Benchmarks trade flat in morning deals

Indian equity benchmarks erased most of their initial gains and were trading flat in morning deals, as traders remained on sidelines ahead to the Industrial Production and Retail Inflation data to be out later in the day for more directional cues. Investors also await the official kickstart of the earnings season of India Inc for directional cues. Some concern also came with a private report that spiraling prices of tomato, onion and pulses are emerging as new risks for India’s retail inflation, reaffirming expectations of a hawkish hold from the central bank for the rest of the year. After moderating for four months, consumer price inflation probably accelerated to 4.6% in June. Meanwhile, RBI Deputy Governor T Rabi Sankar has said the RBI is aiming to increase the number of Central Bank Digital Currency (CBDC) to 10 lakh per day by the end of 2023. On the global front, Asian markets are trading mixed as traders remained cautious ahead of key U.S. inflation data due out later in the day.

The BSE Sensex is currently trading at 65629.84, up by 12.00 points or 0.02% after trading in a range of 65568.56 and 65811.64. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.18%, while Small cap index was up by 0.53%.

The top gaining sectoral indices on the BSE were Industrials up by 0.55%, Oil & Gas up by 0.55%, Energy up by 0.48%, PSU up by 0.46% and Power up by 0.36%, while Realty down by 0.53%, TECK down by 0.51%, IT down by 0.48%, Telecom down by 0.31% and Metal down by 0.28% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 0.96%, HDFC up by 0.76%, Kotak Mahindra Bank up by 0.59%, SBI up by 0.50% and Titan Company up by 0.49%. On the flip side, Ultratech Cement down by 1.90%, Infosys down by 1.08%, Indusind Bank down by 1.06%, Mahindra & Mahindra down by 1.01% and Hindustan Unilever down by 0.64% were the top losers.

Meanwhile, the Goods and Services Tax (GST) Council has decided to levy the maximum 28 per cent tax on the full face value of bets in online gaming, casinos and horse racing, lowered tax on food and beverages sold in multiplexes, and tweaked the definition of utility vehicles for the levy. The Council also exempted GST (Goods and Services Tax) on import of cancer drug Dinutuximab, and medicines used to treat rare diseases and food used in Food for Special Medical Purposes (FSMP), besides satellite launch services provided by private operators. 

It stated food and beverages consumed in cinema halls will attract a GST of 5 per cent, equivalent to the levy charged in hotels and restaurants, instead of 18 per cent which in many cases the cinema halls were charging. Moreover, the definition of utility vehicles has been tweaked for the purpose of levy of a 22 per cent cess over and above the 28 per cent GST rate. The cess will be imposed on any utility vehicles of 1,500 cc and above engine capacity, length of 4 metres and above and un-laden ground clearance of 170 mm. This definition will, however, not cover sedans.

Besides, talking about the decisions taken at the 50th Council meeting, Union finance minister Nirmala Sitharaman said the decision to levy maximum tax on online gaming and casinos was not intended to kill the industry but considering the moral question that it cannot be taxed at par with essential commodities.

The CNX Nifty is currently trading at 19442.15, up by 2.75 points or 0.01% after trading in a range of 19423.20 and 19507.70. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were ONGC up by 2.10%, Eicher Motors up by 1.11%, NTPC up by 0.96%, HDFC up by 0.75% and Kotak Mahindra Bank up by 0.61%. On the flip side, Ultratech Cement down by 1.87%, Adani Enterprises down by 1.07%, Indusind Bank down by 1.07%, Infosys down by 1.06% and Mahindra & Mahindra down by 0.92% were the top losers.

Asian markets are trading mixed; Taiwan Weighted added 40.69 points or 0.24% to 16,939.60, Hang Seng advanced 215.34 points or 1.14% to 18,875.17, KOSPI increased 5.09 points or 0.2% to 2,567.58 and Straits Times rose 16.52 points or 0.52% to 3,180.36.

On the flip side, Nikkei 225 slipped 210.29 points or 0.65% to 31,993.28, Shanghai Composite weakened 4.09 points or 0.13% to 3,217.28 and Jakarta Composite plunged 0.04 points or 0% to 6,796.88.