HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Bourses remain on high peaks
Sep-20-2019

Indian equity benchmarks remained on high peaks in late afternoon session, despite weak cues from European markets. Domestic sentiments were optimistic with Commerce minister Piyush Goyal’s statement that he hopes the tax relief measures announced by the government for the corporates will give the necessary fillip to growth that has been sputtering for long. Besides, Union Home Minister Amit Shah said the Modi government is committed in making India a big manufacturing hub and the slashing of corporate tax rates would make the country's markets much more exciting for potential investors.

On the global front, European markets were trading in red, after Turkey consumer confidence fell to the lowest level in four months in September. The figures from the Turkish Statistical Institute showed that the consumer confidence index fell to 55.8 in September from 58.3 in August. The latest confidence score was the lowest since May, when it was 55.3. However, Asian markets were trading in green.

Back home, auto stocks were in focus, as auto industry body Society of Indian Automobile Manufacturers (SIAM) said the reduction in corporate tax rate and other announcements made by Finance Minister Nirmala Sitharaman would help give boost to local manufacturing in the sector.

The BSE Sensex is currently trading at 38008.81, up by 1915.34 points or 5.31% after trading in a range of 36085.74 and 38378.02. There were 26 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 5.50%, while Small cap index was up by 3.65%.

The top gaining sectoral indices on the BSE were Auto up by 9.45%, Bankex up by 8.20%, Consumer Disc up by 7.17%, Consumer Durables up by 6.79% and Capital Goods up by 6.65%, while IT down by 0.65% and TECK down by 0.04% were the only losing indices on BSE.

The top gainers on the Sensex were Hero MotoCorp up by 12.22%, Maruti Suzuki up by 11.35%, Indusind Bank up by 10.73%, SBI up by 9.85% and Bajaj Finance up by 9.40%. On the flip side, NTPC down by 2.38%, TCS down by 1.29%, Power Grid down by 1.14%, Infosys down by 1.03% and Tech Mahindra down by 0.57% were the top losers.

Meanwhile, with an aim to revive growth and investment in country, Finance Minister Nirmala Sitharaman has come up with a slew of measures including a cut in corporate taxes. The government has also decided to not levy enhanced surcharge introduced in Budget on capital gains arising from the sale of equity shares in a company liable for securities transaction tax (STT).

A new provision has been inserted in the Income-tax Act with effect from FY 2019-20 which allows any domestic company an option to pay income-tax at the rate of 22% subject to condition that they will not avail any exemption/incentive. The effective tax rate for these companies shall be 25.17% inclusive of surcharge & cess. Also, such companies shall not be required to pay Minimum Alternate Tax.

Besides, any new domestic company incorporated on or after October 01, 2019 making fresh investment in manufacturing, can pay income-tax at the rate of 15%. This benefit is available to companies which do not avail any exemption/incentive and commences their production on or before 31st March, 2023. The effective tax rate for these companies shall be 17.01% inclusive of surcharge & cess.  Also, such companies shall not be required to pay Minimum Alternate Tax.

The CNX Nifty is currently trading at 11266.70, up by 561.90 points or 5.25% after trading in a range of 10691.00 and 11381.90. There were 44 stocks advancing against 6 stocks declining on the index.

The top gainers on Nifty were Hero MotoCorp up by 12.94%, Eicher Motors up by 11.41%, Maruti Suzuki up by 10.72%, Indusind Bank up by 10.45% and SBI up by 10.09%. On the flip side, Zee Entertainment down by 2.82%, NTPC down by 2.34%, TCS down by 1.26%, Power Grid down by 1.14% and Infosys down by 1.01% were the top losers.

Asian market were trading mostly in green; Taiwan Weighted strengthened 34.99 points or 0.32% to 10,929.69, Nikkei 225 surged 34.64 points or 0.16% to 22,079.09, KOSPI rose 11.17 points or 0.54% to 2,091.52, Shanghai Composite gained 3.13 points or 0.1% to 3,002.41 and Straits Times was up by 1.47 points or 0.05% to 3,160.27. On the flip side, Hang Seng decreased 12.68 points or 0.05% to 26,456.27 and Jakarta Composite was down by 27.14 points or 0.43% to 6,217.33.

All European markets were trading in red; FTSE slipped 2.80 points or 0.04% to 7,353.62, CAC lost 5.40 points or 0.10% to 5,653.68 and DAX was down by 33.11 points or 0.27% to 12,424.59.

  RELATED NEWS >>