Nifty rallies towards 9,100-mark; Sensex up over 100 points
Domestic markets on Tuesday opened in green after the government on Monday introduced four Goods and Service Tax (GST) Bills in Lok Sabha as it aims to roll out the tax regime by July 1.
At 0919 hours BSE Sensex was trading at 29,357.57, up 114.57 points or 0.39%, while NSE Nifty was trading at 9,091.20, up 46 points or 0.51%.
On 30-share benchmark, among top gainers were Axis Bank (1.09%), NTPC (1.07%), Bharti Airtel (1.05%), TCS (0.95%) and Infosys (0.94%). Among top losers were ONGC (-0.74%), Coal India (-0.33%), Gail (-0.24%) and ITC (-0.05%).
However, the investors are likely to remain cautious on weather forecaster Skymet prediction which said that the country is may witness below-normal monsoon this year.
Moreover, the investors will eye on Goods and Service Tax (GST) Bill development. Yesterday, four GST Bills were introduced in Lok Sabha. The bills introduced are the Central GST Bill, the Integrated GST Bill, the Union Territory GST Bill, and the GST (Compensation to States) Bill, providing for a maximum GST rate of 40%, an anti- profiteering authority and arrests for evading taxes, as reported by PTI.
Actual rates would however be a four-tier tax structure of 5, 12, 18 and 28% as approved by the GST Council. The peak rate of 40% is only an enabling provision for financial emergencies.Government aims to roll out much awaited GST bill from July 1, 2017, the report added.
Stocks in focus:
Reliance Industries: Shares of Reliance Industries tanked on Monday after Sebi's penal action, the company said that it has a strong case against the regulatory order and there was no market manipulation by it on account of trades in cash and futures segments.
"The company reiterates that an appeal will be preferred against the order in Securities Appellate Tribunal," RIL said in a regulatory filing.
Larsen & Toubro: Engineering conglomerate Larsen & Toubro on Monday said its construction arm has won orders worth Rs 2,490 crore.
"The Building & Factories Business segment of the construction arm of L&T has won orders worth Rs 2,490 crore. A mega order has been bagged from a premier government organisation for the construction of hospital building, a medical institute, a nursing college, a school for paramedics, an auditorium, hostels, residential quarters along with associated works, in New Delhi," it said.
Godrej Properties: The company announced that it has entered into an agreement with Shivam Realty to develop a housing project in Mumbai. In a regulatory filing, "Godrej Properties Ltd has entered into a development management agreement with Shivam Realty to develop a residential group housing project off the Akurli cross road at Hanuman Nagar, Kandivali East, Mumbai."
Motherson Sumi: Motherson Sumi Systems Ltd. (MSSL) on Monday announced that it has acquired Finnish auto component company, PKC Group Plc. for Euro 571 million (Rs 4364.724 crore).
The company in a regulatory filing said that this move will help them to expand its footprint significantly in American and European commercial vehicle market segment.
On global front, Asian stocks pulled ahead after Wall Street steadied and the dollar bounced from a four-month-low, as concern over Donald Trump`s setback on his healthcare reform bill gave away to tentative hopes for the U.S. President`s planned stimulus policies.
MSCI`s broadest index of Asia-Pacific shares outside Japan added 0.3% in early trade. Japan`s Nikkei jumped 1.1%, its biggest one-day gain in more than two weeks, while Australian stocks advanced 0.9%.