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Major Asian stock markets have opened the day on a mixed note, with stock markets in Japan (up 1.4%) and Singapore (up 1%) being the top gainers. Major stock indices in Europe ended their previous session in red. However, benchmark indices in US ended higher by 2% owing to robust data in relation to job creation. The rupee is trading at 66.83 per US dollar.
Indian stock markets have opened the day on a positive note. BSE-Sensex is trading higher by 140 points (up 0.5%) and NSE-Nifty is trading higher by 35 points (up 0.4%). Both S&P BSE Midcap and S&P BSE Smallcap have surged upwards and are trading higher by 0.3% and 0.4% respectively. Major sectoral indices have opened the day on a positive note. Stocks from automobile and pharmaceutical sector are the top gainers in the pack.
As reported in a leading financial daily, a panel constituted by the government under chief economic advisor Mr Subramanian, recommended a revenue neutral rate of 15-15.5% for the purpose of 'Goods and Service Tax'. A revenue neutral rate is a single rate at which there will be no revenue loss to the centre and states in the GST regime.
The panel has recommended a three tier rate structure. The essential goods will be taxed at a lower rate of 12%. All the luxury items and tobacco products will be taxed at a higher rate of 40%. All the remaining goods will be taxed at the standard rate of 17-18%.
To add to this, committee has recommended doing away with the 1% additional tax to be levied on supply of goods over and above the GST rate.
The recommendations are in line with the demands of the opposition party. Now, only time will tell whether the GST bill will be passed in the winter session of the parliament.
Recently, Ankit Shah (Research Analyst), Managing Editor, Equitymaster's Secrets, had written an article in relation to the implications of the Goods and Service Tax. Read this interesting piece to get an insight into this subject.
As reported in Livemint, Hindalco Industries Ltd is planning to sell its copper mine in India. The company is looking to sell its backward integration business. The copper mine is held through its subsidiary named 'Aditya Birla Minerals Limited'. The copper mine it intends to sell named 'Nifty' is located in Australia. The mine supplies 10% of the raw material required for the parent firm's smelter plant at Dahej. An Australia company named 'Metals X' had made an offer to buy the copper mines of Hindalco. However, the said offer was rejected by Hindalco stating that the consideration was inadequate.
Since the beginning of the year, the prices of copper have fallen over 27.91% on the London Metal Exchange. The management stated that the asset sale will help the company to reduce its liquidity woes. To add to this, company has already sold one of its copper mines in the current fiscal year which was also based in Australia for Australian Dollar 15 m. Hindalco Industries is trading up by 1.6%.
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