Barometer gauges maintain gains

Indian equity markets maintained their upward momentum in the early noon session and continued to trade on positive bias, following gains in Energy, IT and Oil & Gas stocks. Healthy buying was observed in blue-chip stocks like TCS, Reliance Industries, Tata Steel and Mahindra & Mahindra. Investors took support with Rating agency Crisil latest report stating that recovery of stressed assets through Insolvency and Bankruptcy Code (IBC) doubled to Rs 70,000 crore in 2018-19, as against Rs 35,000 crore recovered using other resolution mechanism including Debt Recovery Tribunal (DRT), Securitisation and Reconstruction of Financial Assets (Sarfaesi), Enforcement of Securities Interest Act, and Lok Adalat. The strength in the markets was also being supported by private report that the Indian private equity (PE) market remained a hotbed for deal making in 2018 with investments across 793 deals at $26.3 billion, which was the second highest in the last decade in terms of total investment value. Meanwhile, India’s decision on oil purchase from Iran will be taken after the elections, keeping in mind India’s commercial considerations, energy security and economic interests. Besides, monsoon is likely to arrive in Kerala on June 4, three days after its normal onset date, marking the official commencement of the rainy season in the country.

On the global front, Asian markets were trading mostly in green; amid lingering concerns over the economic impact of a US-China trade war, although an overnight bounce on Wall Street helped limit the losses. Back on street, a private report states that India will soon have to take a call on whether to officially share the US dollar-rupee reference rate with overseas exchanges, fund houses, corporates and banks. The benchmark rate is used to settle millions of trades and currency derivative contracts in India and abroad.

The BSE Sensex is currently trading at 37513.66, up by 195.13 points or 0.52% after trading in a range of 37368.04 and 37552.49. There were 20 stocks advancing against 11 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index lost 0.09%, while Small cap index was up by 0.36%.

The top gaining sectoral indices on the BSE were Energy up by 0.86%, IT up by 0.83%, Oil & Gas up by 0.54%, Capital Goods up by 0.47% and TECK was up by 0.47%, while Telecom down by 0.48%, Metal down by 0.38%, Utilities down by 0.28%, Power down by 0.27% and Realty was down by 0.25% were the losing indices on BSE.

The top gainers on the Sensex were TCS up by 1.27%, Reliance Industries up by 1.23%, Tata Steel up by 1.22%, Mahindra & Mahindra up by 1.17% and Bajaj Finance was up by 1.04%. On the flip side, Yes Bank down by 4.26%, Tata Motors - DVR down by 1.85%, Coal India down by 1.75%, Tata Motors down by 1.63% and Bajaj Auto was down by 0.90% were the top losers.

Meanwhile, the Central Board of Direct Taxes (CBDT) has deferred for the second time the requirement for companies to include in their tax audit report the details of Goods and Services Tax (GST) and General Anti-Avoidance Rules (GAAR) till March 31, 2020. Business entities having a turnover of more than Rs 1 crore (or Rs 2 crore if they have opted for presumptive taxation) and professionals with gross receipts of more than Rs 50 lakh have to comply with the tax audit requirements. The due date for its filing is September 30 and if the taxpayer is covered by transfer pricing provisions, the due date is November 30.
The CBDT in an order issued said that the Board has received representations that implementation of reporting requirements under clause 30C (pertaining to GAAR) and clause 44 (pertaining to GST compliance) of the Form No 3CD may be deferred further. It also said that the matter has been examined and it has been decided by the Board that the reporting under clause 30C and clause 44 of the Tax Audit Report shall be kept in abeyance till March 31, 2020.

In July 2018, the I-T department had changed the tax audit form - 3CD, seeking details under GST as well as GAAR, which seeks to prevent companies from routing transactions through other countries to avoid taxes. The changes were to come into effect from August 20, 2018. With stakeholders complaining that the change is onerous and a burden on companies, the CBDT had then deferred the implementation of the change in I-T audit form till March 31, 2019.

The CNX Nifty is currently trading at 11268.25, up by 46.20 points or 0.41% after trading in a range of 11235.35 and 11286.80. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 2.91%, BPCL up by 1.53%, TCS up by 1.36%, Tata Steel up by 1.34% and UPL was up by 1.27%. On the flip side, Zee Entertainment down by 6.15%, Yes Bank down by 4.07%, Indiabulls Housing down by 1.94%, Tata Motors down by 1.79% and Coal India was down by 1.59% were the top losers.

Asian markets were trading mostly in green; KOSPI rose 13.40 points or 0.64% to 2,095.24, Shanghai Composite gained 41.59 points or 1.44% to 2,925.20, Taiwan Weighted strengthened 59.93 points or 0.57% to 10,579.18, Nikkei 225 surged 110.08 points or 0.52% to 21,177.31 and Hang Seng was up by 259.96 points or 0.92% to 28,381.98.

On the flip side, Straits Times trembled 3.36 points or 0.1% to 3,220.35 and Jakarta Composite was down by 61.35 points or 1.01% to 6,009.85.