Benchmarks trade jubilantly in late noon deals

Indian equity benchmarks were trading jubilantly in late afternoon deal with key gauges recapturing their crucial 28,200 (Sensex) and 8,700 (Nifty) level. Sentiments remained up-beat with the Reserve Bank of India stating that the near-term growth outlook for India seems brighter than last fiscal and the economy is likely to expand at 7.6 percent in 2016-17. Strength in Indian rupee too supported local markets.  The rupee was trading at 67.06 against the dollar, up by 0.12 paise from its previous close. Firm opening in European markets supported domestic benchmarks. European markets were trading mostly in green, with stocks in Germany and France gaining the most, while stocks in the UK were flat after trading resumed after a holiday on Monday.

Back home, on the sectoral front Auto sector was leading with over a one and half percent gains. Bajaj Aut and Maruti Suzuki were the top gainers among the Auto stocks. In scrip specific development, Maruti Suzuki India rises almost three percent after the company launched sporty Swift Deca, a limited edition model of its most popular hatchback.

The BSE Sensex is currently trading at 28227.68, up by 325.02 points or 1.16% after trading in a range of 28010.66 and 28239.94. There were 29 stocks advancing against 1 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.75%, while Small cap index was up by 1.03%.

The top gaining sectoral indices on the BSE were Auto up by 1.66%, IT up by 1.46%, Bankex up by 1.13%, FMCG up by 1.09% and Metal up by 1.05%

The top gainers on the Sensex were Bajaj Auto up by 3.60%, Maruti Suzuki up by 3.09%, GAIL India up by 2.73%, ICICI Bank up by 2.04% and Sun Pharma up by 2.01%. On the flip side, Bharti Airtel down by 3.25% was the top losers.

Meanwhile, pointing to the various benefits of the Goods and Services Tax (GST), the Central Board of Excise and Customs (CBEC), a part of department of revenue has said that GST will make consumer goods cheaper, increase consumption and generate more employment by enhancing economic activity. Further it said that exemption for a majority of small retailers will make products cheaper for consumers.

GST will replace more than a dozen levies of center and state, including central excise, service tax and sales tax as well as VAT, to make movement of goods seamless. Under the new GST set-up, goods will be taxed at the point of consumption, instead of the goods being taxed multiple times. And it will eliminate double taxation on certain sectors like works contracts, software and hospitality, among others. CBEC has said that average tax burden on supplies of goods and services are likely to come down leading to more consumption.

CBEC further said that GST will integrate taxes, unleash growth, create a national market and ease compliance. On advantage for the trade and industry, it will also reduce compliance cost as the assessee will not have to maintain multiple records for a variety of taxes. The new tax regime will be simpler with a few exemptions and result in increased economic activity and generate more job opportunities. It also said that GST will create a unified common national market for India, giving a boost to foreign investment and Make in India campaign.

The CNX Nifty is currently trading at 8712.35, up by 104.90 points or 1.22% after trading in a range of 8642.25 and 8714.30. There were 46 stocks advancing against 5 stocks declining on the index.

The top gainers on Nifty were Bosch up by 4.38%, Ambuja Cement up by 4.09%, Grasim Industries up by 3.54%, Bajaj Auto up by 3.54% and Maruti Suzuki up by 3.12%. On the flip side, Bharti Airtel down by 3.66%, Idea Cellular down by 1.01%, BHEL down by 0.99%, Zee Entertainment down by 0.39% and Tata Motors - DVR down by 0.31% were the top losers.

Asian market were trading mostly in green; Taiwan Weighted increased 0.39 points or 0% to 9,110.56, Shanghai Composite rises 4.65 points or 0.15% to 3,074.68, KOSPI Index was up by 7.39 points or 0.36% to 2,039.74 and Hang Seng jumped 194.77 points or 0.85% to 23,016.11. On other hand, Jakarta Composite decreased 26.08 points or 0.49% to 5,344.69, Nikkei 225 declined 12.13 points or 0.07% to 16,725.36 and FTSE Bursa Malaysia KLCI dropped 4.29 points or 0.26% to 1,677.31.

European markets were trading mostly in green; France’s CAC surged 35.09 points or 0.79% to 4,459.34 and Germany’s DAX increased 79.4 points or 0.75% to 10,623.84. On flip side, UK’s FTSE 100 decreased 2.6 points or 0.04% to 6,835.45.