Benchmarks trade flat with positive bias in late morning session

Indian equity benchmarks continued their modest gains in the late morning session in absence of any upside positive triggers. Investors took some encouragement from Finance Minister Arun Jaitley’s statement that the government is confident of meeting the April 2017 target to implement the Goods and Services Tax as state finance ministers cooperate to make the single tax reform a reality soon. Also, as per latest edition of the Global Competitiveness Index of World Economic Forum (WEF) India has become the second most competitive BRICS economy and will grow faster than China this year. The report showed India’s competitiveness improved the fastest in 2015-16, jumping 16 places to rank 39th among 138 countries on the index. The Indian rupee strengthened for the fifth consecutive session against the US dollar in morning trade. Traders were seen piling up positions in PSU, Auto and Realty stocks, while selling was witnessed in IT and TECK sector stocks. In scrip specific development, Balaji Telefilms was trading firm after its board approved a plan to absorb the film production business of its unit Balaji Motion Pictures and subsidiary Bolt Media, which makes television shows, manages events and generates digital content. IL&FS Transportation Networks was trading in green after the company received in-principle approval from market regulator SEBI for registration of IL&FS Transportation Investment Trust. The market may remain volatile today as traders may roll over positions in the Futures & Options (F&O) segment from the near month i.e. September 2016 series to next month i.e. October 2016 series. The near month September 2016 derivatives contracts will expire on Thursday i.e. September 29, 2016.

On the global front, Asian stocks were mostly lower, with European banking sector concerns and lower crude oil prices dulling investors’ appetite for riskier assets. China’s retail sales are likely to grow 10.3 percent in 2016, the official People’s Daily overseas edition reported, citing the China General Chamber of Commerce. Growth in consumption is stabilizing due to positive signs in the economy including a recovery in power consumption and increasing exports. Back home, the NSE Nifty and BSE Sensex were trading above the psychological 8,700 and 28,200 levels respectively. The market breadth on BSE was positive in the ratio of 1394:685, while 150 scrips remained unchanged.

The BSE Sensex is currently trading at 28233.93, up by 10.23 points or 0.04% after trading in a range of 28198.30 and 28292.29. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.62%, while Small cap index was up by 0.58%.

The top gaining sectoral indices on the BSE were PSU up by 0.58%, Auto up by 0.49%, Realty up by 0.45%, Capital Goods up by 0.38% and Power up by 0.38%, while IT down by 0.42% and TECK down by 0.16% were the losing indices on BSE.

The top gainers on the Sensex were GAIL India up by 1.23%, Bharti Airtel up by 1.05%, Dr. Reddy’s Lab up by 0.95%, Power Grid Corporation up by 0.91% and SBI up by 0.78%.

On the flip side, Reliance Industries down by 1.60%, Wipro down by 0.66%, TCS down by 0.56%, Infosys down by 0.52% and Hindustan Unilever down by 0.50% were the top losers.

Meanwhile, moving ahead to ensure a timely roll out of the goods and services tax (GST), the Central Board of Excise and Customs (CBEC) has released two more draft rules and their formats on GST returns and refunds. The draft rules mandate taxpayers to file monthly tax returns and specifying procedure for claiming refunds of taxes, interest and fees. Monthly returns are for output supply, input supply and summary accounts and would cover state GST, integrated GST (IGST) and central GST (CGST).

As per the rules for refund, every registered taxable person will be required to furnish a monthly return in specified form (GSTR-3). There is also a provision for electronic furnishing of annual return by every registered taxable person and composition supplier. Also, every taxable person whose aggregate turnover during a financial year exceeds Rs 1 crore, will be required to submit annually a duly certified audited statement. There is also a provision for electronic furnishing of annual return by every registered taxable person and composition supplier.

As regards the refunds, the rules specified the procedure for claiming refund of any tax, interest, penalty, fees or any other amount under GST. The rules also provide for grant of provisional 80 per cent refund to notified exporters and refund to certain persons.  It further specified that in respect of supplies made to an SEZ unit/developer, or supplies regarded as deemed exports, application will have to be filed by said SEZ unit/developer or recipient of deemed export supplies. Earlier, the CBEC had unveiled three sets of draft rules and formats relating to registration, invoice and payments.

The CNX Nifty is currently trading at 8716.05, up by 9.65 points or 0.11% after trading in a range of 8703.15 and 8730.40. There were 35 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Idea Cellular up by 2.95%, Yes Bank up by 1.33%, Aurobindo Pharma up by 1.31%, GAIL India up by 1.31% and Tata Power up by 1.27%.

On the flip side, Reliance Industries down by 1.59%, TCS down by 0.66%, Hindustan Unilever down by 0.65%, Wipro down by 0.61% and Hindalco down by 0.50% were the top losers.

The Asian markets were trading mostly in red; Nikkei 225 decreased 238.01 points or 1.43% to 16,445.92, Hang Seng decreased 152.65 points or 0.65% to 23,419.25, Jakarta Composite decreased 28.88 points or 0.53% to 5,390.72, Shanghai Composite decreased 10.59 points or 0.35% to 2,987.58 and KOSPI Index decreased 10.09 points or 0.49% to 2,052.73.

On the other hand, FTSE Bursa Malaysia KLCI increased 2.12 points or 0.13% to 1,666.84. Taiwan stock exchange was closed for the day due to Typhoon MEGI.