The News International Team
Yadindra Kumar, GM Finance at Thangamayil Jewellery said with the RBI scrapping the 80:20 rule on gold imports, the availability of gold would improve and also help curb gold smuggling.
It would also mean that the procurement costs for gold companies would be lower, he said in an interview to CNBC-TV18.
According to him, as a result of this move, the company per se would see a volume growth of 25. Moreover, the upcoming festive season in December would also give a fillip to volumes, he added.
12:20pm FM to introduce GST Bill in winter session
Finance Minister Arun Jaitley today expressed hope that the much-awaited GST Bill, which provides for a uniform indirect tax structure, would be introduced in the current winter session of Parliament.
“We will try and introduce GST (Goods and Services Tax) Bill in this session…GST Bill would be taken up by the Cabinet after Empowered Committee (of state finance Minister)
meeting on December 12,” he said here.
The government has proposed to implement GST from April 1, 2016, and the new Finance Commission may be set up ahead of its schedule to look into the issues related to the new indirect tax regime.
The GST will subsume indirect taxes like excise duty and service tax at the central level and VAT on the states front, besides local levies.
There are differences between the Centre and states on some issues with regard to the implementation of GST that includes the revenue neutral rate and keeping petroleum,
liquor out of the ambit.
While a sub-committee on GST has suggested that the revenue neutral rate of GST be pegged at about 27 percent, the states are yet to decide on it.
It had suggested states GST at 13.91 percent and Central GST at 12.77 percent, reports PTI.
12:00pm Market Check
The market remained firm with the Nifty hitting fresh record high of 8623 led by classic defensives like FMCG and pharma stocks. Rate sensitives like banking and auto also lent support ahead of RBI policy tomorrow.
The Sensex rose 15.60 points to 28709.59 and the Nifty advanced 8.50 points to 8596.75. About 1196 shares have advanced, 1247 shares declined, and 65 shares are unchanged.
The market sentiment has been supported by lower crude prices. Brent crude fell below USD 70 a barrel. Prices have fallen for five straight months and are on longest losing streak since the 2008 financial crisis.
Crude impact continued on stocks. HPCL gained 1.5 percent while Cairn India lost 1.5 percent. Asian Paints extended Friday’s gains after Bank of America Merrill Lynch upgraded the stock to buy. Aviation stocks like SpiceJet and Jet Airways also continued to fly high on the back of declining crude prices, up 8-14 percent.
Auto companies are in focus on account of November sales data expected today. Maruti Suzuki gained almost 2 percent today as sales are better-than-expected, up 19.5 percent Y-o-Y with exports up over 50 percent and domestic sales jumping 17 percent.
Gold companies like Titan, Shree Ganesh Jewelley, TBZ and PC Jeweller are zooming ahead, up 6-20 percent after the Reserve Bank of India removed the 80:20 scheme which curbed gold imports. This came as a big relief for the jewellery industry as it reduces bureaucratic hassles, delays and uncertainty.
Mangalore Chemicals gained 12 percent on news that Vijay Mallya has resigned as a director from the company. This development brought more clarity and is likely to strengthen the case for Deepak Fertiliser in the ongoing race for Mangalore Chemicals.
Meanwhile, bonds rallied as weak GDP and falling crude prices led market to hope for an outside chance that the RBI will cut rates tomorrow. CNBC-TV18 poll shows that 95 percent economists don’t expect a cut tomorrow while 60 percent expect the governor to sound dovish.