Benchmarks continue to trade in fine fettle

Indian markets were maintaining their up move in the late afternoon session and both the benchmarks were up by over 0.10 percent. Apart from blue chips, broader indices too equally participated in the gain, as mid cap and small cap indices trading up by over 0.30 percent. Sentiment remained upbeat with the chief economic advisor Arvind Subramanian stating that India has the potential to sustain 8 to 10 percent GDP growth rate during the next two to three years, despite April-June GDP growth coming in below expectations at 7.1 percent. Firm opening in European market too supported market. European shares were trading higher in early deals on Friday, as investors awaited key U.S. jobs data later in the day for clues about the Federal Reserve's next interest rate hike.

Back home, India Meteorological Department (IMD) statement that for the country as a whole, cumulative rainfall during this year's monsoon so far (till 31 August 2016) was 3 percent below the long period average (LPA) failed to spill pessimism on the street. In scrip specific developments, Hero MotoCorp jumped after the company reported a 28 percent surge in its total vehicle sales for August. Tata Motors rose after posting a 6 percent increase in its monthly sales.

The BSE Sensex is currently trading at 28476.11, up by 52.63 points or 0.19% after trading in a range of 28427.63 and 28525.87. There were 19 stocks advancing against 11 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 0.40%.

The top gaining sectoral indices on the BSE were Realty up by 1.12%, Auto up by 0.98%, Bankex up by 0.43%, Consumer Durables up by 0.33% and Power up by 0.24%, while Metal down by 0.82%, Capital Goods down by 0.60%, IT down by 0.37%, TECK down by 0.22% and Oil & Gas down by 0.16% were the losing indices on BSE.

The top gainers on the Sensex were Adani Ports &Special up by 3.49%, Maruti Suzuki up by 2.01%, Bharti Airtel up by 1.32%, Tata Motors up by 1.29% and Lupin up by 1.23%. On the flip side, Reliance Industries down by 1.78%, Coal India down by 1.67%, Larsen & Toubro down by 1.07%, Hindustan Unilever down by 0.81% and Cipla down by 0.61% were the top losers.

Meanwhile, Odisha has become the 16th state to approve the recently passed Constitution (122nd Amendment) Bill, 2014 on GST. This means the Bill has achieved the minimum number of state approvals that is half the total number which is required for the proposed law to be sent for presidential nod.

Not touching the controversial point of capping the tax limit as demanded by the Opposition Congress members, Chief Minister Naveen Patnaik has said that they will soon demand Centre for the imposition of Green Tax along with GST. Also they will request the Centre to take appropriate action for CST compensation to the states up to 2016-17 for reduction of CST from 4 percent to 2 percent.

After successful adoption of the GST bill in the State Assembly, Patnaik has said that all sections will be benefited after the implementation of GST bill as it will reduce the tax burden on several commodities and services. The government will get the benefit of higher revenue efficiency. The business and industry will find it easier to comply with. He added that there are challenges before the state to roll out GST next year as he appealed to all to work together to make GST happen. 

Revenue Secretary Hasmukh Adhia has said that the ratification of the bill has been completed ahead of the schedule. Assam was the first state to ratify the GST Bill. Other states that have approved the bill are Maharashtra, Haryana, Bihar, Jharkhand, Himachal Pradesh, Chhattisgarh, Gujarat, Madhya Pradesh, Delhi, and Nagaland. The bill will now be placed before President Pranab Mukherjee for approval.

The CNX Nifty is currently trading at 8786.45, up by 11.80 points or 0.13% after trading in a range of 8768.20 and 8798.45. There were 28 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Adani Ports &Special up by 3.59%, Bank of Baroda up by 2.76%, Tata Motors - DVR up by 2.13%, Maruti Suzuki up by 1.99% and Tata Motors up by 1.34%. On the flip side, Reliance Industries down by 1.85%, Coal India down by 1.67%, ACC down by 1.08%, Larsen & Toubro down by 1.08% and Hindalco down by 1.05% were the top losers.

Asian market were trading in green; FTSE Bursa Malaysia KLCI increased 1.44 points or 0.09% to 1,671.99, Shanghai Composite climbed 4.05 points or 0.13% to 3,067.35, KOSPI Index increased 5.59 points or 0.28% to 2,038.31, Jakarta Composite moved up 17.02 points or 0.32% to 5,351.57 and Hang Seng surged 104.36 points or 0.45% to 23,266.70. On flip side, Taiwan Weighted decreased 13.6 points or 0.15% to 8,987.55 and Nikkei 225 dropped 1.16 points or 0.01% to 16,925.68

European markets were trading in green; Germany’s DAX increased 14.48 points or 0.14% to 10,548.79, UK’s FTSE 100 was up by 20.52 points or 0.3% to 6,766.49 and France’s CAC jumped 28.75 points or 0.65% to 4,468.42