Markets continue to trade in high spirit in noon deal

Positive momentum continued in the late afternoon session in the market, as sentiments remained up-beat after India Meteorological Department (IMD) stated that monsoon rains in India were 15 percent above average in the week ended August 10, 2016. The weather office has retained its forecast for an above-average monsoon this year, boosting hopes of a rise in farm output and income after two years of drought. Local bourses were trading near intraday high levels, with Sensex recapturing its crucial 28,100 level. Meanwhile, broader indices too were trading higher with gains of over a half percent.

Firm global cues too supported local markets. Asian stocks inched up on Friday, after a surge in oil prices helped propel Wall Street to record highs overnight, while Chinese economic indicators that missed expectations did not dent gains in mainland shares.

Back home, traders remained optimistic ahead of IIP and inflation data scheduled to be released later in the data. On sectoral front, shares of power companies including NTPC, Power Grid and Tata Power were trading higher after the government said that there is no shortage of coal in India and coal stock for 23 days is available with thermal power stations. In scrip specific development, Glenmark Pharma was trading 3.45 per cent up at Rs 864 after the company reported a 53.23 per cent increase in its net profit at Rs 518.81 crore for first quarter ended June 30, 2016 as compared to Rs 338.57 crore for the same quarter in the previous year.

The BSE Sensex is currently trading at 28106.11, up by 246.51 points or 0.88% after trading in a range of 27900.91 and 28150.76. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.77%, while Small cap index was up by 0.49%.

The top gaining sectoral indices on the BSE were Metal up by 1.32%, FMCG up by 1.01%, Capital Goods up by 0.94%, Auto up by 0.88%, Bankex up by 0.82%, while Realty down by 0.14%, IT down by 0.05%, TECK down by 0.02% were the losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 2.93%, Reliance Industries up by 2.77%, Axis Bank up by 2.63%, Tata Steel up by 1.97% and HDFC up by 1.77%. On the flip side, Cipla down by 1.77%, Infosys down by 0.58%, Asian Paints down by 0.35%, Coal India down by 0.18% and Dr. Reddys Lab down by 0.17% were the top losers.

Meanwhile, government is expected to get an estimated Rs 23,944.40 crore from clean environment cess in the FY 16-17, which was earlier known as clean energy cess. The purpose of clean energy/environment tax was for financing and promoting clean energy initiatives, funding research in the area of clean energy or for any other purpose relating thereto.

Coal and Power Minister Piyush Goyal has said that Coal India (CIL) will collect clean environment cess from the customers and then deposit it with the government of India for the year 2016-17, hence, levying of the tax will have no impact either on the revenue or the cost of production of coal by CIL. At present the rate of Clean Environment cess is Rs 400 per tone and the estimated amount of clean environment cess to be collected by CIL and deposited with the government of India for the year 2016-17 based on the budgeted estimated production of CIL is Rs 23,944.40 crore.

State-owned CIL has urged the government to levy an environmental tax on pet coke, which it termed as more polluting than coal.CIL has also recommended to the Coal Ministry that environmental tax should be imposed on pet coke as it emits large amount of sulphur dioxide in the environment. Pet coke is more polluted than coal.

Meanwhile, the minister has said that various measures were been taken by CIL to bring down the cost of production of coal that included benchmarking of power and diesel consumption, e-reverse auction for finalisation of contracts for explosives implemented and converting unsafe, inviable underground mines to opencast mines.

The CNX Nifty is currently trading at 8659.95, up by 67.80 points or 0.79% after trading in a range of 8604.45 and 8675.20. There were 40 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 3.09%, Tata Motors up by 2.91%, Reliance Industries up by 2.80%, Yes Bank up by 2.66% and Axis Bank up by 2.38%. On the flip side, Bosch down by 2.69%, Cipla down by 2.12%, BPCL down by 1.82%, Idea Cellular down by 1.57% and Tech Mahindra down by 1.02% were the top losers.

Asian market were trading mostly in green; KOSPI Index increased 1.67 points or 0.08% to 2,050.47, FTSE Bursa Malaysia KLCI climbed 3.35 points or 0.2% to 1,682.15, Taiwan Weighted was up by 18.56 points or 0.2% to 9,150.39, Shanghai Composite surged 45.19 points or 1.51% to 3,047.83, Hang Seng increased 184.65 points or 0.82% to 22,765.20, Nikkei 225 increased 184.8 points or 1.1% to 16,919.92. On flip side, Jakarta Composite decreased 0.65 points or 0.01% to 5,418.43