Markets trade near the day's low dragged down by RIL and metal stocks

The Indian benchmarks despite making some failed attempts of recovery are trading near the lows of the day in early noon session of trade. The sentiments were dampened with IMF cutting India’s economic growth estimate for 2016-17 to 6.6% from its earlier projection of 7.6% due to the impact of the government's move of demonetization of high value currency notes in early November. Traders have largely overlooked the significant breakthrough on GST front, with the Centre and the states reaching a consensus on the contentious dual control issue preparing ground for the rollout of the biggest tax reform from 1 July. The early gains that were led by FMCG and IT stocks were offsetted by decline in metal and oil & gas stocks. Oil major and market heavyweights like RIL, ONGC and GAIL India were putting pressure on the market sentiments declining by around 2-3%, some banking major along with auto sector heavyweights like Tata Motors and Maruti Suzuki too were witnessing selling pressure. However, the logistics stocks have gained momentum on clarity over GST rollout date. Snowman Logistics, Shreyas Shipping & Logistics, Patel Integrated Logistics, Allcargo Logistics and Aegis Logistics all were trading higher in range of 1-4%.

The BSE Sensex is currently trading at 27199.46, down by 88.71 points or 0.33% after trading in a range of 27196.23 and 27381.43. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were showing mixed trend; the BSE Mid cap index was down by 0.06%, while Small cap index was up by 0.25%.

The top gaining sectoral indices on the BSE were FMCG up by 0.51%, IT up by 0.49%, Realty up by 0.35%, Capital Goods up by 0.35%, TECK up by 0.30%, while Metal down by 1.51%, Oil & Gas down by 1.33%, PSU down by 0.62%, Bankex down by 0.47%, Auto down by 0.20% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 1.41%, Hindustan Unilever up by 1.40%, Sun Pharma Inds. up by 0.96%, Axis Bank up by 0.94% and TCS up by 0.73%. On the flip side, Reliance Industries down by 2.69%, ONGC down by 1.89%, Coal India down by 1.82%, Adani Ports & SEZ down by 1.65% and GAIL India down by 1.60% were the top losers.

Meanwhile, the much awaited goods and services tax (GST) is likely be rolled out from July 1, as the Centre and the states came to a consensus on dual control of the GST with the Centre agreeing to allow the states to control over small tax payers. Under the proposed tax regime, 90% of all assessees with a turnover of Rs 1.5 crore or less will be assessed for scrutiny and audit by state authorities, the remaining 10% by the Centre. Above that limit of annual turnover of over Rs 1.5 crore, Centre and states will share control of assessees in 50:50 ratio even as Finance Minister Arun Jaitley insisted that each tax payer will be assessed only once and by only one authority.

Besides ceding control, the Centre also agreed to the demand of coastal states, allowing them to tax economic activity in 12 nautical miles even though constitutionally the Centre has jurisdiction over territorial waters.

Union Finance Minister Arun Jaitley after the meeting of the GST Council said 'It's a significant headway,' with both sides agreeing on most matters. Putting to rest fears over dual administration by both state and the Centre, Jaitley said that 'Each assessee would be assessed only by one authority.' Jaitley further said that the power to levy and collect the I-GST lies with the central government but states will also be cross-empowered in the same ratio as above through a special provision in law. Any IGST disputes among states will be resolved by the Centre. With the legislative calendar drawn up, Jaitley said 'realistic' date for implementation of GST will be July 1 instead of previously planned April 1.

The draft of Integrated GST or IGST, the tax which will be levied by the Centre on inter-state movement of goods and services, as well as SGST and CGST will be finalised in the next meeting of the GST. The constitutionally mandated timetable requires GST has to be in place by September at the latest.

The CNX Nifty is currently trading at 8384.55, down by 28.25 points or 0.34% after trading in a range of 8384.15 and 8440.90. There were 18 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Hindustan Unilever up by 1.40%, Asian Paints up by 1.30%, Ultratech Cement up by 1.27%, Tech Mahindra up by 0.98%, Sun Pharma Inds. up by 0.96%. On the flip side, Reliance Industries down by 2.66%, Adani Ports & SEZ down by 2.00%, ONGC down by 1.99%, Coal India down by 1.99% and GAIL India down by 1.70% were the top losers

Most of the Asian markets were trading in green, FTSE Bursa Malaysia KLCI was up by 4.49 points or 0.27% to 1,663.33, Jakarta Composite gained 6.63 points or 0.13% to 5,276.65, KOSPI Index added 7.7 points or 0.37% to 2,071.87, Taiwan Weighted increased 62.2 points or 0.67% to 9,354.53 and Hang Seng was higher by122.85 points or 0.54% to 22,841.00.

On the other hand, Nikkei 225 slumped by 281.71 points or 1.48% to 18,813.53 and Shanghai Composite was tad lower by 0.43 points or 0.01% to 3,103.00.