%, Bharti Airtel down by 0.84%, Wipro down by 0.77% and Asian Paints down by 0.72% were the top losers.

Asian markets were mostly trading in green; KOSPI Index was up by 0.41%, FTSE Bursa Malaysia KLCI up by 0.65%, Straits Times up by 0.68%, Hang Seng up by 0.44%, Taiwan Weighted up by 1.6% and Nikkei 225 up by 0.83%. On the flip side, Jakarta Composite was down by 0.38%.

China Stock exchange is closed on account of 'Dragon Boat Festival' holiday.