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Markets add more points in late morning deals
Sep-12-2025

Indian equity markets added more points and were trading with gains of around half percent in late morning deals owing to buying by funds and retail investors. Positive cues from the global markets supported domestic sentiments. Further, falling crude oil prices in the international markets also supported domestic market. There was encouragement in markets after Sergio Gor, a close Trump aide and director of the White House Presidential Personnel Office, said that despite recent disagreements over tariffs and India's purchases of Russian oil, the U.S.-India relationship continues to be warm and strategically important. Most of sectoral indices on the BSE were trading in green led by Capital Goods, Telecom, Industrials, Auto and TECK.

On the global front, Asian markets were trading mostly higher following positive cues from the US markets overnight. Back home, in the stock specific devolvement, Travel Food Services rose after the company announced that Cochin International Airport (CIAL) has awarded it the licence to set up, operate, maintain, and manage F&B outlets, a lounge, and a bar in the Security Hold Area (SHA) at the Domestic Terminal (T1) of the airport.  

The BSE Sensex is currently trading at 81951.01, up by 402.28 points or 0.49% after trading in a range of 81641.38 and 81967.06. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.24%, while Small cap index up by 0.37%.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.05%, Telecom up by 0.97%, Industrials up by 0.95%, Auto up by 0.79% and TECK up by 0.50%, while FMCG down by 0.38% was the only losing index on BSE.

The top gainers on the Sensex were Bharat Electronics up by 2.47%, Bajaj Finance up by 1.78%, Axis Bank up by 1.64%, Maruti Suzuki up by 1.51% and Larsen & Toubro up by 1.43%. On the flip side, Hindustan Unilever down by 1.39%, Eternal down by 0.58%, SBI down by 0.13%, HDFC Bank down by 0.12% and Bharti Airtel down by 0.04% were the top losers.

Meanwhile, the coal ministry has said that the GST reforms will bring down the overall tax on coal and reduce the cost of power generation. Earlier, coal attracted 5% GST along with a compensation cess of Rs 400 per tonne. Recently, the GST Council recommended the removal of the GST Compensation cess and an increase in the GST rate on coal from 5% to 18%. Further, the new reforms bring down the overall tax on coal grades G6 to G17, which is in the range of Rs 13.40 per tonne to Rs 329.61 per tonne. This will lead to an average reduction of Rs 260 per tonne for the power sector, further reducing the cost of generation by 17 to 18 paise/kWh.

Moreover, the reforms will help in the rationalisation of tax burden on coal vis-a-vis its pricing. Earlier, a flat rate of Rs 400 per tonne was imposed as GST compensation cess without considering coal quality. This disproportionately affected low-quality and low-priced coal. With the cess removed, tax incidence across all categories of coal has now been rationalised to a uniform rate of 39.81%. Besides, the reform will help in promoting self-reliance by import substitution since the landing cost of high gross calorific value imported coal was lower compared to domestic low-grade coal, earlier, placing the domestic coal at a disadvantage. The coal ministry added that the removal of cess will level the playing field, strengthen India's self-reliance and curb unnecessary imports.

The GST reforms also remove the inverted duty anomaly by raising the GST rate to 18%. Earlier, coal attracted 5% GST but the input services used by coal companies used to attract higher GST rates, normally at 18%. This meant that a huge amount of unutilised tax credit was standing in the books of these coal companies as output GST liability was lower. Since, the outward GST liability of coal companies was lower as compared to GST paid on input services, this amount was continuously increasing and with no refund of this amount, this implied blockage of funds of coal companies. Now this unutilised amount can be used for some years to pay off the GST tax liability, leading to release of blocked liquidity. This will also help in staving off the loss of coal companies due to the accumulation of such unutilised GST credit.

The CNX Nifty is currently trading at 25132.85, up by 127.35 points or 0.51% after trading in a range of 25038.05 and 25133.30. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were Bharat Electronics up by 2.79%, Shriram Finance up by 1.97%, Bajaj Finance up by 1.78%, Eicher Motors up by 1.75% and Axis Bank up by 1.66%. On the flip side, Hindustan Unilever down by 1.41%, Wipro down by 0.63%, Eternal down by 0.58%, JSW Steel down by 0.27% and Bajaj Auto down by 0.26% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 404.5 points or 0.91% to 44,777.00, Taiwan Weighted added 258.93 points or 1.02% to 25,474.64, Jakarta Composite gained 80.76 points or 1.03% to 7,828.67, Shanghai Composite strengthened 8.38 points or 0.22% to 3,883.69, KOSPI increased 42.03 points or 1.24% to 3,386.23 and Hang Seng advanced 390.68 points or 1.5% to 26,477.00. However, Straits Times fell 7.77 points or 0.18% to 4,348.05.
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