Markets gain traction in late afternoon deals

Indian equity benchmarks gained traction in late afternoon session, following firm European markets. Domestic sentiments got a boost, as the Central Board of Direct Taxes (CBDT) said that small startups with turnover up to Rs 25 crore will continue to get the promised tax holiday as specified in Section 80-IAC of the Income Tax Act, 1961 (the Act), which provides deduction for 100 per cent of income of an eligible start-up for 3 years out of 7 years from the year of its incorporation. The street also took support with reports that the commerce ministry will soon come out with a new foreign trade policy, with an aim to simplify procedures for exporters and importers besides providing incentives to boost outbound shipments.

On the global front, European markets were trading in green, after Austria's production index rose in June, led by a growth in industrial output and construction. The data from Statistics Austria showed that the production index that combines both industry and construction grew 1.3 percent year-on-year in June, after a 0.4 percent fall in May. Asian markets were trading mixed. 

The BSE Sensex is currently trading at 36726.49, up by 253.56 points or 0.70% after trading in a range of 36102.35 and 36807.34. There were 24 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.08%, while Small cap index was up by 0.55%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 3.68%, Metal up by 3.39%, Energy up by 3.04%, PSU up by 2.75% and Basic Materials up by 2.02%, while FMCG down by 0.67% and Capital Goods down by 0.04% were the only losing indices on BSE.

The top gainers on the Sensex were Vedanta up by 6.20%, Yes Bank up by 5.60%, ONGC up by 5.13%, Tata Steel up by 3.75% and Mahindra & Mahindra up by 3.56%. On the flip side, ITC down by 1.52%, Indusind Bank down by 1.35%, Hindustan Unilever down by 0.70%, Power Grid down by 0.69% and Larsen & Toubro down by 0.45% were the top losers.

Meanwhile, the Central Board of Direct Taxes (CBDT) has said that small startups with turnover up to Rs 25 crore will continue to get the promised tax holiday as specified in Section 80-IAC of the Income Tax Act, 1961 (the Act), which provides deduction for 100 per cent of income of an eligible start-up for 3 years out of 7 years from the year of its incorporation.

The tax regulator further clarified that all the start-ups recognised by Department for Promotion of Industry and Internal Trade (DPIIT) which fulfilled the conditions specified in the DPIIT notification did not automatically become eligible for deduction under Section 80-IAC of the Act.

It said that a start-up has to fulfil the conditions specified in Section 80-IAC for claiming this deduction. Therefore, the turnover limit for small start-ups claiming deduction is to be determined by the provisions of Section 80-IAC of the Act and not from the DPIIT notification.

The CNX Nifty is currently trading at 10836.25, up by 94.90 points or 0.88% after trading in a range of 10637.15 and 10862.55. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were Vedanta up by 6.12%, Zee Entertainment up by 5.64%, Yes Bank up by 5.51%, BPCL up by 5.29% and ONGC up by 5.13%. On the flip side, ITC down by 1.52%, Indusind Bank down by 1.39%, Eicher Motors down by 1.06%, Power Grid down by 0.79% and Hindustan Unilever down by 0.76% were the top losers.

Asian markets were trading mixed; Hang Seng increased 136.79 points or 0.53% to 26,185.51, Nikkei 225 surged 82.90 points or 0.4% to 20,710.91, Shanghai Composite gained 13.76 points or 0.48% to 2,897.20 and Taiwan Weighted strengthened 8.33 points or 0.08% to 10,538.11. On the flip side, KOSPI fell 2.71 points or 0.14% to 1,948.30, Jakarta Composite lost 4.30 points or 0.07% to 6,234.95 and Straits Times trembled 15.20 points or 0.49% to 3,112.54.

All European markets were trading in green; FTSE gained 50.01 points or 0.70% to 7,178.19, CAC rose 29.84 points or 0.55% to 5,418.09 and DAX was up by 63.76 points or 0.54% to 11,810.80.