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Markets continue to trade lower in early noon deals
Jun-24-2019

Indian equity bourses continued to trade in red in early noon session on account of sustained selling by funds and retail investors amid mixed cues from the Asian markets. Stocks from Oil & Gas, Energy and Auto counters were trading lower, while Telecom, Capital Goods and FMCG counters were supporting the markets. Besides, broader indices were trading mixed with the BSE Mid cap index lost 0.28%, while Small cap index was up by 0.02%. Sentiment remained down beat as the Indian monsoon has been progressing slower-than-expected, leading to a delay in planting of summer-sown crops in the country, and raising concerns over lower agricultural production. Some cautiousness also prevailed in the markets as the Federation of Indian Chamber of Commerce and Industry (FICCI) in its quarterly survey has found that sentiment in the manufacturing sector remains subdued as the proportion of respondents reporting higher output growth during Q1 (April-June) of 2019-20 has dropped to 41 percent as against 54 percent  in January-March (Q4) of 2018-19.

On the global front, Asian markets were trading mixed as investors pinned their hopes on any signs of a thaw in Sino-U.S. trade negotiations, while oil prices firmed on worries over heightened tensions between the United States and Iran. Back on street, auto stocks came under selling pressure after the government think-tank NITI Aayog gave the industry a deadline of two weeks to come up with a plan to switch to electric vehicles (EVs). In scrip specific developments, shares of Star Cement surged as the company has received approval to buyback upto 68 lakh fully paid-up equity share of Re 1 each of the Company from all the Equity shareholders of the Company, at a price of Rs 150 per share payable in cash for an aggregate consideration not exceeding Rs 102 crore.

The BSE Sensex is currently trading at 39145.67, down by 48.82 points or 0.12% after trading in a range of 39070.27 and 39300.02. There were 12 stocks advancing against 19 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index lost 0.28%, while Small cap index was up by 0.02%.

The top gaining sectoral indices on the BSE were Telecom up by 0.44%, Capital Goods up by 0.31%, FMCG up by 0.23%, Industrials up by 0.19%, Consumer Durables up by 0.10%, while Oil & Gas down by 1.57%, Energy down by 1.20%, Auto down by 0.87%, Metal down by 0.69% and Realty was down by 0.62% were the losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 1.46%, Mahindra & Mahindra up by 1.17%, Bharti Airtel up by 1.09%, ITC up by 0.71% and SBI was up by 0.56%. On the flip side, ONGC down by 2.89%, Vedanta down by 2.26%, Bajaj Auto down by 1.95%, Hero MotoCorp down by 1.90% and Tech Mahindra was down by 1.34% were the top losers.

Meanwhile, the Goods and Services Tax (GST) Council, which is headed by the Union Finance Minister Nirmala Sitharaman, has extended the tenure of the anti-profiteering authority by two years till November 2021 and allowed use of Aadhaar as proof for obtaining GST registration while referring tax cut on electric vehicles and their chargers to an officers' committee. It also approved imposing a penalty of up to 10 percent of the profiteered amount on entities for not passing on benefits of GST rate cuts to consumers, as against the current norm of levying a maximum fine of Rs 25,000.

In its 35th meeting, the Council also extended the date for the filing of annual returns under the GST regime for 2017-18 fiscal by two months till August 30, 2019. Also the date for barring non-filers of GST returns for two consecutive months from generating e-way bills for transporting goods has been extended by two months till August 21, 2019.

Further, the Council has given in-principle approval to launch of an electronic invoicing system on a pilot basis from January 1, 2020, made it mandatory for GST-registered multiplexes to issue e-tickets, and also decided to seek Attorney General opinion on the issue of GST rate on lotteries. According to the proposal, entities with a turnover of more than Rs 50 crore will be required to generate electronic invoices on a government portal for B2B sales.

The CNX Nifty is currently trading at 11705.90, down by 18.20 points or 0.16% after trading in a range of 11687.30 and 11754.00. There were 17 stocks advancing against 32 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were UPL up by 3.36%, Yes Bank up by 1.41%, Bharti Airtel up by 1.24%, Mahindra & Mahindra up by 1.13% and Zee Entertainment up by 0.98%. On the flip side, ONGC down by 2.69%, Vedanta down by 2.44%, Bajaj Auto down by 2.15%, Eicher Motors down by 2.14% and Hero MotoCorp down by 2.06% were the top losers.

Asian markets were trading mixed; Straits Times trembled 13.02 points or 0.39% to 3,308.38, Jakarta Composite lost 5.41 points or 0.09% to 6,310.03, Taiwan Weighted dropped 24.32 points or 0.23% to 10,779.45 and Shanghai Composite was down by 1.06 points or 0.04% to 3,000.92.

On the flip side, KOSPI rose 0.69 points or 0.03% to 2,126.31, Hang Seng increased 5.15 points or 0.02% to 28,478.86 and Nikkei 225 was up by 27.54 points or 0.13% to 21,286.18.
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