Benchmarks trade with strong gains in early noon session

Indian equity markets strengthened further on account of buying in frontline blue chip counters.The Union Cabinet approved changes in the GST Constituional Amendment bill providing for full compensation to states for first five years of roll out of the new indirect tax regime, taking it a step closer to reality and the last trading session of the July series of derivative contracts too supported the up move. Some support also came with NITI Aayog Vice Chairman Arvind Panagariya statement that a good monsoon can help add 'a percentage point' to India's GDP growth in the current fiscal, from 7.6 percent in 2015-16. In scrip specific development, Sun Pharma rose over 1 per cent after it signed a licensing agreement with Spanish firm Almirall for development and commercialisation of tildrakizumab, its lead investigational compound for moderate-to-severe plaque psoriasis.

On the global front, Asian market were trading lower after the Federal Reserve left the door open for a US interest rate hike this year.

The BSE Sensex is currently trading at 28122.40, up by 98.07 points or 0.35% after trading in a range of 28064.90 and 28144.32. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.73%, while Small cap index was up by 0.88%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.35%, Realty up by 0.80%, Auto up by 0.65%, FMCG up by 0.60% and Power up by 0.52%, while Capital Goods down by 0.33%, IT down by 0.24%, Metal down by 0.09% and TECK down by 0.06% were the losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 6.42%, Maruti Suzuki up by 2.79%, Sun Pharma Inds. up by 2.00%, SBI up by 1.49% and Bajaj Auto up by 1.27%. On the flip side, Tata Steel down by 2.15%, Larsen & Toubro down by 1.11%, Axis Bank down by 1.03%, Infosys down by 0.92% and Tata Motors down by 0.60% were the top losers.

Meanwhile, Government has defended the decision to allow 100 per cent FDI through automatic route in defence and retail sectors, Commerce Minister Nirmala Sitharaman has said that “greater the investment, greater the opportunity for employment generation.”

Sitharaman said the new FDI policy does not compromise national security, nor does it affect employment opportunities. She said “When we say whether it is automatic or through the Government route, all processes for establishing the facts behind this investment and implications of security are duly done and diligences completed,”

She also added that government has brought simplification in the definition of technology by using the word modern, instead of phrases like state-of-the-art and cutting-edge. Further talking about the Cabinet Committee on Security (CCS) approval, she said that CCS approval will not be required any more in Defence as the process of approval itself will include the Defence Ministry and the Ministry of Home Affairs, both of whom will go into all the details which will have to be looked at from the point of view of the defence of the nation, internal security and every other matter which relates to the national security.

Last month, the government has allowed 100% FDI in defence sector. It was decided that in defence sector, the first 49 percent of investment will be through automatic route. Beyond that, up to 74 percent investment will need government approval. The new norms have done away with the condition of access to ‘state-of-art’ technology in the country for FDI more than 49%.

The CNX Nifty is currently trading at 8643.90, up by 28.10 points or 0.33% after trading in a range of 8626.35 and 8651.00. There were 32 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Asian Paints up by 6.54%, Bharti Infratel up by 3.11%, Maruti Suzuki up by 2.79%, Eicher Motors up by 2.44% and Sun Pharma Inds. up by 1.99%. On the flip side, Tech Mahindra down by 2.19%, Tata Steel down by 2.18%, Tata Motors - DVR down by 1.29%, Larsen & Toubro down by 1.26% and Axis Bank down by 1.05% were the top losers.

Asian markets were trading mostly in red, Nikkei 225 decreased 176.49 points or 1.06% to 16,488.33, Hang Seng decreased 63.68 points or 0.29% to 22,155.31, Shanghai Composite decreased 11.18 points or 0.37% to 2,980.82, FTSE Bursa Malaysia KLCI decreased 8.73 points or 0.52% to 1,654.83, Jakarta Composite decreased 7.31 points or 0.14% to 5,267.06 and KOSPI Index decreased 4.19 points or 0.21% to 2,020.86. On the flip side Taiwan Weighted increased 13.25 points or 0.15% to 9,076.64.