Markets to extend gains on mostly positive global cues

The Indian markets after showing consistency through the session picked up pace in the final hours to end at record highs in the last session. Today, the start is likely to be in green and the markets will be extending the gains in early deals. Traders will be getting some support with India, pitching for a greater engagement with BRICS (Brazil, Russia, India, China and South Africa) nations on issues the international community addressed during BRICS Foreign Ministers meeting in Beijing. Meanwhile, Revenue Secretary Hasmukh Adhia has said that traders and dealers who have not completed their registration process can continue to do their business under the GST regime from July 1 using the provisional ID, adding that the 15-digit provisional ID would work as the Goods and Services Taxpayer Identification Number (GSTIN) for the first initial few month. There will be buzz in the aviation sector on report that the domestic airlines flew 101.74 lakh passengers in May this year, registering a 17.36 per cent increase over the 86.69 lakh passengers flown during the same period in the previous year. Oil companies too will be in action on report that India has surpassed China to become the largest contributor to incremental oil consumption in 2016, accounting for 21.8 per cent of it. India's oil consumption grew 8.3 per cent to 212.7 million tonnes in 2016 compared with global growth of 1.5 per cent, making it the third-largest oil consuming nation in the world.

The US markets surged with Dow and S&P ending at record high, as investors piled back into technology stocks. The Asian markets have made a mixed start though some of the indices extended the rally led by Japan, as technology shares continued a rebound and hawkish comments from a Federal Reserve official allayed concern about the strength of the world’s largest economy. Though, traders awaited a decision on whether the MSCI index committee will include China A-shares in its Emerging Market Index.

Back home, Indian equity indices commenced the week on an optimistic note as the benchmarks showcased an energetic performance on Monday and settled with gains of around three fourth of a percent. Investors continued to build hefty positions across the board as sentiments got a boost after Finance Minister Arun Jaitley said India will launch a new national Goods and Services Tax (GST) as planned on July 1 and gave return filing breather to India Inc for two months. Adding optimism among investors, the industry body Confederation of Indian Industry (CII) said India Inc is ready for the implementation of the GST from July 1, as the new indirect tax regime will contribute significantly towards economic growth, job creation and exports expansion. Besides, firm global cues, after French President Emmanuel Macron's party won a parliamentary majority at the weekend, too added to the optimistic sentiments.  Some support also came with the report that Net income tax collection grew at a healthy 26.2% to Rs 101,024 crore from across the country as of June 15 this fiscal from Rs 80,075 crore in the year ago period. Meanwhile, lenders such as State Bank of India gained after the central bank asked banks to start banktruptcy process against 12 large loan defaulters, raising hopes that reduction of bad debt will start to quicken. Also, Capital market regulator SEBI is again extending a helping hand to the government and the RBI in their fight against bad loans. According to the reports, Securities and Exchange Board of India is planning to ease the acquisition rules to allow investors to buy distressed assets from banks. Finally, the BSE Sensex gained 255.17 points or 0.82 % to 31311.57, while the CNX Nifty was up by 69.50 points or 0.72% to 9,657.55.