Bourses magnify gains in late morning deals

Bourses magnified their gains in late morning deals as market participants indulged in enlarging positions. Solid buying in Maruti Suzuki, Sun Pharma and Hindustan Unilever helped the markets to enlarge their gains. Positive cues from global markets also supported the domestic sentiments. Sentiments remained positive as the Income Tax department in its latest data has showed that net direct tax kitty swelled 15.87 per cent to Rs 4.75 lakh crore so far this fiscal over the net collections for the corresponding period of last year. Further, sentiments were supported by Indian rupee appreciating 23 paise to 82.36 against the dollar at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks.

On the global front, Asian markets were trading higher following positive cues from US markets overnight. Back home, all the sectoral indices except Metal on the BSE were trading higher led by Telecom, Capital Goods, Industrials, Auto and FMCG. In the stock specific development, Vedanta slipped after Foxconn withdraws from semiconductor JV with Vedanta.     

The BSE Sensex is currently trading at 65821.19, up by 477.02 points or 0.73% after trading in a range of 65517.57 and 65842.71. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.98%, while Small cap index up by 0.83%.

The top gaining sectoral indices on the BSE were Telecom up by 1.72%, Capital Goods up by 1.55%, Industrials up by 1.41%, Auto up by 1.34% and FMCG up by 1.32%, while Metal down by 0.16% was the only losing index on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 1.78%, Sun Pharma up by 1.73%, Hindustan Unilever up by 1.72%, Asian Paints up by 1.47% and ITC up by 1.45%. On the flip side, HCL down by 0.54%, Axis Bank down by 0.10% and Tata Steel down by 0.04% were only losers.

Meanwhile, think tank Global Trade Research Initiative (GTRI) has said that small suppliers on e-commerce platforms should be permitted to undertake inter-state supplies without Goods and Services Tax (GST) registration if their turnover does not exceed the threshold. The GST Council has exempted small businesses making intra-state supplies through e-commerce platforms from taking GST registration if their turnover is below Rs 40 lakh in case of goods and Rs 20 lakh in case of services. The rule will kick in from October 1, 2023.

Ahead of the 50th GST Council meeting, GTRI has recommended that similar registration rules should be applicable for inter-state supplies done by micro and small businesses through e-commerce platforms. GTRI has also suggested doing away with the requirement of state-wise GST registrations. Today, if a firm has a presence in 10 states, it must obtain 10 GSTINs and maintain a separate account for each. Since all supplies are captured online by GSTN, the GSTN can extract precise state-wise records from the PIN Code of the place of supply without seeking information from the firms.

GTRI also recommended allowing inter-state use of State GST (SGST) credit. Currently, if a firm has a surplus SGST credit in one state, it cannot be used to pay SGST in another state or to pay Central GST (CGST) dues.  

The CNX Nifty is currently trading at 19494.50, up by 138.60 points or 0.72% after trading in a range of 19406.45 and 19504.25. There were 43 stocks advancing against 7 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 2.40%, Britannia up by 1.84%, Maruti Suzuki up by 1.84%, Sun Pharma up by 1.80% and Hindustan Unilever up by 1.68%. On the flip side, UPL down by 1.86%, JSW Steel down by 1.03%, HCL down by 0.63%, Hindalco down by 0.42% and Hero MotoCorp down by 0.39% were the top losers.

All Asian markets were trading higher; Taiwan Weighted added 226.27 points or 1.34% to 16,879.07, Hang Seng advanced 278.08 points or 1.5% to 18,757.80, Shanghai Composite strengthened 12.3 points or 0.38% to 3,216.00, KOSPI increased 34.38 points or 1.36% to 2,555.08, Jakarta Composite gained 38.02 points or 0.56% to 6,769.06, Straits Times rose 7.04 points or 0.22% to 3,156.36 and Nikkei 225 surged 54.15 points or 0.17% to 32,243.88.