Markets hold strong gains in late morning deals

Firm trade continued over the Dalal Street in late morning session, with both Sensex and Nifty holding strong gains. Gaining momentum continued over the Dalal Street despite negative cues from other Asian markets. Domestic sentiments were positive, as Commerce and Industry Minister Piyush Goyal had a 'fruitful discussion' in a virtual meeting with US Trade Representative Katherine Tai to enhance COVID-19 vaccine production. Besides, The GST Council will meet on May 28 and is likely to discuss tax rates on COVID-related drugs, oxygen equipment and vaccines. The meeting among other things is also likely to discuss the compensation mechanism for states' GST revenue shortfall for the ongoing fiscal which began on April 1.

On the global front, Asian markets were trading mostly in red, even after Industrial production in China was up 9.8 percent on year in April, the National Bureau of Statistics said on Monday - in line with expectations following the 14.1 percent jump in March. The bureau also said that fixed asset investment spiked 19.9 percent on year, beating forecasts for 19.0 percent and down from 25.6 percent in the previous month. Retail sales advanced an annual 17.7 percent, missing forecasts for 24.9 percent and down sharply from 34.2 percent a month earlier.

The BSE Sensex is currently trading at 49219.28, up by 486.73 points or 1.00% after trading in a range of 48923.13 and 49263.15. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.01%, while Small cap index was up by 1.15%.

The top gaining sectoral indices on the BSE were Bankex up by 2.69%, Auto up by 1.63%, Realty up by 1.31%, Power up by 1.02% and Consumer discretionary up by 0.94%, while Telecom down by 1.34%, Metal down by 0.77%, Consumer Durables down by 0.64% and Oil & Gas down by 0.06% were the top losing indices on BSE.

The top gainers on the Sensex were SBI up by 4.42%, Indusind Bank up by 4.08%, ICICI Bank up by 3.14%, Bajaj Finserv up by 3.02% and Axis Bank up by 2.24%. On the flip side, Larsen & Toubro down by 1.83%, Bharti Airtel down by 1.80%, Sun Pharma down by 0.95%, NTPC down by 0.94% and Nestle down by 0.74% were the top losers.

Meanwhile, the Central Board of Indirect Taxes and Customs (CBIC) has launched a special drive to clear all pending GST refunds by month-end. The 15-day Goods and Services Tax (GST) refund drive is on the lines of an ongoing similar drive organised by the CBIC for refund of customs and duty drawback claims. In an instruction to all Principal Commissioners of Central Tax formations, the CBIC said there is a need to focus on timely disposal of all pending GST refund claims in order to provide immediate relief to business entities, especially MSMEs, in the difficult times of second wave of the COVID-19 pandemic.

It said ‘it is hereby instructed that a 'Special GST Refund Disposal Drive' will be launched by all Central Tax formations during the period from May 15, 2021 to May 31, 2021 for processing and disposal of all pending GST refund claims on priority’. The CBIC further said that the GST law provides 15 days for issuing acknowledgement or deficiency memo and total 60 days for disposing of refund claims without any liability to pay interest. The CBIC added ‘It is, however, expected that all Central Tax formations will take up all the pending GST refund claims for processing on priority and endeavour to dispose them of much earlier than the statutory time limits, preferably before a period of 30 days from the date of receipt of the refund application’.

It is expected that during this special drive, all GST refund claims, pending as on May 14, shall be disposed of by May 31, 2021. The tax officers will coordinate with the major trade and industry associations (especially those that cater to exporters and MSMEs) for the assistance and handholding of taxpayers, including for submission of required documents/ reply by the taxpayers (if a claim is pending for want of a required document/ reply to notice, etc). The CBIC also asked taxmen to ensure that communication with taxpayers is done through the GST portal, or if need be, through email using the official email ID of the officer. All communication with taxpayers must be done through the GST portal, or if need be, through email using the official email ID of the officer. The Special Refund Disposal Drive should be widely publicised among the trade and industry.

The CNX Nifty is currently trading at 14825.10, up by 147.30 points or 1.00% after trading in a range of 14725.35 and 14828.20. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were UPL up by 4.75%, SBI up by 4.41%, Indusind Bank up by 4.16%, ICICI Bank up by 3.42% and Bajaj Finserv up by 3.15%. On the flip side, Cipla down by 2.46%, Larsen & Toubro down by 1.94%, Bharti Airtel down by 1.62%, Tata Steel down by 1.49% and SBI Life Insuran down by 1.18% were the top losers.

Asian markets were trading mostly in red; Taiwan Weighted dropped 469.19 points or 2.96% to 15,357.90, Nikkei 225 slipped 254.46 points or 0.91% to 27,830.01, Jakarta Composite lost 75.07 points or 1.26% to 5,863.28 and KOSPI fell 15.63 points or 0.5% to 3,137.69. On the flip side, Straits Times advanced 6.13 points or 0.2% to 3,061.15, Shanghai Composite gained 35.71 points or 1.02% to 3,526.09 and Hang Seng increased 109.52 points or 0.39% to 28,137.09.