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Reuters
4 minutes ago
- Business
- Reuters
India government has not quantified loss to exchequer due to tax cuts, says state minister
MUMBAI, Aug 21 (Reuters) - India's federal government has not quantified the loss to the exchequer due to a lowering of the goods and services tax rates but a state ministers' panel has endorsed the new rate structure, state ministers said on Thursday. India's government plans to slash the consumption tax it charges consumers and businesses by October, and proposed a two-rate structure of 5% and 18%, doing away with the 12% and 28% tax imposed on some items, a top official said last week. The states ministers' panel also recommended high-end luxury cars and other luxury items, or the so-called sin goods, be taxed at a new rate of 40%, another state minister said.
Business Standard
7 minutes ago
- Business
- Business Standard
Sensex climbs 222 pts; Nifty trades tad above 25,100 level
The frontline indices traded with modest gains in the early-afternoon trade, extending their five-day rally on hopes of a potential GST rate cut. However, investors remained cautious ahead of the US Federal Reserves annual symposium, awaiting signals on the future direction of interest rates. The Nifty traded tad above the 25,100 mark. Realty, pharma and oil & gas shares advanced, while auto, FMCG and PSU bank shares corrected. At 13:30 IST, the barometer index, the S&P BSE Sensex, advanced 221.66 points or 0.27% to 82,079.50. The Nifty 50 index added 49.40 points or 0.20% to 25,102.25. In the broader market, the S&P BSE Mid-Cap index advanced 0.07% and the S&P BSE Small-Cap index jumped 0.19%. The overall market breadth was positive, with more stocks declining than advancing. On the BSE, 2,227 stocks advanced, 1,742 declined, and 170 remained unchanged. Economy: Indias private sector witnessed a sharp acceleration in business activity in August, with robust gains across both manufacturing and services, according to the latest HSBC Flash PMI data. The HSBC Flash India Composite PMI Output Index surged to 65.2 in August, up from 61.1 in July, signaling one of the fastest rates of expansion in over a year. The services sector led the upturn, with the HSBC Flash India Services PMI Business Activity Index climbing to 65.6, compared to 60.5 in July. This marks a significant boost in services output and reflects strong demand conditions and rising new business intakes. Meanwhile, manufacturing also remained firmly in growth territory. The HSBC Flash India Manufacturing PMI Output Index rose to 64.2, up from 62.5 in July. The broader Manufacturing PMI, which includes new orders, employment, and inventories, edged up to 59.8, compared to 59.1 in the previous month. Indias eight core industries grew by 2% in July 2025 compared to the same month last year, according to data released by the Commerce and Industry Ministry on Wednesday. The growth was driven by higher production in steel, cement, fertilisers, and electricity. These eight sectorscoal, crude oil, natural gas, petroleum refinery products, fertilisers, steel, cement, and electricityaccount for 40.27% of the weight in the Index of Industrial Production (IIP), making them key indicators of overall industrial performance. Steel, which holds the highest weight (17.92%) in the index, surged 12.8% in July, buoyed by strong demand from government infrastructure projects. Cement output rose 11.7%, reflecting robust construction and infrastructure activity. Fertiliser production increased 2%, supported by healthy kharif sowing and good monsoon rains. Electricity generation edged up by 0.5%. However, several sectors saw declines. Coal production dropped 12.3% due to heavy monsoon rains. Crude oil and natural gas output fell by 1.3% and 3.2% respectively, while refinery production dipped 1%. Cumulatively, core sector growth for AprilJuly FY26 stood at 1.6% year-on-year. Steel and cement led the gains with growth of 8.5% and 8.9%, respectively. The revised core sector growth for June 2025 stood at 2.2%, pointing to a steady industrial trend in the early months of the fiscal year. Gainers & Losers: Dr. Reddy's Laboratories (up 2.22%), Bajaj Finance (up 1.46%), Cipla (up 1.39%), Bajaj Finserv (up 1.30%) and Bharat Electronics (up 1.17%) were the major Nifty50 gainers. Bajaj Auto (down 1.97%), Jio Financial Services (down 1.43%), Hero MotoCorp (down 1.24%), Power Grid Corporation of India (down 1.20%) and Tata Consumer Products (down 1.29%) were the major Nifty50 Losers. Stocks in Spotlight: Shanti Gold International jumped 2.41% after the companys standalone net profit surged 174.08% to Rs 24.64 crore in Q1 FY26, compared with Rs 8.99 crore posted in Q1 FY25. Revenue from operations increased 22.07% YoY to Rs 292.77 crore in Q1 FY26. Fedbank Financial Services rose 2.57% after the companys board is scheduled to meet on 25 August 2025, to consider raising Rs 2,500 crore via non-convertible debentures (NCDs). Jupiter Wagons surged 9.37% after the company said that its material unlisted subsidiary, Jupiter Tatravagonka Railwheel Factory, has received a letter of intent (LoI) for the supply of wheelsets for the Vande Bharat train. Nazara Technologies fell 6.52% after the Lok Sabha passed the Online Gaming Bill, 2025, which bans real money online games citing risks of gambling addiction, money laundering and financial fraud. Godrej Properties advanced 1.50% after the company announced that it had emerged as the highest bidder for a 7.825-acre residential land parcel in Hyderabad Global Markets: European stocks mixed on Thursday as regional traders keep an eye on the latest economic data from the region. Asian markets were broadly mixed as investors braced for three days of potentially market-moving news from the Federal Reserve's annual symposium in Jackson Hole. Central bankers from around the world will attend the event, which begins later in the day, although the key focus will be Fed Chair Jerome Powell's speech on Friday as traders look for clues on the chances of a September rate cut. Overnight stateside, two of the three key benchmarks ended the session on Wednesday in declines as tech stocks dragged the market lower. The broad market S&P 500 index slipped 0.24% to close at 6,395.78, while the tech-heavy Nasdaq Composite lost 0.67% and settled at 21,172.86. Wednesday marked a fourth day of losses for the S&P 500 and a second negative session for the Nasdaq. Meanwhile, the Dow Jones Industrial Average was the outlier, adding 16.04 points, or 0.04%, and settling at 44,938.31. Minutes from the Fed's July gathering released yesterday, when policymakers voted to keep rates steady, suggested that Fed Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller were alone in pushing for a rate cut at the meeting. Fed Chair Powell had said he is reluctant to cut rates because of expected tariff-driven price pressures this summer.
Mint
7 minutes ago
- Business
- Mint
HUL, ITC, Dabur, and others: Here are 3 key factors driving the FMCG stocks, and should you buy or sell?
Stock Market Today: HUL, ITC, Dabur, and other consumer stocks have been in focus recently . The share price of Hindustan Unilever Ltd., or HUL, and Godrej Consumer Products Limited are up almost 6.5% in the ongoing week. Dabur India and Marico share prices are also up 4-5%. The key factors driving FMCG stocks include demand improvement to pick up pace and a good monsoon, which is likely to be positive and supportive for the rural consumption too. The expectation of declining raw material prices and some calculated price hikes is also likely to be positive for the margins that remained subdued in Q1, though the recovery remains watched for. Over the past three years, consumption has been hit by high inflation, rising interest rates, and a lack of government programs. The recent initiatives, such as the attempts at nationalization of the Goods and Services Tax, declining interest rates, and cooling inflation, are expected to be favorable, as per analysts. The Q1 results season too has been encouraging; the earnings recovery in coming quarters will be keenly eyed. The demand recovery that was seen in the April to June quarter continues. Based on our recent interactions with distributors and dealers, analysts feel that demand in the mass urban space improved, though marginally, in July '25. As per Antiques Stock Broking, Nestle distributors reported a minor rebound in the milk and nutrition business, with strong growth in beverages, chocolates, and instant noodles. ITC witnessed a healthy cigarette consumption rate. Antique analysts believe Hindustan Unilever (HUL) is experiencing a sequential recovery with broad traction across categories. Marico's price increase in Parachute had a minor impact on product sales in July but is expected to normalize in the future, as per analysts. They believe Godrej Consumer Products (GCPL) saw a healthy increase in household insecticide use due to mosquito infestation. Antique Stock Broking prefers Godrej Consumer Products, or GCPL, and Marico in the consumer staples. The government aims to revive consumption, and the analysts say that the government has been making some efforts. We believe that Prime Minister Narendra Modi's announcement to rationalize GST rates and simplify the rate structure on August 15th, 2025, will boost consumption. said analysts at Motilal Oswal Financial Services, Rural markets' performance as per MOFSL has been an outlier for the last 12 months after witnessing a tepid performance during 2022-2023. Price increases helped drive growth in Q1 FY126 as rural communities remained resilient, said analysts. Axis Securities pointed out that the urban weakness persists, but recovery is on the horizon. Higher raw material prices have put pressure on gross margins in staple companies, affecting overall performance, said Axis Securities. However, Axis Securities added that in a volatile, uncertain, complex, and ambiguous (VUCA) environment, the FMCG sector stands out for delivering best-in-class return ratios such as ROCE, ROE, and dividend yield, ensuring long-term capital protection. Their picks include Varun Beverages and DOMS Industries. We noted a relatively better revenue print and commentary from staple companies in 1QFY26, said Motilal Oswal Financial Services. They continue to like HUL, GCPL, and Marico in their staple universe. Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
7 minutes ago
- Business
- Economic Times
GoM accepts Centre's GST proposal, to recommend scrapping of 12%, 28% slabs
A crucial meeting of the Group of Ministers (GoM) on GST rate rationalisation on Thursday ended with states agreeing to the Centre's proposal to restructure the indirect tax system by reducing the number of slabs to two i.e. 5% and 18%. The six-member GoM, chaired by Bihar Deputy Chief Minister Samrat Choudhary, accepted the plan to replace the current four-rate structure of 5, 12, 18, and 28 per cent with two rates — 5 per cent for merit goods and services and 18 per cent for standard items. A higher 40 per cent levy will remain on a small list of sin goods. The panel has also recommended that luxury cars be taxed under the 40% slab. Members of the GoM include Uttar Pradesh Finance Minister Suresh Kumar Khanna, Rajasthan Health Minister Gajendra Singh, West Bengal Finance Minister Chandrima Bhattacharya, Karnataka Revenue Minister Krishna Byre Gowda and Kerala Finance Minister K N Balagopal. Finance Minister Nirmala Sitharaman, addressing the GoM earlier, said, 'The rate rationalisation will provide greater relief to the common man, farmers, the middle class and MSMEs, while ensuring a simplified, transparent and growth-oriented tax regime.' The move will see 99 per cent of items in the 12 per cent bracket reclassified to 5 per cent, while nearly 90 per cent of goods and services under the 28 per cent rate will shift to 18 per cent. The Centre has argued that the rejig will make GST simpler and broaden compliance. The GoM also reviewed the Centre's proposal to exempt GST on health and life insurance for individuals, which could lead to a revenue impact of around ₹9,700 crore annually. Most states supported the plan but underlined the need for a mechanism to ensure that insurers pass on the benefit to policyholders. The GST Council is expected to take up the recommendations in its upcoming meeting for final approval.
Hindustan Times
7 minutes ago
- Business
- Hindustan Times
Thane man held over GST credit fraud worth ₹47.32 crore
A man has been arrested in Maharashtra's Thane district for his alleged role in a GST (Goods and Services Tax) credit fraud worth ₹47.32 crore, an official said on Thursday. The authorities said that more names could surface as investigations continue.(PTI/Representational Image) According to a release by the Thane commissionerate of Central GST, 'The case was detected using internally developed intelligence and advanced data analysis tools, which revealed that M/s KSM Enterprises, run by Vivek Rajesh Maurya, had fraudulently claimed and passed on ITC without any actual supply of goods or services.' Under the GST system, ITC (input tax credit) is a mechanism that allows businesses to offset the tax they pay on their purchases against the tax they collect on outputs, thus preventing double taxation. The CGST release said that a 'search' at Maurya's residence led to the recovery of 'incriminating' evidence like bank passbooks, chequebooks, mobile phones and 'documents linked to several fraudulent firms'. Maurya was arrested on August 19 and produced before a judicial magistrate, who remanded him in judicial custody for 14 days, the release said. The authorities said that more names could surface as investigations continue.
