Benchmarks trade flat with positive bias in early deals on F&O expiry day

Indian equity indices started the F&O expiry day on a cautious note and are trading flat with positive bias in early deals on Thursday. Trading could be volatile as traders roll over positions in the F&O segment from the near month April 2019 series to May 2019 series. Traders got some encouragement with report that giving relief to composition scheme taxpayers under the GST, the finance ministry has allowed such businesses to file self-assessed tax return on quarterly basis in a simplified form. In yet another simplification, the Goods and Services Tax (GST) Council has added flexibility into the way a company can utilise the available input tax credit. Any company would now be eligible to use credit available against paid integrated GST (IGST) to set off tax liabilities of state GST (SGST) and central GST (CGST) in any proportion and in any order. Moreover, the Finance Ministry has introduced changes in the e-way bill system, including auto calculation of distance based on PIN codes for generation of e-way bill and blocking generation of multiple bills on one invoice, as it seeks to crack down on GST evaders.

On the global front, Asian markets were trading mostly lower in early trade on Thursday after a surprise deterioration in German business morale triggered fears of slowing global growth. Back home, the Reserve Bank of India (RBI) has directed banks to disclose loans outstanding to Infrastructure Leasing & Financial Services and the provisions required to be made against the exposure, in their notes accompanying their fourth-quarter financial results. The RBI wants banks to disclose the total loans outstanding as well as the percentage of loans that are non-performing as per the Income Recognition and Asset Classification (IRAC) guidelines but not yet classified as NPAs. In scrip specific development, Glenmark Pharmaceuticals gained over a percent on getting nod from Russian Ministry of Healthcare for Momate Rhino nasal spray.

The BSE Sensex is currently trading at 39071.66, up by 16.98 points or 0.04% after trading in a range of 39009.72 and 39128.59. There were 14 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.33%, while Small cap index was up by 0.47%.

The top gaining sectoral indices on the BSE were Power up by 0.86%, Utilities up by 0.84%, Consumer Durables up by 0.82%, Capital Goods up by 0.80% and Basic Materials was up by 0.77%, while Telecom down by 0.66%, Auto down by 0.33%, TECK down by 0.32%, IT down by 0.28% and Energy was down by 0.19% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 2.84%, Power Grid Corporation up by 1.46%, Larsen & Toubro up by 1.09%, Tata Steel up by 0.73% and ITC was up by 0.72%. On the flip side, Maruti Suzuki down by 1.20%, ONGC down by 0.80%, Bajaj Auto down by 0.66%, TCS down by 0.54% and Infosys was down by 0.46% were the top losers.

Meanwhile, the Finance Ministry, giving relief to composition scheme taxpayers under the Goods and Services Tax (GST), has allowed such businesses to file ‘self-assessed tax’ return on quarterly basis in a simplified form. As of now, businesses opting for composition scheme had to file tax returns every quarter in GSTR-4 which ran into around seven pages. As per a Central Board of Indirect Taxes and Customs (CBIC) notification, composition scheme taxpayers will now file GSTR-4 annually by April 30 for the previous financial year ending March 31.

The CBIC has notified the simplified ‘statement for payment of self-assessed tax’ in Form GST CMP08 to be filed by taxpayers who have opted for composition scheme, under which businesses have to pay lower rate of tax on their turnover. The CMP08, which has to be filed by the 18th day of the subsequent month following the end of a quarter, will include details like outward supplies, inward supplies attracting reverse charge including import of services; tax, interest payable; and taxes and interest paid. Composition scheme businesses will file the April-June quarter returns in July as per the new format.

Small traders and manufacturers with a turnover of Rs 1.5 crore pay a 1% GST, while service providers and suppliers of both goods and services up to a turnover of Rs 50 lakh pays 6%. Businesses who have not opted for composition scheme have to file GST returns every month and also pay taxes as per the GST slabs decided for the goods and services they deal in. Currently, there is a 4-tier GST- 5, 12, 18 and 28%. There are 1.21 crore businesses registered under GST, of which 20 lakh are under composition scheme.

The CNX Nifty is currently trading at 11740.40, up by 14.25 points or 0.12% after trading in a range of 11715.95 and 11756.65. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 2.84%, Grasim Industries up by 2.38%, Ultratech Cement up by 2.38%, BPCL up by 1.53% and Power Grid Corporation was up by 1.20%. On the flip side, Bharti Infratel down by 2.80%, Maruti Suzuki down by 1.11%, ONGC down by 0.86%, Bajaj Auto down by 0.77% and Infosys was down by 0.65% were the top losers.

Asian markets were trading mostly in red; Jakarta Composite dropped 53.63 points or 0.83% to 6,394.26, Shanghai Composite declined 22.66 points or 0.71% to 3,178.95, Hang Seng decreased 19.82 points or 0.07% to 29,786.01, KOSPI fell 5.69 points or 0.26% to 2,195.34 and Straits Times was down by 3.83 points or 0.11% to 3,358.60. On the other side, Nikkei 225 strengthened 111.53 points or 0.5% to 22,311.53 and Taiwan Weighted was up by 9.27 points or 0.08% to 11,036.91.