Markets add gains; Sensex surpasses 28,500 mark

Indian equity benchmarks added gains, hovering near the highest point of the day in the late afternoon session, on account of buying in frontline blue chip counters ahead of the release of economic growth data later in the day. The sentiments remained upbeat with the FICCI survey that India’s economy is likely to expand 7.8% during the current financial year on the back of good monsoon. Further, many construction companies gained traction on the report that the government approved new norms that will help in quicker resolution of disputes to kick-start stalled projects a make access to financing easier for construction sector. About 25 stocks out of Nifty 51 hit fresh 52-week high. UltraTech Cement, Kotak Mahindra Bank and IndusInd Bank were the leading contributors to Sensex's gains. In scrip specific development, Fiberweb India move up after it bagged export order worth Rs 14.80 crore for the advance products.

On global front, European stocks were trading mostly in green, as a report of merger talks between Deutsche Bank AG and Commerzbank AG helped lift shares of the German banking heavyweights.

The BSE Sensex is currently trading at 28507.60, up by 164.59 points or 0.58% after trading in a range of 28363.10 and 28513.72. 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 0.80%, while Small cap index was up by 0.51%.

The gaining sectoral indices on the BSE were Capital Goods up by 1.41%, Bankex up by 1.23%, Auto up by 1.15%, TECK up by 0.59% and Oil & Gas up by 0.56%, while Metal down by 0.58% was the losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 2.66%, Hero MotoCorp up by 2.38%, Larsen & Toubro up by 2.32%, ICICI Bank up by 1.31% and Wipro up by 1.30%. On the flip side, ONGC down by 1.49%, NTPC down by 1.05%, Tata Steel down by 0.99%, TCS down by 0.48% and Coal India down by 0.42% 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 8810.75, up by 66.40 points or 0.76% after trading in a range of 8754.05 and 8812.10. There were 37 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Ultratech Cement up by 3.94%, Kotak Mahindra Bank up by 3.19%, Indusind Bank up by 2.91%, Tata Motors up by 2.77% and Tata Motors - DVR up by 2.44%. On the flip side, ONGC down by 1.53%, Bosch down by 1.04%, NTPC down by 1.02%, Tata Steel down by 0.99% and Aurobindo Pharma down by 0.56% were the top losers.

Asian market were trading  mostly in red; Taiwan Weighted decreased 41.71 points or 0.46% to 9,068.85, Hang Seng declined 39.23 points or 0.17% to 22,976.88, KOSPI Index dropped 5.09 points or 0.25% to 2,034.65 and FTSE Bursa Malaysia KLCI was down by 3.54 points or 0.21% to 1,678.06. On other hand, Shanghai Composite increased 10.81 points or 0.35% to 3,085.49, Jakarta Composite jumped 31.89 points or 0.59% to 5,394.20 and Nikkei 225 surged 162.04 points or 0.97% to 16,887.40.

European markets were trading mostly in green; UK’s FTSE 100 increased 6.99 points or 0.1% to 6,827.78 and France’s CAC jumped 18.52 points or 0.42% to 4,476.01. On flip side, Germany’s DAX decreased 6.67 points or 0.06% to 10,650.97.