Market trim losses, still trade marginally lower in noon deal

Key benchmarks indices were trading marginally lower in noon session tracking weak global cues. Investors remain cautious patiently waiting for the Federal Reserve's two-day meeting that will start tonight. Increase in Wholesale price index (WPI) inflation for the month of May too dampened sentiments. WPI in the month of May 2016 increased to 0.79 percent compared to 0.34 percent in the previous month and -2.20 percent during the corresponding month of the previous year. The rupee depreciated 4 paise to quote at a fresh one-week low of 67.18 against the US dollar in early trade today on sustained demand for the American currency from importers and bankers, further dampening the sentiments.

On the global front, Asian markets were trading mostly lower ahead of the US Federal Reserve's two-day meeting, amid growing worries this month's referendum in Britain could see it exit the European Union. Back home, shares of public sector lenders as well as debt-laden companies surged after Reserve Bank of India relaxed restructuring guidelines for large stressed loans. Stocks of infrastructure firm IVRCL jumped over 9 per cent in the morning trade after the company said it has allotted 6.46 lakh shares to Bank of Nova Scotia as part of a Strategic Debt Restructuring (SDR).  

The BSE Sensex is currently trading at 26370.51, down by 26.26 points or 0.10% after trading in a range of 26325.27 and 26485.45. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.16%, while Small cap index gained 0.64%.

The top gaining sectoral indices on the BSE were Realty up by 1.18%, Consumer Durables up by 0.54%, Capital Goods up by 0.33%, PSU up by 0.29%, Power up by 0.24% while, IT down by 0.68%, TECK down by 0.61%, Oil & Gas down by 0.30% were the losing indices on BSE.

The top gainers on the Sensex were Adani Ports &Special up by 2.52%, SBI up by 1.98%, Tata Motors up by 1.70%, Cipla up by 1.65% and GAIL India up by 1.06%. On the flip side, Hero MotoCorp down by 1.08%, TCS down by 1.05%, Hindustan Unilever down by 1.05%, Asian Paints down by 1.03% and HDFC down by 1.02% were the top losers.

Meanwhile, targeting April 2017 for the rollout of Goods and Services Tax (GST) with the support from smaller regional parties, Minister of State for Finance Jayant Sinha has said that “If we can pass it in the monsoon session of Parliament beginning next month, then we can implement it from April 1, 2017.”

Jayant Sinha further said that, after Parliament approves the constitutional amendment to allow GST, it needs to be ratified by more than half of states then after the Constitution Amendment Bill is passed in Parliament, there are three more legislations Central GST, State GST, and Integrated GST which are required to be passed.

GST was earlier planned to be introduced from April 1 this year, converting 29 states into a single market through the new indirect tax regime, but the deadline was missed as the Bill to roll it out remains delayed in the opposition-dominated Rajya Sabha. With the Monsoon Session of Parliament likely to get underway next month it remains the last chance for the government to pass the Goods and Services Tax Bill by its planned date of April 1, 2017.The government is betting on support from smaller regional parties to pass the national sales tax legislation in the Parliament session from next month, and expects approval for supporting laws by year-end.

In a related development, Finance Minister Arun Jaitley is going to participate in the meeting of Empowered Committee of State Finance Ministers, which will deliberate on the model GST law at the two-day meeting in Kolkata and also try to iron out differences over the new regime that will include all indirect taxes and create one national market under the GST.

The CNX Nifty is currently trading at 8097.60, down by 13.00 points or 0.16% after trading in a range of 8088.05 and 8134.95. There were 19 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Adani Ports &Special up by 2.59%, SBI up by 2.21%, Cipla up by 1.81%, Tata Motors up by 1.69% and Bank Of Baroda up by 1.57%. On the flip side, Zee Entertainment down by 1.84%, Ultratech Cement down by 1.47%, Asian Paints down by 1.39%, Hindustan Unilever down by 1.21% and BPCL down by 1.19% were the top losers.

Jakarta Composite increased 3.56 points or 0.07% to 4,810.79. Shanghai Composite increased 9.12 points or 0.32% to 2,842.19. Taiwan Weighted increased 39.9 points or 0.47% to 8,576.12. Nikkei 225 decreased 160.18 points or 1% to 15,859.00. Hang Seng decreased 108.55 points or 0.53% to 20,404.44. KOSPI Index decreased 7.03 points or 0.36% to 1,972.03. FTSE Bursa Malaysia KLCI decreased 2.74 points or 0.17% to 1,627.03.