Benchmarks inch higher on positive global cues

Indian equity benchmarks have resumed their northward journey after a day of break. Supportive cues from US markets provided the much needed support to local markets, where sentiments remained upbeat ahead of the start of earnings season and on getting report that consumer credit increased in May by $19.6 billion to $2.8 trillion, the most in a year. Moreover, buying in other Asian pacific markets too boosted the sentiments. However, gains in the regional counterparts remained capped as investors were nervous over Beijing’s new drive to reform credit to restructure the economy.

Back home, sentiments also got some support after the rupee strengthened against the US dollar but continued to trade above 60 per dollar after the recent demand for the greenback continued from institutional investors, banks and other importers. Some support came in from rally in NBFC stocks, as RBI has eased rules for NBFC-asset finance companies to raise external commercial borrowings by allowing the lenders to raise such funds through the automatic route. Some buying was also witnessed in shares of aluminium makers like Hindalco Industries and National Aluminium Company (Nalco) after Alcoa Inc, the largest US aluminum producer, reported better than expected Q2 results.

All the sectoral indices opened higher with the capital goods, realty, banking, power and consumer durables leading the opening gains with over a percent gains. Healthcare, metal, oil and gas, public sector undertakings and software indices were the other notable index movers in the opening trades, while there were no losers on the BSE sectoral space. The broader indices too were trading in-line with benchmarks, while the market breadth on the BSE was positive; there were 819 shares on the gaining side against 281 shares on the losing side while 53 shares remain unchanged.

The BSE Sensex opened at 19399.37, about 74 points higher compared to its previous closing of 19324.77 and has touched a high and a low of 19486.00 and 19399.37 respectively.

The index is currently trading at 19475.57, up by 150.80 points or 0.78%. There were 25 stocks advancing against 5 declines on the index.

The overall market breadth has made a strong start with 71.03% stocks advancing against 24.37% declines. The broader indices were trading in green; the BSE Mid cap and Small cap indices down by 0.70% and 0.66% respectively. 

The top gaining sectoral indices on the BSE were, Capital Goods up by 1.36%, Realty up by 1.28%, Bankex up by 1.27%, Consumer Durables up by 1.18% and Power up by 1.17%, while there were no losers on the sectoral index.

The top gainers on the Sensex were Bajaj Auto up by 2.84%, Sun Pharma up by 2.42%, BHEL up by 2.00%, HDFC Bank up by 1.51% and L&T up by 1.44%.

On the flip side, Maruti Suzuki was down by 1.32%, Tata Motors was down by 0.42%, Hindustan Unilever was down by 0.37%, Bharti Airtel was down by 0.24% and Dr Reddys Lab was down by 0.16% were the top losers on the Sensex.

Meanwhile, IT department is planning to introduce a new unique acknowledgement number for resolving tax payers’ complaints regarding their refunds and tax computations within two months guarantee time period. The proposed number will be entirely different from the other numbers like PAN, TAN and UTN, issued by Income tax department to the tax payers

The Central Board of Direct Taxes (CBDT) has asked all its Chief Commissioners across the country to ensure these new facilities for taxpayers with ‘immediate effect’. The CBDT has issued these directions on July 5 after the Delhi High Court in its recently passed orders asked it to fine tune procedures followed by the department on receipt and disposal of 'rectification applications' which are filed by taxpayers under IT Act.

It has been reported that under the new process, whether the taxpayer files his rectification application by ordinary post, by hand or online, the receipt counter of the department will generate a special and unique acknowledgement number for the taxpayer by which he or she will be assured of getting the grievance solved within a stipulated time. The taxpayer can quote this number in any further communication with the department.

The CNX Nifty opened at 5,834.60; about 23 points higher as compared to its previous closing of 5,811.55, and has touched a high and a low of 5,864.95 and 5,834.60 respectively.

The index is currently trading at 5,860.90, up by 49.35 points or 0.85%. There were 43 stocks advancing against 6 declines, while one stock remains unchanged on the index.

The top gainers of the Nifty were IndusInd Bank up by 2.66%, Bajaj Auto by 2.42%, Sun Pharmaceuticals up by 2.24%, BHEL up by 2.05% and JP Associate up by 2.02%.

On the flip side, Maruti Suzuki down by 1.33%, Kotak Mahindra Bank down by 0.59%, ACC down by 0.51%, Tata Motors down by 0.30% and Dr. Reddy's Laboratories down by 0.24% were the major losers on the index.

Most of the Asian equity indices were trading in green; Shanghai Composite rose 5.00 points or 0.26% to 1,963.27, Hang Seng increased 63.53 points or 0.31% to 20,645.72, KLSE Composite jumped 3.65 points or 0.21% to 1,766.52, Nikkei 225 surged 188.25 points or 1.33% to 14,297.59, Straits Times gained 18.37 points or 0.58% to 3,173.84, KOSPI Composite added 10.27 points or 0.57% to 1,827.12 and Taiwan Weighted was up by 71.20 points or 0.90% to 7,957.54.

On the flip side, Jakarta Composite was down by 20.03 points or 0.45% to 4,413.60.