Local equities continue to show optimistic trend

Local equity benchmarks continue to show an optimistic trend in morning session, with gains of over one third a percent. Barring Telecom stocks, there was buying across all sectoral indices. Among heavy-weights Tata Motors, Yes Bank and Vedanta exhibited a smart performance. Traders remain optimistic as Union Cabinet approved changes to the insolvency law, including a provision to ring-fence successful resolution applicants from criminal proceedings with regard to offences committed by previous promoters of a company. The amendments to the Insolvency and Bankruptcy Code (IBC) are aimed at removing certain difficulties being faced during insolvency resolution process to realise the objects of the Code and to further ease doing of business. Sentiments remain on the positive side ahead of GST Council meeting, headed by Finance Minister Nirmala Sitharaman, which is schedule on December 18 in the backdrop of lower-than-expected GST collection and pending compensation to many states. Besides, a US diplomat stated that India needs to demonstrate to the international community its willingness to become a part of the global supply chain by taking steps towards resolving larger market access issues.

On the global front, Asian markets were trading mostly in green, after the Federal Reserve kept interest rates steady, putting an end to the year's series of rate cuts. Back home, on the scrip specific development, Cadila Healthcare gained on launching affordable oral anti-diabetic tablet Vinglyn. Besides, Reliance Industries surged as its arm -- Reliance Strategic Business Ventures acquires stake in NowFloats Technologies for a cash consideration of Rs 141.63 crore.

The BSE Sensex is currently trading at 40551.02, up by 138.45 points or 0.34% after trading in a range of 40496.82 and 40636.96. There were 23 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.46%, while Small cap index was up by 0.28%.

The top gaining sectoral indices on the BSE were Metal up by 1.74%, Basic Materials up by 1.14%, Capital Goods up by 0.81%, Auto up by 0.80% and Industrials was up by 0.78%, while Telecom was down by 0.17% were the lone losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 3.62%, Yes Bank up by 3.50%, Vedanta up by 3.10%, Tata Steel up by 1.95% and Tata Motors - DVR was up by 1.90%. On the flip side, ONGC down by 1.48%, HCL Tech down by 0.57%, ICICI Bank down by 0.51%, HDFC down by 0.46% and Infosys was down by 0.25% were the top losers.

Meanwhile, with an aim to boost economy, Commerce Minister Piyush Goyal has said that the government has carried out a number of reforms in various sectors and it is a continuous process for improvement in the economy. He mentioned that some of the reforms were by way of amendments in various acts such as the Finance (Amendment) Bills, the Special Economic Zones (Amendment) Bill, amendments in the Goods and Services Tax Act and the Insolvency and Bankruptcy Code.

He said as regards reforms in the tax system, it is stated that through the Taxation Laws (Amendment) Ordinance, 2019 (the Ordinance), corporate tax rates were reduced to 22% plus the applicable surcharge and cess for all domestic corporate persons not claiming any deduction or incentive.

Further, he stated that an option was given to any new domestic manufacturing company incorporated on or after October 1, 2019 to avail lower corporate tax rates of 15%, with the applicable surcharge and cess, without claiming any deduction or incentive as per sub-section (2) of section 115BAB of the Act, provided they commence manufacturing or production of an article or thing by March 31, 2023.

The CNX Nifty is currently trading at 11950.20, up by 40.05 points or 0.34% after trading in a range of 11934.00 and 11977.30. There were 35 stocks advancing against 14 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were Tata Motors up by 3.62%, Yes Bank up by 3.27%, UPL up by 3.23%, Vedanta up by 3.10% and Hindalco was up by 3.00%. On the flip side, ONGC down by 1.48%, Zee Entertainment down by 1.34%, Bharti Infratel down by 0.94%, HDFC down by 0.72% and HCL Tech was down by 0.66% were the top losers.

Asian markets were trading mostly in green, Hang Seng increased 316.59 points or 1.19% to 26,962.02, Taiwan Weighted strengthened 157.64 points or 1.35% to 11,858.41, Nikkei 225 surged 41.87 points or 0.18% to 23,433.73, KOSPI rose 28.85 points or 1.37% to 2,134.47 and Straits Times advanced 26.52 points or 0.84% to 3,199.42.

On the other hand, Shanghai Composite declined 3.99 points or 0.14% to 2,920.43 and Jakarta Composite was down by 9.25 points or 0.15% to 6,170.85.