Barometer gauges maintain gains

Stock markets were trading in fine fettle in the afternoon session due to buying in Bankex, PSU and Realty sectors. Indusind Bank, ICICI Bank and Vedanta were contributing most of the gains to Sensex, while Zee Entertainment and Power Grid Corporation were contributing the most of gains to Nifty. Besides, broader indices were also trading in green, supporting their larger peers. Sentiments remained up-beat with Niti Aayog CEO Amitabh Kant’s statement that the circular economy has the potential to generate 1.4 crore jobs in next 5-7 years and create lakhs of new entrepreneurs. He further added that sustainable development and resource circularity is the need of the hour to implement circular economy. Some optimism also came on report that to boost defence exports, the government will launch ‘Open General Export License’ scheme within a month. Meanwhile, a top US Senator has slammed President Donald Trump for damaging trade ties with India, saying his actions are hurting California almond growers who export more than $650 million worth of nuts to the country every year.

On the global front, Asian markets were trading mostly in green, amid ahead of interest rate decisions by the U.S. Federal Reserve and other central banks. Back on street, in scrip specific developments, shares of Tata Motors edged up on launching AMT versions of compact sedan Tigor. shares of PFC surged on signing performance based MoU with REC.

The BSE Sensex is currently trading at 39098.11, up by 137.32 points or 0.35% after trading in a range of 38960.25 and 39146.03. There were 21 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.57%, while Small cap index was up by 0.15%.

The top gaining sectoral indices on the BSE were Bankex up by 0.90%, PSU up by 0.82%, Realty up by 0.70%, Capital Goods up by 0.67% and Power was up by 0.64%, while Telecom down by 0.40% and FMCG was down by 0.20% were the few losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 2.78%, ICICI Bank up by 2.18%, Vedanta up by 1.77%, Power Grid Corporation up by 1.55% and Coal India was up by 1.39%. On the flip side, Asian Paints down by 1.30%, Hindustan Unilever down by 0.77%, Maruti Suzuki down by 0.57%, TCS down by 0.45% and Reliance Industries was down by 0.26% were the top losers.

Meanwhile, the Central Board of Direct Taxes (CBDT) has issued revised income tax rules, which make it difficult for tax evaders to escape by simply paying a penalty. It has issued a revised 32-page guideline for compounding of offences under direct tax laws, 2019’ which will be executed under the I-T Act, 1961. It has tightened framework for compounding of offences almost shutting the window for money laundering, non-disclosure of foreign assets or possession of a benami asset.

The new directives make it clear that compounding of offences is not a matter of right and the department can extend such a relief only in certain cases keeping in view factors like conduct of the person, the nature and magnitude of the offence on the context of the facts and circumstances of each case. Compounding in I-T parlance means that the taxman does not file a prosecution case against the offender or tax evader in the court in lieu of payment of due taxes and surcharges and it is dealt under section 279(2).

CBDT said indulgence in serious criminal cases of money laundering, terror financing, corruption, possession of benami properties and undisclosed foreign assets will virtually shut a person’s chances of getting relief in an income tax evasion offence beginning Monday (June 17).

The CNX Nifty is currently trading at 11703.60, up by 31.45 points or 0.27% after trading in a range of 11662.80 and 11719.70. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 2.57%, Zee Entertainment up by 2.56%, ICICI Bank up by 2.29%, Vedanta up by 1.80% and Power Grid Corporation up by 1.49%. On the flip side, Indiabulls Housing down by 3.71%, Bharti Infratel down by 1.87%, Asian Paints down by 1.33%, Hindalco down by 1.08% and Hindustan Unilever was down by 0.90% were the top losers.

Asian markets were trading mostly in green; KOSPI rose 7.14 points or 0.34% to 2,097.87, Jakarta Composite soared 49.00 points or 0.79% to 6,239.53, Straits Times advanced 27.98 points or 0.87% to 3,235.97, Hang Seng increased 321.90 points or 1.18% to 27,549.06 and Taiwan Weighted was up by 36.20 points or 0.34% to 10,566.74.

On the flip side, Nikkei 225 slipped 151.29 points or 0.72% to 20,972.71 and Shanghai Composite was down by 1.44 points or 0.05% to 2,886.18.