Shares of commodity bourse MCX on Friday tumbled nearly 5 per cent on the Union Budget proposal for a transaction tax of 0.01 per cent on non-agri futures traded on commodity exchanges.
MCX shares closed 4.51 per cent lower at Rs 1,093.35 on the BSE. Intra-day, the stock tumbled 5.23 per cent to Rs 1,085.05.
At NSE, the scrip ended at Rs 1,093.10, down 4.86 per cent from its previous close.
'The move will, to some extent, discourage investment in commodity futures trading and reduce liquidity. It is feared that it may also divert traders towards unauthorised/illegal trading,' said Naveen Mathur, Associate Director Commodities & Currencies, Angel Broking.
The Commodity Transaction Tax (CTT), which is on similar lines as the Securities Transaction tax (STT), would work out to Rs 10 for transaction worth Rs 1 lakh.
'There is no distinction between derivative trading in the securities markets and derivative trading in commodities markets. Only the underlying asset is different. It is the time to introduce commodity transaction tax in a limited way,' Finance Minister P Chidambaram said yesterday while presenting Budget 2013-14 in the Lok Sabha.
'With respect to CTT, the discrimination is glaring between agri and non-agri commodities; which is not the case as regards security transaction tax (STT). This treatment is like having STT on shares of 'Company A' and no STT on 'Company B',' MCX Managing Director and CEO Shreekant Javalgekar had said.
Shares from consumer durable, capital goods and auto were in keen demand while from realty suffered with losses.
Sensex-based stocks like HDFC, L&T, ICICI Bank, HUL, Maruti Suzuki, Bajaj Auto, M&M, Cipla, Tata Power and Jindal Steel closed with smart gains while ITC, Bharti Airtel, RIL, TCS and HDFC Bank finished with losses.
Asian stocks closed narrowly mixed after lacklustre China's manufacturing data. Japan and Taiwan closed with gains while China, Hong Kong and Singapore ended with losses. South Korea market was closed on Friday.
European markets too were quoting sideways in their early trade. The FTSE was up by 0.05 per cent while the CAC was down by 0.78 per cent and the DAX by 0.14 per cent.
Back home, 16 scrips out of 30-share Sensex pack finished with gains while 14 others ended with losses.
Major gainers from the Sensex pack were Maruti Suzuki (5.41 per cent), Jindal Steel (2.87 per cent ), Bajaj Auto (2.63 per cent ), Larsen (2.51 per cent ), Cipla (2.40 per cent ), Tata Power (2.22 per cent ), HUL (2.04 per cent ), HDFC (1.80 per cent ), M&M (160 per cent ), ICICI Bank (1.54 per cent ) and Coal India Ltd (1.26 per cent ).However, Bharti Airtel dropped by 3.89 per cent followed by Dr Reddy's Lab 1.44 per cent , ITC 1.42 per cent , Hero MotoCorp 1.37 per cent , TCS 1 per cent and RIL 0.63 per cent .
Among the sectoral indices, the BSE-CD firmed up by 3.20 per cent followed by BSE-CG 1.62 per cent , BSE-Auto 1.50 per cent , BSE-Power 0.80 per cent and BSE-Metal 0.63 per cent while BSE-Realty fell by 3.93 per cent .
Despite the rise in the Sensex, the total market breadth remained negative as small-cap shares continued their fall. 1,524 shares declined while 1,334 firmed up. The total turnover fell to Rs 2,045.32 crore from Rs 3,555.24 crore on Thursday.
COMMODITY BLUES
Rs PLUNGES BY 53P TO NEAR 2-MONTH LOW OF 54.89 AGAINST $
The rupee on Friday fell by a whopping 53 paise to close at nearly a two-month low of 54.89 due to heavy dollar demand from oil importers and may breach 56-level in the short term.
Forex dealers said euro falling to 1.3008 levels and the US dollar strengthening against major currencies overseas also put pressure on the local currency.
IDBI Bank Treasury Head N S Venkatesh said dollar demand from oil importers payments and selling pressure due to weakening in euro also weighed on rupee.
MCX shares closed 4.51 per cent lower at Rs 1,093.35 on the BSE. Intra-day, the stock tumbled 5.23 per cent to Rs 1,085.05.
At NSE, the scrip ended at Rs 1,093.10, down 4.86 per cent from its previous close.
'The move will, to some extent, discourage investment in commodity futures trading and reduce liquidity. It is feared that it may also divert traders towards unauthorised/illegal trading,' said Naveen Mathur, Associate Director Commodities & Currencies, Angel Broking.
The Commodity Transaction Tax (CTT), which is on similar lines as the Securities Transaction tax (STT), would work out to Rs 10 for transaction worth Rs 1 lakh.
'There is no distinction between derivative trading in the securities markets and derivative trading in commodities markets. Only the underlying asset is different. It is the time to introduce commodity transaction tax in a limited way,' Finance Minister P Chidambaram said yesterday while presenting Budget 2013-14 in the Lok Sabha.
'With respect to CTT, the discrimination is glaring between agri and non-agri commodities; which is not the case as regards security transaction tax (STT). This treatment is like having STT on shares of 'Company A' and no STT on 'Company B',' MCX Managing Director and CEO Shreekant Javalgekar had said.
Shares from consumer durable, capital goods and auto were in keen demand while from realty suffered with losses.
Sensex-based stocks like HDFC, L&T, ICICI Bank, HUL, Maruti Suzuki, Bajaj Auto, M&M, Cipla, Tata Power and Jindal Steel closed with smart gains while ITC, Bharti Airtel, RIL, TCS and HDFC Bank finished with losses.
Asian stocks closed narrowly mixed after lacklustre China's manufacturing data. Japan and Taiwan closed with gains while China, Hong Kong and Singapore ended with losses. South Korea market was closed on Friday.
European markets too were quoting sideways in their early trade. The FTSE was up by 0.05 per cent while the CAC was down by 0.78 per cent and the DAX by 0.14 per cent.
Back home, 16 scrips out of 30-share Sensex pack finished with gains while 14 others ended with losses.
Major gainers from the Sensex pack were Maruti Suzuki (5.41 per cent), Jindal Steel (2.87 per cent ), Bajaj Auto (2.63 per cent ), Larsen (2.51 per cent ), Cipla (2.40 per cent ), Tata Power (2.22 per cent ), HUL (2.04 per cent ), HDFC (1.80 per cent ), M&M (160 per cent ), ICICI Bank (1.54 per cent ) and Coal India Ltd (1.26 per cent ).However, Bharti Airtel dropped by 3.89 per cent followed by Dr Reddy's Lab 1.44 per cent , ITC 1.42 per cent , Hero MotoCorp 1.37 per cent , TCS 1 per cent and RIL 0.63 per cent .
Among the sectoral indices, the BSE-CD firmed up by 3.20 per cent followed by BSE-CG 1.62 per cent , BSE-Auto 1.50 per cent , BSE-Power 0.80 per cent and BSE-Metal 0.63 per cent while BSE-Realty fell by 3.93 per cent .
Despite the rise in the Sensex, the total market breadth remained negative as small-cap shares continued their fall. 1,524 shares declined while 1,334 firmed up. The total turnover fell to Rs 2,045.32 crore from Rs 3,555.24 crore on Thursday.
COMMODITY BLUES
- At NSE, the MCX scrip ended at Rs1,093.10, down 4.86% from its previous close
- The Budget proposal for a 0.01% transaction tax on non-agri futures traded on commodity exchanges is on similar lines as the Securities Transaction tax, which would work out to Rs10 for transaction worth Rs 1 lakh
Rs PLUNGES BY 53P TO NEAR 2-MONTH LOW OF 54.89 AGAINST $
The rupee on Friday fell by a whopping 53 paise to close at nearly a two-month low of 54.89 due to heavy dollar demand from oil importers and may breach 56-level in the short term.
Forex dealers said euro falling to 1.3008 levels and the US dollar strengthening against major currencies overseas also put pressure on the local currency.
IDBI Bank Treasury Head N S Venkatesh said dollar demand from oil importers payments and selling pressure due to weakening in euro also weighed on rupee.