Markets continue to trade in red in late afternoon session

Indian equity indices continued to trade under pressure in late afternoon session, as investors digested September factory output and developments on demonetisation front. Besides, the slide in Asian markets and weakness in local currency against dollar also weighed on domestic markets sentiment. Indian rupee was trading lower by 42 paise at 67.67 against the US dollar on Tuesday, as the American currency strengthened overseas. Meanwhile, investors failed to get any sense of relief with the report that the wholesale price index-based inflation fell to a four-month low of 3.39 per cent in October from 3.57 per cent in the previous month even though the rate of price rise was up slightly in both manufactured and fuel items comprising almost 80 per cent of the index.

On global front, European stocks were trading mostly in green on Tuesday despite mixed global cues. The dollar continued to surge on expectations of higher U.S. interest rates and much more Fed tightening. Back home, on the sectoral front, aviation stocks were reeling under pressure with the government deciding to levy up to Rs 8,500 per flight on major routes to fund the regional air connectivity scheme. The levy amount would be for an entire flight and the price of each ticket could go up depending on the number of seats in that particular flight. Further, investors remained on sidelines avoiding any major long position ahead of CPI data later in the day.

The BSE Sensex is currently trading at 26452.49, down by 366.33 points or 1.37% after trading in a range of 26317.89 and 26809.61. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined by 3.49%, while Small cap index was down by 4.22%.

The gaining sectoral indices on the BSE were IT up by 0.76% and TECK up by 0.27%, while Auto down by 4.19%, Realty down by 4.08%, Consumer Durables down by 4.06%, Metal down by 3.78% and Oil & Gas down by 2.09% were the losing indices on BSE.

The top gainers on the Sensex were Wipro up by 1.99%, SBI up by 1.83%, Dr. Reddys Lab up by 1.60%, TCS up by 1.33% and Cipla up by 1.15%. On the flip side, Tata Motors down by 8.10%, Tata Steel down by 6.78%, Asian Paints down by 6.43%, Maruti Suzuki down by 4.36% and Adani Ports &Special down by 3.33% were the top losers.

Meanwhile, CBEC Chairman Najib Shah has said that the government will share the model GST law with the states, which has been redrafted after taking into account the comments of stakeholders. He further said that the Compensation law will also be shared with the states on November 16 detailing the procedure for making good revenue loss of states in the first five years of GST rollout.

The Centre and states have already decided on a four-tier GST rates-- 5, 12, 18 and 28 percent-- but is yet to decide on the issue of cross empowerment to avoid dual control. Differences arose with the states demanding control over 11 lakh service tax assessees, and the Centre proposing to do away with the states having exclusive control over all dealers up to an annual revenue threshold of Rs 1.5 crore -- an issue which was settled in the first meeting of the GST Council.

The Council has came up with two proposals -- horizontal division and vertical division options, 'Horizontal division' would mean taxpayers would be divided both for administrative and audit purposes based on a cut off turnover. Those with a turnover over Rs 1.5 crore would be administered both by the Centre and states, while those with below Rs 1.5 crore would be administered solely by the states. While, under the 'vertical division', taxpayers could be divided in a ratio which would balance the interest of the Centre and the state, both with respect to revenue and spread of numbers.

The Nifty is currently trading at 8157.45, down by 138.85 points or 1.67% after trading in a range of 8118.55 and 8288.55. There were 13 stocks advancing against 36 stocks declining on the index, while 2 stocks remained unchanged.

The top gainers on Nifty were Bank Of Baroda up by 7.94%, Idea Cellular up by 2.36%, SBI up by 1.87%, Wipro up by 1.81% and Dr. Reddys Lab up by 1.68%. On the flip side, Tata Motors - DVR down by 8.73%, Indusind Bank down by 8.19%, Tata Motors down by 8.02%, Ultratech Cement down by 7.30% and Tata Steel down by 6.76% were the top losers.

Asian markets were trading mostly in red; Jakarta Composite dropped 37.24 points or 0.73% to 5,078.50, Taiwan Weighted declined 9.37 points or 0.1% to 8,931.03, KOSPI Index decreased 6.87 points or 0.35% to 1,967.53, Nikkei 225 slipped 4.47 points or 0.03% to 17,668.15 and Shanghai Composite was down by 3.38 points or 0.11% to 3,206.99. On other hand, FTSE Bursa Malaysia KLCI increased 13.92 points or 0.86% to 1,630.56 and Hang Seng was up by 101.69 points or 0.46% to 22,323.91.

European Markets were trading mostly in green; France’s CAC increased 18.49 points or 0.41% to 4,527.04 and UK’s FTSE 100 was up by 49 points or 0.73% to 6,802.18, while Germany’s DAX decreased 8.09 points or 0.08% to 10,685.60.