Volatility continued in morning trade as key benchmark indices regained positive terrain after briefly slipping into the red. At 10:25 IST, the barometer index, the S&P BSE Sensex was up 45.51 points or 0.16% at 27,743.02. The Nifty 50 index was currently up 10.05 points or 0.12% at 8,554.90. The passage of the Goods and Services Tax (GST) Constitutional Amendment Bill by the Rajya Sabha yesterday, 3 August 2016 boosted sentiment. Firmness in Asian stocks also supported gains on the bourses.
The GST Bill had already been approved by the Lok Sabha last year. The main objective of the GST is to eliminate excessive taxation. GST is a uniform indirect tax levied on goods and services across a country. The measure would harmonize 11 state and central levies into a national sales tax, reducing business transaction costs. The exact rate of the tax will only be decided in the weeks or months ahead. The passage of the constitutional amendment bill kicks off a legislative marathon in which both the federal and state parliaments will need to pass further laws setting the rate and scope of the GST.
The Sensex rose 224.40 points or 0.81% at the day's high of 27,921.91 at the onset of trading session. The barometer index fell 64.40 points or 0.23% at the day's low of 27,633.11 in early trade, its lowest level since 11 July 2016. The Nifty rose 56.55 points or 0.66% at the day's high of 8,601.40 at the onset of trading session. The index declined 25.35 points or 0.29% at the day's low of 8,519.50 in early trade, its lowest level since 25 July 2016.
In overseas stock markets, Asian stocks rose as crude oil held onto its recovery and high-yielding currencies climbed. US stocks edged higher yesterday, 3 August 2016 as energy companies climbed with the price of oil. Banks also rose, and investors sold traditionally safe stocks. A survey showed that hiring by private companies continued at a solid but uninspiring clip in July. The Bank of England is expected to cut benchmark interest rates after a monetary policy meet later in the global day today, 4 August 2016.
Closer home, the broad market depicted strength. There were almost two gainers against every loser on BSE. 1,269 shares rose and 657 shares fell. A total of 75 shares were unchanged. The BSE Mid-Cap index was currently up 0.63%. The BSE Small-Cap index was currently up 0.55%. Both these indices outperformed the Sensex.
Auto stocks rose on hopes that the auto companies would benefit from the goods and services tax (GST) Bill passed in the Rajya Sabha yesterday, 3 August 2016. Mahindra & Mahindra (M&M) (up 0.24%), Ashok Leyland (up 0.87%), Maruti Suzuki India (up 1%), Bajaj Auto (up 1.61%), Hero MotoCorp (up 1.7%), Tata Motors (up 3.62%) and TVS Motor Company (up 0.84%) gained. Eicher Motors declined 0.07%.
Telecom stocks declined. Reliance Communications (RCom) (down 0.71%), Bharti Airtel (down 0.38%), and Tata Teleservices (Maharashtra) (down 0.91%) declined. Idea Cellular rose 0.19%.
Shares of Bharti Infratel fell 0.9%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
The Union Cabinet chaired by the Prime Minister Narendra Modi yesterday, 3 August 2016 approved the rates for Spectrum Usage Charge (SUC) for various bands of spectrum for which auction are going to be conducted shortly. With this decision, the path is clear for issuance of the Notice Inviting Application for spectrum auction by the Department of Telecommunications. This will facilitate to move to a simple, transparent and flat ad-valorem SUC regime in accordance with the law and avoid creative accounting to bypass the revenues.
As per the decision of the cabinet, the spectrum acquired in forthcoming auction in 700, 800, 900, 1800, 2100, 2300 & 2500 MHz band is to be charged at the rate of 3% of Adjusted Gross Revenue (AGR) excluding the revenue from wire-line services. The weighted average of SUC rates across all spectrum assigned to an operator (whether assigned administratively or through auction or through trading) in all access spectrum bands including BWA spectrum obtained in 2010 auction shall be applied for charging SUC subject to a minimum of 3% of AGR excluding revenues from wire-line services. The weighted average is to be derived by sum of product of spectrum holdings and applicable SUC rate divided by total spectrum holding. The weighted average rate shall be determined operator wise for each service area.
The amount of SUC payable by the operators during 2015-16 at weighted average derived after taking into consideration the spectrum acquired in the coming auction and excluding the spectrum in 2300 MHz/2500 MHz band acquired/allocated prior to 2015-16, shall be treated as the floor amount of the SUC to be paid by the operators. Further, in case there is a reduction in AGR of the service provider, the floor amount of SUC shall be reduced proportionately.
Bata India fell 4.37% after net profit fell 44.01% to Rs 50.49 crore on 1.01% decline in total income to Rs 685.69 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 3 August 2016. Bata India's profit before tax and exceptional items rose 7% to Rs 76.24 crore in Q1 June 2016 over Q1 June 2015.
NBCC (India) rose 1.3% after the company announced that it has secured a total business of about Rs 344.72 crore in the month of July 2016. The announcement was made after market hours yesterday, 3 August 2016.
Powered by Capital Market - Live News
