Markets continue to trade in high spirit

Indian equity benchmarks continued to trade in high spirit in late afternoon session, on continued buying by funds and retail investors amid positive Asian cues. Among blue chip stocks, Mahindra & Mahindra was top gainer up by 4.31%, while Axis Bank was top loser trading down by 1.55%. Meanwhile, the broader indices, mid cap and small cap indices were trading up by 0.78% and 1.04% respectively. Domestic sentiments were positive, as the government approved a scheme under which the eligible non-bank lenders will be provided short-term liquidity through a special purpose vehicle (SPV) set up by the SBICAP securities, a subsidiary of the State Bank of India (SBI). Meanwhile, Fitch Ratings’ report that India's non-bank financial institutions (NBFI) will continue to face near-term risks related to liquidity and asset quality though economic activity is picking after a nationwide lockdown to contain the coronavirus pandemic.

On the global front, Asian markets were trading higher; owing to of encouraging US manufacturing data and rising hopes for a potential COVID-19 vaccine. Back home, in scrip specific developments, shares of BASF India jumped after completing sale of construction chemicals biz and Pfizer gained as its parent firm's potential Covid-19 drug shows positive result.

The BSE Sensex is currently trading at 35866.28, up by 451.83 points or 1.28% after trading in a range of 35595.36 and 35872.73. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gain 0.78%, while Small cap index was up by 1.04%.

The top gaining sectoral indices on the BSE were IT up by 2.88%, TECK up by 2.50%, Auto up by 1.80%, Oil & Gas up by 1.65% and Consumer Durables was up by 1.31%, while FMCG down by 0.17% and Realty was down by 0.01% were the few losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 4.31%, Infosys up by 3.65%, ONGC up by 3.48%, TCS up by 2.80% and HDFC was up by 2.31%. On the flip side, Axis Bank down by 1.55%, Hindustan Unilever down by 0.94%, Asian Paints down by 0.63%, Nestle down by 0.51% and NTPC was down by 0.16% were the top losers.

Meanwhile, Confederation of All India Traders (CAIT), in a communication Finance Minister Nirmala Sitharaman, has suggested a host of measures such as technical audits and waiver of late fees, to broaden the Goods and Services Tax (GST) base and make the taxation system simple. It said ‘we are of the view that the country requires two more years to make GST a stable taxation system provided the GST Council takes stakeholders into confidence and draw ways and means to simplify the system, remove technical glitches, avoid penal actions except on wilful avoidance of tax and make attempts to encourage more and more people to embrace GST taxation system.’

Traders' body has noted that the first and most important issue to be addressed is the technical glitches which a trader faces on a regular basis. It said at present, because of technical issues, law is being changed. So, it said technical audits should be done at regular intervals and the technical team should be given proper training about the law to make the system glitch free.

It further stated that the trader is facing business challenges due to various reasons, therefore, late fees and any type of penalties with regard to procedural compliances should be waived at least for another two years. Other suggestions include, implementation of recommendations given by various committees set up by GST Council and setting up of a National Advance Ruling Tribunal at earliest. 

The CNX Nifty is currently trading at 10546.30, up by 116.25 points or 1.11% after trading in a range of 10485.55 and 10560.75. There were 39 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were Mahindra & Mahindra up by 4.60%, Hero MotoCorp up by 4.28%, Infosys up by 3.78%, ONGC up by 3.48% and Indian Oil Corporation was up by 3.21%. On the flip side, Axis Bank down by 1.95%, Eicher Motors down by 1.48%, Vedanta down by 1.07%, Hindustan Unilever down by 0.91% and UPL was down by 0.86% were the top losers.

All Asian markets were trading higher; KOSPI rose 28.67 points or 1.36% to 2,135.37, Jakarta Composite soared 43.00 points or 0.87% to 4,957.39, Nikkei 225 surged 24.23 points or 0.11% to 22,145.96, Straits Times advanced 9.41 points or 0.36% to 2,619.58, Shanghai Composite gained 60.56 points or 2% to 3,086.54, Taiwan Weighted strengthened 101.72 points or 0.87% to 11,805.14 and Hang Seng was up by 501.05 points or 2.05% to 24,928.24.