Post Session: Quick Review

Indian equity benchmarks traded on a firm note throughout the day and closed the session with gain of around seven tenth of a percent. Buying in last hour of trade helped NSE Nifty to end above 9650 mark, while Bank Nifty ended over a percent higher. The equity benchmarks made a positive start and traded in fine fettle in early deals taking cues from the progress made on the GST front. Traders got support from Union Finance Minister Arun Jaitley’s statement that the Goods and Services Tax (GST) will be rolled from July 1, amid concerns raised by business industries citing unpreparedness to comply with the provisions of the new indirect tax regime. He said the next meeting of the GST Council will be held on June 30 to redress some outstanding issues. Risk-on improved after the GST Council yesterday relaxed return filing rules for businesses for the first two months of the rollout of the new indirect tax regime even as it stuck to the 1 July launch date. Meanwhile, the industry body Confederation of Indian Industry (CII) said India Inc is ready for the implementation of the Goods and Services Tax (GST) from July 1, as the new indirect tax regime will contribute significantly towards economic growth, job creation and exports expansion. Some support also came with the report that Securities and Exchange Board of India (SEBI) is again extending a helping hand to the government and the Reserve Bank of India (RBI) in their fight against bad loans. SEBI is planning to ease the acquisition rules to allow investors to buy distressed assets from banks.

On the global front, Asian markets closed mostly in green. The International Monetary Fund urged Japan to avoid withdrawing fiscal policy stimulus and to keep monetary policy accommodative to accelerate growth and achieve higher inflation. Average new home prices in China’s 70 major cities rose 0.7 percent in May from the previous month, in line with April. Compared with a year ago, new home prices rose 10.4 percent in May, slowing slightly from an 10.7 percent gain in April. European markets were trading in green heading for their biggest rise in two months as investors shifted their attention to political events across Europe.

Back home, select hotels stocks like TAJGVK Hotels & Resorts, Kamat Hotels, EIH Associated Hotels, Royal Orchid Hotels, Viceroy Hotels and The BYKE Hospitality closed in green supported by new GST tax rates for rooms. The GST Council, which met for the 17th time on Sunday, decided to fix the tax rate for AC hotels at 18 per cent where the billed amount is up to Rs 7,500. Earlier, it had proposed to levy 28 per cent on hotel bills exceeding Rs 5,000. Bajaj Auto closed in green on report that the Maharashtra Government has now removed the cap on taxi and auto rickshaw permits, which could be a big positive for the company. However, stocks like Amtek Auto, Bhushan Steel and Monnet Ispat & Energy closed with deep cut as the Bankers are meeting from today to finalize their next course of action on six of the 12 bad loan accounts for immediate referral to National Company Law Tribunal (NCLT) after the Reserve Bank of India (RBI) named the largest defaulters to face bankruptcy proceedings.

The BSE Sensex ended at 31302.84, up by 246.44 points or 0.79% after trading in a range of 31163.35 and 31362.15. There were 20 stocks advancing against 11 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was up by 0.09%, while Small cap index was down by 0.17%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 1.89%, Capital Goods up by 0.94%, Basic Materials up by 0.84%, Bankex up by 0.80% and Energy up by 0.72%, while Consumer Durables down by 0.48%, Healthcare down by 0.44%, Realty down by 0.32% and IT down by 0.09% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Steel up by 3.37%, Adani Ports & Special Economic Zone up by 2.99%, Larsen & Toubro up by 1.93%, Axis Bank up by 1.61% and Power Grid up by 1.60%. (Provisional)

On the flip side, Infosys down by 1.17%, Dr. Reddy’ Lab down by 0.94%, Tata Motors down by 0.76%, Coal India down by 0.63% and Sun Pharma down by 0.60% were the top losers. (Provisional)

Meanwhile, in order to address any tax issue that can come up in sectors related to the Department of Industrial Policy and Promotion (DIPP), the department has constituted the Goods and Services Tax (GST) facilitation cell. DIPP has said that the department will be in constant touch with the major industry and business associations relating to it and this cell will also help to facilitate the rollout of GST.

The GST facilitation cell headed by Economic Advisor Sudhansu Sekhar Das will serve as the first point of contact for addressing any issue regarding GST. On the same lines, recently, the Department of Commerce also constituted a similar cell and a help desk to aid exporters and importers.

The new GST regime will subsume central excise, service tax and state VAT among other indirect levies on manufactured goods and services. DIPP looks after policies related to sectors including leather, cement, paper, salt and explosives.

The CNX Nifty ended at 9654.15, up by 66.10 points or 0.69% after trading in a range of 9614.90 and 9673.30. There were 34 stocks advancing against 17 stocks declining on the index. (Provisional)

The top gainers on Nifty were Tata Steel up by 3.70%, Hindalco up by 3.05%, Adani Ports & Special Economic Zone up by 2.88%, Vedanta up by 2.07% and Bosch up by 1.97%. (Provisional)

On the flip side, Dr. Reddy’ Lab down by 1.25%, Eicher Motors down by 1.10%, Yes Bank down by 1.04%, Infosys down by 1.01% and BPCL down by 0.90% were the top losers. (Provisional)

European markets were trading in green; UK’s FTSE 100 increased 34.8 points or 0.47% to 7,498.34, Germany’s DAX increased 86.33 points or 0.68% to 12,839.06 and France’s CAC increased 41.13 points or 0.78% to 5,304.44.

Asian equity markets ended mostly in green on Monday as weaker than expected US housing and consumer sentiment data tempered expectations for a spate of interest rate increases this year and French voters gave President Emmanuel Macron's upstart party a solid victory in Sunday's second-round election. Macron's party won a clear parliamentary majority at the weekend, giving him a strong mandate in parliament to pursue his pro-EU, business-friendly reform plans. Brexit negotiations with the European Union are set to begin today after Britain bowed to EU pressure for a formal opening to their long-awaited negotiations rather than first holding technical talks between civil servants. Chinese shares ended higher as liquidity conditions have eased and data showed the property market continued to stabilize in May after stricter measures to curb demand. Further, Japanese shares hit two-week highs amid yen weakness as data showed Japan saw a surprise trade deficit in May because of a rise in imports.