Benchmarks continue weak trade; IT, Realty drag

Indian equity benchmarks continued their weak trade in the afternoon session after Fed Chair Janet Yellen acknowledged a strengthening economy and said that rates could move higher over coming months. Rupee movement against the dollar too dampened the sentiment. However, market were getting some support  with reports that in order to ensure that GST is rolled out by April 1, 2017, the government is trying hard to get the winter session of Parliament advanced by a fortnight to pass the bill. Winter Session of Parliament is normally convened in the third or fourth week of November. Also, Economic Affairs Secretary Shaktikanta Das has expressed his hopes that India will clock a GDP growth of nearly 8 per cent this fiscal on the back of good monsoon rain. Traders were seen piling up position in Auto, Capital Goods, Metal, Consumer Durables and Oil & Gas stocks, on the other hand selling was witnessed in IT, Realty, TECK, Power and FMCG. In scrip specific development, Aurobindo Pharma slid half a percent on a report that it is among the contenders to acquire the UK and Irish portfolio of Israeli generics behemoth Teva.

On the global front, Asian markets, with the exception of Japan, were trading in red after U.S. Federal Reserve Chair Janet Yellen said in her speech on Friday that the case for another interest rate hike has strengthened. The Japanese market rose as the yen weakened against the U.S. dollar.

The BSE Sensex is currently trading at 27768.50, down by 13.75 points or 0.05% after trading in a range of 27698.71 and 27827.26. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.03%, while Small cap index was up by 0.07%.

The top gaining sectoral indices on the BSE were Auto up by 1.07%, Capital Goods up by 0.64%, Metal up by 0.42%, Consumer Durables up by 0.26% and Oil & Gas up by 0.15%, while IT down by 1.16%, Realty down by 1.03%, TECK down by 0.82%, Power down by 0.59% and FMCG down by 0.47% were the losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 4.14%, Hero MotoCorp up by 1.41%, Reliance Industries up by 1.21%, Larsen & Toubro up by 1.16% and Bharti Airtel up by 0.67%. On the flip side, TCS down by 1.82%, Wipro down by 1.82%, Asian Paints down by 1.28%, Lupin down by 1.27% and Adani Ports &Special down by 1.24% were the top losers.

Meanwhile, competing against time to meet the April 1, 2017 target to roll out the landmark Goods and Services Tax (GST), the government is considering an early Winter Session of Parliament advanced by a fortnight to pass GST Bills, leaving adequate time for execution of the new indirect tax regime. Winter Session of Parliament is usually in the third or fourth week of November but this year the government is looking at beginning the month-long session quickly after the end of festive season.

The government also has to pass the supporting legislations for the Central Goods and Services Tax (CGST) and Integrated Goods and Services Tax (IGST) legislations that will pave way for the GST, to be approved within November or latest by early December. This two laws are designed to prop up the new tax regime after the Constitutional (122nd Amendment) Bill, which was passed in the Monsoon Session.

The GST bill which was passed in the monsoon session needs the nod of atleast 50 per cent of the states. Already the constitution amendment bill has been ratified by eight state assemblies including Assam, Bihar, Chhattisgarh, Jharkhand, Himachal Pradesh, Gujarat, Delhi and Madhya Pradesh. The government is of the view that once half of the state legislatures approve the new national sales tax regime, the GST Council - comprising Union finance minister and state finance ministers, can immediately sit down to approve the tax rate, slabs and exemptions for it to be incorporated in the CGST.

Parliament nod to the legislations in the Winter Session would give enough time to prepare for the rollout of GST from April 1, 2017. Government is of the view that an early Winter Session will also be beneficial as the Budget Session is planned to be convened in the last week of January.

The CNX Nifty is currently trading at 8569.60, down by 2.95 points or 0.03% after trading in a range of 8543.75 and 8583.75. There were 18 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 4.31%, Tata Motors - DVR up by 2.38%, Hero MotoCorp up by 2.03%, Zee Entertainment up by 1.56% and Reliance Industries up by 1.35%. On the flip side, HCL Tech. down by 2.16%, Wipro down by 1.84%, TCS down by 1.76%, Tech Mahindra down by 1.71% and Lupin down by 1.36% were the top losers.

Most of the Asian markets barring Nikkei 225, which was up by 376.78 points or 2.3% to 16,737.49 were trading in red.

Hang Seng decreased 101.7 points or 0.44% to 22,807.84, Jakarta Composite was down by 66.43 points or 1.22% to 5,372.40, Taiwan Weighted declined 21.55 points or 0.24% to 9,110.17, KOSPI Index decreased 5.15 points or 0.25% to 2,032.35, Shanghai Composite was down by 4.4 points or 0.14% to 3,065.91 and FTSE Bursa Malaysia KLCI declined 3.88 points or 0.23% to 1,679.21.