Markets continue to trade weak lacking any supportive cues

Markets are not showing any signs of recovery lacking any supportive cues and are trading in a tight range after the initial fall. All the upmoves were being sold out with traders taking a cautious approach on the last trading session of the Samvat Year 2071, extending losses for the fifth consecutive day. There is increase in capital outflows amid a weakening trend in global markets that is keeping the markets under pressure. The regional peers were mostly in red, tracking overnight losses at the US markets. Though, the Chinese market has recovered after China's October inflation data showed persisting deflationary pressure, spurring hopes of more stimulus for the economy by year-end. Back home traders were unable to get any encouragement from macro front too, as the indirect tax collections registered an increase of almost 36% in the first seven months of the current fiscal at Rs 3.83 lakh crore on the back of a spurt in economic activity. As per the Budget Estimate 2015-16, the government aims to collect Rs 6.46 lakh crore from indirect taxes -- central excise, Customs and service tax.

Also, the new listing despite doing good for itself, too failed to provide any support to the markets. InterGlobe Aviation, the owner of low-cost carrier IndiGo, debuted on the bourses, with the stock listing on the BSE at Rs 856, a 12 per cent premium over the issue price of Rs 765. The Rs 3,000 crore IPO, biggest in the last three years, which was sold between October 27 and 29, was subscribed 6.15 times. The scrip was currently trading at Rs 893, up by 128 points or 16.73% from its issue price of Rs 765.

The BSE Sensex is currently trading at 25935.13, down by 186.27 points or 0.71% after trading in a range of 25928.90 and 26094.09. There were 7 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.87%, while Small cap index was tad lower by 0.10%.

The two gaining sectoral indices on the BSE were Consumer Durables up by 0.58%, Auto up by 0.20%, while Oil & Gas down by 2.48%, Realty down by 1.78%, Metal down by 1.76%, PSU down by 1.43%, Power down by 1.23% were the losing indices on BSE.

The top gainers on the Sensex were Bajaj Auto up by 2.04%, Axis Bank up by 1.74%, Hero MotoCorp up by 1.20%, Mahindra & Mahindra up by 1.17% and Maruti Suzuki up by 0.97%. On the flip side, Dr. Reddys Lab down by 4.35%, ONGC down by 3.65%, Vedanta down by 3.04%, Hindalco down by 2.88% and Sun Pharma Inds. down by 2.73% were the top losers.

Meanwhile, indirect taxes collections during the month of October registered an increase of 36.8% to Rs 58,691 crore compared with collections made in October 2014 of Rs 42,897 crore. This is led by a massive over 66% increase in excise duty collections. Indirect taxes include customs duty, central excise duty and service tax.

Indirect tax collections rose by 35.9% to Rs 3.82 lakh crore for the first seven months of the current fiscal as compared to Rs 2.81 lakh crore in the same period last fiscal, on account of robust growth in all the three classes of indirect taxes. Besides, customs collections too remained on a upward trajectory rose by 16.8% to Rs 1.22 lakh crore in April-October 2015 from Rs 1.04 lakh crore same period last financial year. Further, the service tax collection increased 26.1% to Rs 1.12 lakh crore in April-October 2015 from Rs 89,379 crore in April-October 2014. Collections on account of Central Excise increased from Rs.87,588 crore in April-October 2014 to Rs.1, 47,685 crore in April-October 2015 and thereby registering an increase of 68.6%. 

Indirect tax collections so far have reached 59.2% of the Rs 6.4 lakh crore annual target, which is 18.8% higher than what it had collected in 2014-15. These collections continue to suggest a healthy growth in the underlying tax base. The higher growth will help meet likely shortfall in direct tax collection and disinvestment receipts.

These collections reflect partial increase due to additional measures taken by the Government from time to time, including the excise increases on diesel and petrol, the increase in clean energy cess, the withdrawal of exemptions for motor vehicles, capital goods and consumer durables, and from June 2015, the increase in Service Tax rates from 12.36% to 14%. Stripped of all these additional measures, indirect tax collections increased 11.6% during April-October 2015 as compared to April-October 2014.

The CNX Nifty is currently trading at 7848.95, down by 66.25 points or 0.84% after trading in a range of 7842.10 and 7885.10. There were 10 stocks advancing against 40 stocks declining on the index.

The top gainers on Nifty were Bajaj Auto up by 2.20%, Axis Bank up by 1.73%, Hero MotoCorp up by 1.59%, Zee Entertainment up by 1.36% and Maruti Suzuki up by 1.12%. On the flip side, Dr. Reddys Lab down by 4.26%, Adani Ports &Special down by 4.00%, ONGC down by 3.91%, Cairn India down by 3.38% and Vedanta down by 3.20% were the top losers.

On the other hand, Hang Seng slumped by 285.67 points or 1.26% to 22,441.10, Taiwan Weighted lost105.58 points or 1.22% to 8,536.90, KOSPI Index was down by 29.11 points or 1.44% to 1,996.59 and Jakarta Composite declined by 2.65 points or 0.06% to 4,496.86.