Markets continue lackluster trade in late afternoon session

Indian benchmark indices continued their lackluster trade in late afternoon session, as heavy selling pressure was witnessed in IT and Teck stocks. Though, in the broader markets, the BSE Midcap and BSE Smallcap indices outperformed the frontline indices with gains of 1% and 0.66% respectively. Investors' sentiments remained subdued on the back of disappointing macro-economic data released on Tuesday. The retail inflation rose to a 4-month high of 3.65 percent in February, while wholesale prices shot up to a 39-month high of 6.55 percent. Some concerns also came with the Crisil’s report that the implementation of the Goods and Services Tax in 2017 coupled with rising commodities prices will put pressure on the retail inflation in FY18. Besides, caution prevailed ahead of the outcome of the US Federal Open Market Committee's meet later in the evening. On sectoral front, some of the tyre companies stocks were trading higher on expectation of an improvement in pricing power due decline in Chinese imports and falling rubber prices.

On the global front, European markets were trading in green ahead of central bank policy meetings, the Dutch election and developments surrounding Britain's triggering Article 50 to begin the formal Brexit. However, Asian markets were trading in red tracking overnight losses on the Wall Street. Back home, in scrip specific development, Talwalkars Better Value Fitness (TBVF) was trading in green after the company signed an MoU to acquire equity shares of Force Fitness India (SNAP), India’s third largest gym company and the exclusive master franchisee in India of ‘Snap Fitness Inc.’. TBVF will invest 50.01% equity in SNAP largely through funds in SNAP for growth.

The BSE Sensex is currently trading at 29417.86, down by 24.77 points or 0.08% after trading in a range of 29392.59 and 29500.08. There were 17 stocks advancing against 12 stocks declining on the index, while 1 stock remained unchanged.

The broader indices were trading in green; the BSE Mid cap index was up by 1.00%, while Small cap index was up by 0.66%.

The top gaining sectoral indices on the BSE were Telecom up by 1.57%, Realty up by 1.33%, Consumer Durables up by 0.83%, Auto up by 0.70% and Consumer Disc up by 0.69%, while IT down by 1.82% and TECK down by 1.22% were the few losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 1.52%, SBI up by 1.27%, Hero MotoCorp up by 1.11%, Adani Ports & SEZ up by 0.92% and ITC up by 0.75%. On the flip side, TCS down by 2.45%, Infosys down by 2.31%, Hindustan Unilever down by 1.36%, Wipro down by 0.89% and Larsen & Toubro down by 0.81% were the top losers.

Meanwhile, keeping an optimistic view from the much-awaited Goods and Services Tax (GST) regime, the Central Board of Excise and Customs (CBEC) is expecting an increment in tax figures. The CBEC Chairman Najib Shah has said that the ministry belief that the current level of tax will not be reduced for at least 5 years, it will remain same and noted that taxes are likely to increase a bit from the current level.

Shah pointing that the fitment of goods and services in the four tax slabs is under way, said that apart from the tax rates, there will also be a cess on top of it, which will form the corpus to compensate the states for any revenue loss for the first five years of implementation of GST and to which commodities will have the cess will be determined by the Council.

Shah expressed hope that the implementation of GST will lead to increase in GDP by 1-2 per cent and added that tax evasion should come down as all filings will be IT driven and evasion will get difficult. The CBEC Chairman also said that GST will ensure that the laws regarding the new indirect tax regime are finalised by April 1, so that the industry has three months to prepare for the transition.

The CNX Nifty is currently trading at 9088.85, up by 1.85 points or 0.02% after trading in a range of 9076.25 and 9105.35. There were 30 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Idea Cellular up by 9.36%, BHEL up by 3.50%, Bank of Baroda up by 3.45%, Tata Power up by 1.85% and Aurobindo Pharma up by 1.82%. On the flip side, TCS down by 2.67%, Infosys down by 2.40%, HCL Tech. down by 1.58%, Hindustan Unilever down by 1.27% and Wipro down by 0.91% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 35.1 points or 0.15% to 23,792.85, Nikkei 225 decreased 32.12 points or 0.16% to 19,577.38, FTSE Bursa Malaysia KLCI decreased 5.7 points or 0.33% to 1,716.77, Taiwan Weighted decreased 3.9 points or 0.04% to 9,740.31, Jakarta Composite decreased 3.53 points or 0.07% to 5,428.05 and KOSPI Index decreased 0.78 points or 0.04% to 2,133.00. On the flip side, Shanghai Composite increased 2.43 points or 0.08% to 3,241.76.

All the European markets were trading in green; France’s CAC increased 6.24 points or 0.13% to 4,980.50, UK’s FTSE 100 increased 21.62 points or 0.29% to 7,379.47 and Germany’s DAX increased 32.04 points or 0.27% to 12,020.83.