The major Asian stock markets have opened the session on a mixed note with markets in China (down 0.98%) and Hong Kong (up 0.39%). US and European stock markets closed their trading session on a positive note. The rupee is trading at 64 per US dollar.
The positive momentum continued in early trade Friday with benchmark indices opening on a strong note. BSE-Sensex is trading up by 228 points (up 0.82%) and NSE-Nifty is trading up by 56 points (up 0.67%). S&P BSE Midcap is trading up by 0.56% while S&P BSE Smallcap index is trading up by 0.60%. Sectoral indices are trading positive with stocks in Pharmaceutical sector witnessing buying interest.
Stocks in the automobile space are trading on a positive note. As per an article in Business Standard, the carmakers are split on whether the proposed goods and service tax (GST) should levy a differential tax structure or bring a uniform rate. In the current system of taxation; small car attracts a 12.5% excise duty while for the next segment of vehicles the excise rate is almost doubled to 24%. The government had brought this differential taxation policy on big and small cars 10 years ago. The policy has worked well for the government so far. The companies like Maruti Suzuki and Hyundai are supporting the differential tax structure as their sales are highly concentrated on small car segment eg Wagon R, Alto, i-10 while Toyota Kirloskar is supporting a uniform tax rate.
FMCG stocks have opened the day on a mixed note. ITC reported its results for the quarter ending June 2015. As per an article in the livemint, the company reported a 3.6% rise in the net profit to Rs 22bn. Revenue dropped 7.1% to Rs 86bn as agriculture business revenue fell 29.45% and the cigarette revenue fell 1.2%. However revenue from non-cigarette business grew by 12.2% during the quarter. Cigarette revenue which accounts for about 48% of the company's total revenue dipped to Rs 41bn, but its earnings before interest and tax rose 2.2% to Rs 27bn and margin spiked 220 basis point to 67%. Stock of ITC is trading up by 0.76%.