Benchmarks trade slightly in green in early trade

Indian equity benchmarks are trading slightly in green in early deals on June F&O series expiry day. Sentiment was up-beat with report that FDI inflows in India rose 22 percent to $ 34 billion in 2014, and the upward trend is likely to continue against the backdrop of a push to manufacturing. The UN report also said that global foreign direct investment is expected to rebound in 2015 after falling 16 per cent last year due to a fragile world economy and political and military crises. However, the markets are likely to remain volatile as traders roll over their F&O positions from the June 2015 series to July 2015 series. In scrip specific development, Bharat Heavy Electrical Limited (BHEL) was trading higher, extending the previous day’s gain, after company commissioned a 250-MW unit of NTPC's Bongaigaon thermal power plant in the Kokrajhar district in Assam.

On the global front, the US markets ended lower as the outcome of negotiations between Greece and its international creditors remained up in the air. Asian markets were mostly trading in red ahead of a meeting of European Union leaders later in the session as Greece continued last-minute efforts to avert a default.

Back home traders were seen piling up position in Capital Goods, Healthcare, Power and Oil & Gas, while selling was witnessed in Consumer Durables, Realty, Bankex, FMCG and IT. The market breadth on BSE was positive in the ratio of 802: 816, while 42 scrips remained unchanged.

The BSE Sensex is currently trading at 27762.32, up by 32.65 points or 0.12% after trading in a range of 27635.76 and 27787.75. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices too were trading marginally in green; the BSE Mid cap index was up by 0.08%, while Small cap index was higher by 0.07%.

The top gaining sectoral indices on the BSE were Capital Goods up by 0.81%, Healthcare up by 0.30%, Power up by 0.29%, Auto up by 0.17% and Oil & Gas up by 0.12% while, Consumer Durables down by 0.60%, Realty down by 0.38%, Bankex down by 0.29%, FMCG down by 0.28% and IT down by 0.27% were the losing indices on BSE.

The top gainers on the Sensex were BHEL up by 1.59%, Lupin up by 1.33%, Vedanta up by 1.22%, Bajaj Auto up by 1.19% and Hero MotoCorp up by 1.06%. On the flip side, GAIL India down by 1.20%, Mahindra & Mahindra down by 1.02%, Hindustan Unilever down by 1.00%, SBI down by 0.88% and ONGC down by 0.82% 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 8361.90, up by 1.05 points or 0.01% after trading in a range of 8329.50 and 8368.25. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Cairn India up by 2.06%, BHEL up by 1.55%, Bajaj Auto up by 1.32%, Lupin up by 1.30% and Hero MotoCorp up by 1.11%. On the flip side, Bank of Baroda down by 1.61%, HCL Tech. down by 1.36%, GAIL India down by 1.31%, PNB down by 1.20% and Hindustan Unilever down by 1.07% were the top losers.

Asian markets were mostly trading in red; Hang Seng decreased 97.69 points or 0.36% to 27,307.28, Nikkei 225 decreased 40.11 points or 0.19% to 20,827.92, Jakarta Composite decreased 16.87 points or 0.34% to 4,936.64, FTSE Bursa Malaysia KLCI decreased 7.78 points or 0.45% to 1,723.90 and KOSPI Index decreased 1.33 points or 0.06% to 2,084.20.

On the flip side, Straits Times increased 1.7 points or 0.05% to 3,353.03, Shanghai Composite increased 20.38 points or 0.43% to 4,710.53 and Taiwan Weighted increased 69.01 points or 0.73% to 9,466.32.