Markets continue to trade in upbeat mood

Sustaining the uptrend, local barometer gauges were trading in upbeat mood on account of sustained buying activities by funds and retail investors. The appreciation in rupee value against the dollar added to the optimistic sentiments. Some support also came with FICCI survey that India’s economy is likely to expand 7.8% during the current financial year on the back of good monsoon. The estimated median GVA (gross value added) growth for Q1 FY17 has been put at 7.6%. Further, the gains in auto, Banking, Consumer Durables, Capital Goods and Oil & Gas stocks also provided support to the domestic equity benchmarks. In scrip specific development, UltraTech Cement climbed 3 percent after the Reserve Bank allowed foreign investors to invest up to 30 percent in the company. Moreover, Bajaj Finance gained over 1 percent after it received shareholder nod for a bonus issue and a stock split.

On the global front, Asian markets were trading mixed, tracking modest losses on Wall Street, with investors awaiting US jobs numbers for further signs the Federal Reserve may raise rates as soon as September.

The BSE Sensex is currently trading at 28379.03, up by 36.02 points or 0.13% after trading in a range of 28363.10 and 28490.21. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.57%, while Small cap index was up by 0.20%.

The top gaining sectoral indices on the BSE were Auto up by 1.03%, Bankex up by 0.61%, Consumer Durables up by 0.51%, Capital Goods up by 0.50% and Oil & Gas up by 0.31%, while Metal down by 0.67%, IT down by 0.23%, Power down by 0.23%, FMCG down by 0.14% and Realty down by 0.05% were the losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 2.74%, Hero MotoCorp up by 1.96%, Dr. Reddys Lab up by 0.99%, Bajaj Auto up by 0.90% and Larsen & Toubro up by 0.88%. On the flip side, ONGC down by 1.51%, TCS down by 1.28%, NTPC down by 1.21%, Tata Steel down by 0.98% and Axis Bank down by 0.86% were the top losers.

Meanwhile, India Inc has suggested that the goods which are fully exempted from the levy of excise duty and VAT by all the states should be categorised as exempted goods in the GST regime as well. Following a meeting with the Empowered Committee of State Finance Ministers on the Goods and Services Tax, the Federation of Indian Chambers of Commerce and Industry (FICCI) also said that a minimum six month time should be permitted from the date of the adoption of the GST Law by the GST Council.

FICCI said that goods chargeable to nil rate of excise duty but charged to VAT in most states could be identified for levying a merit rate of GST. All other goods (except jewellery and demerit goods) could be subjected to the standard rate. As per current indications and reports, goods will be categorised as being subject to merit rate of 12%, standard rate of 18% and demerit rate of 40%.

The India Inc has said that any rate above 20 per cent would have an inflationary impact and would negate the likely benefits from GST. Therefore, it said that a reasonable standard tax rate of 18 per cent would not only deter inflation build-up, but would also protect the consumer's incomes and interests. It further recommended that valuation provisions under GST, which is a transaction based tax, should give primacy to actual transaction value. GST Law should provide for seamless movement of goods without any rigid administrative requirements that will delay transit and add to costs. There should be a foolproof mechanism of movement of goods between states and a single registration process, and industry should not be subjected to dual administration of assessment, audit, etc both by the Centre and states.

The CNX Nifty is currently trading at 8774.00, up by 29.65 points or 0.34% after trading in a range of 8754.05 and 8801.50. There were 31 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Ultratech Cement up by 4.31%, Tata Motors up by 2.70%,  Indusind Bank up by 2.57%, Tata Motors - DVR up by 2.37% and Kotak Mahindra Bank up by 1.89%. On the flip side, ONGC down by 1.53%, Bosch down by 1.35%, TCS down by 1.14%, NTPC down by 1.11% and Tata Steel down by 1.03% were the top losers.

The Asian markets were trading mixed; Shanghai Composite increased 8.33 points or 0.27% to 3,083.01, Jakarta Composite increased 17.09 points or 0.32% to 5,379.40 and Nikkei 225 increased 162.04 points or 0.97% to 16,887.40. On the flip side, Hang Seng decreased 54.99 points or 0.24% to 22,961.12, Taiwan Weighted decreased 41.71 points or 0.46% to 9,068.85, KOSPI Index decreased 5.09 points or 0.25% to 2,034.65 and FTSE Bursa Malaysia KLCI decreased 3.54 points or 0.21% to 1,678.06.