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Indian equity markets continued firm trade in the afternoon session on account of buying in frontline blue chip counters. Sentiments got boost with private report stating that the India's retail inflation likely slowed to three-month low in July, bringing it back within the central bank's target range, on falling food prices and an easing of supply chain disruptions. There's a material drop in edible oil and palm oil prices after tariff reductions and global oil price volatility has eased as well. Meanwhile, retail investors in India may soon be allowed to trade in US stocks through a NSE platform. National Stock Exchange of India’s (NSE) wholly owned subsidiary-- NSE International Exchange (NSE IFSC) has stated that trading in select US Stocks will soon be facilitated through the NSE IFSC platform. Markets maintained their upward momentum following gains in Telecom, Energy and TECK stocks. Healthy buying was observed in blue-chip stocks like Bharti Airtel, Tech Mahindra and Kotak Mahindra Bank.

On the global front, Asian markets were trading mixed amid concerns over the spread of the Delta variant and expectations of earlier tapering by the Federal Reserve offset strong corporate earnings. Back home, BSE Sensex is currently trading at 54760.48, up by 357.63 points or 0.66% after trading in a range of 54450.34 and 54779.66. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index rose 0.11%, while Small cap index was down by 0.35%.

The top gaining sectoral indices on the BSE were Telecom up by 3.06%, Energy up by 1.01%, TECK up by 0.97%, Bankex up by 0.72% and IT was up by 0.69%, while Realty down by 0.65%, Power down by 0.52%, Utilities down by 0.42%, PSU down by 0.38% and Basic Materials was down by 0.33% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 4.41%, Tech Mahindra up by 2.75%, Kotak Mahindra Bank up by 2.12%, HDFC up by 1.60% and Mahindra & Mahindra was up by 1.55%. On the flip side, Power Grid down by 1.90%, SBI down by 0.78%, ITC down by 0.70%, Hindustan Unilever down by 0.55% and Maruti Suzuki was down by 0.38% were the top losers.

Meanwhile, Income Tax Department has said that the Taxation Laws Amendment Bill, which seeks to nullify retrospective tax demands raised on companies, will instill investor confidence and provide impetus to India's goal of becoming a $5 trillion economy. The bill, which was cleared by the Lok Sabha on August 6, was passed by the Rajya Sabha on August 9. The bill, as passed by the Upper House, will be cleared by the Lok Sabha for it to become an Act.

I-T department said it would spur companies which are at the cusp of deciding their investments to invest in India. It will avoid unnecessary litigation and save time and costs of the government, besides boosting the policy of predictable tax regime. It will instill foreign as well as domestic investors with confidence in the Indian economy.

It also said the bill proposes to scrap the tax rule that gave the tax department power to go 50 years back and slap capital gains levies wherever ownership had changed hands overseas but business assets were in India. The 2012 legislation was used to levy a cumulative of Rs 1.10 lakh crore of tax on 17 entities, including UK telecom giant Vodafone, but substantial punitive action was taken only in the case of Cairn.

The CNX Nifty is currently trading at 16352.05, up by 93.80 points or 0.58% after trading in a range of 16261.05 and 16359.25. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 4.71%, Tech Mahindra up by 2.53%, Kotak Mahindra Bank up by 2.11%, Mahindra & Mahindra up by 1.60% and HDFC was up by 1.58%. On the flip side, Shree Cement down by 3.38%, Power Grid down by 1.76%, Grasim Industries down by 0.90%, SBI down by 0.84% and ITC was down by 0.75% were the top losers.

Asian markets were trading mixed; Shanghai Composite gained 12.32 points or 0.35% to 3,506.95, Hang Seng increased 239.12 points or 0.91% to 26,522.52. Straits Times advanced 19.64 points or 0.62% to 3,196.82 and Nikkei 225 was up by 68.11 points or 0.24% to 27,888.15.

On the flip side, Taiwan Weighted dropped 161.51 points or 0.92% to 17,323.64, KOSPI fell 17.23 points or 0.53% to 3,243.19 and Jakarta Composite was down by 69.89 points or 1.14% to 6,057.57.

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