Sensex gains 100 points after Jaitley advocates lower taxes

Benchmark indices were trading on a higher note today amid lack of global cues as most major markets were shut on Monday for Christmas holidays. Back home, comment from Arun Jaitley advocating lower taxes in the economy near the budget also help boost confidence.

At 11:44 am, the S&P BSE Sensex was trading at 25,926, up 119 points, while Nifty50 was ruling at 7,948, 40 points higher. In broader markets, BSE Midcap gained 0.25% while BSE Smallcap rose 0.16%.
 
"The 7,900 vicinity held forte for most of yesterday, suggesting that bears may withdraw a bit before attempting to tighten grip. This would mean that a pull back could be in order today, but such attempts could sharply challenged near 7,960 and 8,040. To this end, the downside objective of 7,800 will remain in the radar for the time being, and a v shaped recovery is less expected at this point," said Geojit BNP Paribas in a note.

Sectors and Stocks

Cipla, Lupin, Sun Pharma Adani Ports and TCS were the top gainers in BSE Sensex, up between 0.80-1.90% while HeroMoto, PowerGrid and Bharti Airtel were the biggest laggards.

Pharma was trading 1.02% higher, making it the biggest sectoral gainer followed by Consumer Durables, Oil & Gas and IT sector indices while realty was the top loser.

Among other stocks, Jet Airways hit 52-week low of Rs 332, down 3% on the BSE in intra-day trade. The stock is currently trading at its lowest level since October 12, 2015.

In 2016, the stock has underperformed the market by falling 53% from Rs 702 at the beginning of the year as compared to 1.2% decline in the S&P BSE Sensex.

 
Jaitley bats for lower tax rates
 
Finance Minister Arun Jaitley on Monday said that India now needs to move to a lower level of taxation to be globally competitive.
 
"What you need is lower level of taxation, to provide services more competitive in nature. Competition is not domestic, it is global. This is one important change you will witness while you will be in service," Jaitley said.
 
Extraordinary high taxation rates in the past have led to higher tax aversions, the Finance Minister added.
 
PM to meet economists to discuss budget
 
PM Narendra Modi will meet senior economists to discuss the road ahead for the economy today. Demonetisation and its impact are also likely to figure on the agenda.
 
Investors would also await tax sops from the government to boost economy after Modi’s 50-day demonetisation drive ends on December 30.
 
Global Markets
 
Asian stocks were little changed on Tuesday, in thin trade and with little to guide them as most major markets were closed on Monday for Christmas holidays, while the dollar reclaimed some of its losses from Monday.
 
MSCI's broadest index of Asia-Pacific shares outside Japan was flat, with Australia closed. Japan's Nikkei was also unchanged.