Nifty hovers above 8,550; Tata Motors up 4%

Nifty hovers above 8,550; Tata Motors up 4%

Markets have shrugged off the clearance of GST in the upper house and are trading in a narrow range with Sensex and Nifty swinging between negative and positive zone.

By 10:25 am, the S&P BSE Sensex was up 48 points at 27,746 and the Nifty50 gained 14 points to trade 8,559. Broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.5% each.

"Contrary to popular belief, the passage of the GST Constitutional Amendment marks only the beginning of a fairly tedious procedure that should ultimately result in the implementation of a unified GST in India at best by 2HFY18. Even as the adoption of a unified GST is one of the most remarkable tax reforms from a long-term perspective, in the short-term we highlight that this is likely to result in (1) a mild pick-up in inflation as hitherto untaxed goods and services are now brought under the tax net, (2) a meaningful loss of jobs in the informal sector as this sector will no longer be able to fly under the radar of the taxman and (3) consequently trigger pro-electorate measures in the form of higher revenue expenditure from FY18 onwards as the Modi-led BJP Government begins preparing for the 2019 General Elections," adds Ritika Mankar Mukherjee, Senior Economist, Ambit Capital.(more)

Latest developments in India's NSG bid

Latest developments in India's NSG bid

The admission of India into the Nuclear Suppliers Group (NSG) is taking new turns every day. China has now lowered its stance against India's membership by saying that NSG is open to discussing the entry of the countries who have not signed the Non Proliferation Treaty (NPT).

The 48- member club manages the flow of nuclear technology all over the world, with an aim to ensure the non proliferation of nuclear weapons and technologies. India has been vying hard for years to be part of this group as it would help the nation gain access to a plethora of new technologies, reduced depence on conventional sources of energy, among others.

This year with firm support from nations like United States, United Kingdom, Russia, India has a bright chance of getting into NSG. But, Pakistan with the backing of China is hell-bent on blocking this with the argument that the admission of a non-NPT signatory into the group is discriminatory. It says that all the nations who have not signed this treaty should be considered for the entry into the group.

China firmly supports this stand of Pakistan and says that they are not against India's admission to NSG but then Pakistan's membership should also be discussed. Earlier, the Chinese foreign ministry said the issue of India's membership to the 48-member group wasn't even on the agenda of the NSG's plenary meeting in Seoul. On Monday, Chinese Foreign Ministry spokesperson Hua Chunying Beijing said: "We understand that non-NPT countries are concerned about their entry into the NSG. But since NSG is still divided about the issue, so it is still not mature to talk about the entry issue in the annual conference in Seoul."Read more.