Benchmarks trade in fine fettle in noon deals

Domestic gauges are trading in fine fettle in noon deals as traders continue to buy beaten down but fundamentally strong stocks after concerns over a potential trade war faded, boosting global investor sentiment. Market participants also getting support with report that the Reserve Bank of India (RBI) will inject Rs 1 lakh crore short term money into the banking system ahead of the financial year-end that normally sees cash crunch.  The move is likely to keep short term rates under check benefiting borrowing companies. Sentiments continue to remain up-beat on report that the GDP growth is seen rising to a respectable 7.5 per cent next fiscal from 6.5 per cent expected this fiscal, propelled by domestic consumption, policy push, and synchronised global growth.

Firm global cues too supporting sentiments with Asian markets rebounding from near three-week lows as concerns eased over Donald Trump’s plan to impose tariffs on steel and aluminium imports. Back home, stocks related to apparel sector edged higher despite report that India's apparel industry may post a rare decline in exports for the current fiscal 2017-18, let alone meeting the $20 billion target. In scrip specific developments, Ramco Cements gained on entering into agreement to acquire Clinker Grinding Unit, while Shriram Transport Finance edged higher on planning to raise funds.

The BSE Sensex is currently trading at 33855.09, up by 108.31 points or 0.32% after trading in a range of 33787.82 and 34060.13. There were 20 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.74%, while Small cap index was up by 0.16%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.14%, Metal up by 1.14%, Consumer Durables up by 1.13%, Basic Materials up by 0.85% and Realty was up by 0.83%, while Telecom down by 0.27% was the lone losing index on BSE.

The top gainers on the Sensex were Tata Steel up by 1.97%, Indusind Bank up by 1.97%, Yes Bank up by 1.80%, Adani Ports up by 1.61% and HDFC up by 1.50%. On the flip side, Mahindra & Mahindra down by 1.08%, Sun Pharma down by 0.96%, ICICI Bank down by 0.58%, Coal India down by 0.52% and Tata Motors - DVR down by 0.50% were the top losers.

Meanwhile, amid muted Goods and Services Tax (GST) collections, the State Bank of India (SBI) Research in its latest report has projected that the GST collections will grow in the range of 14-16% during the fiscal year 2018-19 (FY19), similar to the decadal gross tax revenue growth rate at 13.9%. Besides, it described recent speculation on GST collection targets for the current and next fiscals as being ‘overtly aggressive’. It added that the speculative collection target pegged at Rs 7.4 lakh crore which is 67% higher than the revised estimates (RE) for the financial year 2017-18.

The SBI Ecowrap report titled ‘The Arithmetic of GST Collections’ has noted that GST receipts during the current fiscal (FY18) will only be for 9 months as the new indirect tax regime was implemented from July, and factoring in the assumption that Integrated GST (IGST) should be equally shared between the Centre and states.

Citing the wild speculation in the public domain that the IGST figures are taken in their entirety without separating the share of the states, it said that this is wrong, as the data of GST collections show that gross IGST collections are going to touch around Rs 4.01 lakh crore in FY18, of which 60% has been transferred to states and rest Rs 1.61 lakh crore are shown in FY18 revised estimates. However, IGST collections of Rs 4.01 lakh crore should be equally split between the Centre and states. It added that if that happens, then the extra 10% will get transferred to the Centre leading to upward revision of FY18 estimates.

SBI Research has projected that the India’s gross tax revenue will grow by 16.7% in the next fiscal to Rs 19.1 lakh crore, on the back of a 10.2% growth in corporation tax and 20.4% rise in personal income tax. Thus, it added that the government’s FY19 revenue targets are reasonable.

The CNX Nifty is currently trading at 10,401.45, up by 42.60 points or 0.41% after trading in a range of 10377.95 and 10441.35. There were 30 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Indian Oil Corporation up by 2.89%, Zee Entertainment up by 2.84%, Aurobindo Pharma up by 2.81%, BPCL up by 2.51% and Indiabulls Housing up by 2.48%. On the flip side, Bharti Infratel down by 2.31%, Lupin down by 1.41%, Bosch down by 1.35%, Mahindra & Mahindra down by 1.14% and Sun Pharma down by 0.98% were the top losers.

Asian markets are trading mostly in green; FTSE Bursa Malaysia KLCI rose 5.7 points or 0.31% to 1,848.32, Shanghai Composite increased 24.99 points or 0.77% to 3,281.91, KOSPI Index soared 36.35 points or 1.53% to 2,411.41, Taiwan Weighted strengthened 141.44 points or 1.33% to 10,784.34, Nikkei 225 surged 375.67 points or 1.79% to 21,417.76 and Hang Seng was up by 628.13 points or 2.1% to 30,514.52. On the flip side, Jakarta Composite was down by 12.09 points or 0.18% to 6,538.50.