Benchmarks trade flat in morning deals

Indian equity benchmarks erased initial losses and were trading flat in morning deals. Traders took some support with Commerce and Industry Minister Piyush Goyal’s statement that the Centre is committed to create a business-friendly environment for industry and innovation. The minister said such interactions are key for understanding the challenges faced by the industry and policy-making. However, surge in crude oil prices and foreign fund outflows dented sentiments in the markets. The Foreign institutional investors (FIIs) sold equities worth Rs 426 crore on July 1. Meanwhile, the commerce ministry has sought views of different departments on proposed measures to revive special economic zones and facilitate business transactions between SEZ and the domestic market. The ministry has suggested allowing the sale of products manufactured in Special Economic Zones (SEZs) in the domestic market on payment of duty foregone on inputs as that would help promote value addition.

On the global front, Asian markets are trading mostly in green following the broadly positive cues from global markets overnight. However, uncertainty over interest rates, especially before a speech by Federal Reserve Chair Jerome Powell, kept investors on edge. Back home, on the sectoral front, Aviation industry stocks remained in limelight as jet fuel or ATF price was hiked by 1.2 per cent. 

The BSE Sensex is currently trading at 79492.39, up by 16.20 points or 0.02% after trading in a range of 79236.74 and 79855.87. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.07%, while Small cap index was up by 0.41%.

The top gaining sectoral indices on the BSE were Realty up by 1.28%, Oil & Gas up by 1.10%, IT up by 1.02%, Energy up by 1.01% and TECK up by 0.87%, while Bankex down by 0.57%, FMCG down by 0.34%, Consumer Durables down by 0.23%, Healthcare down by 0.15% and Capital Goods down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 1.59%, Power Grid Corporation up by 1.29%, Ultratech Cement up by 0.93%, Tech Mahindra up by 0.84% and HCL Technologies up by 0.71%. On the flip side, Bajaj Finance down by 1.76%, Kotak Mahindra Bank down by 1.75%, ICICI Bank down by 1.32%, Tata Motors down by 1.27% and Indusind Bank down by 0.97% were the top losers.

Meanwhile, the finance ministry said Goods and Services Tax (GST), which completed 7 years of implementation on Monday, has brought happiness and relief to every home through reduced taxes on household appliances and mobile phones. The ministry said the GST taxpayer base has increased to 1.46 crore in April 2024 from 1.05 crore as of April 2018. GST, which subsumed about 17 local tax and cesses, was rolled out on July 1, 2017.

It stated household goods like cosmetics, wrist watches, sanitary plastic ware, doors and windows, furniture and mattresses are taxed at a lower rate of 18 per cent in the GST regime, lower than 28 per cent in the erstwhile excise and VAT regime. It added mobile phones, TVs up to 32 inches, refrigerators, washing machines electrical appliances (other than air conditioners), geysers and fans which attracted 31.3 per cent taxes in the pre-GST era, are now in the 18 per cent tax slab in GST regime.

Further, it said the compliance burden was reduced for small taxpayers, and the GST Council has recommended to waive off annual return filing requirement for taxpayers with aggregate annual turnover of up to Rs 2 crore in fiscal 2023-24. Besides, it said the quarterly return filing and monthly payment of taxes (QRMP) scheme has reduced the number of returns filed in a year from 24 to 8, for more than 44 lakh small taxpayers, IFF (Invoice furnishing Facility) ensured seamless passage of ITC (Input Tax Credit).

The CNX Nifty is currently trading at 24147.55, up by 5.60 points or 0.02% after trading in a range of 24073.65 and 24236.35. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Coal India up by 1.80%, Infosys up by 1.39%, Power Grid Corporation up by 1.32%, ONGC up by 1.26% and LTIMindtree up by 1.26%. On the flip side, Bajaj Finance down by 1.68%, HDFC Life Insurance down by 1.64%, Kotak Mahindra Bank down by 1.64%, Shriram Finance down by 1.39% and SBI Life Insurance down by 1.37% were the top losers.

Asian markets are trading mostly in green; Hang Seng advanced 100.89 points or 0.57% to 17,819.50, Jakarta Composite gained 10.73 points or 0.15% to 7,150.36, Shanghai Composite strengthened 1.05 points or 0.04% to 2,995.78, Straits Times rose 16.02 points or 0.48% to 3,354.59 and Nikkei 225 surged 425.58 points or 1.07% to 40,056.64.

On the flip side, Taiwan Weighted lost 175.86 points or 0.76% to 22,882.71 and KOSPI dropped 23.52 points or 0.84% to 2,780.79.