Post Session: Quick Review

Indian markets witnessed down day of trade on Monday, with major indices losing ground gradually after a strong start, on concern of weak corporate earnings for the second quarter, while the Nifty slipped below 8150 mark after crossing the crucial 8200 mark intraday, the Sensex too lost its 27000 bastion.  Result of Infosys came as a mood dampener for the Indian markets, though, the company reported 87.40% rise in its net profit at Rs 6306 crore for the quarter ended September 30, 2015, it announced the downward revision of its full-year revenue. The company said that for the fiscal year ending March 31, 2016, revenues are likely to rise by 6.4% - 8.4%, down from a previous estimate of 7.2% - 9.2% in dollar terms. The forecasts were seen being generalized with India Inc. likely to report another tepid quarter. Traders also remained cautious ahead of the CPI inflation and IIP data announcement scheduled later in the day. CPI had came at 3.66% in August compared to 3.78% in July, while India's industrial production grew by 4.2 percent in July 2015. IIP for the month of August is seen rising to 5 percent, while the September CPI too is likely to increase to 4.5 percent.

On the global front most of the Asian markets snapped the session on a positive note, with some even surging by over a percent and extending the biggest weekly gain in almost four years. The Chinese market led the gains, up by over 3 percent, as Chinese regulators are planning to increase their oversight of algorithmic traders, extending a campaign to stabilize the equity market that result in high volatility and exodus by foreign investors. The European markets made a mixed start, ahead of pickup in the number of US companies reporting their latest numbers for the recent quarter, as well as a host of CPI inflation numbers in the coming days, from the UK, China, US and Europe.

Back home, the markets traded flat for most part of the day after losing ground, but the selling aggravated towards the end and dragged the major indices deep into red. The IT and technology pack were the major drag for the markets, led by Infosys which lost around 4%. Traders also seemed unconvinced with Chief Economic Advisor Arvind Subramanian’s statement that growth in collection of indirect taxes in the first half of the current fiscal shows robust GDP expansion. Healthcare and FMCG too lost considerably but the one sector that bucked the trend was metal, which on Chinese growth optimism surged for the day and limited some losses of the market. The banking pack apart from initial jitters remained largely unaffected by the raid conducted by CBI at Bank of Baroda branches into alleged spurious transactions of Rs 6,000 crore to Hong Kong. Power sector too continuing the upmove ended with good gains. 

The BSE Sensex ended at 26920.63, down by 158.88 points or 0.59% after trading in a range of 26855.75 and 27305.04. There were 15 stocks in green against equal number of stocks in red on the index. (Provisional)

The broader indices though outperformed the benchmarks and ended in green; the BSE Mid cap index was up by 0.23%, while Small cap index gained 0.05%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 1.36%, Power up by 0.99%, Capital Goods up by 0.36%, Auto up by 0.34%, PSU up by 0.32% while, IT down by 2.04%, TECK down by 1.83%, FMCG down by 0.73%, Realty down by 0.20%, Bankex down by 0.00% were the losing indices on BSE.(Provisional)

The top gainers on the Sensex were Vedanta up by 6.81%, Hindalco up by 5.32%, GAIL India up by 2.55%, Tata Motors up by 2.30% and BHEL up by 1.61%. On the flip side, Infosys down by 3.88%, Lupin down by 2.07%, Cipla down by 1.77%, Sun Pharma Inds. down by 1.58% and TCS down by 1.41% were the top losers. (Provisional)

Meanwhile, indirect tax collections grew 35.8 percent to Rs 3.24 lakh crore during April-September period of current fiscal as compared to Rs 2.38 lakh crore during the same period of previous financial year, reflecting growth in the economic activity and hitting more than 50% of the annual target. Indirect taxes include customs duty, central excise duty and service tax. The collection reflects hike in excise duty on diesel and petrol, withdrawal of exemptions for motor vehicles, increase in clean energy cess and hike in service tax rate in June.

Bulk of the growth in the indirect taxes has been contributed by central excise duty collection which grew 69.6 percent to Rs 1.25 lakh crore during the first six months of current fiscal against Rs 74,019 crore in the same period last fiscal. Besides, customs collections rose 17.5 percent to over Rs. 1.03 lakh crore during April-September period against Rs 89,324 crore in the same period year ago. Service tax collections grew 24.3 percent to Rs 95,493 crore during the April-Sept period.

During September, indirect tax collections grew by 32.6 percent to Rs 61,284 crore against Rs 46,224 crore during same period last year. Excise duty collections in September increased by 68.4 per cent to Rs. 22,489 crore, whereas custom duty collections grew by 3.4 percent to Rs 18,312 crore. Service tax collections in September rose by 35.1 per cent to Rs. 20,483 crore against Rs 15,158 crore in the same month of last fiscal.

Tax collection is the major source of revenue for the government. The government has budgeted to collect over Rs 6.47 lakh crore from indirect taxes in the current fiscal, a growth of 18.8 per cent over last fiscal.

The CNX Nifty ended at 8144.25, down by 45.45 points or 0.55% after trading in a range of 8128.20 and 8244.50. There were 25 stocks on gainers side against 25 stocks on losers side on the index. (Provisional)

The top gainers on Nifty were Vedanta up by 6.52%, Hindalco up by 4.59%, GAIL India up by 2.54%, Tata Motors up by 2.12% and BHEL up by 1.78%. On the flip side, Infosys down by 3.88%, Bank Of Baroda down by 3.35%, Cipla down by 1.86%, Lupin down by 1.78% and Sun Pharma Inds. down by 1.68% were the top losers. (Provisional)

European markets were showing mixed trend, Germany’s DAX gained1.24 points or 0.01% to 10,097.84, UK’s FTSE 100 declined by 31.88 points or 0.5% to 6,384.28 and France’s CAC was lower by 31.26 points or 0.66% to 4,670.13.

The Asian equity markets ended in green on Monday, with the Indonesian index extending gains for a sixth-day due to optimism about economic stimulus. Japan stock exchange was closed on account of ‘Health-Sports Day’ holiday. Indonesia President Joko Widodo has last week announced the third installment of his ambitious economic stimulus package, cutting energy prices and offering concessions to business in an attempt to kick-start growth in Southeast Asia’s largest economy. The deputy governor of the People’s Bank of China told an annual meeting of the International Monetary Fund and World Bank in Peru that China’s stock market has experienced several rounds of corrections. The governor added that the corrections have had limited direct impact on China’s economy as Beijing has taken a series of measures to avoid systemic risks. Meanwhile, investors also seem to be betting on the possibility of further stimulus measures when Beijing meets later this month to discuss the 13th five-year plan.   Malaysian Industrial Production fell to a seasonally adjusted annual rate of 3.0%, from 6.1% in the preceding month.