Benchmarks trade near highest point of the day

Indian equity markets added gains and continued firm trade hovering near the highest point of the day in the late afternoon session, on account of buying in frontline blue chip counters with above-normal monsoon reignited rate cut hopes. The sentiments got support with Finance Minister Arun Jaitley’s statement that progress of monsoon in India has improved compared to the predictions, bettering prospects for agriculture and putting the economy on a stronger footing. Traders were seen piling up position in FMCG, Power and Bankex stocks, while selling was witnessed in Metal, Auto and Infra stocks. In scrip specific development, aviation stocks like Jet airways and SpiceJet were trading firm on media report which indicates that the Civil Aviation ministry is mulling options to decrease tax burden on the ailing industry. Persistent Systems was trading in red after the mid-tier IT Company warned about its April-June quarter results. The company stated that its dollar revenue in the first quarter could be marginally lower as compared to the previous quarter. The stock market was a bit volatile as traders were rolling over positions in the Futures & Options (F&O) segment from the near month series i.e. June 2015 to next month i.e. July 2015 series. The near month June 2015 derivatives contracts will expire on Thursday i.e. June 25, 2015.

On the global front, the Asian markets were trading mostly in green, while the European markets were trading mostly on pessimistic note. Back home, the NSE Nifty and BSE Sensex were trading above the psychological 8,400 and 27,900 levels respectively. The market breadth on BSE was positive in the ratio of 1404:1148 while 111 scrips remained unchanged.

The BSE Sensex is currently trading at 27936.78, up by 132.41 points or 0.48% after trading in a range of 27784.44 and 27945.52. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.39%, while Small cap index gained 0.24%.

The top gaining sectoral indices on the BSE were FMCG up by 1.29%, Power up by 0.76%, Bankex up by 0.49%, Capital Goods up by 0.43%, Realty up by 0.22% while, Metal down by 0.63%, Auto down by 0.30%, INFRA down by 0.29%, Consumer Durables down by 0.23%, TECK down by 0.09% were the losing indices on BSE.

The top gainers on the Sensex were BHEL up by 5.37%, Hindustan Unilever up by 3.63%, Sun Pharma Inds. up by 2.50%, Lupin up by 2.22% and ICICI Bank up by 1.93%.

On the flip side, Hindalco down by 2.26%, Mahindra & Mahindra down by 1.44%, Tata Steel down by 1.42%, Bharti Airtel down by 0.84% and SBI down by 0.50% were the top losers.

Meanwhile, the Finance Ministry has amended the Section 28 of the Customs Act, 1962, reducing the penalty in cases of customs duty fraud by 10 percent. Now the amount of penalty payable in cases involving fraud, collusion, willful mis-statement or suppression of facts with the intent to evade payment of duty, shall be fifteen percent instead of 25 percent.

Sections 112 and 114 of the Customs Act which, respectively provide for penalty for improper import and export of goods, too have been amended by insertion of new clauses to provide for a penalty of up to 10 percent of the duty sought to be evaded or Rs 5,000, whichever is higher. Now there will be a penalty not exceeding ten percent of the duty sought to be evaded or Rs 5,000, whichever is higher, for improper export and import of goods.

The Ministry has also rationalised imposition of penalty on central excise duty and service tax evasions by fraud and other means. In case of any willful evasion of central excise duty, a penalty equal to the duty evasion will be payable. Similarly, the penalty will be hundred percent of Service Tax amount involved in such cases. A reduced penalty equal to 15 percent of the Service Tax amount is to be paid if Service Tax, interest and reduced penalty is paid within 30 days of service of notice in this regard, the Act said.

The CNX Nifty is currently trading at 8416.30, up by 34.75 points or 0.41% after trading in a range of 8376.10 and 8419.20. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were BHEL up by 5.41%, Hindustan Unilever up by 3.43%, Zee Entertainment up by 2.85%, Sun Pharma up by 2.48% and Lupin up by 2.37%.

On the flip side, Hindalco down by 2.47%, Bank of Baroda down by 2.20%, PNB down by 2.16%, Mahindra & Mahindra down by 1.58% and Tata Steel down by 1.33% were the top losers.

The Asian markets were trading mostly in green; Jakarta Composite increased 4.29 points or 0.09% to 4,941.93, KOSPI Index increased 4.33 points or 0.21% to 2,085.53, Taiwan Weighted increased 6.17 points or 0.07% to 9,397.31, Straits Times increased 15.21 points or 0.46% to 3,354.99, Nikkei 225 increased 58.61 points or 0.28% to 20,868.03, Hang Seng increased 71.51 points or 0.26% to 27,404.97 and Shanghai Composite increased 113.66 points or 2.48% to 4,690.15.

On the other hand, FTSE Bursa Malaysia KLCI decreased 0.39 points or 0.02% to 1,726.47.

The European markets were trading mostly in red; Germany’s DAX decreased 8.78 points or 0.08% to 11,533.76, France’s CAC decreased 1.45 points or 0.03% to 5,056.23 while, UK’s FTSE 100 increased 30.56 points or 0.45% to 6,865.43.