Benchmark indices continue lackluster trade

The Indian indices continue to show lackluster mood, with investors remaining nervous ahead of Britain’s referendum on its European Union status poll outcome later today, which will decide whether Britain would remain in the European Union or not. Though RBI Governor Raghuram Rajan has stated that the central bank is watching the situation and will infuse whatever liquidity is needed to keep Indian markets well behaved. On global front, Asian markets were trading mostly in red, as many investors sought shelter in safe-haven assets as they braced for Britain's vote on its fate in the European Union. Back home, the government approval of setting up of a ‘Fund of Funds for Startups’ with a corpus of Rs 10,000 crore at SIDBI (Small Industries Development Bank), in line with the Start-up India Action Plan unveiled by it in January and extension of the deadline for states to join the UDAY scheme for power distributing companies by a year to March 2017, has restricted any major fall.

In scrip specific development, Sun Pharma surged after reports that the firm is considering buyback of shares. KEC International was trading higher by 4.78 per cent up at Rs 140.25 on securing new orders worth Rs 1,036 crore.

The BSE Sensex is currently trading at 26773.43, up by 7.78 points or 0.03% after trading in a range of 26736.52 and 26813.57. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was up by 0.03%, while Small cap index was down by 0.22%.

The top gaining sectoral indices on the BSE were Bankex up by 0.57%, Metal up by 0.29%, FMCG up by 0.16%, Auto up by 0.15% while, Realty down by 1.22%, Power down by 1.04%, Capital Goods down by 0.57%, IT down by 0.46%, TECK down by 0.46% were the losing indices on BSE.

The top gainers on the Sensex were Sun Pharma Inds. up by 1.78%, Dr. Reddys Lab up by 1.39%, Tata Motors up by 1.27%, Lupin up by 1.19% and HDFC Bank up by 1.08%. On the flip side, NTPC down by 2.69%, ONGC down by 1.31%, Cipla down by 1.29%, TCS down by 1.14% and Reliance Industries down by 0.98% were the top losers.

Meanwhile, the government after revising the double taxation avoidance agreement with Mauritius, has approved the signing of a Protocol amending the Agreement between India and Belgium for avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income.

The amendment in the protocol is expected to broaden the scope of the existing framework of exchange of tax related information between the two countries, which will help curb tax evasion and tax avoidance. Furthermore, the protocol will also revise the existing treaty provisions on mutual assistance in collection of taxes.

In the year 1997, the tax treaty was signed between Indian and Belgium for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. The Agreement is applied to all taxes imposed on total income or on elements of income including taxes on gains from the sale, exchange or transfer of movable or immovable property and taxes on the total amounts of wages or salaries paid by enterprises. The government is in the process of amending pacts with Singapore and other nations too check tax treaty abuses.

The CNX Nifty is currently trading at 8202.20, down by 1.50 points or 0.02% after trading in a range of 8188.30 and 8212.35. There were 26 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Ambuja Cement up by 1.91%, Sun Pharma Inds up by 1.70%, Yes Bank up by 1.52%, Dr. Reddys Lab up by 1.41% and Tata Motors up by 1.39%. On the flip side, Bharti Infratel down by 3.86%, NTPC down by 2.98%, Tata Power down by 1.83%, ONGC down by 1.42% and TCS down by 1.30% were the top losers.

Hang Seng increased 29.7 points or 0.14% to 20,824.82, Nikkei 225 increased 172.63 points or 1.07% to 16,238.35, Taiwan Weighted decreased 39.57 points or 0.45% to 8,676.68, Jakarta Composite down by 17.55 points or 0.36% to 4,879.30, Shanghai Composite decline by 10.93 points or 0.38% to 2,894.62, KOSPI Index drop by 5.87 points or 0.29% to 1,986.71. However, FTSE Bursa Malaysia KLCI decreased 1.07 points or 0.07% to 1,636.62.