Markets trade with modest gain; Nifty reclaims 9,900 mark

Indian equity benchmarks have made a positive start and are trading slightly in green in early deals on Thursday, with Nifty recapturing its crucial 9,900 level and Sensex inching towards its 32,000 mark. Sentiments remained up-beat with Finance Minister Arun Jaitley’s statement, describing the Goods and Services Tax (GST) as a “win- win” deal for all as it will expand the tax net, end “inspector raj” and bring down prices of goods. Jaitley added that prices of goods have come down between four to eight per cent since its roll-out on July 1. Traders also took some encouragement with a private report that India will reclaim its position as the fastest growing major global economy this year, partly propelled by benefits from a new tax system and bolstered by an expected central bank interest rate cut.

Firm global cues too aided sentiments with Asian markets trading mostly in green at this point of time after fresh all-time highs for US equities spurred gains ahead of meetings from central banks in Japan and Europe. The BOJ is expected to go on bucking the recent hawkish tilt from its peers, leaving its unprecedented stimulus measures in place. The US markets surged in last session with major averages climbing to new record highs.

Back home, oil and gas stocks remained in focus after the government cleared the sale of Hindustan Petroleum to flagship explorer ONGC with the aim of creating an integrated oil company. Meanwhile, the market breadth indicating the overall health of the market was strong, with 1,183 shares gaining and 767 shares declining, while a total of 93 shares were unchanged.

The BSE Sensex is currently trading at 31989.96, up by 34.61 points or 0.11% after trading in a range of 31969.80 and 32057.12. There were 15 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.07%, while Small cap index was up by 0.40%.

The top gaining sectoral indices on the BSE were Realty up by 0.63%, Energy up by 0.54%, Power up by 0.43%, Bankex up by 0.37% and Oil & Gas up by 0.32%, while IT down by 0.48%, Metal down by 0.38%, TECK down by 0.33%, Auto down by 0.19% and Healthcare was down by 0.12% were the top losing indices on BSE.

The top gainers on the Sensex were ONGC up by 2.42%, Kotak Mahindra Bank up by 1.84%, Axis Bank up by 1.33%, Coal India up by 0.84% and Reliance Industries up by 0.82%. On the flip side, Asian Paints down by 1.55%, Tata Steel down by 1.47%, Hero MotoCorp down by 0.98%, Infosys down by 0.90% and TCS down by 0.51% were the top losers.

Meanwhile, describing newly implemented Goods and Services Tax (GST) as a win-win situation for all, the Finance Minister Arun Jaitley has said that it will expand the tax net, end ‘inspector raj’ and bring down prices of goods for the common man. Pitching the GST as a measure beneficial for the country, he said that prices of goods have come down between 4-8% since roll-out of new indirect tax regime from July 1 and the real effect could be felt after three months.

Jaitley said that the GST was in the interest of people and states as well, as the latter will get 80% of the revenue leading to more development. He also said that there was no longer tax on tax and the transport of goods across the country was going unhindered now.

Finance Minister further added that more than 1 crore firms will be migrating to the new tax regime against around 80 lakh companies earlier. He said tax net has expanded and the country’s market has been integrated. Besides, inspector raj is over and the tax burden on the masses has gone down.

The CNX Nifty is currently trading at 9907.75, up by 8.15 points or 0.08% after trading in a range of 9900.75 and 9922.55. There were 24 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were ONGC up by 2.45%, Ambuja Cement up by 2.21%, Kotak Mahindra Bank up by 1.89%, Axis Bank up by 1.34% and ACC up by 1.15%. On the flip side, Asian Paints down by 1.59%, Tata Steel down by 1.51%, Hero MotoCorp down by 1.15%, Infosys down by 0.92% and Hindalco down by 0.66% were the top losers.

Asian markets were trading mostly in green; KOSPI Index rose 4.31 points or 0.18% to 2,434.25, Shanghai Composite gained 5.61 points or 0.17% to 3,236.58, Jakarta Composite increased 16.37 points or 0.28% to 5,823.06, Hang Seng jumped 80.76 points or 0.3% to 26,752.92 and Nikkei 225 was up by 115.78 points or 0.58% to 20,136.64.

On the flip side, Taiwan Weighted decreased 13.23 points or 0.13% to 10,492.87 and FTSE Bursa Malaysia KLCI was down by 1.81 points or 0.1% to 1,755.46.