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Indices maintain gains in late morning deals
Jan-02-2026

Domestic equity indices maintained their gains and were trading higher by over 0.40 percent in late morning deals as market participants indulged in enlarging their positions. Meanwhile, broader indices were also trading in fine fettle with BSE Mid cap index and Small cap index gaining in the range of 0.65-0.70 percent. Positive cues from other Asian markets supported domestic sentiments. Sentiments also got boost as India collected Rs 1.74 lakh crore as gross goods and services tax (GST) in December, 6% higher than in the same month last year. Most of sectoral indices on the BSE were trading higher led by Utilities, Power, PSU, Realty and Metal.

On the global front, Asian markets were trading higher with Hang Seng surging over 2.60 percent. Japan and China markets stayed shut for holiday. Back home, in the stock specific development, Devyani International traded higher as its board approved a merger with Sapphire Foods India, the operator of KFC and Pizza Hut outlets.

The BSE Sensex is currently trading at 85547.90, up by 359.30 points or 0.42% after trading in a range of 85068.88 and 85605.55. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.68%, while Small cap index was up by 0.68%.

The top gaining sectoral indices on the BSE were Utilities up by 1.97%, Power up by 1.54%, PSU up by 1.32%, Realty up by 1.20% and Metal up by 1.11%, while FMCG down by 1.01% was the only losing indices on BSE.

The top gainers on the Sensex were NTPC up by 3.03%, Trent up by 2.12%, Bharat Electronics up by 1.76%, Power Grid up by 1.63% and Bajaj Finance up by 1.40%. On the flip side, ITC down by 3.93%, Bharti Airtel down by 0.50%, Ultratech Cement down by 0.50%, Titan down by 0.09% and Interglobe Aviation down by 0.08% were the top losers.

Meanwhile, the government of India has made amendments to the Central Excise Act, levying an additional excise duty on cigarettes and other tobacco products effective February 1. This duty will be over and above 40% GST. Besides, it has imposed cess on the manufacturing capacity of pan masala-related businesses under the Health and National Security Cess Act. The total tax incidence on pan masala, after taking into account 40% GST, will be retained at the current level of 88%. The revised tax structure replaces the existing regime of 28% GST, along with a compensation cess on tobacco and related products. 

Under the new tax structure, short non-filter cigarettes (up to 65 mm) will attract an additional duty of about Rs 2.05 per stick over and above 40% GST, while short filter cigarettes of the same length will be charged around Rs 2.10 per stick. Further, medium-length cigarettes (65-70 mm) will face an additional duty of around Rs 3.6-4 per stick, and long, premium cigarettes (70-75 mm) about Rs 5.4 per stick. Meanwhile, the cigarettes that come under ‘other’ category carries a significantly higher duty of Rs 8,500 per 1,000 sticks. This applies only to unusual or non-standard designs and most popular cigarette brands do not fall under this slab. Moreover, chewing and jarda scented tobacco, and gutkha will attract an excise duty of 82%, and 91%, respectively.

Since July 2017, the taxes on cigarettes in India have remained unchanged, contrasting to global best practices and public health guidance, which emphasize annual increases in duties to ensure that cigarette prices rise faster than incomes. As per World Bank estimates, India’s total tax incidence on cigarettes is around 53% of the retail price, which is substantially lower than the World Health Organization’s (WHO) recommended benchmark of 75% or more for achieving meaningful reductions in tobacco consumption. The countries like the United Kingdom and Australia tax cigarettes at well over 80-85% of the retail price, while France, New Zealand, and several EU member states maintain tax incidence levels exceeding 75-80%. Besides, over the past decade middle-income countries, such as Turkey, South Africa, the Philippines, and Chile, have too raised their cigarette taxation to levels approaching or exceeding the WHO benchmark.

The CNX Nifty is currently trading at 26265.60, up by 119.05 points or 0.46% after trading in a range of 26118.40 and 26272.85. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Coal India up by 3.22%, NTPC up by 2.94%, Hindalco up by 2.60%, JIO Financial up by 2.35% and Trent up by 2.01%. On the flip side, ITC down by 3.94%, Bajaj Auto down by 1.18%, Shriram Finance down by 0.99%, Ultratech Cement down by 0.42% and Bharti Airtel down by 0.38% were the top losers.

Asian markets were trading in green; Taiwan Weighted added 393.79 points or 1.36% to 29,357.39, Jakarta Composite gained 77.96 points or 0.89% to 8,724.90 KOSPI increased 84.42 points or 2% to 4,298.59, Hang Seng advanced 683.46 points or 2.67% to 26,314.00 and Straits Times rose 19.29 points or 0.42% to 4,665.50.
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