Indian equities markets end a lackluster session on a flat note

Indian equity markets prolonged the weakness for second straight day finished the session on a dull note, amid lack of global as well as domestic cues. Sentiments remained subdued with the report that the current account deficit soared to $3.4 billion, or 0.6 per cent of gross domestic product (GDP), in the fourth quarter of financial year 2017, from $0.3 billion a year ago. Balance of payments for the full financial year stood at $21.6 billion, while for Q4 the same stood at $7.31 billion. Some concerns also came with report that foreign portfolio investors (FPIs) sold shares worth a net Rs 645.35 crore on June 15, 2017. However, the downside for the markets was capped with the report that India’s exports grew 8.32 per cent to $24.01 billion in May, mainly on account of robust performance by sectors like petroleum, chemicals, engineering goods as well as gems and jewellery.

Some support also came with the report that government is looking to clear FDI proposals in the 11 sectors, such as defence, insurance and telecom, where approval is still required within eight to 10 weeks of receipt of application to boost the investment climate after the abolition of the Foreign Investment Promotion Board (FIPB). Meanwhile, sharp correction was witnessed in Healthcare and IT counters, while index heavyweights such as ITC, Tata Motors continued to support the market. Technology stocks declined on worries over outlook at a time when US President Donald Trump is contemplating tougher visa actions in a key market for software services exporters, while Pharma stocks slipped amid worries about their earnings outlook, because of pricing pressures in the United States. In scrip specific development, Ipca Laboratories slipped after the US Food and Drugs Administration (USFDA) refused admission to all drugs made at the company's Pithampur and Silvassa facility.

On the global front, Asian equity markets ended mostly higher on Friday, as oil prices steadied after two day of losses on supply concerns. Investors also heaved a sigh of relief after Greece and European creditors reached a deal on the next stages of Athens' €86bn bailout. Nikkei share average edged higher as the yen dropped, after an expected policy decision by the Bank of Japan (BOJ) provided relief to investors. BOJ also left unchanged a loose pledge to keep increasing bond holdings at an annual pace of 80 trillion yen ($729 billion). However, China's stocks ended lower as weak producer inflation and investment data reinforced concerns of a renewed slowdown in the world's second-biggest economy.

Back home, the market breadth remained optimistic, as there were 1375 shares on the gaining side against 1271 shares on the losing side, while 172 shares remained unchanged.

Finally, the BSE Sensex declined 19.33 points or 0.06% to 31056.40, while the CNX Nifty was up by 10 points or 0.1% to 9,588.05. 

The BSE Sensex touched a high and a low of 31182.73 and 31017.18, respectively and there were 13 stocks on gainers side as against 17 stocks on the losers side on the index.

The broader indices ended in green; the BSE Mid cap index gained 0.17%, while Small cap index was up by 0.14%.

The top gaining sectoral indices on the BSE were FMCG up by 0.58%, Consumer Durables up by 0.50%, Bankex up by 0.48%, Basic Materials up by 0.46% and Industrials up by 0.38%, while Healthcare down by 1.52%, IT down by 0.83%, TECK down by 0.68%, Capital Goods down by 0.14% and Metal down by 0.11% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 1.57%, ITC up by 1.46%, Adani Ports & SEZ up by 0.67%, SBI up by 0.63% and NTPC up by 0.53%. On the flip side, Lupin down by 4.56%, Sun Pharma down by 2.78%, Wipro down by 2.24%, Cipla down by 2.20% and Infosys down by 1.24% were the top losers.

Meanwhile, With an aim to curb corruption and harassment of taxpayers, the Central Board of Direct Taxes (CBDT) has formed a 13-member task force to chart the road map for its proposal of a jurisdiction-free I-T assessment system and e-scrutiny of taxpayers. Task force has been asked to submit its report on the new tax assessment process to the CBDT by July 31.

The CBDT, which frames policy for the tax department, has said that it formed the task force after it had agreed with the recommendations of an earlier committee that suggested changes in the age-old methods of assessment and scrutiny done by the taxman. The committee had suggested to the CBDT that departmental databases such as permanent account number (PAN) should be used to better the tax assessment system in the favour of the tax-paying public.

For conducting scrutiny assessments, the Income Tax Department has said that different category of taxpayers should be ‘segmented’ and a ‘new ecosystem’ should be created. The board also said that it had agreed for having a flexible function-specific jurisdiction for certain actions and pre- verification of information mismatch before full-fledged scrutiny.

The CNX Nifty traded in a range of 9,615.85 and 9,565.50. There were 25 stocks in green as against 26 stocks in red on the index.

The top gainers on Nifty were Tata Motors - DVR up by 3.20%, Kotak Mahindra Bank up by 2.27%, ACC up by 1.92%, Ultratech Cement up by 1.65% and Tata Motors up by 1.57%. On the flip side, Lupin down by 4.38%, Sun Pharma down by 2.74%, Cipla down by 2.62%, Wipro down by 2.40% and Indiabulls Housing down by 1.74% were the top losers.

The European markets were trading in green; UK’s FTSE 100 increased 52.41 points or 0.71% to 7,471.77, Germany’s DAX increased 55.09 points or 0.43% to 12,746.90 and France’s CAC increased 43.26 points or 0.83% to 5,260.14.

Asian equity markets ended mostly in green on Friday as the yen weakened and oil prices steadied after two day of losses on supply concerns. Investors also heaved a sigh of relief after Greece and European creditors reached a deal on the next stages of Athens' €86bn bailout. Japanese shares hit one-week highs as the yen weakened against other major currencies after the Bank of Japan kept its monetary policy on hold, as widely expected, while upgrading its assessment of private consumption and overseas growth. However, China's stocks ended lower as weak producer inflation and investment data reinforced concerns of a renewed slowdown in the world's second-biggest economy.