Bulls hold tight grip over Dalal Street

Bulls were holding a tight grip over the Dalal Street in late morning session, with both Sensex and Nifty maintaining their gaining momentum with huge gains. Domestic sentiments were positive despite mixed cues from other Asian markets. Traders were getting comfort, amid report that banks are likely to transfer about 80 large NPA accounts for the resolution to National Asset Reconstruction Company Ltd (NARCL), which is expected to be operational by next month. NARCL is the name coined for the bad bank announced in the Budget 2021-22. A bad bank refers to a financial institution that takes over the bad assets of lenders and undertakes resolution. Besides, the International Monetary Fund (IMF) has said that it stands ready to strengthen its dialogue and scale-up its technical collaboration with India, observing that the human tragedy is a stark reminder that Covid -19 pandemic continues to be a grave threat globally.

On the global front, Asian markets were trading mixed, after the manufacturing sector in Japan continued to expand in May, albeit at a slower pace, the latest survey from Markit Economics revealed on Friday with a survey record manufacturing PMI score of 52.5. That's down from 53.6 in April, although it remains above the boom-or-bust line of 50 that separates expansion from contraction. Both output and new order growth eased in the latest survey period. That said, manufacturers remained confident in taking on additional staff as job creation continued for the second successive month. Moreover, positive sentiment picked up in May, with the level of optimism the joint-strongest since the survey began posing the question in July 2012.

The BSE Sensex is currently trading at 50302.17, up by 737.31 points or 1.49% after trading in a range of 49832.72 and 50316.34. There were 28 stocks advancing against 2 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.94%, while Small cap index was up by 1.00%.

The top gaining sectoral indices on the BSE were Bankex up by 2.24%, Realty up by 1.56%, Telecom up by 1.52%, Power up by 1.31% and Utilities up by 1.24%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Indusind Bank up by 3.40%, HDFC Bank up by 3.11%, HDFC up by 2.44%, ICICI Bank up by 2.42% and Axis Bank up by 1.92%. On the flip side, Power Grid down by 0.48% and Dr. Reddy’s Lab down by 0.46% were the top losers.

Meanwhile, with an aim to provide relief to taxpayers in view of the severe pandemic, the government has extended the due date of filing income tax returns for 2020-21 for individuals by two months till September 30. The Central Board of Direct Taxes (CBDT) has also extended the ITR filing deadline for companies by a month till November 30. As per the income tax law, for individuals whose accounts are not required to be audited and who usually file their income tax return using ITR-1 or ITR-4 forms the deadline to file ITR is July 31. The deadline for taxpayers, like companies or firms, whose accounts are required to be audited is October 31.

The CBDT said an extension of time limits is being given for certain tax compliances. Also, the deadline for issuing Form 16 by employers to employees has been extended by a month till July 15, 2021. The due date for filing the tax audit report and transfer pricing certificate has been extended by a month till October 31 and November 30, respectively. For filing belated or revised return of income, the due date is now January 31, 2022. Besides, the deadline for financial institutions to furnish the Statement of Financial Transaction (SFT) report has been extended till June 30, from May 31, 2021.

For the 2020-21 fiscal, the government had given taxpayers the option to choose a new tax regime under section 115BAC of the I-T Act. The new I-T slabs would be for individuals not availing or foregoing certain specified deductions or exemptions while computing total income for tax purpose. Under this, annual income up to Rs 2.5 lakh is exempt from tax. Those individuals earning between Rs 2.5 lakh and Rs 5 lakh will pay 5 per cent tax. Income between Rs 5 and 7.5 lakh will be taxed at 10 per cent, while those between Rs 7.5 and 10 lakh at 15 per cent. Those earning between Rs 10 and 12.5 lakh will pay tax at the rate of 20 per cent, while those between Rs 12.5 and Rs 15 lakh will pay at the rate of 25 per cent. Income above Rs 15 lakh will be taxed at 30 per cent.

The CNX Nifty is currently trading at 15116.70, up by 210.65 points or 1.41% after trading in a range of 14985.85 and 15118.80. There were 45 stocks advancing against 5 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 3.41%, HDFC Bank up by 3.10%, ICICI Bank up by 2.43%, HDFC up by 2.33% and Axis Bank up by 1.91%. On the flip side, Power Grid down by 0.57%, Indian Oil Corp. down by 0.38%, Dr. Reddy’s Lab down by 0.34%, Grasim Industries down by 0.20% and Cipla down by 0.01% were the top losers.

Asian markets were trading mixed; Hang Seng decreased 58.40 points or 0.21% to 28,391.89, Jakarta Composite lost 23.42 points or 0.4% to 5,774.18, Shanghai Composite declined 15.90 points or 0.45% to 3,491.04, KOSPI fell 3.36 points or 0.11% to 3,158.92, while Straits Times advanced 2.91 points or 0.09% to 3,112.72, Taiwan Weighted strengthened 184.15 points or 1.15% to 16,226.51 and Nikkei 225 surged 232.07 points or 0.83% to 28,330.32.