Benchmarks trade flat with positive bias; Sensex holds 24,600 mark

Indian equity benchmarks continued to trade in a tight range near neutral line with positive bias in early noon session, as investors booked profits at higher levels after three days of continuous rally. Besides, firm trade at other Asian markets and appreciation in rupee against the dollar too supported the markets. However, gains were capped on reports of weak services PMI data released last day. India’s economic growth slowed in February and the services sector activity fell to a 3-month low of  51.4 in February from 54.3 in January amid subdued growth in new orders. Meanwhile, shares of sugar producing companies have rallied on the Bombay Stock Exchange (BSE) in an otherwise subdued market. Traders were seen piling position in PSU, Metal, Realty, Power and Oil & Gas stocks while selling was witnessed in Banks and Consumer Durables' sector stocks.

On the global front, Asian shares look set to post a third straight week of gains on Friday as investors scaled back cautious bets on the global economy after a string of positive U.S. economic data and a recovery in oil and commodity prices. Back home, in scrip specific development, shares of AGC Network were trading higher over 19% after the company’s cyber security division - CYBER-i, has entered into a strategic Managed Services Provider (MSP) partnership with Intel Security to offer outcome based managed security services across the globe. This will give the customers a credible solution designed to effectively and proactively prevent/monitor and respond to security incidents in their organisations. 

The BSE Sensex is currently trading at 24626.96, up by 19.97 points or 0.08% after trading in a range of 24531.80 and 24719.05. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.95%, while Small cap index up by 0.81%.

The top gaining sectoral indices on the BSE were PSU up by 1.58%, Metal up by 1.39%, Realty up by 1.37%, Power up by 1.10% and Oil & Gas up by 0.81%, while Bankex down by 0.11% and Consumer Durables down by 0.03% were the losing indices on BSE.

The top gainers on the Sensex were BHEL up by 3.49%, Cipla up by 3.03%, Tata Motors up by 2.76%, ONGC up by 2.66% and Dr. Reddys Lab up by 2.53%. On the flip side, Maruti Suzuki down by 1.91%, Adani Ports &Special down by 1.34%, HDFC Bank down by 1.17%, Axis Bank down by 1.07% and Asian Paints down by 0.96% were the top losers.

Meanwhile, giving significant relief to the taxpayers by reducing arbitrariness in the disposal of stay petitions, a much misused and harassment- prone discretionary power of the Assessing Officer (A.O) to grant stay of demand has been withdrawn by the Central Board of Direct Taxes (CBDT), by issuing an Office Memorandum. The CBDT has revised guidelines for stay of demand at the stage of first appeal. The move comes soon after the first set of recommendations by the Justice RV Easwar committee to simply the Income Tax Act that also suggested an automatic stay on demand to the taxpayer on payment of seven and a-half per cent of the demand till the first appellate order is passed.

In the revised guidelines, CBDT has ordered that now Assessing Officers can grant a stay of demand until the first appeal is disposed if the taxpayer pays 15 per cent of the disputed demand. This stay of demand is a feather in the cap and will rank as one of the stellar decisions in this regard.

The CBDT has further said that in case of any deviation from the standard pre-payment of 15 per cent by the Assessing Officer, the case will be referred to the administrative Principal Commissioner or Commissioner will take a final call. In case, despite a 15 per cent stay, the tax payer is still unhappy, he can approach the jurisdictional administrative Principal Commissioner or Commissioner.

CBDT said that “It has been reported that field authorities often insist on a payment of a very high proportion of the disputed demand before granting stay of the balance demand. This often results in hardship for the taxpayers seeking stay of demand. “

The CNX Nifty is currently trading at 7476.20, up by 0.60 points or 0.01% after trading in a range of 7444.10 and 7505.90. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were PNB up by 3.92%, BHEL up by 3.05%, ONGC up by 2.94%, Cipla up by 2.92% and Tata Motors up by 2.66%. On the flip side, HCL down by 1.91%, Adani Ports &Special down by 1.87%, Maruti Suzuki down by 1.74%, HDFC Bank down by 1.56% and Idea Cellular down by 1.38% were the top losers.

Asian markets were trading mostly in green; Shanghai Composite increased 4.99 points or 0.17% to 2,864.75, FTSE Bursa Malaysia KLCI increased 6.69 points or 0.4% to 1,694.89, Nikkei 225 increased 30.59 points or 0.18% to 16,990.75, Taiwan Weighted increased 31.76 points or 0.37% to 8,643.55 and Hang Seng increased 116.98 points or 0.59% to 20,058.74, while Jakarta Composite decreased 36.29 points or 0.75% to 4,807.75 and KOSPI Index decreased 2.3 points or 0.12% to 1,955.87.