Nifty needs to close above 8,180 on Monday for the upmove to continue
We had mentioned in Thursday’s closing report that Nifty may record more gains if it manages to stay above 8,082. The benchmark opened with a huge gap today and stayed above the 8,200 level for the entire session. Positive closings of US indices and most of the Asian indices reflected on Indian indices as well.
S&P BSE Sensex opened at 27,293 and hit a low almost at the same level. Nifty opened at 8,230 and immediately hit a low at 8,209. The indices reached up to the level of 27,497 and 8,263. This was followed by the indices moving in a range. Sensex closed at 27,372 (up 245 points or 0.90%) while Nifty closed almost at the same level as at which the benchmark opened. Nifty closed 8,225 (up 66 points or 0.81%). NSE recorded a volume of 88.89 crore shares. India VIX fell 0.60% to close at 14.5100.
According to a study published today by US-based consulting firm IHS, India is set to emerge as the third largest defence spender in the world by 2020.
According to the mid-term review, adhering to the FY 2015 fiscal deficit target of 4.1% is a major challenge. The government is committed to meeting its FY 2015 fiscal deficit target despite difficult odds, the mid-term review says.
India has not fared well in Forbes' list of the best countries for business this year, ranking 93rd out of 146 nations, behind countries like Mexico, Kazakhstan and Sri Lanka. The report cited challenges such as poverty and corruption that the country needs to address.
NCC (10.79%), Gujarat Gas (10.48%) and JSW Energy (9.66%) were among the top three gainers in the ‘A’ group on BSE. All of them hit their 52-week highs today.
Torrent Power (5.83%), which was among the top two gainers in the ‘A’ group on BSE on Thursday, was among the top four losers today in the group. The stock hit a new 52-week high today.
ICICI Bank (2.95%) was the top gainer in the Sensex 30 pack. Bajaj Auto (1.58%) was the top loser among the Sensex 30 stocks.
US indices closed in the green on Thursday. Weekly jobless claims report came in stronger than expected. Claims fell by 6,000 to 289,000, a low level typically associated with strong hiring.
Except for SET index of Thailand (0.16%), all the other Asian indices closed in the green. Nikkei 225 (2.39%) was the top gainer.
The Bank of Japan will boost the monetary base at an annual pace of 80 trillion yen ($672 billion), it said in a statement.
China raised its estimate for its 2013 economic output by 3.4%, based on its latest survey of the economy, the National Bureau of Statistics said on Friday. The statistics bureau said China's gross domestic product in 2013 was 58.80 trillion yuan ($9.46 trillion). It also said the revision "basically" wouldn't affect GDP growth for 2014, though it would change the total size of the economy for this year.
European indices were mostly trading in the red while US Futures were trading higher.
Germany's producer prices surprised on the upside in November as energy prices remained unchanged from October, data from the Federal Statistics Office showed today.
Producer prices in Europe's largest economy were stable on the month in November and fell 0.9% on the year, Destatis said.
While giving its ruling on taxability of development rights for housing societies, the Bombay HC said the additional FSI or TDR is generated by change in DC Rules and not by sale of development rights and hence is not taxable
The Bombay High Court in a recent judgement has given a big relief for all those societies, which have redeveloped their properties. The HC said, additional floor space index (FSI) or transfer of development rights (TDR) that is generated by the change in Development Control Regulations is not a case of sale of development rights embedded in the land.
In Mumbai, hundreds of cooperative housing societies (CHS) are functioning whose buildings have become old and dilapidated due to age. The Societies lack finance and technical expertise to repair their buildings. The Societies therefore seek the help of developer to carry out the construction at his own cost and pay compensation to the CHS members in the form of corpus, rent and larger area.
Controversy had existed between societies and the IT Department regarding taxability of these amounts. In the relevant case, Sambhaji Nagar Cooperative Housing Society (CHS) Ltd was asked to pay tax on Rs2.23 crore it received from the developer.
The assessing officer (AO) from the Income Tax (I-T) department has said the right is attached to the land owned by the Society, which had been acquired for a value and therefore there is transfer of capital asset chargeable to Tax. The Commissioner of Income Tax (Appeals) upheld the order of AO holding that this is not a case where extra FSI had occurred due to change in law but TDR already existed at the time of reconstruction of society's building.
The Tribunal followed a decision by Coordinate Bench in the case of New Shailaja CHS involving similar controversy and held that sale of TDR does not give rise to any Capital Gains chargeable to tax.
The High Court looked in to the provisions of Sec. 48 wherein mode of computation of Capital Gain is laid down, Sec. 49 wherein cost with reference to certain modes of acquisition is set out and Sec 55 (2) clarifying cost of acquisition for the purpose of sec 48 of 49.
The HC then upheld the order of the Tribunal.
Sambhaji Nagar CHS was represented by KK Ramani & Co.
Board of Trustees asks FIAC to look into proposals in the face of opposition from unions and labour leaders