Weak trade persist in late afternoon session

Indian benchmarks were trading flat-to-negative in the late afternoon session, as investors awaited further clues on whether the Federal Reserve will raise US interest rates this year. Cautiousness prevails in the market ahead of the expiry of the derivative contracts on Thursday. Oil prices fell as an unexpected build in US crude too weighed on markets. However, losses remained capped with rating agency Ind-Ra revising India's economic growth forecast to 7.8 percent for the ongoing fiscal on better monsoon. It has said the positive impact of monsoon on agriculture will support the overall GDP growth with its backward and forward linkages. In scrip specific development, State Bank of India rises after the bank has decided to garner up to Rs 11,100 crore additional Tier 1 capital, by way of issue of Basel III compliant Perpetual Debt instrument in USD and / or INR, at par, through private placement to overseas and /or Indian investors, in such number of tranches, at such time as may be considered appropriate and on such coupon as may be decided at the time of actual issuance. Manappuram Finance moves up after the company has raised Rs 75 crore through allotment of Secured Redeemable Non-Convertible Debentures (NCDs) by way of private placement. On other hand InterGlobe Aviation fell over 3 per cent after media reports that Tigerair will take back 11 jets subleased to the aviation company.

On global front, European stocks were trading mostly in green, as investors await cues from Federal Reserve Chief Janet Yellen, who is set to deliver a speech at the annual gathering of central bankers at Jackson Hole, Wyoming, in which hints on the timing of a US interest rate rise could emerge.

The BSE Sensex is currently trading at 27978.05, down by 12.16 points or 0.04% after trading in a range of 27959.87 and 28108.39. There were 9 stocks advancing against 20 stocks declining on the index, while 1 stock remained unchanged.

The broader indices were trading in green; the BSE Mid cap index was up by 0.42%, while Small cap index was up by 0.55%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.39%, PSU up by 0.65%, IT up by 0.38%, TECK up by 0.29% and Realty up by 0.28%, while Metal down by 0.41%, Capital Goods down by 0.38%, Bankex down by 0.24%, FMCG down by 0.22% and Consumer Durables down by 0.05% were the losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 2.52%, Cipla up by 2.31%, Infosys up by 1.52%, NTPC up by 1.45% and Sun Pharma up by 1.28%. On the flip side, Lupin down by 2.30%, Tata Steel down by 1.41%, Tata Motors down by 1.14%, Adani Ports &Special down by 0.95% and Coal India down by 0.92% were the top losers.

Meanwhile, the government is taking into consideration the suggestions of Special Investigation Team (SIT) on black money to prohibit cash transactions above Rs 3 lakh, put 1% Tax Collected at source (TCS) on this transactions and also made PAN quoting mandatory.

Central Board of Direct Taxes (CBDT), chairperson, Ms Rani Singh Nair said that the government is holding discussions for the renegotiated India-Singapore tax treaty. Thus now they have re-negotiated Mauritius, Singapore is under discussion and hope that they will have a discussion with them as this is a bilateral treaty. After the concerns of both the countries the treaty will be signed.

SIT stated that there is a need to put an upper limit to cash transactions. It recommended a total ban on cash transactions of Rs 3 lakh and above, an Act be framed to declare such transactions as illegal and punishable under law. SIT had also suggested an upper limit of Rs 15 lakh on cash holding. In case any person or industry requires holding more cash, it may obtain necessary permission from the Commissioner of Income Tax of the area.

CBDT had earlier clarified that no tax would be collected at source when cash component of the payment for goods and services is less than Rs 2 lakh even if the total consideration is more than this amount. The SIT, headed by Justice M B Shah (retired), last month submitted its fifth report to the Supreme Court on steps needed to curb black money.

The CNX Nifty is currently trading at 8627.20, down by 5.40 points or 0.06% after trading in a range of 8621.40 and 8661.05. There were 15 stocks advancing against 35 stocks declining on the index, while 1 stock remained unchanged.

The top gainers on Nifty were Aurobindo Pharma up by 5.72%, Maruti Suzuki up by 2.54%, Cipla up by 2.32%, Infosys up by 1.41% and NTPC up by 1.38%. On the flip side, Idea Cellular down by 2.77%, Lupin down by 2.40%, Ambuja Cement down by 2.12%, Tata Motors - DVR down by 1.51% and Tata Steel down by 1.27% were the top losers.

Asian market were trading mostly in red; Hang Seng decreased 178.15 points or 0.77% to 22,820.78, Taiwan Weighted was down 13.55 points or 0.15% to 9,017.38, Jakarta Composite declined 7.36 points or 0.14% to 5,409.78, KOSPI Index dropped 6.17 points or 0.3% to 2,043.76, Shanghai Composite decreased 3.83 points or 0.12% to 3,085.88, FTSE Bursa Malaysia KLCI decreased 1.67 points or 0.1% to 1,681.40. On flip side, Nikkei 225 increased 99.94 points or 0.61% to 16,597.30.

European markets were trading mostly in green; Germany’s DAX increased 0.43 points or 0% to 10,593.31 and France’s CAC increased 9.27 points or 0.21% to 4,430.72. On other hand, UK’s FTSE 100 decreased 16.26 points or 0.24% to 6,852.25.