Bourses manage to keep heads above water

Indian bourses were managing to keep their heads above water in late afternoon session, on account of firm European markets. The street got some relief, as the Central Board of Direct Taxes (CBDT) brought in concept of Document Identification Number (DIN), taking further steps to ensure transparency in Tax Administration.  All communications made by the tax department to assessees from October 1, 2019 will carry a computer-generated DIN in order to promote transparency.

On the global front, European markets were trading in green, after Finland's current account surplus increased in June from previous month. The Statistics Finland reported that the current account surplus rose to EUR 791 million in June from EUR 626 million in May. In the same period last year, the deficit totaled EUR 1.07 billion. Asian markets were also trading in green.

Back home, telecom sector stocks were in watch, after industry body COAI urged the telecom regulator to come out with focused campaigns to create consumer awareness around the new framework for flagging pesky telemarketing calls, with telcos slated to soon start submission of monthly reports on user complaints.

The BSE Sensex is currently trading at 37407.57, up by 96.04 points or 0.26% after trading in a range of 36974.41 and 37444.45. There were 20 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.12%, while Small cap index was up by 0.08%.

The top gaining sectoral indices on the BSE were Utilities up by 1.37%, Auto up by 1.09%, Power up by 1.00%, Telecom up by 0.79% and Bankex up by 0.76%, while Metal down by 0.61%, Healthcare down by 0.52%, Energy down by 0.46%, IT down by 0.43% and Consumer Durables down by 0.31% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 4.25%, Maruti Suzuki up by 2.18%, Power Grid up by 2.09%, Indusind Bank up by 1.68% and ITC up by 1.65%. On the flip side, TCS down by 1.38%, Vedanta down by 1.23%, Tata Motors - DVR down by 0.96%, Sun Pharma down by 0.88% and Reliance Industries down by 0.68% were the top losers.

Meanwhile, in order to ensure more transparency in Tax Administration, the Central Board of Direct Taxes (CBDT) has brought in concept of Document Identification Number (DIN). All communications made by the tax department to assessees from October 1, 2019 will carry a computer-generated DIN in order to promote transparency.

According to the tax regulator, although almost all notices & orders of Income Tax Department are being generated electronically on the Income Tax Business Application (ITBA) platform, there have been some instances in which the notice, order, summons, letter and any correspondence were found to have been issued manually, without maintaining a proper audit trail of such communication.

In order to prevent such instances and to maintain proper audit trail of all communication, the CBDT laid down parameters specifying the manner in which any communication issued by any income-tax authority relating to assessment, appeals, orders, statutory or otherwise, exemptions, enquiry, investigation, verification of information, penalty, prosecution, rectification, approval etc. to the assessee or any other person will be dealt with. All such communication issued on or after October 01, 2019 shall carry a DIN duly quoted in the body of such communication.

The CNX Nifty is currently trading at 11052.95, up by 23.55 points or 0.21% after trading in a range of 10924.30 and 11068.65. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 4.18%, UPL up by 3.73%, Grasim Industries up by 2.55%, Power Grid up by 2.24% and Maruti Suzuki up by 2.17%. On the flip side, Indiabulls Housing Finance down by 4.33%, TCS down by 1.32%, Vedanta down by 1.19%, Dr. Reddy’s Lab down by 0.99% and Sun Pharma down by 0.90% were the top losers.

Asian markets were trading mostly in green; Hang Seng increased 213.16 points or 0.84% to 25,708.62, Taiwan Weighted strengthened 93.76 points or 0.91% to 10,420.89, Jakarta Composite soared 21.22 points or 0.34% to 6,278.81, Nikkei 225 surged 13.16 points or 0.06% to 20,418.81 and Shanghai Composite gained 12.73 points or 0.45% to 2,828.53. On the flip side, KOSPI fell 11.20 points or 0.58% to 1,927.17 and Straits Times trembled 17.82 points or 0.57% to 3,108.27.

All European markets were trading in green; FTSE gained 48.42 points or 0.69% to 7,115.43, CAC rose 52.59 points or 1.00% to 5,289.52 and DAX was up by 106.33 points or 0.93% to 11,519.00.