Indian equities exhibit volatile trade

Indian markets are exhibiting a volatile trend in the late morning session of trade. On the global front, most of the Asian equity indices were trading in the green at this point of time on the back of better-than-expected Chinese trade data. The nation’s exports rose 14.1% in December from a year earlier compared to a markets expectation of closer to 4% while imports gained 6% indicating stronger domestic demand. Back home, the traders were seen piling up position in Auto, PSU and Oil & Gas while selling was seen in Capital Goods, Consumer Durables and Health Care. In scrip specific development, Gujarat NRE Coke gained on reporting stellar Q3 numbers. Indian Oil Corporation, BPCL and HPCL edged higher on reporting that the government is trying to build consensus for raising diesel, cooking gas and kerosene prices to reduce subsidy bill and manage deficit. Mahindra & Mahindra was trading under pressure despite on reporting that the company has plans to invest over Rs 7,000 crore across its automotive businesses over the next four years for adding manufacturing capacity, new engine development and developing common vehicle platforms. Telecom stocks such as Bharti Airtel, and Idea Cellular were trading in red after the telecom department issued notices to all operators this week directing them to pay a one-time fee on the existing airwaves they hold. The NSE Nifty and BSE Sensex were managing to hold their psychological 5950 and 19700 levels respectively. The market breadth on BSE was positive, in the ratio of 1148:982.

The BSE Sensex is currently trading at 19700.91 up by 34.32 points or 0.17% after trading in a range of 19783.75 and 19681.49. There were 18 stocks advancing against 12 declines on the index.

The broader indices were trading on mixed; the BSE Mid cap index was down by 0.05% and Small cap index was up by 0.08%.

The top gaining sectoral indices on the BSE were, Auto up by 0.90%, PSU up by 0.71%, Oil & Gas up by 0.62%, Metal up by 0.22% and IT up by 0.21% while, Capital Goods down by 0.49%, Consumer Durables down by 0.29% and Health Care down by 0.12% were the only losers on the index.

The top gainers on the Sensex were Tata Motors up by 2.20%, Coal India up by 1.68%, Wipro up by 1.60%, ONGC up by 1.52%, Gail India up by 1.26%.

On the flip side, BHEL was down by 1.33%, ICICI Bank was down by 1.05%, Hindalco Industries was down by 0.95%, Sterlite Industries was down by 0.85% and  L&T was down by 0.84%were the top losers on the Sensex.

Meanwhile, Chairman of Prime Minister's Economic Advisory Council C Rangarajan, on the sidelines of an event at the Indian Statistical Institute, has said that rates of taxation be increased for the rich with a view to raising the tax-to-GDP ratio.  About the GDP growth for the current fiscal, he said that it would be closer to six per cent, and seven percent in the subsequent financial year.

According to Rangarajan there are two ways to make this idea going, one to introduce an additional slab at a higher marginal tax rate and other to keep the tax structure as it is and impose a surcharge on the income above a certain level. “The tax-to-GDP ratio should be higher, as demand and expenditure is going up. And, therefore, we will have to explore ways,” he said. Further, added that “super-rich” had to be determined on the basis of income. For those in the lower income level the existing tax structure was good.

The economist, however, clarified that there is no formal proposal placed before the Finance Ministry on this “This is only an idea or thought … The idea being that the people earning above certain level could be charged at a rate of taxation which is higher than what it is now.”

The S&P CNX Nifty is currently trading at 5,977.15 up by 5.65 points or 0.09% after trading in a range of 6,005.15 and 5,976.25. There were 30 stocks advancing against 19 declines while 1 stock remains unchanged on the index.

The top gainers of the Nifty were Tata Motors up by 2.00%, Coal India up by 1.61%, Wipro up by 1.60%, HCL Tech up by 1.55% and ONGC up by 1.52%.

On the flip side, BHEL down by 1.29%, Ambuja Cements down by 1.17%, ICICI Bank down by 1.14%, Hindalco down by 1.06%, ACC down by 1.02% and were the major losers on the index.

Most of the Asian equity indices were trading in the green; Shanghai Composite rose 10.48 points or 0.46% to 2,285.82, Hang Seng surged 199.90 points or 0.86% to 23,418.37, Nikkei 225 soared 76.14 points or 0.72% to 10,655.00, Straits Times increased 10.98 points or 0.35% to 3,231.90, KOSPI Composite added 12.76 points or 0.64% to 2,004.90 and Taiwan Weighted was up by 51.50 points or 0.72% to 7,794.24.

Jakarta Composite declined 17.15 points or 0.39% to 4,345.77 and KLSE Composite was down by 0.77 points or 0.05% to 1,689.16.