Benchmark indices continues trading higher in noon trade following mixed cues as global markets trade positive in the early-morning deals. Investors shrugged off a weekend missile test by North Korea that raised further concerns on its ability to deliver a nuclear warhead.
Street also reacted positively to the GST rates announced on Friday. Most rates fall under 18% category which mostly won’t pinch the common man. “The effective tax incidence is set to decline,” said Union Finance Minister Arun Jaitley.
At 12:03 pm, the S&P BSE Sensex was trading at 30,605, up 140 points, while the broader Nifty50 was ruling at 9,457, up 29 points.
The broader markets enderperformed benchmark indices with the S&P BSE Midcap index and S&P BSE Smallcap down 0.3% and 0.1% respectively.
Buzzing Stocks
ITC, L&T, Adani Ports and TCS were the top gainers on BSE Sensex while SBI, Sun Pharma, Lupin and GAIL fell the most on the index.
Kotak Mahindra Bank and Tata Motors DVR gained 0.5% and 0.04% respectively after announcement that these will be included in the BSE's benchmark Sensex from June 19. GAIL (down 1.6%) will move out of the Sensex.
Motherson Sumi gained 2% as it has lined up capital expenditure of Rs 2,000 crore for the current fiscal, mainly on the upcoming nine plants in five countries including India.
GST Council fixes rates
The GST council fixed rates for a host of services, placing them under four slabs—5,12,18 and 28 per cent—as India’s plans for a countrywide goods and services tax (GST) entered the final leg.
India Inc is mostly positive about the new GST regime. According to a survey, 94 of the CEOs said the GST would have a positive impact on the economy and 62% said that the tax would have a positive impact on inflation. The GST rates have exempted several food products from the tax and kept a majority of essential items in the lower tax bracket of 5%.
Under GST, the AC restaurants with liquor licenses will be charged 18%, while the non-AC restaurants will be charged at 12%. Entry into IPL matches, gambling and race courses will attract a 28% GST.
Hotel industry will be impacted as renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes where room tariff of Rs 2,500 and above, but less than Rs 5000 per room per day, will be charged at 18% and above Rs 5,000 will levy a charge of 28%.
Consumer durables makers expect sales of TVs, refrigerators and ACs to be impacted in July- August as prices would go up 4-5% under the GST regime
Global Markets
Asian stocks are set to edge higher on Monday following cautious gains on Wall Street, though the dollar is set to come under pressure as Washington's political turmoil undermines confidence in US economic policy.
MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.42% on Monday helped by some gains in Korean and Japanese stocks.
US stocks ended up on Friday but closed below their session highs on renewed concerns about Donald Trump's presidency, following two new media reports of possible coordination between Russia and Trump's election campaign.