Sensex, Nifty remain positive in late morning session

Indian equity benchmarks cut some of their gains in late morning session but remained positive. Both Sensex and Nifty were trading with notable gains, on the back of positive cues from other Asian markets. Domestic sentiments were optimistic, as the finance ministry said it has released the full Rs 1.10 lakh crore estimated GST compensation shortfall to the states with the release of final weekly installment of Rs 4,104 crore. With the release of the 20th installment, 100 per cent of the total estimated GST compensation shortfall of Rs 1.10 lakh crore for the year 2020-21 has now been released to the states and UTs with Legislative Assembly. Out of this, an amount of Rs 1,01,329 crore has been released to the states and an amount of Rs 8,879 crore has been released to the three UTs with Legislative Assembly.

On the global front, Asian markets were trading in green, after export prices in South Korea were up 3.1 percent on year in February, the Bank of Korea said on Tuesday - accelerating from 2.2 percent in January. On a yearly basis, export prices rose 0.2 percent after sinking 1.9 percent in the previous month. Individually, prices for agricultural, forestry and marine exports rose 0.7 percent on month and fell 7.0 percent on year. Manufactured product prices gained 3.1 percent on month and 0.2 percent on year.

The BSE Sensex is currently trading at 50609.24, up by 214.16 points or 0.42% after trading in a range of 50448.98 and 50857.98. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.13%, while Small cap index was up by 0.40%.

The top gaining sectoral indices on the BSE were IT up by 1.85%, TECK up by 1.54%, Telecom up by 0.84%, FMCG up by 0.57% and Power up by 0.37%, while Metal down by 1.53%, Realty down by 0.64%, Capital Goods down by 0.43%, Bankex down by 0.32% and Auto down by 0.23% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 3.90%, HCL Tech up by 1.92%, TCS up by 1.81%, Infosys up by 1.60% and Titan Company up by 1.58%. On the flip side, Larsen & Toubro down by 1.10%, SBI down by 0.98%, Axis Bank down by 0.79%, Bajaj Auto down by 0.73% and ICICI Bank down by 0.43% were the top losers.

Meanwhile, amid record-high fuel prices, Finance Minister Nirmala Sitharaman has said there is no proposal as of now to bring crude oil, petrol, diesel, jet fuel (ATF) and natural gas under the Goods and Services Tax (GST). When the GST was introduced on July 1, 2017, amalgamating over a dozen central and state levies, five commodities - crude oil, natural gas, petrol, diesel, and aviation turbine fuel (ATF) - were kept out of its purview given the revenue dependence of the central and state governments on this sector. This meant that the central government continued to levy excise duty on them while state governments charged VAT.

Sitharaman said the law prescribes that the GST Council shall recommend the date on which the goods and services tax be levied on petroleum crude, high-speed diesel, motor spirit (commonly known as petrol), natural gas and ATF. She said ‘So far, the GST Council, in which the states are also represented, has not made any recommendation for inclusion of these goods under GST’.

She added that the Council may consider the issue of inclusion of these five petroleum products at a time it considers appropriate keeping in view all the relevant factors, including revenue implication. Including oil products in GST will not just help companies set off tax that they paid on input but will also bring about uniformity in taxation on the fuels in the country. Sitharaman has in recent weeks talked of inclusion of fuel under GST as well as centre and states taking a joint call on cutting taxes to cushion consumers against the spike in retail prices.

The CNX Nifty is currently trading at 14968.95, up by 39.45 points or 0.26% after trading in a range of 14939.45 and 15051.60. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Asian Paints up by 3.99%, HCL Tech up by 2.07%, TCS up by 1.83%, Infosys up by 1.56% and Titan Company up by 1.48%. On the flip side, JSW Steel down by 2.25%, Tata Steel down by 2.20%, Coal India down by 1.53%, Eicher Motors down by 1.50% and BPCL down by 1.42% were the top losers.

Asian markets were trading in green; Hang Seng increased 179.20 points or 0.62% to 29,012.96, Nikkei 225 surged 173.97 points or 0.58% to 29,940.94, Straits Times advanced 2.01 points or 0.06% to 3,108.01, KOSPI rose 16.49 points or 0.54% to 3,062.20, Taiwan Weighted strengthened 47.63 points or 0.29% to 16,296.96, Shanghai Composite gained 8.13 points or 0.24% to 3,428.08 and Jakarta Composite soared 7.09 points or 0.11% to 6,331.35.