Markets maintain upward momentum in early noon session

 Indian equity markets maintained their upward momentum in the early noon session following gains in Capital Goods, FMCG and Bankex stocks. Healthy buying was observed in blue-chip stocks like Larsen & Toubro, ITC, Asian Paints and Indusind Bank. Besides, broader indices - BSE Mid cap and Small cap are also following main indices with strong gains. Sentiments got a boost with Finance Minister Nirmala Sitharaman’s statement that India has become a highly competitive investment destination post corporate tax reduction as the rates are now lower than that in China and most Southeast Asian countries. Markets remained bullish as Reserve Bank governor Shaktikanta Das exuded confidence that second-quarter GDP numbers will be better than the previous one as the government has started spending again. Further, Reserve Bank of India (RBI) has relaxed the priority-sector lending (PSL) rules for exporters, scrapping the turnover limit for an exporter to be eligible for such loans and increasing the sanction limit per borrower.

Asian equity benchmarks are trading lower, as US-China trade deal appeared elusive after Chinese officials unexpectedly cancelled a visit to farms in Montana and Nebraska as deputy trade negotiators wrapped up two days of talks in Washington. Back on street, in scrip specific development, shares of Central Bank of India shined on getting nod to raise Rs 1,000 crore via bonds. Besides, Ravindra Energy zoomed on securing ‘Empanelment and Rate Contract’.

The BSE Sensex is currently trading at 39157.24, up by 1142.62 points or 3.01% after trading in a range of 38674.04 and 39346.01. There were 19 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 2.89%, while Small cap index was up by 2.20%.

The top gaining sectoral indices on the BSE were Capital Goods up by 6.39%, FMCG up by 5.67%, Bankex up by 4.83%, Industrials up by 4.76%, Realty up by 3.66%, while IT down by 2.64%, TECK down by 2.23% and Healthcare was down by 0.28% were the top losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 8.13%, ITC up by 7.81%, Asian Paints up by 7.39%, Indusind Bank up by 6.41% and ICICI Bank was up by 6.34%. On the flip side, Infosys down by 3.43%, Yes Bank down by 3.25%, Tata Motors down by 2.74%, TCS down by 2.53% and Tech Mahindra was down by 2.20% were the top losers.

Meanwhile, the all-powerful Goods and Services Tax (GST) Council, headed by Union Finance Minister Nirmala Sitharaman and having representatives of all states, has hiked tax on caffeinated drinks to 28 percent plus additional cess of 12 percent as against the present rate of 18 percent. However, for hotels, it announced nil tax for those with tariffs of up to Rs 1,000 per night. Hotels charging Rs 1,001 to Rs 7,500 per night room tariff would be levied with 12 percent tax as against the existing 18 percent. Similarly, the tax on room tariff of above Rs 7,500 has been slashed to 18 percent from the existing 28 percent.

The GST was also cut on marine fuel to 5 percent while the same on railway wagons, coaches, roling stock has been increased from 5 percent to 12 percent. Also, tax on outdoor catering has been reduced to 5 percent from existing 18 percent with input tax credit. Exemption from the GST has been given to imports of specified defence goods that are not manufactured in India. Also, the tax on diamond job work has been reduced to 1.5 per cent from 5 per cent earlier. The same on supply of machine job cut to 12 percent from 18 percent.

Further, a uniform GST rate of 12 percent will be levied on woven/non-woven polyethylene bags. The cess levied on top of the maximum 28 percent tax rate on petrol vehicles with the capacity to carry 10-13 persons has been reduced to 1 percent and the same for diesel vehicles has been cut to 3 percent. The tax on almond milk has been set at 18 percent. The GST on slide fasteners (zips) has been reduced to 12 percent from 18 percent earlier. The rate changes shall be made effective from 1 October.

The CNX Nifty is currently trading at 11621.70, up by 347.50 points or 3.08% after trading in a range of 11471.35 and 11666.35. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Britannia Industries up by 9.75%, Larsen & Toubro up by 8.50%, ITC up by 8.02%, Asian Paints up by 7.50% and BPCL was up by 6.92%. On the flip side, Dr. Reddys Lab down by 3.69%, Infosys down by 3.48%, Yes Bank down by 3.33%, Tata Motors down by 3.08% and TCS was down by 2.93% were the top losers.

All the Asian counters are trading in red; Shanghai Composite declined 44.26 points or 1.47% to 2,962.19, Taiwan Weighted dropped 10.67 points or 0.1% to 10,919.02, Hang Seng decreased 189.11 points or 0.72% to 26,246.56, KOSPI fell 0.05 points or 0% to 2,091.47, Straits Times trembled 9.20 points or 0.29% to 3,150.48 and Jakarta Composite was down by 18.17 points or 0.29% to 6,213.30.