1. Markets live: GST drives Indian equities, Sensex ends flat after making lifetime high; FMCG stocks soars

Markets live: GST drives Indian equities, Sensex ends flat after making lifetime high; FMCG stocks soars

Indian markets end flat, the benchmark Sensex ends up 0.1% or 30 points at 30,464.92 points while the broader Nifty ends in red, down 0.02% or 1 point at 9,427.9 points. The wind up of the 14 GST panel meet and finalisation of various goods and services under newly formed tax brackets guided the markets from the lifetime high to the week's low in the intraday trade.

By: | Updated: May 19, 2017 4:32 PM
Indian markets end flat, the benchmark Sensex ends up 0.1% or 30 points at 30,464.92 points while the broader Nifty ends in red, down 0.02% or 1 point at 9,427.9 points.

Indian benchmark stock indices opened higher buoyed by the finalisation of tax rates on all but six out of the 1,211 items in the proposed GST (Goods and Services Tax) regime, fitting over 80% of the items in the up to 18% tax slabs, effectively making food grains cheaper, while exempting essential items such as cereals and milk from the levy altogether at the 14 GST panel meet in Srinagar, yesterday. The BSE Sensex surged over 100 points in the opening bell to 30,539.65 points while the NSE Nifty firmed 40 points to 9,469.9 points.

Further at the GST meet, Revenue Secretary Hasmukh Adhia, who is in Srinagar for a meeting of the GST Council, said that only 19% of all goods will be taxed at the highest slab of 28%. The council has put items of essential use such as sugar, tea and edible oil at the lower end of the tax slabs at 5%. Another item which will attract the 5% levy is coal. On the other hand, toothpaste and hair oil, which at present attract a tax rate of 28%, are fitted in the 18% slab, effectively making your daily needs bill slimmer. Capital goods and industrial intermediate items will also be taxed at 18% under GST.

Further, the Asian stocks were mixed early on Friday and the dollar held onto overnight gains while, Wall Street rebounded yesterday from its biggest sell-off in more than eight months, helped by strong US economic data, but uncertainty over US President Donald Trump’s agenda kept an index of global equity markets near a three-week low. The US dollar reversed early losses against a basket of major currencies after stronger-than-expected US economic data put the focus back on a widely anticipated increase in interest rates by the Federal Reserve.

Elsewhere in South America, the Brazilian stock market plummeted over 8% yesterday on an emerging scandal involving the country’s recently installed president. The Brazil Bovespa index marginally recovered from the opening plunge of more than 10 percent, but still registered its worst day since 22 October 2008.

Here are the live updates:

04:30 pm: FMCG sector stocks were in focus today as the GST council approved tax rates for various products on Thursday. The new tax rates are likely to boost the consumption of the FMCG products as prices are speculated to come down. FMCG majors, ITC and HUL were the top gainers on both the indices, while Asian Paints, Mahindra & Mahindra and BPCL lost the most.

03:30 pm: Indian markets end flat, the benchmark Sensex ends up 0.1% or 30 points at 30,464.92 points while the broader Nifty ends in red, down 0.02% or 1 point at 9,427.9 points. ITC (up 2.82%), Hindustan Unilever (up 2.04%), Axis Bank (up 1.83%), SBI (up 1.72%) and Tata Motors (up 1.08%) ends in lead on Sensex. The wind up of the 14 GST panel meet and finalisation of various goods and services under newly formed tax brackets guided the markets from the lifetime high to the week’s low in the intraday trade.

03:15 pm: Gold tops Rs 29,000 mark on risk-off sentiment. Gold’s allure went up by many notches today as the US political turmoil saw the bullion soar Rs 215 to Rs 29,200 per 10 grams today, mirroring a firm overseas trend amid frenzied buying by local jewellers.

03:00 pm: The GST council has fixed a tax rate of 18% on telecommunication services and financial services while exempting education and healthcare from the levy altogether. Following in the footsteps of its earlier decision from yesterday of taxing luxury goods at 28%, the council has decided to tax luxury services, such as 5-star hotels, too at the same higher rate.

The council, which is meeting in Srinagar over two days to finalise the rates and rules before the July 1 implementation deadline, yesterday fixed tax rates on all but six of the 1,211 items.

Just like the tax slabs on goods, the services too will fall under four tax brackets: 5%, 12% 18% and 28%. While a bulk of the services would fall under the two primary tax slabs of 12% and 18%, all hotel services with tariff over Rs 5,000 would be taxed at 28%.

02:45 am: Meanwhile, Paytm, India’s leading mobile wallet and payments company, aims to raise its valuation to $100 billion by the year 2025, its founder Vijay Shehkar Sharma said in an interview to CNBC TV18 after his company raised $1.4 billion from Japanese investor SoftBank in its largest funding to date. This happened just months after China’s Alibaba invested $177 million in Paytm Mall, Paytm’s marketplace business unit. Private equity player SAIF Partners also made a $23 million investment in Paytm Mall.

02:30 pm: Shares of the nation’s top lender by assets, the State Bank of India (SBI) jumps over 2% as fourth-quarter (Q4) net profit more than doubled in line with expectations to Rs 2,815 crore with total income rising by 7.8% at Rs 57,720 crore. However, SBI net non-performing assets (NPAs) in March quarter stood at 3.71% compared to 3.81% a year ago.

02:15 pm: Markets take a turnaround, BSE Sensex tops 30,500 again, up 70 points or 0.23% at 30,505.52 points while NSE Nifty recovers above the previous close, up 13 points or 0.14% at 9,443.2 points. Shares of ITC and HUL continues to lead the Sensex as FMCG stocks weigh on GST finalisation.

01:55 pm: India Grid Trust’s InvIT IPO, sponsored by Sterlite Power Grid Ventures, bidding for which opened on BSE and NSE on Wednesday, has been subscribed 82.83% so far with a few hours left for bidding to close. Of their respective quota of reserved shares, institutional investors have bid 41.63%; while other investors have bid 132.49%. Against a total offering of around 12.63 crore shares, the total bids for subscription received on BSE and NSE were around 10.46 crore as of 1:30 pm today.

01:40 pm: Indian markets set for the worst day of the week, tumble again in the intraday trade to the week’s low, the Benchmark Sensex down 0.28% or 86 points at 30,348.23 points while NSE Nifty down 29 points or 0.31% at 9,393.9 points.

01:25 pm: Amid a weakening global trend and profit-booking, gold futures fell Rs 85 to Rs 28,796 per 10 grams today as participants trimmed positions. In futures trading, gold for delivery in August was trading down Rs 85, or 0.29 per cent, lower at Rs 28,796 per 10 grams in a business turnover of 22 lots at the Multi Commodity Exchange.

01:10 pm: Auto companies shares were down after the GST Council finalised that cars will attract the top tax rate of 28% as also a cess in the range of 1 to 15 per cent on top of it. The BSE Auto index was trading 1.45 per cent down in afternoon trade. Shares of Maruti Suzuki was trading 1.60 per cent down, Tata Motors was trading 0.18 per cent down and Mahindra and Mahindra were trading 1.06 per cent down during the same time down.

12:55 pm: Indian markets trade flat, suffer the caution over the tax basket of GST, BSE Sensex recovers the 30,400 level but still trade in red, down 26 points at 30,408.42 points while NSE Nifty recoups 9,400 mark to trade up 2 points at 9,416.45 points.

12:40 pm: Market ‘Big Bull’ Rakesh Jhunjhunwala is bullish on Prime Minister Narendra Modi and believes that India’s GDP would grow at an annual rate of 10-11 percent if Modi is elected to a second term in 2019. Jhunjhunwala said that India is set for an explosive double digit growth in next 2-3 years adding that India’s growth will be stronger & more stable than China’s. “The kind of change that Mr Modi is bringing is 2-3 years away & then you will have that explosive 10-11% growth,” Jhunjhunwala said in an interview to CNBC TV18.

12:25 pm: Meanwhile, according to the rate structure finalised by the GST Council, all cars, buses, trucks and motorcycles including moped as well as personal aircraft and luxury yachts will attract peak Goods and Services Tax (GST) of 28 per cent. All classes of cars and SUVs as well as motorcycles of more than 350 cc engine capacity will also attract an additional cess. The cess for motorcycles with more than 350 cc engine has been kept at 3 per cent, taking the total incidence of taxation to 31 per cent. The NSE benchmark for automobiles, Nifty Auto dive over 100 points, shares of Maruti Suzuki, Her MotoCorp and TVS motors trade in red.

12:05 am: Indian markets witness a turnaround, slid from the days’ highs to the weeks low amid the selling pressure, BSE Sensex down 0.22% or 66 points at 30,368.35 points while NSE Nifty 50 down 0.33% or 31 points at 9,398.35 points.

11:55 pm: Shares of FMCG companies rallied on Friday after the goods and services tax (GST) Council approved on Thursday finalised 7 set of rules for the new indirect tax regime. The council is meeting on Friday to finalise tax rates on service. The GST rates for select products have been disclosed wherein lower tax rates on FMCG products was on expected lines.

Brokerage House Edelweiss has called FMCG a clear winner after the finalised tax rates. It said, “GST is a structural reform and expected to accelerate the pace of GDP growth in India, despite implementation challenges in near term. GST regime will usher in lower taxes, seamless input tax credit, logistics savings and market share swings from unorganised to organised players.”

11:35 am: Indian markets wash off the morning gains but still trade in green, BSE Sensex up 0.14% or 43 points at 30,477.96 points while NSE Nifty up 0.06% or 5 points at 9,434.85.

11:15 am: The sectoral indices of NSE witness a mixed trade amid the GST tax rate finalisation. The consumer goods index of NSE, Nifty FMCG jumps over 3%, Nifty Bank and Nifty Realty are up 0.51% and 1.32% respectively.

This image shows the percentage change in the sectoral indices of NSE. [Column 1-Index Name, Column 2- Index Value, Column 3- Percentage Change] (Image Source: NSE)

11:00 am: Shares of FMCG sector cheers, ITC, Colgate-Palmolive (India), Marico, Britannia, Tata Global Beverages, Emami, Dabur India, Hindustan Unilever, Godrej Consumer Products and Jubilant Foodworks trade in green.

10:45 am: Indian markets hold the gains, BSE Sensex up 0.61% or 185 points at 30,620.30 points while NSE Nifty up 0.59% or 55 points at 9,485.15 points. ITC (up 5.02%), HUL (up 2.44%) and SBI (up 1.93%) lead the gains on Sensex.

This image shows the stocks which are pulling the Sensex up and dragging it down. Shares of ITC (up 5.02%), HUL (up 2.44%) and SBI (up 1.93%) lead the gains on Sensex. (Image Source: BSE)

10:30 am: In line with the massive subscription of its initial public offer (IPO), shares of Housing and Urban Development Corporation (HUDCO) got a bumper listing on both the exchanges today. The government owned lender’s shares listed at a premium of over 22% and at 10:15 am, the shares were trading up 27.16% at Rs 76.30 on the NSE and up 28.50% at Rs 77.10 on the BSE.

10:15 am: Bank of Baroda (BoB) shares rallied over 4 per centState-run on Friday after the public sector lender posted net profit of Rs Rs 155 crore in the quarter ended March 31, 2017 as against net loss of Rs Rs 3,230 crore in the same period last year. Bank of Baroda shares were trading up 3.44 per cent at Rs 194.20 in the morning trade. The share price opened at Rs 190.40 and touched a high and low of Rs 195.70 and Rs 190.40 in the trade so far.

10:00 am: The rupee made a tentative recovery of 16 paise at 64.68 against the dollar at the start of the session today after banks and exporters hit the sale button for the US currency. Traders said the domestic unit is not completely out of the woods after panic buying of dollars yesterday on the news that US President Donald Trump is heading for more political trouble. Meanwhile, the benchmark Sensex rallies over 270 points, hits the fresh lifetime high of 30,712.35 points in intraday trade while the broader Nifty 50 hovers near 9,500.

Traders said the domestic unit is not completely out of the woods after panic buying of dollars yesterday.

09:45 am: After falling sharply yesterday, Indian markets opened on a strong positive note today as GST rates announced yesterday boosted investor sentiment and the impact of uncertainty over Donald Trump’s future seemed short lived. Current Gainers on the BSE include ITC up 5.12% to Rs 292.30; Hindustan Unilever up 2.04% to Rs 1,007.50; Coal India up 1.99% at rs 282.00, while current laggards include Tata Consultancy Services down 1.27% at Rs 2,502.00; Infosys down 1.08% at Rs 951.30 and Gas Authority of India Limited down 0.84% at Rs 401.75.

09:30 am: FMCG shares get an uplift from the GST tax rates finalisation, the shares of ITC and HUL hit a fresh all-time high of Rs 295.65 and Rs 1,022.75 respectively on NSE.

09:15 am: Indian markets open higher, the benchmark Sensex up 104 points or 0.34% at 30, 539.65 points while the broader Nifty 50 opens up 40 points or 0.43% at 9,469.9 points. FMCG sector cheer upon the finalisation of GST tax rates, FMCG Nifty surge over 3% in the opening trade.

With input from Reuters and PTI

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