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Bourses manage to keep their heads above water in noon deals
Jan-17-2019

Indian equity benchmarks managed to keep their heads above water in afternoon session, on the back of buying by funds and retail investors. Traders were taking support from a working group of the Commerce and Industry Ministry came out with a blueprint suggesting a host of long and short-term measures to increase the size of India's economy to $5 trillion by 2025. It added that India’s potential to achieve a $5 trillion GDP by 2024-25 is within the realm of possibility. Some support also came with a report that Consumer Sentiment Index has rebounded in January on account of easing inflation, increasing liquidity and stabilising US-China trade war. India Primary Consumer Sentiment Index has risen over the previous month of November, signalling rising optimism going ahead. However, the markets trimmed most of their gains, as investors remained cautious ahead of important December quarter earnings. Broadly negative global cues along with a sustained weakness in the Indian currency also trimmed the gains of benchmark indices.

On the global front, Asian market were trading mostly in red, as renewed concerns about China-US tensions overshadowed a positive lead from Wall Street following a better-than-expected round of corporate earnings. Back home, the BSE Sensex is currently trading at 36353.71, up by 32.42 points or 0.09% after trading in a range of 36315.11 and 36468.42. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.15%, while Small cap index was down by 0.07%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.01%, Energy up by 0.64%, Consumer Durables up by 0.51%, Realty up by 0.35% and Auto up by 0.33%, while Metal down by 0.28%, Industrials down by 0.22%, Bankex down by 0.20%, Basic Materials down by 0.14% and FMCG down by 0.10% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 1.65%, Power Grid up by 1.07%, Axis Bank up by 1.03%, TCS up by 1.01% and HCL Tech. up by 0.94%. On the flip side, Yes Bank down by 2.45%, SBI down by 1.57%, Bajaj Finance down by 1.06%, Tata Motors - DVR down by 0.91% and Indusind Bank down by 0.72% were the top losers.

Meanwhile, in a bid to give relief to start-up investors from the Angel Tax, the government has simplified process for seeking income tax exemption by startups on investments from angel funds and prescribed a 45-day deadline for a decision on such applications. The move has come in backdrop of the startup community claiming receipt of notices under Section 56(2) (viib) of the Income Tax Act from the tax department to pay taxes on investment by angel funds. Entrepreneurs have raised concerns over these tax notices.

With the new notification, startup will apply, with all the documents, to the Department of Industrial Policy and Promotion (DIPP). The application of the recognised startup shall be moved by the department to the Central Board of Direct Taxes (CBDT) with necessary documents. Earlier, the procedure was carried out by an inter-ministerial board of certification. The entire process has been simplified by making an application to CBDT through the DIPP. The earlier requirement of startup to submit report from merchant banker specifying the fair market value of shares has also been removed.

A startup which is recognised by the DIPP would be eligible to seek the exemption, subject to certain conditions. Startups will have to provide account details and return of income for last three years. Similarly, investors would also have to give its net worth details and return of income. The revised norms would apply to startups seeking exemption after the issuance of the notification. The new norms would not apply to those entrepreneurs who have received notices from tax authorities. These new norms are likely to encourage startups to get exemptions as many of them earlier refrained from seeking this benefit due to documentation processes.

The CNX Nifty is currently trading at 10897.70, up by 7.40 points or 0.07% after trading in a range of 10887.45 and 10929.25. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were HPCL up by 1.83%, Bharti Infratel up by 1.79%, GAIL India up by 1.77%, Indian Oil Corp. up by 1.62% and Mahindra & Mahindra up by 1.53%. On the flip side, Yes Bank down by 2.47%, SBI down by 1.57%, Zee Entertainment down by 1.26%, Eicher Motors down by 1.14% and Bajaj Finance down by 1.04% were the top losers.

Asian market were trading mostly in red; Shanghai Composite declined 3.07 points or 0.12% to 2,567.35, Straits Times trembled 12.31 points or 0.38% to 3,216.80, Nikkei 225 slipped 40.48 points or 0.2% to 20,402.27 and Hang Seng decreased 124.58 points or 0.46% to 26,777.52.

On the flip side, KOSPI rose 0.96 points or 0.05% to 2,107.06, Jakarta Composite soared 28.00 points or 0.44% to 6,441.36 and Taiwan Weighted strengthened 25.34 points or 0.26% to 9,789.15.
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