Markets trim losses but remain in red; metal stocks lose shine

Indian equity benchmarks trimmed their earlier losses in late afternoon session but remained in red, as investors waited for minutes of a June policy meet by the Reserve Bank of India (RBI) to gauge the direction of interest rates in the months ahead. Muted trend seen in Asian markets following a renewed slump in oil prices to seven-month lows, also impacted the domestic sentiments. Some concerns also came with CARE Ratings’ latest report that the fiscal deficit estimate for 2017-18 is set to rise to 3.35% from present 3.24% of GDP, impacted by Rs 17,780-crore shortfall in non-tax revenue (NTR) target from telecom services. However, the markets trimmed losses with taking support from Commerce secretary Rita Teaotia’s statement that the roll out of the goods and service tax (GST) from July 1 would not have any adverse impact on exports since exports are zero-rated. Meanwhile, the Central Board of Excise and Customs (CBEC) has notified 18 sections of the Central GST (CGST) Act which will be effective from June 22, 2017. The notified sections include - compulsory registration in certain cases, persons liable for registration, persons not liable for registration along with procedure for registration. The CBEC also notified two CGST Rule that are on registration and composition levy.

On the global front, European markets were trading in red, as investors prepared for news out of the U.K., while keeping a close eye on the oil market for any sharp price moves. Asian markets were also trading in red. Back home, in scrip specific development, Amtek Auto touched the roof after the company received expressions of interest from 21 investors, including asset reconstruction companies. Bain Capital, TPG Capital, DA Capital, and Piramal Enterprises all are planning to buy a stake in the debt-ridden Amtek Auto.

The BSE Sensex is currently trading at 31282.92, down by 14.61 points or 0.05% after trading in a range of 31193.61 and 31305.60. There were 16 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.18%, while Small cap index was up by 0.17%.

The top gaining sectoral indices on the BSE were Capital Goods up by 0.59%, FMCG up by 0.58%, Realty up by 0.52%, Power up by 0.16% and Utilities up by 0.01%, while Metal down by 0.99%, Oil & Gas down by 0.73%, IT down by 0.69%, TECK down by 0.59% and Auto down by 0.56% were the top losing indices on BSE.
The top gainers on the Sensex were Larsen & Toubro up by 1.02%, Hindustan Unilever up by 0.98%, Sun Pharma up by 0.88%, Kotak Mahindra Bank up by 0.75% and ITC up by 0.71%. On the flip side, ONGC down by 2.10%, Tata Motors down by 1.96%, Tata Motors - DVR down by 1.60%, Cipla down by 1.40% and Lupin down by 1.38% were the top losers.

Meanwhile, terming the rollout of the Goods and Services Tax (GST) as historic event, Prime Minister Narendra Modi has said that India would set an example for the world with implementation of it. He further said that the world will witness a transformation in the country and will get to know efforts of all the political parties of different ideologies which have been united for the implementation of the GST.

PM said that the new tax regime will prove to be a miracle and the government will try to overcome difficulties. Modi while listing the various initiatives like changes in policy norms and allowance to 100 per cent FDI in defence sector, said that the government is moving forward with the dream of how to make India self-dependent in the field of defence & security.

India's long-awaited GST is all set to be launched at a grand function in the Central Hall of Parliament on the midnight of June 30 in the presence of several dignitaries, including President Pranab Mukherjee, Vice President M.Hamid Ansari and Prime Minister Modi, besides other luminaries. The GST is expected to lead to higher revenues for the Centre and the states, while also increasing the size of the economy and having a positive impact on the GDP.

The CNX Nifty is currently trading at 9630.10, down by 23.40 points or 0.24% after trading in a range of 9608.60 and 9650.45. There were 18 stocks advancing against 32 stocks declining on the index, while 1 stock remained unchanged.

The top gainers on Nifty were Hindustan Unilever up by 1.14%, Larsen & Toubro up by 1.08%, Sun Pharma up by 0.85%, ITC up by 0.63% and Bank of Baroda up by 0.57%. On the flip side, Hindalco down by 2.67%, ONGC down by 2.42%, Tata Motors down by 2.12%, Cipla down by 1.85% and Bosch down by 1.76% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 148.46 points or 0.57% to 25,694.58, Nikkei 225 decreased 91.62 points or 0.45% to 20,138.79, KOSPI Index decreased 11.7 points or 0.49% to 2,357.53 and FTSE Bursa Malaysia KLCI decreased 6.06 points or 0.34% to 1,774.65. On the flip side, Jakarta Composite increased 0.68 points or 0.01% to 5,792.58, Shanghai Composite increased 16.2 points or 0.52% to 3,156.21 and Taiwan Weighted increased 25.26 points or 0.24% to 10,349.72.

All European markets were trading red; Germany’s DAX decreased 92.75 points or 0.72% to 12,722.04, France’s CAC dropped 58.21 points or 1.1% to 5,235.44 and UK’s FTSE 100 was down by 26.25 points or 0.35% to 7,446.46.