Benchmarks trade slightly in green in early deals

Indian equity benchmarks have made a cautious but positive start with traders getting some encouragement with Commerce and Industry Minister Nirmala Sitharaman pitching for as much as 200 basis points that is 2 per cent, interest rate cut by RBI to help the cash-starved MSME sector. Some support also came with report that India will receive normal rainfall this monsoon season, not surplus as previously expected. A forecast for above-average rain had stoked fears of crop damage during harvest, but with normal rainfall farmers can reap bumper crops. However, gains remain capped as investors turned cautious ahead of August F&O expiry today.

Weak global cues too added pessimism, with Asian markets exhibiting mixed trend as traders remained on sidelines ahead of a key meeting of the U.S. Federal Reserve at Jackson Hole, this week. The US markets ended the lackluster session of trade in red terrain on Wednesday on report from the National Association of Realtors showing a substantial decrease in existing home sales in the month of July.

Back home, the market breadth indicating that the overall health of the market was strong, with 1180 shares gaining and 559 shares declining, while a total of 92 shares were unchanged. In scrip specific developments, Jubilant Life Sciences were trading with traction after receiving Abbreviated New Drug Application (ANDA) final approval for Felodipine Extended-Release Tablets USP, 2.5 mg, 5 mg, and 10 mg, the generic version of Plendil Tablets of AstraZeneca, which is used for the treatment of hypertension.

The BSE Sensex is currently trading at 28133.97, up by 74.03 points or 0.26% after trading in a range of 28097.77 and 28154.21. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.50%, while Small cap index was up by 0.49%.

The top gaining sectoral indices on the BSE were Healthcare up by 1.02%, FMCG up by 0.78%, Realty up by 0.69%, Auto up by 0.46% and PSU up by 0.43%, while Telecom down by 0.44%, IT down by 0.40% and TECK down by 0.38% were the few losing indices on BSE.

The top gainers on the Sensex were ITC up by 1.52%, Cipla up by 1.43%, Axis Bank up by 1.23%, Power Grid up by 1.23% and Dr. Reddys Lab up by 1.08%. On the flip side, Adani Ports &Special down by 1.31%, Wipro down by 1.21%, Infosys down by 0.69%, Bharti Airtel down by 0.57% and NTPC down by 0.43% 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 8675.60, up by 25.30 points or 0.29% after trading in a range of 8664.05 and 8683.05. There were 37 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Aurobindo Pharma up by 2.05%, ITC up by 1.62%, Power Grid up by 1.43%, Cipla up by 1.22% and Axis Bank up by 1.22%. On the flip side, Wipro down by 1.32%, Adani Ports &Special down by 1.31%, Bharti Infratel down by 0.79%, Infosys down by 0.74% and Bharti Airtel down by 0.60% were the top losers.

Asian markets were trading mixed; FTSE Bursa Malaysia KLCI increased 4.6 points or 0.27% to 1,686.66, Jakarta Composite added 23.74 points or 0.44% to 5,427.73 and Taiwan Weighted was up by 78.74 points or 0.87% to 9,096.12. On the flip side, Shanghai Composite declined 33.07 points or 1.07% to 3,052.81, Nikkei 225 slipped 22.57 points or 0.14% to 16,574.73, Hang Seng shed 12.69 points or 0.06% to 22,808.09 and KOSPI Index was down by 0.63 points or 0.03% to 2,043.13.