Benchmark Nifty continue to hold their head above water

After making a positive start, Indian equity benchmarks continued to hold their head above water on value-buying in select blue-chip stocks. Besides, short-covering of positions and speculators buying stocks that have been sold short to steer clear of losses in view of tomorrow’s September monthly derivatives contract expiry added to the upward move. Sentiments got some support with 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. However, gains remained capped on report that foreign portfolio investors (FPIs) sold shares worth a net Rs 155.76 crore on September 27, 2016.

On the global front, Asian markets were trading lower on Wednesday, with European banking sector concerns and lower crude oil prices dulling investors' appetite for riskier assets. However, overnight gains in the US market on the back of the first presidential debate and a beat on consumer confidence, capped some losses. Japanese stocks were dogged by threats of a robust yen, which hurts exporters' earnings, while China stocks sagged in thin trading, as investors' risk appetite continued to wane ahead of the week-long National Day holiday that starts on October 1.

Back home, stocks from PSU, Metal and Auto counters were supporting the markets’ uptrend, while those from IT and TECK counters were adding to the underlying cautious undertone. In scrip specific development, Balaji Telefilms has rallied after the company’s board has approved a composite scheme of arrangement between the company and its wholly owned subsidiaries viz. Balaji Motion Pictures and Bolt Media. Furthermore, Ahluwalia Contracts has surged after the company bagged new order aggregating Rs 151.39 crore from Bharat Electronics (BEL).

The market breadth remained optimistic as there were 1486 shares on the gaining side against 780 shares on the losing side, while 182 shares remained unchanged.

The BSE Sensex is currently trading at 28245.85, up by 22.15 points or 0.08% after trading in a range of 28198.30 and 28292.29. 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 0.69%, while Small cap index up by 0.67%.

The top gaining sectoral indices on the BSE were PSU up by 0.80%, Metal up by 0.76%, Auto up by 0.73%, Capital Goods up by 0.67% and Bankex up by 0.46%, while IT down by 0.47% and TECK down by 0.14% were the few losing indices on BSE.

The top gainers on the Sensex were SBI up by 1.61%, Tata Motors up by 1.47%, Bharti Airtel up by 1.37%, Tata Steel up by 1.20% and GAIL India up by 1.18%. On the flip side, Reliance Industries down by 1.78%, Hindustan Unilever down by 1.03%, Wipro down by 0.67%, Infosys down by 0.55% and TCS down by 0.50% were the top losers.

Meanwhile,  praising the progress achieved so far on Goods and Services Tax (GST) implementation, Finance Minister Arun Jaitley has expressed his confidence that it is ‘reasonably possible’ to meet the April 1, 2017 deadline to roll out the new indirect tax regime as state finance ministers cooperate to make the single tax reform a reality soon. He said that 'There has hardly been an opportunity, in fact there has been none, where I've seen state finance ministers dividing themselves on party lines (as on GST). If this trend goes on, I am quite certain, it may be reasonably possible for us to meet the deadline, however difficult it may be.'

Pointing that states have realized the importance of competitiveness and attracting investments, Finance Minister said that getting the GST through was ‘troublesome’ as it involved completely changing the powers of the Union and the states. It required consensus building so that they had shared sovereignty. He added that the GST progress showed that they have the stamina for reforms.

Now the government is planning to introduce CGST and IGST in the winter session beginning later November. GST, which is considered as the biggest tax reform since the Independence, will include excise and service tax, and various other local levies including VAT and octroi.

The CNX Nifty is currently trading at 8720.45, up by 14.05 points or 0.16% after trading in a range of 8703.15 and 8730.40. There were 38 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Idea Cellular up by 3.02%, Yes Bank up by 1.78%, SBI up by 1.65%, Tata Motors - DVR up by 1.63% and Tata Motors up by 1.53%. On the flip side, Reliance Industries down by 1.81%, Hindustan Unilever down by 1.32%, Tech Mahindra down by 1.00%, TCS down by 0.68% and Wipro down by 0.63% were the top losers.

Asian markets were trading in red; Nikkei 225 declined 1.38%, Hang Seng decreased 0.55%, Jakarta Composite dropped 0.53%, KOSPI Index shed 0.42% and Shanghai Composite was down by 0.12%.