The unrelenting selling pressure seems to be softening in Indian frontline equity bourses in Monday afternoon trades as fears that the US credit rating downgrade will have an adverse impact on India subsided after Indian finance minister reinforced confidence by stating that fundamentals of Indian economy are intact and stated that India is better placed to overcome global challenges. He also reassured to fast track pending economic reforms and stated that softening of international commodity prices, especially crude oil, will be positive for India as it may ease the inflationary pressure and make Indian financial markets an attractive destination for FIIs. The BSE's Sensex which once traded with grave losses of over five hundred points is vigorously regaining the lost ground and cruising ahead towards the neutral line. Before the Pranab Mukherjee's statement, Finance chiefs of the Group of 20 major economies have also affirmed in a joint statement that their commitment to take all necessary coordinated steps to support financial stability and foster strong economic growth. On the global front, the European markets appeared in resurgent mood as they bounced back into the green terrain after a sluggish opening. Back home, the information technology counter continued to languish at the bottom of the BSE sectoral space on being slaughtered by close to four percent amid fears of a worsening crisis in Europe and stalling global economic growth will adversely impact their earnings. The high beta Real Estate pocket too bore the brunt of hefty selling pressure and slipped close to three percent. However, pulling the benchmarks higher were heavyweight shares from the Oil & Gas counter and rate sensitive sectors like Banking and Automobile.
Meanwhile, the broader markets too recovered a great deal from the intraday-lows but were outclassed by their larger peers. The bourses slipped on extremely large volumes of over Rs 1 lakh core while the market breadth on BSE was dominantly in favor of declines in the ratio of 564:2115 while 78 scrips remained unchanged.
The BSE Sensex is currently trading at 17,151.56 down by 154.31 points or 0.89% after trading as high as 17,208.33 and as low as 16,759.45. There were 11 stocks advancing against 19 declines on the index.
The broader indices were trading on a pessimistic note; the BSE Mid cap index plummeted 1.07% and Small cap plunged 1.86% respectively.
On the BSE sectoral space, Oil & Gas up 0.45%, Bankex up 0.42%, Auto up 0.13%, PSU up 0.12% and Consumer Durables up 0.04% were the gainers while IT down 3.71%, TECk down 2.98%, Realty down 2.70%, Metal down 2.12% and Capital Goods down 1.14% were the major losers on the index.
M&M up 2.35%, Hero Honda up 2.30%, ONGC up 2.10%, Bajaj Auto 1.99% and SBI up 0.77% were major gainers on the Sensex, while DLF down by 4.85%, Tata Motors down 4.65%, Infosys down 4.44%, Wipro down 4.36% and Tata Steel down 3.974% were the major losers on the index.
Meanwhile, finance minister Pranab Mukherjee expects the Parliamentary Standing Committee to submit report by winter session of Parliament and there would be no difficulties in execution of the Direct Taxes Code (DTC) Bill from April 1, 2012.
'I am hopeful that the Parliamentary Standing Committee will submit its report by Winter Session. And if we can get it through, in the winter session, which most probably would be possible, then there would be no difficulty to bring it into operation from April 1, 2012,' Finance Minister Pranab Mukherjee said.
The DTC bill was introduced in the Parliament last year and is proposed to replace the 50 year oil Income Tax Act. Currently, the DTC bill is with the Parliamentary Standing Committee for the comments and recommendations of stakeholders.
Finance Minister, whilst referring tax benefits for the manufacturing sector till the time of introduction of DTC, said that any change in the existing policy will not be feasible.
On the implementation of new indirect tax system, the Goods and Service Tax, Finance minister said efforts are on to bring in convergence of views in Parliament. 'We are working on it. Divergence of views delay the process of getting it (GST Bill passed) as fast as we desire to. But there is no reason of despondency.'
Finance minister also expressed hopes that the opposition parties would support government for the getting approval for the GST from House of parliament. Last month, Bihar's Deputy Chief Minister and Bhartiya Janta Party (BJP) leader Sushil Kumar Modi was elected as the Chairman of Empowered Committee of State Finance Ministers on GST.
The GST bill, which include central and state taxes such as excise, custom, service tax, sales tax and Value Added Tax (VAT), has been pending for years in the parliament due to lack of political agreement. A Constitution Amendment Bill has been already introduced in the Lok Sabha for roll out of GST.
The top gainers of the Nifty were Ambuja up 5.41%, ACC up by 3.43%, PNB up 2.92%, M&M up 2.90% and ONGC up 2.69%.
Tata Motors down 4.58%, Infosys down 4.25%, HCL Tech down 4.16%, DLF down 3.66% and TCS down 3.58% were the major losers on the index.
Asian markets traded on a somber note, Shanghai Composite got obliterated by 97.45 points or 3.71% to 2,528.97, Hang Seng got decimate by 795.05 points or 3.80% to 20,151.09, Jakarta Composite got annihilated by 152.92 points or 3.90% to 3,768.72, KLSE Composite got lacerated 42.05 points or 2.76% to 1,482.38, Nikkei 225 plunged 121.85 points or 1.31% to 9,178.03, Straits Times got slaughtered 109.84 points or 3.67% to 2,884.94, Seoul Composite collapsed 56.30 points or 2.90% to 1,887.45 and Taiwan Weighted plummeted 206.91 points or 2.63% to 7,646.22
The European markets have opened on pessimistic note as France's CAC 40 slipped 0.94%, Germany's DAX eased 0.11% and London's FTSE sank 0.58%.
Meanwhile, the broader markets too recovered a great deal from the intraday-lows but were outclassed by their larger peers. The bourses slipped on extremely large volumes of over Rs 1 lakh core while the market breadth on BSE was dominantly in favor of declines in the ratio of 564:2115 while 78 scrips remained unchanged.
The BSE Sensex is currently trading at 17,151.56 down by 154.31 points or 0.89% after trading as high as 17,208.33 and as low as 16,759.45. There were 11 stocks advancing against 19 declines on the index.
The broader indices were trading on a pessimistic note; the BSE Mid cap index plummeted 1.07% and Small cap plunged 1.86% respectively.
On the BSE sectoral space, Oil & Gas up 0.45%, Bankex up 0.42%, Auto up 0.13%, PSU up 0.12% and Consumer Durables up 0.04% were the gainers while IT down 3.71%, TECk down 2.98%, Realty down 2.70%, Metal down 2.12% and Capital Goods down 1.14% were the major losers on the index.
M&M up 2.35%, Hero Honda up 2.30%, ONGC up 2.10%, Bajaj Auto 1.99% and SBI up 0.77% were major gainers on the Sensex, while DLF down by 4.85%, Tata Motors down 4.65%, Infosys down 4.44%, Wipro down 4.36% and Tata Steel down 3.974% were the major losers on the index.
Meanwhile, finance minister Pranab Mukherjee expects the Parliamentary Standing Committee to submit report by winter session of Parliament and there would be no difficulties in execution of the Direct Taxes Code (DTC) Bill from April 1, 2012.
'I am hopeful that the Parliamentary Standing Committee will submit its report by Winter Session. And if we can get it through, in the winter session, which most probably would be possible, then there would be no difficulty to bring it into operation from April 1, 2012,' Finance Minister Pranab Mukherjee said.
The DTC bill was introduced in the Parliament last year and is proposed to replace the 50 year oil Income Tax Act. Currently, the DTC bill is with the Parliamentary Standing Committee for the comments and recommendations of stakeholders.
Finance Minister, whilst referring tax benefits for the manufacturing sector till the time of introduction of DTC, said that any change in the existing policy will not be feasible.
On the implementation of new indirect tax system, the Goods and Service Tax, Finance minister said efforts are on to bring in convergence of views in Parliament. 'We are working on it. Divergence of views delay the process of getting it (GST Bill passed) as fast as we desire to. But there is no reason of despondency.'
Finance minister also expressed hopes that the opposition parties would support government for the getting approval for the GST from House of parliament. Last month, Bihar's Deputy Chief Minister and Bhartiya Janta Party (BJP) leader Sushil Kumar Modi was elected as the Chairman of Empowered Committee of State Finance Ministers on GST.
The GST bill, which include central and state taxes such as excise, custom, service tax, sales tax and Value Added Tax (VAT), has been pending for years in the parliament due to lack of political agreement. A Constitution Amendment Bill has been already introduced in the Lok Sabha for roll out of GST.
The GST bill has been facing opposed by the state government on the issue of the current structure of the bill. The state government says its provisions would curtail their power to charge taxes. The bill is opposed by the state governments especially BJP ruled states and BSP ruled Uttar Pradesh.
The S&P CNX Nifty is currently trading at 5,189.25, lower by 22 points or 0.42% after trading as high as 5,204.2 and as low as 5,054.05. There were 25 stocks advancing against 25 declines on the index. The top gainers of the Nifty were Ambuja up 5.41%, ACC up by 3.43%, PNB up 2.92%, M&M up 2.90% and ONGC up 2.69%.
Tata Motors down 4.58%, Infosys down 4.25%, HCL Tech down 4.16%, DLF down 3.66% and TCS down 3.58% were the major losers on the index.
Asian markets traded on a somber note, Shanghai Composite got obliterated by 97.45 points or 3.71% to 2,528.97, Hang Seng got decimate by 795.05 points or 3.80% to 20,151.09, Jakarta Composite got annihilated by 152.92 points or 3.90% to 3,768.72, KLSE Composite got lacerated 42.05 points or 2.76% to 1,482.38, Nikkei 225 plunged 121.85 points or 1.31% to 9,178.03, Straits Times got slaughtered 109.84 points or 3.67% to 2,884.94, Seoul Composite collapsed 56.30 points or 2.90% to 1,887.45 and Taiwan Weighted plummeted 206.91 points or 2.63% to 7,646.22
The European markets have opened on pessimistic note as France's CAC 40 slipped 0.94%, Germany's DAX eased 0.11% and London's FTSE sank 0.58%.
No comments:
Post a Comment