Benchmarks make steady start amid global uncertainty

The Indian equity markets have made steady start amid global uncertainty as cues are not giving any clear indication. The US markets made a mixed closing overnight after a very volatile session while, most of the Asian equity indices were trading in the positive terrain at this point of time. All eyes will be on the US for a Fed’s announcement. However, the International Monetary Fund has cut its forecast for global growth to 4% and warned of 'severe repercussions' to the global economy unless euro-zone nations strengthen their banking system. Back home, sustained buying in most of the key heavyweights along with broader indices supported BSE’s -- Sensex -- and NSE’s -- Nifty -- to regain their crucial 17,150 and 5,150 mark respectively. Capital goods witnessed the maximum gain in trade followed by consumer durables and public sector undertaking while, oil and gas and auto remained the only losers on the BSE sectoral space. The broader indices were outperforming benchmarks. The market breadth on the BSE was positive; there were 1,291 shares on the gaining side against 524 shares on the losing side while 71 shares remained unchanged.

The BSE Sensex opened at 17,128.83; about 29 points higher compared to its previous closing of 17,099.28, and has touched a high and a low of 17,191.12 and 17,091.55 respectively.

The index is currently trading at 17,150.50, up by 51.22 points or 0.30%. There were 19 stocks advancing against just 11 declines on the index.

The overall market breadth has made a strong start with 68.45% stocks advancing against 27.78% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices surged 0.69% and 0.68% respectively.

The top gaining sectoral indices on the BSE were, CG up by 1.08%, Bankex up by 1.00%, CD up by 0.94%, PSU up by 0.71% and HC was up by 0.69%. While, Oil and Gas down by 0.57% and Auto was down by 0.36% remained the only loser on the index.

The top gainers on the Sensex were ICICI Bank up by 1.68%, Wipro up by 1.60%, Sterlite Industries up by 1.38%, SBI up by 1.30% and BHEL was up by 1.29%.

On the flip side, Maruti Suzuki was down by 1.35%, Hindalco was down by 1.07%, RIL was down by 0.94%, Hero Motocorp was down by 0.93% and Tata Motors was down by 0.93% were the top losers on the Sensex.

Meanwhile, to kick start the much-awaited Goods and Services Tax (GST) in 2012-13, the finance ministry has made it obligatory for taxpayers to file their central excise and service tax returns electronically from October 1, 2011. E-filing through the Centre’s online tax payment application ACES (Automation of Central Excise and Service Tax) will be a must not only for returns due after October 1, but also for returns of past periods which have not been filed yet or are to be revised.

The Central Board of Excise and Customs (CBEC) said the returns would have to be filed electronically by all assesses, including export-oriented units, small-scale industries or those availing of certain exemptions, irrespective of the duty paid by them in the preceding financial year. The taxpayers are also suppose to file various other documents on the electronic mode, such as the annual financial information statement and the annual installed capacity statement.

The government is taking every step to make the changeover to GST smooth. Next financial year is set as the target to introduce the indirect tax regime, which will include most of the taxes levied by the Centre and the States on sale of goods and supply of services. The government on the other hand wants to strengthen its information technology (IT) backbone before switching to GST. It is designing a single portal for registration, filing returns and payment of taxes under GST. The system, called GST-N, will automatically separate the data that needs to go to the state system.

Tax payments will be done through Reserve Bank of India clearing accounts for States and the Centre. A pilot project is being carried out in 11 states. Before the introduction of GST, states are expected to move to the IT platform. The new platform would provide common PAN-based taxpayer identification, a common return, and a common challan for tax payment.

This platform will have the facility of reconciliation of transaction across different taxes - value added tax, income tax and central excise resulting in noticing tax evasion and plugging loopholes. On the other hand, the report of a task force in business processes relating to GST will be displayed in the public domain by the end of this month for discussion. The task force, set up to put together legislation on GST, has already presented an interim report.

The S&P CNX Nifty opened at 5,153.75; about 13 points higher compared to its previous closing of 5,140.20, and has touched a high and a low of 5,168.40 and 5,137.00 respectively.

The index is currently trading at 5,156.25, higher by 16.05 points or 0.31%. There were 31 stocks advancing against just 19 declines on the index.

The top gainers of the Nifty were ICICI Bank up by 1.76%, Wipro up by 1.71%, HCL Tech up by 1.57%, Sterlite Industries up by 1.46% and BHEL up by 1.41%.

On the flip side, Maruti Suzuki down by 1.38%, Tata motors down by 1.11%, Hindalco down by 1.03%, Reliance Industries down by 0.97% and Hero Motocorp down by 0.94%, were the major losers on the index.

Most of the Asian equity indices were trading in the green; Shanghai Composite was up 53.38 points or 2.18% to 2,501.13, KLSE Composite was up 10.48 points or 0.74% to 1,421.12, Nikkei 225 was up 41.01 points or 0.47% to 8,762.25, Straits Times was up 8.94 points or 0.32% to 2,789.78, Seoul Composite was up 27.25 points or 1.48% to 1,865.22 and Taiwan Weighted was up by 61.08 points or 0.82% to 7,553.93.

On the flip side, Hang Seng was down 49.97 points or 0.26% to 18,964.83 and Jakarta Composite was down by 22.52 points or 0.60% to 3,729.59.