Key indices trade near days high

Indian equity markets added gains to continue firm trade, hovering near the highest point of the day, in the afternoon session, as value buying set in ahead of a decision on monetary policy by the Reserve Bank of India (RBI) where it is widely expected to keep benchmark interest rates on hold. At present, Sensex and Nifty were trading above the crucial 35,050 and 10,650 levels respectively, with gains of over half a percent.  Further, sentiments remained up-beat with World Bank’s report stating that India is projected to regain its position as the world’s fastest-growing major economy advancing 7.3 per cent this fiscal year and 7.5 per cent in the next two ‘as factors holding back growth in India fade’. Some optimism also spread among the investors with a private report stating that the government has effected a major overhaul of its credit guarantee scheme to make adequate loans available to micro and small enterprises easily by more than tripling its corpus to Rs 8,000 crore and allowing non-banking financial companies (NBFCs), along with banks, to avail of official guarantees to extend credit to such units. On the sectoral front, energy related stocks were trading higher on report that buoyant with rapid growth of renewable energy in India, the government is aiming to add 225 Gw by 2022. India would achieve the earlier target of 175-Gw in the next two years.

On the global front, Asian markets were trading mostly in green, following the mostly positive cues overnight from Wall Street and as higher commodity prices lifted resources stocks.  Nevertheless, lingering worries about global trade wars and Italy's debt weighed on the markets.

Back home, the BSE Sensex is currently trading at 35096.04, up by 192.83 points or 0.55% after trading in a range of 34896.37 and 35202.51. There were 27 stocks advancing against 4 stocks declining on the index.
The broader indices were trading in green; the BSE Mid cap index was up by 0.76%, while Small cap index was up by 0.84%.

The top gaining sectoral indices on the BSE were Telecom up by 1.67%, Consumer Durables up by 1.49%, Realty up by 1.40%, Auto up by 1.30% and Industrials up by 1.12%, while there were no losing indices on BSE sectoral front.

The top gainers on the Sensex were Bharti Airtel up by 2.78%, Tata Motors up by 2.54%, Bajaj Auto up by 2.24%, Tata Motors - DVR up by 2.13% and SBI up by 2.09%. On the flip side, Asian Paints down by 1.23%, HDFC Bank down by 0.17%, ICICI Bank down by 0.09% and Indusind Bank down by 0.04% were the top losers.

Meanwhile, in the wake of contradictory orders passed by Authority for Advance Rulings (AARs) in different states, the government is planning to revamp the advance ruling mechanism under the Goods and Services Tax (GST) by setting up either a centralised authority or 4 regional authorities. As per the GST law, all states are required to set up at least one AAR comprising one member from the central tax department, and the other from the respective state.

In view of the confusion being created by contradictory rulings given by different authorities on the same or similar issues, the Finance Ministry is weighing the option of setting up either a centralised AAR or regional AARs. As tax officers are members of the authorities, there can be a conflict of interest as they often try to protect the interest of revenue while giving their rulings. The AARs in different states have so far passed about 60 orders under the new tax regime, while most states are yet to set up the GST appellate authority to entertain appeal against AAR verdict.

Recently, the New Delhi bench of the AAR had held that international passengers purchasing goods at airport 'Duty-Free' shops are liable to deduct GST from passengers. However, these shops were exempt from service tax, and Central Sales Tax in the earlier regime. The revenue department is planning to come up with a clarification exempting 'duty-free' shops from GST.

The CNX Nifty is currently trading at 10655.50, up by 62.35 points or 0.59% after trading in a range of 10587.50 and 10661.30. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 2.70%, Bharti Airtel up by 2.70%, HCL Tech. up by 2.59%, Titan Co up by 2.52% and Indiabulls Housing Finance up by 2.41%. On the flip side, Tech Mahindra down by 1.33%, Asian Paints down by 1.31%, HPCL down by 1.18%, GAIL India down by 0.66% and Indian Oil Corp. down by 0.46% were the top losers.

Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 7.69 points or 0.44% to 1,762.83, Nikkei 225 surged 86.19 points or 0.38% to 22,625.73, Taiwan Weighted rose 101.72 points or 0.92% to 11,201.83 and Hang Seng added 193.17 points or 0.62% to 31,286.62.

On the flip side, Jakarta Composite decreased 6.91 points or 0.11% to 6,081.88 and Shanghai Composite was down by 1.29 points or 0.04% to 3,112.92.