Benchmarks erase gains; Nifty slips below 8,200 mark

Indian equity benchmarks erased their gains and drifted in red in the late afternoon session on account of selling in frontline blue chip counters taking cues from European counterparts. European shares slipped for a third straight day to a two-week low, with weaker commodities prices putting further pressure on mining and energy stocks. Incremental pessimism crept in since rupee is trading lower against the US dollar due to higher demand for the American currency from importers and banks. Investors maintained cautious stance ahead of industrial production data for April which is scheduled to be released later in the day. Traders were seen piling position in Power stocks while selling was witnessed in Realty, Auto and PSU sector stocks. Sugar stock remained in limelight after Food Ministry proposed imposing 25 percent duty on export of sugar to ensure sufficient supply in the domestic market. In scrip specific development, Visa Steel was locked at upper circuit limit after the company stated that it will seek shareholders’ approval for merger of its JV firm Visa Bao (VBL) in an attempt to optimize costs and secure availability of resources for its ferrochrome business. Satin Creditcare Network was trading firm after foreign investment firm picked up 2.6 percent equity stake in the company. Morgan Stanley Asia (Singapore) has purchased 8.30 lakh shares at Rs 375 apiece through block deal on National Stock Exchange (NSE).

On the global front, the Asian markets were trading in red while the European markets were trading on pessimistic note. Back home, the NSE Nifty and BSE Sensex were trading below the psychological 8,200 and 26,700 levels respectively. The market breadth on BSE was negative in the ratio of 1185:1246 while 163 scrips remained unchanged.

The BSE Sensex is currently trading at 26677.55, down by 85.91 points or 0.32% after trading in a range of 26628.89 and 26972.06. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.21%, while Small cap index down by 0.06%.

The gaining sectoral indices on the BSE was Power up by 0.50%, while Realty down by 0.78%, Auto down by 0.72%, PSU down by 0.54%, Consumer Durables down by 0.45% and Oil & Gas down by 0.43% were the losing indices on BSE.

The top gainers on the Sensex were BHEL up by 2.02%, Lupin up by 0.80%, Bharti Airtel up by 0.56%, Adani Ports & Special Economic Zone up by 0.47% and Mahindra & Mahindra up by 0.45%.

On the flip side, Tata Motors down by 2.04%, Tata Steel down by 1.80%, Coal India down by 1.58%, SBI down by 1.48% and ITC down by 0.79% were the top losers.

Meanwhile, moving a step further in the implementation of the long pending goods and services tax (GST) bill, a group of central and state government officials set up to frame the law for the proposed GST, has submitted its final draft that could be taken up at a meeting of the empowered committee of state finance ministers in Kolkata on June 14-15. The draft law may be made public after it's deliberated by the empowered panel.

The upcoming Empowered Committee meeting may also discuss issues such as the proposed additional 1 per cent tax on inter-state sales, a proposal that is opposed by Congress. Discussions may also be taken up on the Congress demand of putting the GST rate in the Constitutional (amendment) Bill.

The government is expected to make a renewed push for the passage of the constitutional amendment bill to roll out GST in the upcoming monsoon session of Parliament. This will be the first time that West Bengal Finance Minister Amit Mitra will chair an Empowered Committee meeting after being appointed as the head of this panel in February. There is strong chance of the Constitutional Bill getting Parliament nod in the upcoming monsoon session with Mamata Banerjee backing this reform. After the Bill passage by Parliament, a majority of the State assemblies will have to ratify it for the Constitutional amendment to be a reality.

The CNX Nifty is currently trading at 8185.90, down by 17.70 points or 0.22% after trading in a range of 8164.40 and 8265.60. There were 18 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 3.34%, Yes Bank up by 2.50%, BHEL up by 2.31%, Ambuja Cement up by 1.29% and Lupin up by 1.10%.

On the flip side, Tata Motors - DVR down by 2.91%, Tata Motors down by 2.07%, Tata Steel down by 1.81%, Bank of Baroda down by 1.71% and Coal India down by 1.53% were the top losers.

The Asian markets were trading in red; Hang Seng decreased 255.24 points or 1.2% to 21,042.64, Nikkei 225 decreased 67.05 points or 0.4% to 16,601.36, Jakarta Composite decreased 18.75 points or 0.38% to 4,858.04, FTSE Bursa Malaysia KLCI decreased 7.2 points or 0.44% to 1,643.31 and KOSPI Index decreased 6.54 points or 0.32% to 2,017.63.

Shanghai Stock Exchange and Taiwan Stock Exchange were closed today on account of holiday.

The European markets were trading in red; UK’s FTSE 100 decreased 71.33 points or 1.14% to 6,160.56, Germany’s DAX decreased 165.6 points or 1.64% to 9,923.27 and France’s CAC decreased 49.2 points or 1.12% to 4,356.41.