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Markets cheer GST regime: Sensex up 300 points, Nifty reclaims 9,600

ITC, HUL, Axis Bank, Dr Reddy's and ICICI Bank gained the most on the index

Pranati Deva  |  New Delhi 

Sensex
Sensex

Benchmark indices was trading higher as investors cheered the new tax regime. gained as much as 337 points at open while Nifty50 touched 9,600 after a week of subdued performances. Ahead of the declined in six of the previous eight trading sessions, with automobile and banking stocks, in particular, underperforming the market. 

Moody's on Sunday also said will be credit positive for India. Implementation of the goods and services tax (GST) will be positive for India's rating as it would lead to higher GDP growth and increased tax revenues, Moody's Investors Service said. 


At 11:13 am, the S&P BSE was trading at 31,230, up 308 points, while the broader Nifty50 was ruling at 9,605, up 84 points.
 
In the broader market, the S&P BSE and the S&P BSE gained 0.3% and 0.4% respectively.

"The 9,470-9,580 is likely to contain volatility for now, and an extended period of consolidation is likely in side this, before a directional upside emerges. Direct fall below 9,370 could not only bring 9,280-9,000 objectives, firmly in play, but will also soften the near term upside prospects," said Geojit Financial Services in a note.

Buzzing Stocks
 
ITC, HUL, Axis Bank, Dr Reddy's and ICICI Bank gained the most on BSE while Wipro, Tata Motors, ONGC and HDFC lost the most on the index.

ITC gained over 9% intraday on Monday after The Central Board of Excise and Customs (CBEC), over the weekend, removed excise and additional excise duty on cigarettes, while the National Calamity Contingent continued to remain.

Maruti Suzuki gained over 1% after it was the first to drop prices after the July 1 midnight adoption of Maruti Suzuki's range of vehicles, prices declined between Rs 2,300 and Rs 23,400 a unit. 

Govt rolls out reforms
 
The Narendra Modi-led government rolled out the goods and service tax (GST) on the midnight of June 30, 2017 but the nation hasn’t welcomed it with open arms. A number of protests are going on across the country by traders in lieu of the new tax regime.
 
The implementation of has put inflation in an uncertain zone, and prices are expected to rise temporarily, said an HSBC report. But is expected to help lower inflation by 10-50 bps over time, it added. READ FULL REPORT HERE

Moody's on the other hand was also positive for the new tax regime. Moody's VP (Sovereign Risk Group)William Foster said, "over the medium term, we expect that the will contribute to productivity gains and higher GDP growth by improving the ease of doing business, unifying the national market and enhancing India's attractiveness as a foreign investment destination." READ FULL REPORT HERE
 
The all-powerful Council will review the implementation of the Goods and Services Tax as also levies on some of the items on August 5.
 
at 68%
 
India's touched Rs 3.73 lakh crore ($57.69 billion) during April-May period or 68.3% of the budgeted target for the current fiscal year that ends in March, government data showed on Friday.
 
The was 42.9% of the full-year target during the same period a year ago.
 
output rises
 
output rose by 3.6% in May, up from the 2.8% rise the previous month of April.
 
Data released by the Commerce and Industry Ministry on Friday also showed that the eight core industries — coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity — had cumulative growth of 3.2% in the first two months of the current financial year.
 
This is less than half the 6.9% growth that was seen in the corresponding period of previous year of 2016-17.
 
BSE to revise transaction charges on equity
 
Top stock exchange BSE has decided to revise the transaction charges for trading in equities, with lower volumes attracting higher fees, from August 1.
 
The exchange has introduced a new slab-based structure for levy of transaction fees for securities traded under group A, B and other non-exclusive scrips, said a report.
 
BSE would charge transaction fees of Rs 1.5 per trade for trade volumes of up to one lakh. Under the new slab structure, the transaction charges range from Rs 0.50 - 1.5 per trade.
 
Global Markets
 
Asian stocks held two-year highs on Monday, starting the new month on a solid footing after two quarters of gains while expectations of credit tightening by the world's major central banks kept global bond under pressure.
 
MSCI's broadest index of Asia-Pacific shares outside Japan was flat, staying within a stone's throw of its two-year peak hit last week.
 
Japan's Nikkei ticked up 0.2% while US stock futures gained 0.2%.
 
On Wall Street, the S&P 500 scored its biggest gain for the first half of the year since 2013 while the Nasdaq Composite's first-half gain was its best in eight years.

First Published: Mon, July 03 2017. 11:13 IST
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