Benchmarks keep head above water in early deals

Indian equity benchmarks have made a choppy start on Wednesday, tailing mixed global cues and concern of the Britain’s exit from the European Union. However, markets managed to keep their head above water taking support with an UNCTAD report, stating that India’s foreign direct investment is likely to cross $ 60 billion this year on favourable policy environment even as the FDI flows globally are set to witness a decline. It has said that the large increase of announced greenfield investments in manufacturing industries may provide further impetus to FDI this year.

On the global front, Asian markets were trading mostly in green at this point of time but gains remained capped with Japanese shares losing the most on profit taking after recent gains, while the uncertainty ahead of the referendum on Thursday as Britain decides to vote whether to stay in the EU or not also weighed on investor sentiment. Back home, textile and telecom companies remained on buyers’ radar ahead of the Cabinet meet later today which is likely to announce new measures for both the sectors. Select stocks from auto counter continue too gained on the back of advancement of monsoons.

The BSE Sensex is currently trading at 26879.64, up by 66.86 points or 0.25% after trading in a range of 26772.94 and 26887.29. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.32%, while Small cap index was up by 0.33%.

The top gaining sectoral indices on the BSE were Realty up by 1.36%, Healthcare up by 0.60%, Consumer Durables up by 0.51%, Bankex up by 0.47% and Power up by 0.34%, while Industrials down by 0.25%, Metal down by 0.24%, Auto down by 0.19%, Energy down by 0.09% and FMCG down by 0.08% were the top losing indices on BSE.

The top gainers on the Sensex were Dr. Reddys Lab up by 2.46%, ICICI Bank up by 1.05%, Mahindra & Mahindra up by 0.82%, Cipla up by 0.68% and Asian Paints up by 0.67%. On the flip side, Tata Motors down by 1.77%, Hindustan Unilever down by 0.84%, Tata Steel down by 0.61%, Reliance Industries down by 0.53% and GAIL India down by 0.31% were the top losers.

Meanwhile, in a bid to check the large-scale tax avoidance and evasion, the Income Tax department is going to tighten its noose around willful tax defaulter. The Income Tax department has decided to block the Permanent Account Number (PAN) of tax evading entities and getting their LPG subsidy cancelled. It has also decided to take measures to ensure that they are not sanctioned loans or overdraft facility by public sector banks, as the same is bound to become non-performing assets.

Suggestion of withdrawing facility like LPG subsidy which is directly credited in to the bank accounts of the said defaulters will act to “disincentive” the defaulters. Furthermore, the taxmen have proposed that the identities of such blocked PANs should be circulated to the Registrar of Properties with a request for not permitting any registration of immovable properties where there is the involvement of such PANs. Such defaulters’ information has also been recommended to be circulated across tax offices so that their activities loans or government subsidy can be plugged country-wide.

Moreover, the department has also decided to subscribe to the Credit Information Bureau (CIBIL) data, on a possible payment basis, to check out the financial activities of defaulters and undertake action against them for recovery and freezing of assets.

The CNX Nifty is currently trading at 8232.20, up by 12.30 points or 0.15% after trading in a range of 8208.15 and 8233.10. There were 36 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Dr. Reddys Lab up by 2.43%, ICICI Bank up by 1.03%, Tata Power up by 0.95%, Tech Mahindra up by 0.93% and Aurobindo Pharma up by 0.84%. On the flip side, Tata Motors - DVR down by 2.37%, Tata Motors down by 1.66%, Hindalco down by 1.05%, Bharti Infratel down by 0.82% and Hindustan Unilever down by 0.67% were the top losers.

Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI rose 3.46 points or 0.21% to 1,637.69, KOSPI Index increased 8.89 points or 0.45% to 1,991.59, Jakarta Composite gained 12.79 points or 0.26% to 4,891.50, Shanghai Composite added 12.83 points or 0.45% to 2,891.39 and Hang Seng was up by 71.93 points or 0.35% to 20,740.37. On the flip side, Nikkei 225 decreased 95.37 points or 0.59% to 16,073.74 and Taiwan Weighted was down by 0.56 points or 0.01% to 8,684.29.