Markets continue to trade in green in noon session

Benchmark equity indices continued to trade in green in noon session led by gains in frontline blue chip stocks such as Tata Motors, Axis Bank, GAIL India and Cipla among others. Sentiments got some support with Moody's Investors Service (Moody's) affirming India's Baa3 ratings (the lowest investment grade) and maintaining the positive outlook on the rating. The positive outlook indicates Moody’s expectation that continued policy reform implementation will allow balanced growth to support reduction in government debt burden. Besides, appreciation in Indian rupee against dollars also supported the sentiments. The rupee appreciated 4 paise in noon deals to trade at 66.90 against the dollar on increased selling of the US currency by exporters and banks. However, gains remained capped as investors remained uncertain about the long-term impact of the demonetisation of the Rs 500 and Rs 1000 notes. In scrip specific development, TCS and Infosys eked out modest gains despite industry body Nasscom lowering its IT sector growth forecast for FY17 to 8-10 percent.

On the global front, Asian markets were trading mixed as a seven-day rally on Wall Street petered out overnight. The U.S. dollar retreated slightly after hitting a 13-year high and oil prices slipped. Back home, the BSE Sensex is currently trading at 26340.23, up by 41.54 points or 0.16% after trading in a range of 26249.30 and 26449.87. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was up by 0.16%, while Small cap index was down by 0.07%.

The top gaining sectoral indices on the BSE were Metal up by 1.36%, Oil & Gas up by 0.89%, Bankex up by 0.73%, PSU up by 0.65% and Auto up by 0.34%, while Realty down by 0.71%, IT down by 0.68%, TECK down by 0.63%, Consumer Durables down by 0.58% and Power down by 0.41% were the losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 3.01%, Axis Bank up by 1.78%, GAIL India up by 1.52%, Lupin up by 1.45% and Cipla up by 1.43%. On the flip side, Wipro down by 1.71%, Power Grid Corpn. down by 1.62%, Bajaj Auto down by 1.33%, Coal India down by 1.20% and TCS down by 1.20% were the top losers.

Meanwhile, due to oppositions attack over demonetization issue, the government is unlikely to bring the three legislations related to the main Goods and Services Tax (GST) bill in the early days of the winter session of the parliament, though it is hopeful of passage of the three GST bills in the winter session, which are likely to be introduced in either third or fourth week of the session. 

The government is willing to push the passage of three GST bills, the Central Goods and Services Tax Bill, the Integrated Goods and Services Tax Bill and the Goods and Services Tax (Compensation for Loss of Revenue) Bill, in the ongoing winter session, as Parliamentary nod for these bills is must to roll out the new tax regime from April 1, 2017. 

The GST Council, which is headed by the Finance Minister Arun Jaitley and has representations from state, had already decided on a four-tier rate structure of 5, 12, 18 and 28 per cent with a cess over and above the peak rate for luxury and demerit goods, but is yet to decide on the issue of cross empowerment to avoid dual control.

The government has listed total nine bills which also includes Surrogacy (Regulation) Bill for introduction, consideration and passage. Apart from this, the government has listed 10 pending bills including HIV AIDS Prevention and Control bill, Mental Health Care bill, Maternity Benefit Amendment bill, Prevention of Corruption (amendment) bill and Consumer Protection bill for consideration and passing as these bills have already been introduced in Parliament.

The CNX Nifty is currently trading at 8122.90, up by 11.30 points or 0.14% after trading in a range of 8091.65 and 8151.25. There were 29 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 3.59%, Tata Motors up by 2.93%, Bank of Baroda up by 2.39%, Tech Mahindra up by 2.00% and Axis Bank up by 1.60%. On the flip side, Wipro down by 2.09%, Ambuja Cement down by 1.90%, Power Grid Corpn. down by 1.86%, HCL Tech. down by 1.74% and Coal India down by 1.61% were the top losers.

The Asian markets were trading mixed; Nikkei 225 increased 0.42 points or 0% to 17,862.63, KOSPI Index increased 2.8 points or 0.14% to 1,982.45, Shanghai Composite increased 3.64 points or 0.11% to 3,208.69 and Taiwan Weighted increased 33.04 points or 0.37% to 8,995.26. On the flip side, Hang Seng decreased 34.58 points or 0.16% to 22,245.95, FTSE Bursa Malaysia KLCI decreased 3.31 points or 0.2% to 1,624.32 and Jakarta Composite decreased 0.42 points or 0.01% to 5,185.04.