Benchmarks trade flat with positive bias

Indian equity benchmarks continued to trade in a tight range near neutral line with positive bias in afternoon session. Market participants took some solace with Former chief economic adviser Arvind Virmani’s statement that India’s Gross domestic product (GDP) is likely to contract 7.5 percent in the current fiscal (FY21) but will see a double-digit growth in 2021-22. He noted that the central government has come up with some noteworthy reforms, including Goods and Services Tax (GST), Insolvency and Bankruptcy Code (IBC) and setting up of the Monetary Policy Committee (MPC). However, upside remain capped as concerns about rising coronavirus infections and new shutdowns in major US cities hosed down earlier investor enthusiasm about COVID-19 vaccine developments.

On the global front, Asian markets were trading mixed as China’s President Xi Jinping spurned suggestions that his country might decouple or separate itself from the U.S. and other trading partners, amid tension with Washington and Europe over technology and security. Back on street, in scrip specific developments, Vedanta jumped on putting in EoI to buy entire government stake in BPCL and TD Power Systems surged on reporting 3-fold jump in Q2 consolidated net profit. 

The BSE Sensex is currently trading at 44214.49, up by 34.44 points or 0.08% after trading in a range of 43821.39 and 44230.00. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.91%, while Small cap index was up by 1.20%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 2.10%, Realty up by 2.06%, Utilities up by 1.87%, Power up by 1.34% and Oil & Gas was up by 1.32%, while Bankex was down by 0.68% was the only losing index on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 4.67%, Titan Company up by 3.47%, ITC up by 3.34%, NTPC up by 3.00% and Power Grid Corporation was up by 2.72%. On the flip side, HDFC Bank down by 1.87%, HDFC down by 1.51%, ICICI Bank down by 1.40%, Ultratech Cement down by 1.26% and Asian Paints was down by 1.14% were the top losers.

Meanwhile, the government has garnered Rs 72,480 crore so far through the direct tax dispute resolution scheme Vivad Se Vishwas. A total of 45,855 declarations have been filed under the scheme, involving disputed tax demand of Rs 31,734 crore till November 17, 2020. Central public sector companies are also settling their disputes totalling Rs 1 lakh crore under the scheme.

In October, the government had extended for the third time the deadline for making payment under the Vivad Se Vishwas scheme by three months to March 31, 2021 in view of the ongoing pandemic. However, declarations have to be filed by December 31, 2020.  During a high-level review meeting by the I-T department, it was decided to launch an e-campaign to inform taxpayers about the scheme, guiding and facilitating them in filing of declarations and removing any difficulties faced by them in availing the scheme.

The scheme provides for settlement of disputed tax, disputed interest, disputed penalty or disputed fees in relation to an assessment or reassessment order on payment of 100 percent of the disputed tax and 25 per cent of the disputed penalty or interest or fee. The taxpayer is granted immunity from levy of interest, penalty and institution of any proceeding for prosecution for any offence under the Income Tax Act in respect of matters covered in the declaration.

The CNX Nifty is currently trading at 12960.05, up by 21.80 points or 0.17% after trading in a range of 12835.60 and 12963.00. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Bajaj Finserv up by 4.59%, Titan Company up by 3.37%, ITC up by 3.15%, Hero MotoCorp up by 3.08% and NTPC was up by 3.06%. On the flip side, Coal India down by 3.74%, HDFC Bank down by 1.82%, HDFC down by 1.58%, ICICI Bank down by 1.47% and Ultratech Cement was down by 1.27% were the top losers.

Asian markets were trading mixed; Straits Times trembled 4.40 points or 0.16% to 2,784.19, Taiwan Weighted dropped 50.86 points or 0.37% to 13,722.43, Hang Seng decreased 119.98 points or 0.45% to 26,424.31 and Nikkei 225 was down by 93.80 points or 0.36% to 25,634.34.

On the flip side, Jakarta Composite soared 35.07 points or 0.63% to 5,592.59, KOSPI rose 1.78 points or 0.07% to 2,547.42 and Shanghai Composite was up by 10.16 points or 0.3% to 3,357.46.