Markets trades flat with positive bias in noon session

Indian equity benchmarks continued to trade flat with positive bias in noon session, as traders remained on sidelines ahead of August series derivatives expiry. Traders were getting some support after 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. Meanwhile, Indian government has approved a revised double tax avoidance agreement (DTAA) between India and Cyprus for the prevention of fiscal evasion with respect to Taxes on Income. The rupee recovered against the US dollar in early trade at the Interbank Foreign Exchange on increased selling of the American currency by exporters and banks, provided some upside support. Traders were seen piling up position in Capital Goods, Oil & Gas and Consumer Durables stocks on the other hand selling was witnessed in IT, TECK and Metal. In scrip specific development, Century Plyboards (India) gained over a percent after the company has disinvested its entire shareholding in its subsidiary Innovation Pacific Singapore Pte. (IPSPL).

On the global front, Asian markets were trading mixed as investors treaded cautiously ahead of a speech from Federal Reserve Chair Janet Yellen that analysts said could provide clues about the central bank's next move. Back home, shares related to Indian railways edged higher after Cabinet Committee on Economic Affairs approved nine rail projects worth Rs 24374.86 crore.

The BSE Sensex is currently trading at 28109.51, up by 49.57 points or 0.18% after trading in a range of 28097.68 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 was up by 0.39%, while Small cap index was up by 0.50%.

The top gaining sectoral indices on the BSE were FMCG up by 0.78%, Realty up by 0.77%, Capital Goods up by 0.54%, Oil & Gas up by 0.44% and Consumer Durables up by 0.37%, while IT down by 0.62%, TECK down by 0.55% and Metal down by 0.01% were the losing indices on BSE.

The top gainers on the Sensex were ITC up by 1.62%, Axis Bank up by 1.13%, Cipla up by 0.97%, Dr. Reddys Lab up by 0.91% and Reliance Industries up by 0.65%. On the flip side, Adani Ports &Special down by 2.18%, Wipro down by 1.49%, Infosys down by 1.04%, TCS down by 0.83% and NTPC down by 0.62% were the top losers.

Meanwhile, Indian government has approved a revised double tax avoidance agreement (DTAA) between India and Cyprus for the prevention of fiscal evasion with respect to Taxes on Income. India and Cyprus have a DTAA since 1994. The revised agreement is expected to contribute to further develop the trade and economic links between Cyprus and India and also with other countries.

The new Cyprus DTAA, which has been agreed upon by both the countries which would provide for source-based taxation of capital gains on transfer of shares. However, a grandfathering clause would be provided for investments made prior to April 1, 2017, in respect of which capital gains would be taxed in the country of which taxpayer is a resident. An official-level meeting between India and Cyprus was held in June to finalise the new India-Cyprus DTAA wherein all pending issues, including taxation of capital gains, were discussed and an in-principle agreement was reached on all pending issues.

Upgrading and expanding the network of Double Tax Conventions, is of high economic and political importance and aims to further strengthen and attract foreign investment in Cyprus as its standing an international business centre is elevated. These steps will bring certainty for FDI investors. Cyprus is a major source of foreign funds flows into the country. From April 2000 till March 2016, India received foreign direct investment to the tune of Rs 42,680.76 crore from Cyprus. The completion of negotiation on avoidance of double taxation and prevention of fiscal evasion has paved the way for removal of Cyprus from the list of 'Notified Jurisdictional Areas' retrospectively from November 2013. 

The CNX Nifty is currently trading at 8667.85, up by 17.55 points or 0.20% after trading in a range of 8664.05 and 8683.05. There were 35 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were ITC up by 1.62% and HCL Tech. up by 1.42%, Aurobindo Pharma up by 1.35%, BHEL up by 1.24% and Axis Bank up by 1.12%. On the flip side, Adani Ports &Special down by 2.28%, Wipro down by 1.58%, Infosys down by 1.08%, Zee Entertainment down by 1.02% and TCS down by 0.91% were the top losers.

Asian markets were trading mixed, FTSE Bursa Malaysia KLCI increased 1.93 points or 0.11% to 1,683.99, Jakarta Composite increased 29.19 points or 0.54% to 5,433.18, Hang Seng increased 42.86 points or 0.19% to 22,863.64 and Taiwan Weighted increased 98.09 points or 1.09% to 9,115.47. On the flip side, Nikkei 225 decreased 41.35 points or 0.25% to 16,555.95, Shanghai Composite decreased 22.05 points or 0.71% to 3,063.83 and KOSPI Index decreased 0.84 points or 0.04% to 2,042.92.