Market trades higher ahead of F&O expiry; broader markets outperform

Benchmark indices were trading higher in the early-morning deals with Nifty50 above 9,150 mark tracking strong global and domestic cues. Lok Sabha’s clearance to the GST legislations provided confidence to the Street but markets remained choppy ahead of March F&O Expiry.
 
At 11:00 am, the S&P BSE Sensex was trading at 29,605, up 74 points, while the broader Nifty50 was ruling at 9,159 up 15 points.
 
In the broader market, BSE Midcap and BSE Smallcap gained 0.5% and 0.9% respectively.
 

The 9,170 region might offer some resistance, but it could give away if upsides persist. Meanwhile, potential for downside range expectation is equally there, but major falls are less expected. Push above 9,200, may not immediately call for directional upsides, and could lead for another period of consolidation, but for the time being the measured objectives of 9,350-9,500 continues to be in play," said Geojit Financial Services in a note.

 
Meanwhile, rupee on Wednesday stormed to a new 17-month high and closed above 65, a level not seen since October 2015, on heavy dollar selling by speculative traders and exporters. The domestic currency finally ended the day at 64.91, up 13 paise and opened today at 64.87.

Sectors and Stocks

HeroMoto Corp, SBI, RIL and GAIL were the biggest mover on BSE Sensex while Axis Bank, Tata Motors, Bharti Airtel  and M&M were the top losers.

Axis Bank fell 1.4% after the company announced it has tied up with Wells Fargo to offer real time remittances from the Indian diaspora to their relatives back home. Under the arrangement between the two banks, any member of the Indian diaspora holding an account with Wells Fargo will be able to transfer money to their relatives back home and there will be no transaction fee applicable to the money transfers from USA. But the relative or the beneficiary in India will need to have an Axis Bank account.

RIL gained nearly 1% after it said that they has completed sale of its entire 76% interest in its East African company GAPCO to Total SA of France for an undisclosed sum. 
 
F&O rollovers at 58%
 
Market-wide rollovers stood at 58% till Wednesday, which were lower than the average of 60% seen in the last three series while the  Nifty rollovers were at 57% marginally higher than the average 55% seen in last three series.
 
The much anticipated regulations on taxation on investments from tax havens which comes into effect from April 1, 2017 will have some bearing today’s session. On one side, the domestic arbitrageurs are willing to roll at lower levels, on the other short roll positions of FIIs are showing reluctance to roll at current low levels.

 
Among stocks BHEL has seen rollovers of 51% on the D-1 while 51% rollovers have taken place in DR Reddy’s and Hindalco witnessed 45% rollovers into the April series.
 
Lok Sabha passes 4 GST Bills
 
Lok Sabha on Wednesday passed 4 key legislations in order to introduce GST in the country by July 1. Central GST Bill, 2017 (CGST Bill), Integrated GST Bill, 2017 (IGST Bill), Union Territory GST Bill, 2017 (UTGST Bill) and the GST (Compensation to the States) Bill 2017 were passed after over eight hours of debate.
 
The unified tax regime is expected to boost economic growth by about 0.5 percentage points in its first year of implementation.

 
The four bills, passed by the lower house, would now be presented before the upper house of parliament.
 
Proposed tax rates range from 5 to 28%, with 12% and 18% being the standard rates. It has not been decided yet which tax rates will apply to which categories of goods.
 
Global Markets
 
Asian shares edged up to near their highest in two years on Thursday, while the dollar benefited from waning expectations that the European Central Bank was poised to end its easy policy.
 
MSCI's broadest index of Asia-Pacific shares outside Japan was 0.2% higher in early trade, pushing against its loftiest levels since June 2015.

 
Japan's Nikkei stock index was down 0.2%, while Australian shares firmed, helped by gains in oil prices. Strong energy shares had helped the US S&P 500 end higher overnight.
 
The Dow Jones Industrial Average index declined 0.2% in the overnight trade while the Nasdaq Composite index gained 0.38%.