Benchmarks continue to trade in green terrain in morning deals

Indian equity benchmarks continued to trade in green terrain in morning deals, tracking strength across global markets. Traders took support as SBI Research in its latest report has said that the income of farmers has grown in the range of 1.3-1.7 times in FY22 from the FY18 levels on average while grain exports soared to over USD 50 billion. For certain crops in some states (like soyabean in Maharashtra and cotton in Karnataka) farmers’ income more than doubled in FY22 from FY18 levels. Traders also took a note of the Reserve Bank of India (RBI) data showed that the RBI remained net buyer of the US currency in May, after it purchased $2.001 billion on net basis from the spot market. The RBI purchased $10.143 billion from the spot market and sold $8.142 billion. Traders overlooked Credit Rating Agency ICRA’s report stated that states have budgeted 36 per cent higher capital expenditure during this financial year (FY23), which may lead to a sharp rise in their fiscal deficit to Rs 8.4 lakh crore.

On the global front, Asian markets are trading higher following the broadly positive cues from the global markets. Traders also reacted positively to a slew of U.S. economic data, including a report showing retail sales jumped by more than expected in the month of June and U.S. consumer sentiment unexpectedly showed a modest improvement in the month of July.

The BSE Sensex is currently trading at 54185.55, up by 424.77 points or 0.79% after trading in a range of 54034.97 and 54246.76. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 0.87%, while Small cap index was up by 1.16%.

The top gaining sectoral indices on the BSE were IT up by 2.89%, TECK up by 2.57%, Metal up by 1.98%, Capital Goods up by 1.96% and Basic Materials up by 1.46%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Tech Mahindra up by 4.59%, Infosys up by 3.68%, Larsen & Toubro up by 2.50%, Wipro up by 2.22% and HCL Technologies up by 2.20%. On the flip side, HDFC Bank down by 1.44%, HDFC down by 1.03%, Mahindra & Mahindra down by 0.87%, Dr. Reddy's Lab down by 0.13% and Reliance Industries down by 0.05% were the top losers.

Meanwhile, Indian Medical Association (IMA) has urged Union Finance Minister Nirmala Sitharaman to grant exemption in Goods and Services Tax (GST) for healthcare services. IMA stated that the 47th GST Council meeting has recommended that ‘Like CTEPs, common bio-medical waste treatment facilities for treatment or disposal of biomedical waste shall be taxed at 12 per cent so as to allow them ITC.’

IMA said these facilities were earlier in the GST exempted category and will be taxed post-July 18. 47th GST Council meeting has also recommended that ‘Room rent, excluding ICU, exceeding Rs 5,000 per day per patient charged by the hospital will also be taxed at 5 per cent, without ITC.’ The IMA said that this facility was also GST exempted category and was to be effective from July 18.

IMA said ‘We, as the collective voice of all establishments and doctors of the country, express our serious concerns and objections to these new taxes in the healthcare sector. This step will add big additional cost to the healthcare of people.’ It stated the decision is unfortunate and unfair to the people of the country and decision without input tax credits is going to raise the healthcare cost.

The CNX Nifty is currently trading at 16185.50, up by 136.30 points or 0.85% after trading in a range of 16142.20 and 16199.70. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 4.54%, Infosys up by 3.89%, Hindalco up by 3.55%, TCS up by 2.35% and Wipro up by 2.25%. On the flip side, HDFC Bank down by 1.26%, Britannia Industries down by 1.06%, HDFC down by 0.95%, Mahindra & Mahindra down by 0.89% and Apollo Hospital down by 0.49% were the top losers.

Asian markets are trading higher; Taiwan Weighted strengthened 114.44 points or 0.79% to 14,665.06, Jakarta Composite soared 0.12 points or 0% to 6,652.03, Straits Times advanced 17.36 points or 0.56% to 3,116.51, KOSPI rose 41.61 points or 1.79% to 2,372.59, Shanghai Composite gained 48.11 points or 1.49% to 3,276.17 and Hang Seng increased 523.15 points or 2.58% to 20,820.87.