Firm trade prevails in late morning session

Indian equity benchmarks continued their firm trade in late morning session on account of buying in front line blue chip counters even as fears of global uncertainties on the US President-elect Donald Trump’s policies are likely to weigh. Broader markets extended gains amid broad-based buying, while Nifty reclaimed its 8450 level. The market digested speech by the UK Prime Minister Theresa May on Brexit plans. The rupee advanced against the US dollar in early session on increased selling of the American currency by exporters and banks. Sentiments remained up-beat after in a significant relief to foreign investors, the Central Board of Direct Taxes has put in abeyance a recent circular that amplified concerns over a potential rise in tax liability, clarifying the indirect transfer provisions, which had led to retrospective tax cases like that of Vodafone. Some support also came with a UN report which highlighted that India is still the fastest growing large developing economy and that the country would grow by 7.7 percent in the financial year 2017 and 7.6 percent in 2018. The United Nations World Economic Situation and Prospects (WESP) 2017 report has said that India’s economy is projected to grow by 7.7 percent in fiscal year 2017 benefiting from strong private consumption and gradual introduction of significant domestic reforms. Traders were seen piling position in Metal, Capital Goods and FMCG sector stocks. In scrip specific development, NBCC (India) was trading in green on joining hands with AIIMS for developing a housing complex for the staff at its western campus amid protests by Resident doctors who are opposing the government’s policy of selling 10 percent institutional land for commercial use. Delta Corp was trading under pressure after the company before market hours on Wednesday reported a net profit of Rs 1.76 crore, down 78 percent, against Rs 8.03 crore in the corresponding quarter last year.

On the global front, Asian shares were trading mostly in green, following a sharp correction overnight in the dollar that sapped investor momentum. China stock exchange was trading in green taking a lead with house price data supporting sentiment. Growth in China’s home prices moderated slightly in December as local governments stepped up curbs to tame speculation which some fear is fuelling a property bubble. Back home, the NSE Nifty and BSE Sensex were trading below the psychological 8,450 and 27,300 levels respectively. The market breadth on BSE was positive in the ratio of 1537:677, while 130 scrips remained unchanged.

The BSE Sensex is currently trading at 27393.72, up by 158.06 points or 0.58% after trading in a range of 27256.74 and 27422.67. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.71%, while Small cap index was up by 0.77%.

The top gaining sectoral indices on the BSE were Metal up by 1.80%, Capital Goods up by 1.25%, FMCG up by 0.95%, Bankex up by 0.92% and Power up by 0.79%, while there were no losers.

The top gainers on the Sensex were Hindustan Unilever up by 2.84%, Tata Steel up by 2.21%, Adani Ports & Special Economic Zone up by 1.68%, Larsen & Toubro up by 1.40% and Asian Paints up by 1.03%.

On the flip side, Bharti Airtel down by 1.01%, Dr. Reddy’s Lab down by 0.45%, NTPC down by 0.43%, TCS down by 0.32% and GAIL India down by 0.16% were the top losers.

Meanwhile, the Income Tax Department has eased some tax payment rules under Income Declaration Scheme (IDS) and said that disclosures under the scheme will be considered valid even if the tax amount has been realised by December 5, 2016. The first instalment of taxes was to be paid by November 30.

CBDT has said that it directed to accept the request for condonation of delay in payment of tax payable under the scheme in cases where payment has been made through cheque, RTGS, electronic transfer etc on or before the date of November 30, 2016, but the same has been credited by banks after the due date of November 30, 2016, but on or before the December 5, 2016. The instruction follows representations received from field authorities and stakeholders that there has been delay in payment of first instalment of tax, surcharge and penalty under IDS in some cases owing to some technical errors in the system, non-deposit of cheque by collecting banks, payment made by filling wrong challan and the like.

In order to give an option to domestic black money holders to declare their unaccounted wealth, the government had come out with a 4-month long Income Disclosure Scheme. Under the scheme, the black money holder had to pay 45 percent tax and penalty. The government had also given the option to the declarants of paying tax amount in three instalments. The first instalment of 25 percent was due on November 30, 2016. The second of similar amount is to be paid by March 2017 and the remaining 50 percent by September 30, 2017.

The CNX Nifty is currently trading at 8452.20, up by 54.20 points or 0.65% after trading in a range of 8403.65 and 8460.30. There were 42 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were BHEL up by 3.48%, Hindustan Unilever up by 2.93%, Grasim Industries up by 2.44%, Tata Steel up by 2.34% and Ambuja Cement up by 1.81%.

On the flip side, Bharti Airtel down by 1.35%, BPCL down by 0.94%, Dr. Reddy’s Lab down by 0.49%, NTPC down by 0.46% and TCS down by 0.40% were the top losers.

The Asian markets were trading mostly in green; KOSPI Index increased 0.9 points or 0.04% to 2,072.77, FTSE Bursa Malaysia KLCI increased 4.06 points or 0.24% to 1,667.09, Shanghai Composite increased 9.18 points or 0.3% to 3,117.96, Jakarta Composite increased 15.25 points or 0.29% to 5,282.19, Nikkei 225 increased 55.4 points or 0.29% to 18,868.93 and Hang Seng increased 275.98 points or 1.21% to 23,116.95.

On the other hand, Taiwan Weighted decreased 18.14 points or 0.19% to 9,336.39.