Benchmarks trade slightly in green in early deals

Following a flat opening, Indian equity markets were altering between positive and negative territory, though trading with positive bias on value buying by participants in select blue chip stocks. The sentiments were on optimistic note after GST Bill won majority support of the Rajya Sabha Select Committee, which has endorsed almost all the provisions, while also agreeing to demands for five-year compensation to states. Traders were also getting some encouragement with report of Foreign direct investment (FDI) in the country, which rose to four-month high of $3.85 billion in May 2015, up by 7 percent compared to the same month of last year. Back on street, foreign portfolio investors (FPIs) bought shares worth a net Rs 450.32 crore on July 22, 2015, as per provisional data released by the stock exchanges and supported the uptrend. At present, Sensex and Nifty were trading above the crucial 28,500 and 8,600 levels respectively.

In scrip specific development, SKS Microfinance was trading higher after the company reported 24% year-on-year (yoy) increase in net profit at Rs 61 crore for the quarter ended June 30, 2015 (Q1).

On the global front, the US markets ended lower as the technology sector plunged on disappointing results from tech giants including Apple. Asian markets were trading mixed on Thursday, with Japan holding gains as the weaker yen supported exporters' stocks.

Back home, barring FMCG, all other sectoral indices were trading in green. The market breadth on BSE was positive in the ratio of 1355:666, while 79 scrips remained unchanged.

The BSE Sensex is currently trading at 28524.77, up by 19.84 points or 0.07% after trading in a range of 28456.77 and 28578.33. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.21%, while Small cap index was higher by 0.63%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.35%, Oil & Gas up by 1.13%, INFRA up by 0.45%, Realty up by 0.33% and PSU up by 0.31%, while FMCG down by 0.11% was the losing indices on BSE.

The top gainers on the Sensex were Dr. Reddys Lab up by 2.29%, Vedanta up by 1.62%, GAIL India up by 1.23%, Axis Bank up by 0.85% and Wipro up by 0.82%. On the flip side, Tata Steel down by 2.84%, Hindustan Unilever down by 1.56%, Lupin down by 1.13%, Bharti Airtel down by 0.93% and ONGC down by 0.89% were the top losers.

Meanwhile, GST Bill has finally won majority support of the Rajya Sabha Select Committee, which endorsed almost all the provisions, while also agreeing to demands for five-year compensation to states. The committee, headed by BJP's Bhupender Yadav, in its report submitted to the House suggested changes in clauses 9 pertaining to compensation and levy of 1 percent additional tax by the states on inter-state supply of goods. The panel felt that the 1 percent additional inter-state tax may lead to cascading of taxes, and may call for clarifying Clause 18 to prevent that.

The panel while, endorsing 19 provisions like keeping alcohol out of the regime and leaving it to the council to decide levy on petroleum products, retained the representation of the Centre and States in the GST Council at the proposed level at one-third and two-thirds.

The provision in the current Bill states that the Central government “may” compensate states for a period of up to five years for any revenue loss.  The report has suggested that this be substituted with a commitment to compensate for five years. This would mean 100 per cent compensation, compared to 100 per cent revenue compensation in the first three years.

Though, the majority of the committee members endorsed almost all the GST Bill provisions, Congress, AIADMK and Left parties gave notes of dissent. In its dissent, the Congress favoured a simple 18 per cent GST on all goods including petroleum products and alcohol and opposed states being given powers to levy one per cent additional tax. On the same time AIADMK and Left parties in its notes termed some of the provisions as impinging on the legislative sovereignty of both Parliament and state legislatures.

The CNX Nifty is currently trading at 8636.00, up by 2.50 points or 0.03% after trading in a range of 8620.65 and 8654.75. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Cairn India up by 9.52%, Dr. Reddys Lab up by 2.31%, Vedanta up by 1.25%, Wipro up by 1.03% and GAIL India up by 0.97%. On the flip side,

Tata Steel down by 2.89%, Hindustan Unilever down by 1.90%, Lupin down by 1.52%, Zee Entertainment down by 1.28% and Bharti Airtel down by 1.23% were the top losers.

Asian markets were trading mixed; Straits Times increased 9.82 points or 0.29% to 3,368.99, Shanghai Composite increased 52.86 points or 1.31% to 4,078.90, Nikkei 225 increased 71.65 points or 0.35% to 20,665.32 and  Hang Seng increased 158.22 points or 0.63% to 25,440.84

On the flip side, Taiwan Weighted decreased 145.47 points or 1.63% to 8,773.23, KOSPI Index decreased 2.45 points or 0.12% to 2,062.28, FTSE Bursa Malaysia KLCI decreased 0.92 points or 0.05% to 1,728.61 and Jakarta Composite decreased 0.49 points or 0.01% to 4,906.20.