Benchmarks hit highest level in almost a week

Indian markets are trading firm in noon deals with frontline gauges hitting their highest levels in almost a week. Sentiments remained up-beat mainly as the weaker-than-expected US jobs report fanned expectations that the Federal Reserve would have to hike interest rates at a very slow pace. Appreciation in Indian rupee too aided sentiments. The rupee was trading strong at 66.43 in noon deals on increased dollar selling by banks and exporters and due to capital inflows into the domestic equity market.

Global cues remained sluggish with most of the Asian equity indices were trading in red at this point of time led by over three percent fall in Shanghai Composite after the latest data showed that China’s exports and imports fell more than expected in April, underlining weak demand at home and abroad. Closer home, shares of sugar companies remained in focus on expectation of strong earnings for quarter ended March 31, 2016 (Q4FY16). Shares of auto companies too remained on buyers’ radar after domestic passenger car sales increased 1.87% to 1,62,566 units in April as against 1,59,588 units in the year-ago period. Meanwhile, the broader indices were trading with traction, while the market breadth on the BSE was positive; there were 1,576 shares on the gaining side against 807 shares on the losing side while 145 shares remain unchanged.

The BSE Sensex is currently trading at 25558.04, up by 329.54 points or 1.31% after trading in a range of 25302.86 and 25608.59. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.99%, while Small cap index up by 0.87%.

The top gaining sectoral indices on the BSE were Finance up by 1.69%, Bankex up by 1.67%, FMCG up by 1.43%, Realty up by 1.40% and Capital Goods up by 1.36%, while there were no losers on the sectoral front.

The top gainers on the Sensex were HDFC up by 2.56%, ICICI Bank up by 2.29%, Bajaj Auto up by 2.22%, ITC up by 1.99% and Larsen & Toubro up by 1.94%. On the flip side, Dr. Reddys Lab down by 0.67%, Cipla down by 0.39%, BHEL down by 0.20% and Sun Pharma down by 0.01% were the top losers.

Meanwhile, with a view to boost its business and taxpayer friendly image, the Finance Ministry has said that the revenue department has taken a number of initiatives for job creation and boosting growth and employment by giving relief to small tax payers, businesses and professionals.

These include reducing the corporate tax rate to 25 per cent for new manufacturing companies, extending tax benefits for housing sector to promote construction industry, reducing the tax rate on royalty and fees for technical services to 10 per cent from 25 per cent and tax incentives for start-ups. The department has also announced various tax incentives for Start-up India, including 100 per cent tax exemption for three years.

The Finance Ministry has said that the limit of deduction under Section 80C of Income Tax Act 1961 has been enhanced from Rs 1 lakh to Rs 2 lakh per annum, subject to the additional Rs 50,000 being contributed to National Pension Scheme (NPS).  Moreover, the scope of presumptive taxation regime for small businesses has been extended by increasing the turnover up to Rs.2 crore, while this benefit is now available for professionals with turnover up to Rs 50,00,000.

The CNX Nifty is currently trading at 7831.80, up by 98.35 points or 1.27% after trading in a range of 7753.55 and 7843.90. There were 47 stocks advancing against 4 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 3.10%, Zee Entertainment up by 2.94%, HDFC up by 2.56%, Bajaj Auto up by 2.41% and Bosch up by 2.31%. On the flip side, Idea Cellular down by 0.92%, Dr. Reddys Lab down by 0.64%, Cipla down by 0.57% and Sun Pharma down by 0.04% were the top losers.

Asian markets were trading mostly in red; Shanghai Composite tumbled 87.55 points or 3.01% to 2,825.70, Jakarta Composite declined 61.9 points or 1.28% to 4,760.69, Taiwan Weighted slipped 14.6 points or 0.18% to 8,131.83, KOSPI Index shed 8.9 points or 0.45% to 1,967.81 and FTSE Bursa Malaysia KLCI was down by 4.45 points or 0.27% to 1,644.91.

On the flip side, Hang Seng increased 68.31 points or 0.34% to 20,178.18 and Nikkei 225 was up by 109.31 points or 0.68% to 16,216.03.